TSX:IBG

Stock Analysis Report

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Executive Summary

IBI Group Inc. provides various professional services in Canada, the United States, the United Kingdom, and internationally. More Details


Snowflake Analysis

Solid track record with excellent balance sheet.

Share Price & News

How has IBI Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IBG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.9%

IBG

-0.5%

CA Professional Services

-1.2%

CA Market


1 Year Return

39.0%

IBG

23.8%

CA Professional Services

-4.5%

CA Market

Return vs Industry: IBG exceeded the Canadian Professional Services industry which returned 23.8% over the past year.

Return vs Market: IBG exceeded the Canadian Market which returned -3.8% over the past year.


Shareholder returns

IBGIndustryMarket
7 Day6.9%-0.5%-1.2%
30 Day-0.4%5.3%-0.03%
90 Day33.1%12.1%0.9%
1 Year39.0%39.0%26.3%23.8%-1.0%-4.5%
3 Year-3.4%-3.4%82.5%56.5%6.4%-4.0%
5 Year225.7%225.7%120.4%77.6%34.5%13.8%

Price Volatility Vs. Market

How volatile is IBI Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is IBI Group undervalued compared to its fair value and its price relative to the market?

11.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IBG (CA$6.84) is trading above our estimate of fair value (CA$5.69)

Significantly Below Fair Value: IBG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: IBG is good value based on its PE Ratio (11.2x) compared to the CA Professional Services industry average (25.4x).

PE vs Market: IBG is good value based on its PE Ratio (11.2x) compared to the Canadian market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: IBG is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: IBG is overvalued based on its PB Ratio (4.2x) compared to the CA Professional Services industry average (3.8x).


Next Steps

Future Growth

How is IBI Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

8.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IBG's forecast earnings growth (8.6% per year) is above the savings rate (1.7%).

Earnings vs Market: IBG's earnings (8.6% per year) are forecast to grow slower than the Canadian market (22.8% per year).

High Growth Earnings: IBG's earnings are forecast to grow, but not significantly.

Revenue vs Market: IBG's revenue is expected to decline over the next 3 years (-1.6% per year).

High Growth Revenue: IBG's revenue is forecast to decline over the next 3 years (-1.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if IBG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has IBI Group performed over the past 5 years?

24.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IBG has high quality earnings.

Growing Profit Margin: IBG's current net profit margins (4%) are higher than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: IBG has become profitable over the past 5 years, growing earnings by 24.8% per year.

Accelerating Growth: IBG's earnings growth over the past year (27.5%) exceeds its 5-year average (24.8% per year).

Earnings vs Industry: IBG earnings growth over the past year (27.5%) exceeded the Professional Services industry 4.1%.


Return on Equity

High ROE: Whilst IBG's Return on Equity (34.04%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is IBI Group's financial position?


Financial Position Analysis

Short Term Liabilities: IBG's short term assets (CA$226.7M) exceed its short term liabilities (CA$110.1M).

Long Term Liabilities: IBG's short term assets (CA$226.7M) exceed its long term liabilities (CA$157.2M).


Debt to Equity History and Analysis

Debt Level: IBG's debt to equity ratio (130.2%) is considered high.

Reducing Debt: IBG had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: IBG's debt is well covered by operating cash flow (62.8%).

Interest Coverage: IBG's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet


Next Steps

Dividend

What is IBI Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate IBG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate IBG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if IBG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IBG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: IBG is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IBG's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.6yrs

Average management tenure


CEO

Scott Stewart

7.17yrs

Tenure

CA$1,268,527

Compensation

Mr. Scott E. Stewart, P. Eng., has been the Chief Executive Officer of IBI Group Inc. since August 8, 2013 and has been with the firm since 1983. Mr. Stewart served as a Co-President of IBI Group Inc. unti ...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD963.97K) is above average for companies of similar size in the Canadian market ($USD621.50K).

Compensation vs Earnings: Scott's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Scott Stewart
CEO & Director7.17yrsCA$1.27m0.98%
CA$ 2.5m
David Thom
President & Director16.25yrsCA$1.08m0.10%
CA$ 261.4k
Stephen Taylor
Chief Financial Officer6.58yrsCA$561.34kno data
Steven Kresak
General Counsel & Corporate Secretary1.17yrsno datano data
Katrina Stevens
Global Director of Human Resources1.75yrsno datano data
Neal Irwin
Chairman Emeritus of IBI Group Partnershipno datano datano data
Elvin Karpovich
Director of Planning & Landscape Architectureno datano datano data

6.6yrs

Average Tenure

Experienced Management: IBG's management team is seasoned and experienced (6.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Scott Stewart
CEO & Director7.17yrsCA$1.27m0.98%
CA$ 2.5m
David Thom
President & Director16.25yrsCA$1.08m0.10%
CA$ 261.4k
Dale Richmond
Independent Chairman6.58yrsCA$162.56k0.18%
CA$ 454.7k
Michael Nobrega
Independent Director3.42yrsCA$118.56k0.089%
CA$ 226.5k
Paula Sinclair
Independent Director0.42yrno datano data
John Reid
Independent Director3.42yrsCA$120.06kno data
Claudia Krywiak
Independent Director2.42yrsCA$120.06kno data

3.4yrs

Average Tenure

Experienced Board: IBG's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: IBG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

IBI Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: IBI Group Inc.
  • Ticker: IBG
  • Exchange: TSX
  • Founded: 1974
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Implied Market Cap: CA$253.651m
  • Market Cap: CA$211.183m
  • Shares outstanding: 37.52m
  • Website: https://www.ibigroup.com

Number of Employees


Location

  • IBI Group Inc.
  • 55 Street Clair Avenue West
  • 7th Floor
  • Toronto
  • Ontario
  • M4V 2Y7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IBGTSX (The Toronto Stock Exchange)YesCommon SharesCACADAug 2004
IBIB.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 2004
5IBDB (Deutsche Boerse AG)YesCommon SharesDEEURAug 2004

Biography

IBI Group Inc. provides various professional services in Canada, the United States, the United Kingdom, and internationally. Its professional services include urban design and planning, architecture, civil ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/19 23:47
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.