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IGM Financial

TSX:IGM
Snowflake Description

6 star dividend payer with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
IGM
TSX
CA$9B
Market Cap
  1. Home
  2. CA
  3. Diversified Financials
Company description

IGM Financial Inc., a financial services company, manages and distributes investment funds and other managed asset products in Canada. The last earnings update was 70 days ago. More info.


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IGM Share Price and Events
7 Day Returns
2.7%
TSX:IGM
1.4%
CA Capital Markets
1.2%
CA Market
1 Year Returns
-2.3%
TSX:IGM
-4.3%
CA Capital Markets
4.1%
CA Market
IGM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
IGM Financial (IGM) 2.7% 7.7% 10.4% -2.3% -6.8% -31.4%
CA Capital Markets 1.4% 4.4% 10% -4.3% 13.2% -15.9%
CA Market 1.2% 2.4% 7.9% 4.1% 15.3% 7.4%
1 Year Return vs Industry and Market
  • IGM outperformed the Capital Markets industry which returned -4.3% over the past year.
  • IGM underperformed the Market in Canada which returned 4.1% over the past year.
Price Volatility
IGM
Industry
5yr Volatility vs Market

IGM Value

 Is IGM Financial undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of IGM Financial to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for IGM Financial.

TSX:IGM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= CA$19.00 * 15.8%
CA$3.00
Book Value of Equity per Share Median Book Value from the past 5 years. CA$19.00
Discount Rate (Cost of Equity) See below 9%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:IGM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 1.1
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.101 (1 + (1- 26.5%) (21.06%))
1.182
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.18
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.182 * 5.96%)
8.99%

Discounted Cash Flow Calculation for TSX:IGM using Excess Returns Model Model

The calculations below outline how an intrinsic value for IGM Financial is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

TSX:IGM Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (15.8% – 8.99%) * CA$19.00)
CA$1.30
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= CA$1.30 / (8.99% - 1.95%)
CA$18.39
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= CA$19.00 + CA$18.39
CA$37.38
TSX:IGM Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$37.38
Current discount Discount to share price of CA$36.58
= -1 x (CA$36.58 - CA$37.38) / CA$37.38
2.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price IGM Financial is available for.
Intrinsic value
2%
Share price is CA$36.58 vs Future cash flow value of CA$37.38
Current Discount Checks
For IGM Financial to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • IGM Financial's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • IGM Financial's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for IGM Financial's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are IGM Financial's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:IGM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CAD CA$3.19
TSX:IGM Share Price ** TSX (2019-04-18) in CAD CA$36.58
Canada Capital Markets Industry PE Ratio Median Figure of 16 Publicly-Listed Capital Markets Companies 13.15x
Canada Market PE Ratio Median Figure of 556 Publicly-Listed Companies 15.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of IGM Financial.

TSX:IGM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:IGM Share Price ÷ EPS (both in CAD)

= 36.58 ÷ 3.19

11.48x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • IGM Financial is good value based on earnings compared to the CA Capital Markets industry average.
  • IGM Financial is good value based on earnings compared to the Canada market.
Price based on expected Growth
Does IGM Financial's expected growth come at a high price?
Raw Data
TSX:IGM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.48x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
0.5%per year
North America Capital Markets Industry PEG Ratio Median Figure of 36 Publicly-Listed Capital Markets Companies 2.65x
Canada Market PEG Ratio Median Figure of 257 Publicly-Listed Companies 1.21x

*Line of best fit is calculated by linear regression .

TSX:IGM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.48x ÷ 0.5%

24.32x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • IGM Financial is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on IGM Financial's assets?
Raw Data
TSX:IGM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CAD CA$18.48
TSX:IGM Share Price * TSX (2019-04-18) in CAD CA$36.58
Canada Capital Markets Industry PB Ratio Median Figure of 118 Publicly-Listed Capital Markets Companies 1.44x
Canada Market PB Ratio Median Figure of 2,375 Publicly-Listed Companies 1.52x
TSX:IGM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:IGM Share Price ÷ Book Value per Share (both in CAD)

