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1. Company Snapshot

1.a. Company Description

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.


It also invests in G.A.R.P. and value stocks of large-cap companies.The firm also makes investments in income trusts and preferred shares.It also applies exclusions to be fossil fuel free, integrates environmental, social, and governance considerations, and applies an ethical filter while making its investments.


The firm employs fundamental and quantitative analysis along with bottom-up stock picking approach to create its equity portfolios.It employs a top-down macro-economic research to make its fixed income investments.The firm also makes alternative investments, including the use of long/short equity strategy.


It benchmarks the performance of its portfolio against the S&P/TSX Index, MSCI ACWI Index, S&P/TSX Composite FFF Index, and S&P 500 indices.The firm conducts in-house research to make its investments.It makes investments in social infrastructure with a focus on affordable housing and community health care facilities and also makes investment in solar and wind power generation, transport, and mid-market assets.


It typically invests in Canada.It was formerly known as Fiera Sceptre Inc.Fiera Capital Corporation was founded in 2002 and is based in Montréal, Canada with an additional office in Toronto, Canada, Calgary, Canada, and Vancouver, Canada.

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1.b. Last Insights on FSZ

Fiera Capital Corporation's recent performance was negatively impacted by a series of events. The company announced a $70 million bought deal public offering of 7.75% Senior Subordinated Unsecured Debentures, which may indicate a need for additional capital. Furthermore, Fiera Capital will wind down its Canadian Equity Small Capitalization and Canadian Equity Microcap Opportunity strategies, which could lead to a decline in revenue. Additionally, the company's Annual and Special Meeting of Shareholders was scheduled for May 22, 2025, which may have distracted management's attention from operational matters.

1.c. Company Highlights

2. Fiera Capital's Mixed Q4 2025 Earnings: A Closer Look

Fiera Capital reported adjusted net earnings of $108 million for the full year 2025, a 5% increase from $103 million in the prior year, with adjusted EBITDA reaching $194 million. However, total revenues declined by $16 million or 2% year-over-year, largely due to lower sub-advised mandates and performance fees in public markets. The actual EPS came out at $0.06056, significantly lower than the estimated $0.276. The company's P/E Ratio stands at 15.96, indicating that the stock might be overvalued considering the earnings miss.

Publication Date: Mar -06

📋 Highlights
  • Total AUM Growth:: Assets under management reached $164.1 billion, reflecting a 5.7% annual increase and 0.4% quarterly growth.
  • Private Market Expansion:: Private market AUM surged to $22 billion (+11.4% YoY), contributing 37% of total revenues, driven by $11 million (+6% YoY) higher base management fees.
  • Revenue Mix Shift:: Total revenues declined by 2% ($16 million) YoY due to lower sub-advised mandates and performance fees, despite private market growth.
  • Cost Efficiency:: Operating expenses fell 3% ($14 million) YoY to $479 million, aided by cost containment, while debt was reduced by $67 million via credit facility proceeds.

Assets Under Management Growth

Total assets under management ended the year at $164.1 billion, with a 5.7% increase for the year and 0.4% for the quarter. Public markets AUM reached $142.1 billion, increasing 4.7% for the year, while private market assets under management ended the year at $22 billion, up 11.4% from the prior year. The company captured new mandates of $3.2 billion in public markets, with strong interest in Canadian large-cap, U.S., and emerging market strategies.

Revenue Streams and Expenses

Private market revenues generated 37% of the company's total revenues for the year, with base management fees increasing $11 million or 6% from the prior year. Expenses, excluding share-based compensation, were $479 million for the full year, down $14 million or 3% due to ongoing cost containment initiatives and lower sub-advised fees. As Lucas Pontillo mentioned, "adjusted EBITDA was $194 million, with margin growth due to higher performance fees and commitment and transaction fees."

Growth Prospects and Strategic Initiatives

The company is targeting 11% growth in assets under management (AUM) and expects to deploy capital on a major mandate won last year. Fiera Capital has outlined a 3-year plan to accelerate growth, focusing on distribution efforts, investment performance, and operational efficiency. The plan includes strategic initiatives such as strengthening distribution channels, enhancing performance management processes, and optimizing operations. With a leverage ratio target of 2.5x on the net debt side, the company aims to achieve this by paying down debt and increasing EBITDA.

Valuation and Outlook

Given the current P/B Ratio of 2.39 and EV/EBITDA of 9.0, the market seems to have priced in a certain level of growth and profitability. Analysts estimate revenue growth at 3.6% for the next year. The Dividend Yield stands at 9.25%, which is attractive for income-seeking investors. However, the Net Debt / EBITDA ratio of 4.99 indicates a significant debt burden, which the company plans to address through its 3-year plan. Overall, Fiera Capital's mixed earnings report and growth prospects warrant a closer look at the company's valuation and strategic initiatives.

