TSX:IBG

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.8%

IBG

-0.2%

CA Professional Services

0.2%

CA Market


1 Year Return

16.6%

IBG

23.9%

CA Professional Services

2.4%

CA Market

Return vs Industry: IBG underperformed the Canadian Professional Services industry which returned 23.9% over the past year.

Return vs Market: IBG exceeded the Canadian Market which returned 2.4% over the past year.


Shareholder returns

IBGIndustryMarket
7 Day3.8%-0.2%0.2%
30 Day-1.0%-1.1%-3.3%
90 Day-3.5%-2.3%-1.8%
1 Year16.6%16.6%26.9%23.9%6.0%2.4%
3 Year-25.9%-25.9%57.4%44.7%14.2%4.0%
5 Year105.0%105.0%102.8%75.6%27.2%8.6%

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?

10.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IBG (CA$4.92) is trading above our estimate of fair value (CA$4.17)

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 (10.3x) compared to the Professional Services industry average (19x).

PE vs Market: IBG is good value based on its PE Ratio (10.3x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

PEG Ratio: IBG is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: IBG is overvalued based on its PB Ratio (4.6x) compared to the CA Professional Services industry average (2.2x).


Next Steps

Future Growth

How is IBI Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

19.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IBG's forecast earnings growth (19.3% per year) is above the savings rate (1.9%).

Earnings vs Market: IBG's earnings (19.3% per year) are forecast to grow faster than the Canadian market (12.9% 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 (-4.6% per year).

High Growth Revenue: IBG's revenue is forecast to decline over the next 3 years (-4.6% 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?

65.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: IBG has become profitable over the past 5 years, growing earnings by 65% per year.

Accelerating Growth: IBG's earnings growth over the past year (57.8%) is below its 5-year average (65% per year).

Earnings vs Industry: IBG earnings growth over the past year (57.8%) exceeded the Professional Services industry -31.4%.


Return on Equity

High ROE: Whilst IBG's Return on Equity (39.76%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: IBG has a higher Return on Assets than the Professional Services industry average last year.


Return on Capital Employed

ROCE Improving: IBG's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is IBI Group's financial position?


Financial Position Analysis

Short Term Liabilities: IBG's short term assets (CA$218.2M) exceeds its short term liabilities (CA$93.2M)

Long Term Liabilities: IBG's short term assets (218.2M) exceeds its long term liabilities (196.6M)


Debt to Equity History and Analysis

Debt Level: IBG's debt to equity ratio (249.3%) 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 (24.5%).

Interest Coverage: IBG's interest payments on its debt are not well covered by EBIT (3x coverage).


Balance Sheet

Inventory Level: IBG has a high level of physical assets or inventory.

Debt Coverage by Assets: IBG's debt is covered by short term assets (assets are 1.935900x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.0%markettop25%6.0%industryaverage1.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

What is the CEO of IBI Group's salary, the management and board of directors tenure and is there insider trading?

5.6yrs

Average management tenure


CEO

Scott Stewart 0

6.2yrs

Tenure

CA$1,178,623

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 ($USD899.52K) is about average for companies of similar size in the Canadian market ($USD136.47K).

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


Management Age and Tenure

5.6yrs

Average Tenure

Experienced Management: IBG's management team is seasoned and experienced (5.6 years average tenure).


Board Age and Tenure

5.6yrs

Average Tenure

Experienced Board: IBG's board of directors are considered experienced (5.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyCA$19,88626 Aug 19
IBI Group Management Partnership
EntityCompany
Shares4,000
Max PriceCA$4.97
BuyCA$56,77023 Aug 19
Carl Clayton
EntityIndividual
Shares11,400
Max PriceCA$5.01
BuyCA$25,85022 Aug 19
IBI Group Management Partnership
EntityCompany
Shares5,000
Max PriceCA$5.17
BuyCA$25,08821 Aug 19
IBI Group Management Partnership
EntityCompany
Shares5,000
Max PriceCA$5.02
BuyCA$8,59720 Aug 19
Carl Clayton
EntityIndividual
Shares1,800
Max PriceCA$4.78
BuyCA$25,33620 Aug 19
IBI Group Management Partnership
EntityCompany
Shares5,000
Max PriceCA$5.07
BuyCA$12,01419 Aug 19
IBI Group Management Partnership
EntityCompany
Shares2,500
Max PriceCA$4.81
BuyCA$31,05013 Aug 19
Michael Nobrega
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,200
Max PriceCA$5.01
BuyCA$37,98528 Jun 19
Carl Clayton
EntityIndividual
Shares7,600
Max PriceCA$5.00
BuyCA$36,20002 Jan 19
Scott Stewart
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares9,400
Max PriceCA$3.90

Ownership Breakdown


Management Team

  • Scott Stewart

    CEO & Director

    • Tenure: 6.2yrs
    • Compensation: CA$1.18m
  • David Thom

    President & Director

    • Tenure: 15.3yrs
    • Compensation: CA$999.00k
  • Neal Irwin

    Chairman Emeritus of IBI Group Partnership

    • Tenure: 0yrs
  • Stephen Taylor (61yo)

    Chief Financial Officer

    • Tenure: 5.6yrs
    • Compensation: CA$491.00k
  • Steven Kresak

    General Counsel & Corporate Secretary

    • Tenure: 0.2yrs
  • Charles Finley

    Global Director of Marketing & Communications

    • Tenure: 0yrs
  • Katrina Stevens

    Global Director of Human Resources

    • Tenure: 0.8yrs

Board Members

  • Dale Richmond

    Independent Chairman

    • Tenure: 5.6yrs
    • Compensation: CA$168.32k
  • Michael Nobrega

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: CA$122.82k
  • Scott Stewart

    CEO & Director

    • Tenure: 6.2yrs
    • Compensation: CA$1.18m
  • David Thom

    President & Director

    • Tenure: 15.3yrs
    • Compensation: CA$999.00k
  • Lorraine Bell

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: CA$133.82k
  • John Reid

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: CA$122.82k
  • Claudia Krywiak

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: CA$74.40k

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$187.536m
  • Market Cap: CA$153.627m
  • Shares outstanding: 37.51m
  • 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 design and planning, architecture, civil engin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 00:18
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.