= 36.58 ÷ 18.48

1.98x

* Primary Listing of IGM Financial.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • IGM Financial is overvalued based on assets compared to the CA Capital Markets industry average.
X
Value checks
We assess IGM Financial's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. IGM Financial has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

IGM Future Performance

 How is IGM Financial expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
0.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is IGM Financial expected to grow at an attractive rate?
  • IGM Financial's earnings growth is positive but not above the low risk savings rate of 1.9%.
Growth vs Market Checks
  • IGM Financial's earnings growth is positive but not above the Canada market average.
  • IGM Financial's revenues are expected to decrease over the next 1-3 years, this is below the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:IGM Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:IGM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 0.5%
TSX:IGM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts -1.6%
Canada Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 5.8%
Canada Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average -2.7%
Canada Market Earnings Growth Rate Market Cap Weighted Average 18.2%
Canada Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:IGM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:IGM Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 3,321 554 781 4
2019-12-31 3,210 631 745 4
TSX:IGM Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2018-12-31 3,414 785 767
2018-09-30 3,411 759 638
2018-06-30 3,352 708 613
2018-03-31 3,326 671 610
2017-12-31 3,292 672 602
2017-09-30 3,295 710 784
2017-06-30 3,298 749 809
2017-03-31 3,244 823 781
2016-12-31 3,173 737 770
2016-09-30 3,122 760 711
2016-06-30 3,098 698 713
2016-03-31 3,116 609 738

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • IGM Financial's earnings are expected to grow by 0.5% yearly, however this is not considered high growth (20% yearly).
  • IGM Financial's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:IGM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from IGM Financial Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:IGM Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 3.26 3.33 3.19 2.00
2019-12-31 3.09 3.11 3.07 2.00
TSX:IGM Past Financials Data
Date (Data in CAD Millions) EPS *
2018-12-31 3.19
2018-09-30 2.65
2018-06-30 2.55
2018-03-31 2.54
2017-12-31 2.50
2017-09-30 3.26
2017-06-30 3.36
2017-03-31 3.24
2016-12-31 3.19
2016-09-30 2.93
2016-06-30 2.92
2016-03-31 3.00

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • IGM Financial is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess IGM Financial's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
IGM Financial has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

IGM Past Performance

  How has IGM Financial performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare IGM Financial's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • IGM Financial's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • IGM Financial's 1-year earnings growth exceeds its 5-year average (27.5% vs -3.1%)
  • IGM Financial's earnings growth has not exceeded the CA Capital Markets industry average in the past year (27.5% vs 40.3%).
Earnings and Revenue History
IGM Financial's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from IGM Financial Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:IGM Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 3,414.27 767.32 56.82
2018-09-30 3,410.93 638.03 56.14
2018-06-30 3,352.28 613.24 56.14
2018-03-31 3,326.46 610.33 56.14
2017-12-31 3,292.01 601.92 56.14
2017-09-30 3,295.23 784.28 55.44
2017-06-30 3,298.34 808.52 55.44
2017-03-31 3,243.95 780.61 55.44
2016-12-31 3,173.48 770.45 55.44
2016-09-30 3,122.26 711.31 55.83
2016-06-30 3,097.53 712.74 55.83
2016-03-31 3,116.02 738.31 55.83
2015-12-31 3,160.05 771.69 55.83
2015-09-30 3,154.17 746.73 56.77
2015-06-30 3,152.61 767.36 56.77
2015-03-31 3,109.90 759.15 56.77
2014-12-31 3,057.48 753.25 56.77
2014-09-30 2,933.84 801.49 52.95
2014-06-30 2,851.14 775.23 52.95
2014-03-31 2,792.87 775.84 52.95
2013-12-31 2,720.82 761.90 52.95
2013-09-30 2,725.38 766.77 50.75
2013-06-30 2,692.05 759.63 50.75
2013-03-31 2,659.92 740.47 50.75
2012-12-31 2,673.36 758.81 50.75
2012-09-30 2,687.33 757.75 49.02
2012-06-30 2,726.95 784.53 49.02

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • IGM Financial has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • IGM Financial used its assets more efficiently than the CA Capital Markets industry average last year based on Return on Assets.
  • IGM Financial has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess IGM Financial's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
IGM Financial has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

IGM Health

 How is IGM Financial's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up IGM Financial's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • IGM Financial is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • IGM Financial's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of IGM Financial's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from IGM Financial Company Filings, last reported 3 months ago.

