Thursday, February 26, 2009

CI Financial

This stock (TSX-CIX) is on the Dividend Achievers list at and the Dividend Aristocrats list at (see indices). Today I will review how this stock has done in the past. Tomorrow I will look at it now and for the future. This is also a stock I follow; however, I do not own any.

All my following figures are for the year ending at the last annual statement of December 2007. The revenue growth for the last 5 and 10 years was 26% and 28% per year. The 5 and 10 years growth for Earnings per Share (EPS) was 63% and 40% per year. If you look at the spreadsheet, you will see the huge increase for 2007. The 5 and 10 year figures for Dividend growth is 105% and 70%. However, this will not be maintained as this stock has changed from an Income Trust and the dividends will be decreased considerably.

The 5 and 10 year figures for the stock price growth was 23% and 31% per year. The stock is now down 50%, but this has more to do with this being a financial stock and the bear market, than the fact that dividends are down due to change to the company’s structure from an Income Trust to a corporation. The 5 and 10 year figures for cash flow is 9% and 20% per year. The 5 and 10 years for Book Value growth is 23% and 28% per year. All the figures above are more than great, but they will moderate as this company comes out of the bear market and resumes its business as a corporation. They have already pulled back on the Dividends.

The Return on Equity (ROE) is also very good as it is 43% for 2007 and the 5 year average is 22.8%. The Liquidity Ratio is low at .79 and it is lower than the 5 year average of .97. What I like to see is a Liquidity Ratio of at least 1.50. The Asset/Liability Ratio is very good at 1.67. This is also down from the 5 year average of 2.27, but any ratio over 1.50 is good here also.

The only thing really to complain about is the Accrual Ratio that is at 7.89%. With this figure, anything over 5% is very high. I also note that the 2008 Report has just come out, so I will review that tomorrow. Some this stocks growth figures are truly great. I have looked at this stock before, but for a while it seemed to be doing nothing much. However, it has certainly done well of late.

CI Financial Corp. is a diversified wealth management firm and one of Canada’s largest investment fund companies. CI is an Independent and Canadian-owned company. It is 37% owned by Sun Life. CI became a public company in June 1994 and it was listed on the Toronto Stock Exchange. They because an Income Trust in 2006 and effective January 1, 2009, CI converted back to a corporation. Its web site is See my spreadsheet on this company at

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at for a list of the stocks for which I have put up spreadsheets on my web site.

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