Fiera Capital (TSE:FSZ) Releases Earnings Results

Fiera Capital (TSE:FSZ) issued its earnings results on Friday. The company reported C$0.03 EPS for the quarter, FiscalAI reports. The business had revenue of C$155.14 million during the quarter. Fiera Capital had a net margin of 5.98% and a return on equity of 7.80%.

Here are the key takeaways from Fiera Capital’s conference call:

• Flows were challenging: quarterly public-market net outflows excluding sub-advised mandates were CAD 2.2 billion, while sub-advised outflows reached CAD 5.3 billion. Management also expects an additional CAD 1.5 billion transfer to PineStone and a roughly CAD 500 million equity-mandate redemption in the third quarter.
• Total AUM rose 2.1% sequentially to CAD 163.5 billion as market appreciation more than offset net outflows, but lower average public-market AUM and an unfavorable asset mix reduced base management fees.
• Private Markets continued to build momentum, with approximately CAD 100 million in new mandates, more than CAD 115 million in net inflows, CAD 500 million deployed during the quarter, and a CAD 1.9 billion pipeline of undeployed capital. Demand was strongest in real estate and private credit, including a new note feeder for life insurers.
• Investment performance improved across several flagship strategies, including large-cap and emerging-market equities, while 91% of fixed-income AUM outperformed its benchmark over the past year. Fiera also appointed Nicholas Smart to lead Canadian Large Cap Equities following actions related to professional-conduct standards.
• Management emphasized cost discipline, with year-to-date SG&A down 5.5% and the adjusted EBITDA margin stable at 27%, despite lower revenue. The company renewed its normal-course issuer bid for up to CAD 4 million of share repurchases, maintained a dividend payout ratio below 50% of free cash flow, and expects leverage to decline in the second half.

Fiera Capital Trading Down 6.3%

TSE:FSZ traded down C$0.32 on Friday, reaching C$4.75. The company’s stock had a trading volume of 1,000,986 shares, compared to its average volume of 298,626. Fiera Capital has a 12-month low of C$4.59 and a 12-month high of C$7.02. The stock has a 50 day moving average price of C$5.21 and a 200 day moving average price of C$5.49. The firm has a market cap of C$503.81 million, a price-to-earnings ratio of 25.00, a price-to-earnings-growth ratio of -0.87 and a beta of 1.04. The company has a quick ratio of 1.05, a current ratio of 21.93 and a debt-to-equity ratio of 344.23.

Analysts Set New Price Targets

A number of research firms have commented on FSZ. Desjardins cut their price objective on shares of Fiera Capital from C$6.50 to C$6.25 and set a “hold” rating for the company in a report on Monday, April 27th. National Bank Financial dropped their price target on Fiera Capital from C$6.00 to C$5.50 and set a “sector perform” rating for the company in a research report on Monday, July 27th. Finally, Royal Bank Of Canada set a C$6.00 price target on Fiera Capital and gave the company a “sector perform” rating in a report on Tuesday, April 28th. One equities research analyst has rated the stock with a Moderate Buy rating, Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of C$4.75.

About Fiera Capital

Fiera Capital Corporation is an employee owned investment manager. The firm primarily provides its services to institutional investors, mutual funds, charitable organizations, and private clients. It manages separate client-focused equity, fixed income, and balanced portfolios. The firm also launches and manages equity, fixed income, and balanced mutual funds and income trusts for its clients. It invests in the public equity and fixed income markets across the globe with a focus on Canada. The firm primarily invests in growth and value stocks of small-cap companies.