TSX:IGM Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 4,601.57 1,857.09 737.74
2018-09-30 4,551.00 1,865.70 678.63
2018-06-30 4,516.33 2,032.00 827.20
2018-03-31 4,432.94 2,030.40 893.38
2017-12-31 4,825.00 2,181.61 1,063.78
2017-09-30 4,881.54 1,925.10 653.26
2017-06-30 4,847.51 1,936.00 1,120.70
2017-03-31 4,804.20 1,947.40 1,256.78
2016-12-31 4,746.76 1,350.91 677.84
2016-09-30 4,718.44 1,373.00 747.76
2016-06-30 4,688.74 1,376.80 735.46
2016-03-31 4,768.86 1,377.50 663.47
2015-12-31 4,726.71 1,375.62 1,027.68
2015-09-30 4,828.27 1,325.00 1,003.61
2015-06-30 4,812.87 1,371.30 996.35
2015-03-31 4,836.90 1,325.00 1,200.83
2014-12-31 4,840.88 1,354.78 1,295.31
2014-09-30 4,871.25 1,344.00 1,100.60
2014-06-30 4,821.13 1,349.60 982.45
2014-03-31 4,769.91 1,325.00 1,191.35
2013-12-31 4,707.60 1,344.96 1,147.06
2013-09-30 4,640.67 1,325.00 779.78
2013-06-30 4,545.16 1,596.77 971.26
2013-03-31 4,479.40 1,551.90 1,209.31
2012-12-31 4,439.99 1,554.47 1,090.00
2012-09-30 4,463.98 1,552.11 919.92
2012-06-30 4,492.58 1,552.70 1,201.43
  • IGM Financial's level of debt (40.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (28.6% vs 40.4% today).
  • Debt is well covered by operating cash flow (42.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.5x coverage).
X
Financial health checks
We assess IGM Financial's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. IGM Financial has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

IGM Dividends

 What is IGM Financial's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.15%
Current annual income from IGM Financial dividends. Estimated to be 6.16% next year.
If you bought CA$2,000 of IGM Financial shares you are expected to receive CA$123 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • IGM Financial's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.04%).
  • IGM Financial's dividend is above the markets top 25% of dividend payers in Canada (5.56%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:IGM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Canada Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 4.8%
Canada Market Average Dividend Yield Market Cap Weighted Average of 331 Stocks 3.4%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2%
Canada Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:IGM Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 2.26 6.00
2019-12-31 2.25 6.00
TSX:IGM Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-02-08 2.250 6.526
2018-08-02 2.250 6.621
2018-05-04 2.250 5.760
2017-11-02 2.250 5.433
2017-08-03 2.250 5.310
2017-05-05 2.250 5.573
2017-02-10 2.250 5.536
2016-11-03 2.250 5.810
2016-08-04 2.250 6.209
2016-02-12 2.250 6.102
2015-11-05 2.250 6.336
2015-05-08 2.250 5.832
2015-03-18 2.250 4.965
2014-11-06 2.250 4.957
2014-08-07 2.150 4.446
2014-02-18 2.150 4.113
2013-11-07 2.150 3.943
2013-05-03 2.150 4.494
2013-02-08 2.150 4.788
2012-11-08 2.150 5.191
2012-08-02 2.150 5.594
2012-05-04 2.150 5.373
2012-02-10 2.150 4.670
2011-11-10 2.150 4.873
2011-08-04 2.150 4.966
2011-05-06 2.050 4.163
2011-02-11 2.050 4.296
2010-11-11 2.050 4.779
2010-05-07 2.050 5.100
2010-02-12 2.050 4.751
2009-10-29 2.050 4.905
2009-07-29 2.050 4.871
2009-04-20 2.050 5.258

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of IGM Financial's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.5x coverage).
X
Income/ dividend checks
We assess IGM Financial's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can IGM Financial afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. IGM Financial has a total score of 6/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