3. NewsRoom

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Fiera Capital announces the Deferral of Termination of the imaxx Canadian Fixed Pay Fund

Mar -06

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Fiera Capital Q4 Earnings Call Highlights

Mar -01

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Fiera Capital Corp (FRRPF) Q4 2025 Earnings Call Highlights: Strong AUM Growth Amid Revenue ...

Feb -26

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Fiera Capital Q4 Adjusted Net Earnings Rise, Despite Lower Total Revenues

Feb -26

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Fiera Infrastructure Private Debt Provides Additional Development Capital Financing to Starlight

Feb -24

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Fiera Infrastructure Private Debt Provides Additional Development Capital Financing to Starlight

Feb -24

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Independent Advisor Solutions partners with J.P. Morgan Asset Management to launch new U.S. Active Equities MiBLOX

Feb -19

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1919 Investment Counsel Expands Portfolio Management Team in New York with Key Hires

Jan -21

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.00%)

6. Segments

Asset Management Services

Expected Growth: 3.0%

Fiera Capital Corporation's 3.0% growth in Asset Management Services is driven by increasing demand for diversified investment portfolios, expansion into new markets, and strategic acquisitions. Additionally, the company's expertise in alternative investments and ESG solutions resonates with institutional clients seeking sustainable returns. Effective cost management and operational efficiencies also contribute to the segment's growth.

7. Detailed Products

Equity Strategies

Fiera Capital Corporation offers a range of equity strategies that cater to different investor needs, including core equity, dividend-focused, and small-cap equity portfolios.

Fixed Income Strategies

The company provides a variety of fixed income strategies, including government bonds, corporate bonds, and high-yield bonds, to help investors generate income and manage risk.

Alternative Investments

Fiera Capital Corporation offers alternative investment solutions, including real estate, private equity, and infrastructure investments, to provide diversification and potentially higher returns.

Multi-Asset Strategies

The company provides multi-asset strategies that combine different asset classes to provide a balanced portfolio and manage risk.

Sustainable Investing

Fiera Capital Corporation offers sustainable investment solutions that integrate environmental, social, and governance (ESG) factors to promote responsible investing.

Private Wealth Management

The company provides private wealth management services, including customized investment portfolios and wealth planning, to high-net-worth individuals and families.

8. Fiera Capital Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Fiera Capital Corporation operates in a highly competitive industry, and there are many substitutes available to clients. However, the company's strong brand reputation and diversified product offerings help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Fiera Capital Corporation's clients are primarily institutional investors, who have limited bargaining power due to the company's strong market position and diversified product offerings.

Bargaining Power Of Suppliers

Fiera Capital Corporation has a diversified supplier base, and the company's scale and market position give it significant bargaining power over its suppliers.

Threat Of New Entrants

The asset management industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This limits the threat of new entrants to Fiera Capital Corporation.

Intensity Of Rivalry

The asset management industry is highly competitive, with many established players competing for market share. Fiera Capital Corporation must continually innovate and differentiate itself to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 67.43%
Debt Cost 9.09%
Equity Weight 32.57%
Equity Cost 12.35%
WACC 10.15%
Leverage 207.03%

11. Quality Control: Fiera Capital Corporation passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
NAF 15 Split

A-Score: 8.1/10

Value: 7.5

Growth: 7.6

Quality: 8.2

Yield: 10.0

Momentum: 7.5

Volatility: 8.0

1-Year Total Return ->

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Gladstone Capital

A-Score: 7.2/10

Value: 6.2

Growth: 8.9

Quality: 7.1

Yield: 10.0

Momentum: 2.0

Volatility: 9.0

1-Year Total Return ->

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Hennessy Advisors

A-Score: 6.7/10

Value: 8.2

Growth: 4.1

Quality: 8.2

Yield: 10.0

Momentum: 3.5

Volatility: 6.0

1-Year Total Return ->

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Portman Ridge Finance

A-Score: 6.6/10

Value: 7.8

Growth: 4.7

Quality: 5.8

Yield: 10.0

Momentum: 1.5

Volatility: 10.0

1-Year Total Return ->

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Grosvenor Capital Management

A-Score: 6.4/10

Value: 5.1

Growth: 4.3

Quality: 6.1

Yield: 8.0

Momentum: 5.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Fiera Capital

A-Score: 5.8/10

Value: 6.0

Growth: 3.6

Quality: 6.3

Yield: 10.0

Momentum: 1.0

Volatility: 7.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.28$

Current Price

5.28$

Potential

-0.00%

Expected Cash-Flows