CIX reported today.
Would you be able to provide your take? Specifically, was it actually a good quarter? Are things looking up? Are the chances high that CIX gets to $20...and beyond?
Thank you!
It was a good quarter, and better than estimates. CI Financial is demonstrating continued progress on strategic initiatives across its three business lines. Marginal outflows in Asset Management were slightly better than the industry, though a fee-margin decline of 4 bps reflects continued mix shift toward short-term products, which weighs on fees as market uncertainty prevails. US Wealth integration is improving as Ebitda margin showed improvement. The 20% sale of this business facilitated deleveraging and share buybacks, providing C$40 million in annual interest and dividend payment savings, clearing the way for an 11% dividend increase, which has room to grow. Also of note is the Coriel acquisition, furthering CI's Canadian high-net worth focus, and expansion its custody platform, adding C$15 million in run-rate Ebitda. $20 is not out of reach, over time. Even with a 25% gain this year, the stock trades at only 5X earnings right now.