IGM Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jeff Carney
COMPENSATION CA$7,261,362
AGE 56
TENURE AS CEO 5.9 years
CEO Bio

Mr. Jeffrey Robert Carney, also known as Jeff, CFA, serves as the Chief Executive Officer and President at Investors Group Inc. since May, 6, 2016. Mr. Carney serves as a Co-President and Co-Chief Executive Officer of IGM Financial Inc. since May 6, 2013. He has been the Chief Executive Officer and President of Mackenzie Inc. since May 6, 2013 until july 2016. He served as the Chief Executive Officer of MMLP GP Inc., General Partner of Mackenzie Master Limited Partnership. He serves as the Chairman of Mackenzie Financial Capital Corporation the manager of Mackenzie Global Dividend Fund and served as its Chief Executive Officer and President. He served as the Chairman, Chief Executive Officer and President of Mackenzie Ivy All-Canadian Class; Mackenzie Universal World Real Estate Class; Mackenzie Universal Health Sciences Class; Mackenzie Maxxum Monthly Income Fund; Mackenzie Universal All-Canadian Growth Class; Mackenzie Mutual Funds - Mackenzie Cundill International Class; Mackenzie Mutual Funds - Mackenzie Cundill Global Balanced Fund; and Mackenzie Mutual Funds - Mackenzie Cundill Global Balanced Fund. Prior to this role, Mr. Carney held the positions of Co-President and Chief Executive Officer of the Corporation and President and Chief Executive Officer of Mackenzie Investments from May 6, 2013 until May 6, 2016 and July 11, 2016 respectively. Mr. Carney most recently served as the President of Fidelity Retirement Services, responsible for the its defined contribution, defined benefit, non- qualified plans and health savings businesses. Beginning in 1992, Mr. Carney held senior-level positions for Toronto Dominion Bank in Toronto, including serving as: executive vice president for retail distribution, responsible for the company's 1350 retail branch network; executive vice president, retail banking products, marketing and brand management; president, TD Evergreen Investments and mergers and acquisitions director, TD Securities. He served as the Chief Executive Officer and President of Mackenzie Financial Corporation since May 6, 2013 and served as its Chairman. He has over 25 years of experience in the investment management and banking industries in Canada and the U.S. He also has vast experience in investment management firms and banks across both retail and institutional platforms in Canada and the United States. Previously, he served as the President at Fidelity Brokerage Services LLC. He earlier held positions with Company Assistance Limited in Warsaw, Poland, Jim Patterson Group in Vancouver and Merrill Lynch Canada in Toronto. He served as the President of Retirement, Global Wealth & Investment Management Client Solutions at Bank of America Corporation and Banc of America Investment Services, Inc. (BAI) since July 30, 2007. He served as an Executive Officer at Merrill Lynch & Co., Inc. He served as an Executive Vice President of Branch Network at The Charles Schwab Corporation from March 2012 to November 2012. He held senior executive positions at a number of financial organizations in North America. Mr. Carney served as president, Fidelity Personal Investments since 2002. He joined Fidelity in April 2001 as President of Fidelity Investments Canada. He served as a Senior Managing Director and Head of Global Marketing and Products at Putnam Investment Management, LLC and was Head of Global Marketing and Products at Putnam Investments. He also worked at The Toronto-Dominion Bank. He serves on the board of the Landmark School and the advisory board of Queen's School of Business. He has been a Director of IGM Financial Inc. since May 6, 2013 and Personal Capital Corporation since May 2016. He serves as a Director of Mackenzie Inc. and MMLP GP Inc. He served as a Director of Fidelity Capital Funding Canada Limited. He served as a Director of Fidelity Capital Funding Canada Limited, the General Partner of Fidelity Partnership 1993; Fidelity Partnership 1994; Fidelity Partnership 1995 and Fidelity Partnership 1996. He also served on the corporate boards of The New England Council, Employee Benefit Research Institute and Defined Contribution Institutional Investment Association. He serves on the Children's Hospital Board of Overseers in Boston, is a founding member of The Boston Golf Club and on the Queens University School of Business Advisory Board. He is also a director of Investors Group, Mackenzie Inc., Mackenzie Investments, Wealthsimple Inc. and Portag3 Ventures GP Inc. He is a graduate of the Bachelor of Commerce program at Queen's University. Mr. Carney is a Chartered Financial Analyst.

CEO Compensation
  • Jeff's compensation has increased by more than 20% in the past year.
  • Jeff's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the IGM Financial management team in years:

2.3
Average Tenure
  • The tenure for the IGM Financial management team is about average.
Management Team

Jeff Carney

TITLE
President
COMPENSATION
CA$7M
AGE
56
TENURE
5.9 yrs

Luke Gould

TITLE
Executive VP of Finance & CFO
COMPENSATION
CA$1M
TENURE
1.3 yrs

Mike Dibden

TITLE
Chief Operating Officer
COMPENSATION
CA$2M
TENURE
1.8 yrs

Barry McInerney

TITLE
President & CEO of Mackenzie Investments
COMPENSATION
CA$6M
TENURE
2.8 yrs

Tony Elavia

TITLE
Executive VP & Chief Investment Officer of Mackenzie Investments
COMPENSATION
CA$4M
AGE
62
TENURE
7.1 yrs

Keith Potter

TITLE
Senior Vice President Finance & Treasurer

Rhonda Goldberg

TITLE
Executive VP & General Counsel

Douglas Milne

TITLE
Executive VP and Chief Marketing & Strategy Officer

Cynthia Currie

TITLE
Executive VP & Chief Human Resources Officer
TENURE
0.6 yrs

Blaine Shewchuk

TITLE
Senior Vice President of Corporate Planning & Development
Board of Directors Tenure

Average tenure and age of the IGM Financial board of directors in years:

6.9
Average Tenure
60
Average Age
  • The tenure for the IGM Financial board of directors is about average.
Board of Directors

Robert Orr

TITLE
Chairman of the Board
COMPENSATION
CA$254K
AGE
59

Jeff Carney

TITLE
President
COMPENSATION
CA$7M
AGE
56
TENURE
5.9 yrs

Greg Tretiak

TITLE
Director
COMPENSATION
CA$158K
AGE
62
TENURE
6.9 yrs

John McCallum

TITLE
Independent Director
COMPENSATION
CA$184K
AGE
74
TENURE
21 yrs

Claude Généreux

TITLE
Director
COMPENSATION
CA$149K
AGE
56
TENURE
3.9 yrs

André Desmarais

TITLE
Director
COMPENSATION
CA$138K
AGE
61
TENURE
27 yrs

Paul Desmarais

TITLE
Director
COMPENSATION
CA$132K
AGE
64
TENURE
35.6 yrs

Marc Bibeau

TITLE
Director
COMPENSATION
CA$150K
AGE
59
TENURE
9.9 yrs

Marcel Coutu

TITLE
Corporate Director
COMPENSATION
CA$137K
AGE
64
TENURE
4.9 yrs

Sharon Hodgson

TITLE
Director
COMPENSATION
CA$141K
AGE
52
TENURE
3.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
07. Dec 18 Buy Brian Flood Individual 25. Jun 18 25. Jun 18 20 CA$39.34 CA$787
29. Jun 18 Buy Brian Flood Individual 25. Jun 18 25. Jun 18 1,500 CA$39.33 CA$58,995
X
Management checks
We assess IGM Financial's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. IGM Financial has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

IGM News

Simply Wall St News

Here's How We Evaluate IGM Financial Inc.'s (TSE:IGM) Dividend

(TSE:IGM) a good dividend stock? How would you know? A dividend paying company with growing earnings can be rewarding in the long term.. … If you are hoping to live on your dividends, it's important to be more stringent with your investments than the average punter. Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful.. … Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1

Simply Wall St -

Is IGM Financial Inc.'s (TSE:IGM) CEO Pay Fair?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Jeff Carney's Compensation Compare With Similar Sized Companies. … has a market capitalization of CA$8.4b, and pays its CEO total annual compensation worth CA$7.3m.

Simply Wall St -

IGM Financial Inc. (TSE:IGM) Should Be In Your Dividend Portfolio, Here's Why

(TSE:IGM) is a true Dividend Rock Star. … Its yield of 6.7% makes it one of the market's top dividend payer. … Below, I have outlined more attractive dividend aspects for IGM Financial for income investors who may be interested in new dividend stocks for their portfolio.

Simply Wall St -

What Is IGM Financial Inc.'s (TSE:IGM) Share Price Doing?

saw a decent share price growth in the teens level on the TSX over the last few months. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Let’s take a look at IGM Financial’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St -

Want To Invest In IGM Financial Inc. (TSE:IGM)? Here's How It Performed Lately

Were IGM's earnings stronger than its past performances and the industry. … IGM's trailing twelve-month earnings (from 31 December 2018) of CA$767m has. … Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -3.1%, indicating the rate at which IGM is growing has accelerated

Simply Wall St -

Intrinsic Calculation For IGM Financial Inc. (TSE:IGM) Shows Investors Are Overpaying

Help shape the future of investing tools and you could win a $250 gift card! … Capital market firms such as IGM are hard to value. … For example, capital market businesses are required to hold more capital to reduce the risk to shareholders.

Simply Wall St -

Need To Know: IGM Financial Inc. (TSE:IGM) Insiders Have Been Buying Shares

We often see insiders buying up shares in companies that perform well over the long term. … So shareholders might well want to know whether insiders have been buying or selling shares in IGM Financial Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares.

Simply Wall St -

Here's How P/E Ratios Can Help Us Understand IGM Financial Inc. (TSE:IGM)

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … IGM Financial has a price to earnings ratio of 12.35, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Why IGM Financial Inc. (TSE:IGM) Is A Dividend Rockstar

(TSE:IGM) has pleased shareholders over the past 10 years, by paying out dividends. … The company currently pays out a dividend yield of 7.2% to shareholders, making it a relatively attractive dividend stock. … 5 checks you should do on a dividend stock

Simply Wall St -

Do Institutions Own Shares In IGM Financial Inc. (TSE:IGM)?

Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … IGM Financial has a market capitalization of CA$7.3b, so it's too big to fly under the radar. … Taking a look at the our data on the ownership groups (below), it's seems that.

Simply Wall St -

IGM Company Info

Description

IGM Financial Inc., a financial services company, manages and distributes investment funds and other managed asset products in Canada. The company operates through Investors Group, Mackenzie Investments, and Corporate and Other segments. The company also offers financial planning services, including investment, tax, retirement, education, risk management, and estate planning; strategic investment planning tools; mutual funds; iProfile, a portfolio management program; and separately managed accounts and fee-based brokerage accounts. In addition, it provides segregated funds; term, universal life, whole life, disability, critical illness, long-term care, and personal health care coverage and group insurance products; securities services; and residential mortgages. Further, the company offers banking products, such as investment loans, lines of credit, personal loans, creditor insurance, deposit accounts, and credit cards; cash management solutions; guaranteed investment certificates; private wealth solutions; and investment management, advisory, and related services. It offers its products and services through a network of consultants, as well as retail, strategic alliance, and institutional distribution channels. The company was founded in 1894 and is headquartered in Winnipeg, Canada. IGM Financial Inc. is a subsidiary of Power Financial Corporation.

Details
Name: IGM Financial Inc.
IGM
Exchange: TSX
Founded: 1894
CA$8,816,654,810
241,023,915
Website: http://www.igmfinancial.com
Address: IGM Financial Inc.
447 Portage Avenue,
Winnipeg,
Manitoba, R3B 3H5,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX IGM Common Shares The Toronto Stock Exchange CA CAD 13. Nov 1986
OTCPK IGIF.F Common Shares Pink Sheets LLC US USD 13. Nov 1986
DB C7G Common Shares Deutsche Boerse AG DE EUR 13. Nov 1986
Number of employees
Current staff
Staff numbers
3,308
IGM Financial employees.
Industry
Asset Management and Custody Banks
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 23:51
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/17
Last earnings filing: 2019/02/08
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.