TSX:IGM

Stock Analysis Report

Executive Summary

IGM Financial Inc., a financial services company, manages and distributes investment funds and other managed asset products in Canada.


Snowflake Analysis

6 star dividend payer and good value.


Similar Companies

Share Price & News

How has IGM Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

8.1%

IGM

10.0%

CA Capital Markets

4.5%

CA Market


1 Year Return

-32.6%

IGM

-17.2%

CA Capital Markets

-24.5%

CA Market

Return vs Industry: IGM underperformed the Canadian Capital Markets industry which returned -19.7% over the past year.

Return vs Market: IGM underperformed the Canadian Market which returned -26% over the past year.


Shareholder returns

IGMIndustryMarket
7 Day8.1%10.0%4.5%
30 Day-34.6%-21.4%-20.1%
90 Day-37.3%-23.3%-24.9%
1 Year-27.7%-32.6%-13.2%-17.2%-22.0%-24.5%
3 Year-29.1%-41.4%-6.4%-18.5%-14.2%-22.2%
5 Year-29.0%-47.9%4.0%-18.9%-1.9%-16.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is IGM Financial undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IGM (CA$22.8) is trading below our estimate of fair value (CA$46.92)

Significantly Below Fair Value: IGM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: IGM is good value based on its PE Ratio (7.3x) compared to the Capital Markets industry average (7.4x).

PE vs Market: IGM is good value based on its PE Ratio (7.3x) compared to the Canadian market (10.6x).


Price to Earnings Growth Ratio

PEG Ratio: IGM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: IGM is overvalued based on its PB Ratio (1.2x) compared to the CA Capital Markets industry average (0.8x).


Next Steps

Future Growth

How is IGM Financial forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-6.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IGM's earnings are forecast to decline over the next 3 years (-6% per year).

Earnings vs Market: IGM's earnings are forecast to decline over the next 3 years (-6% per year).

High Growth Earnings: IGM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: IGM's revenue is expected to decline over the next 3 years (-2.6% per year).

High Growth Revenue: IGM's revenue is forecast to decline over the next 3 years (-2.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IGM's Return on Equity is forecast to be low in 3 years time (14.1%).


Next Steps

Past Performance

How has IGM Financial performed over the past 5 years?

-1.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IGM has high quality earnings.

Growing Profit Margin: IGM's current net profit margins (21.9%) are lower than last year (22.5%).


Past Earnings Growth Analysis

Earnings Trend: IGM's earnings have declined by -1.5% per year over the past 5 years.

Accelerating Growth: IGM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IGM had negative earnings growth (-2.7%) over the past year, making it difficult to compare to the Capital Markets industry average (-9.4%).


Return on Equity

High ROE: IGM's Return on Equity (16.6%) is considered low.


Next Steps

Financial Health

How is IGM Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: IGM has a low level of unsold assets or inventory.

Debt Coverage by Assets: IGM's debt is covered by short term assets (assets are 4.4x debt).


Financial Institutions Analysis

Asset Level: IGM's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if IGM has a sufficient allowance for bad loans.

Low Risk Liabilities: IGM reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if IGM has an acceptable proportion of non-loan assets held.

Low Risk Deposits: IGM has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if IGM has an appropriate level of bad loans.


Next Steps

Dividend

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

9.62%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IGM's dividend (9.87%) is higher than the bottom 25% of dividend payers in the Canadian market (2.73%).

High Dividend: IGM's dividend (9.87%) is in the top 25% of dividend payers in the Canadian market (8.76%)


Stability and Growth of Payments

Stable Dividend: IGM's dividends per share have been stable in the past 10 years.

Growing Dividend: IGM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72%), IGM's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IGM's dividends in 3 years are forecast to be covered by earnings (70.1% payout ratio).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Jeff Carney (57yo)

6.83s

Tenure

CA$7,639,389

Compensation

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 President and Chief Executive Offi ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD5.43M) is above average for companies of similar size in the Canadian market ($USD2.88M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Carney
President6.83yrsCA$7.64m0.0045% CA$250.8k
Luke Gould
Executive VP of Finance & CFO2.17yrsCA$1.42mno data
Michael Dibden
Chief Operating Officer2.67yrsCA$2.60m0.00099% CA$55.2k
Barry McInerney
President & CEO of Mackenzie Investments3.67yrsCA$6.74mno data
Keith Potter
Head of Investor Relations & Treasurerno datano datano data
Rhonda Goldberg
Executive VP & General Counselno datano data0.0013% CA$69.7k
Douglas Milne
Executive VP and Chief Marketing & Strategy Officerno datano data0.00076% CA$42.4k
Blaine Shewchuk
Executive VPno datano data0.0013% CA$73.0k
Cynthia Currie
Executive VP & Chief Human Resources Officer1.42yrsno datano data
Christopher Reynolds
Vice-Chairmanno datano datano data

2.7yrs

Average Tenure

Experienced Management: IGM's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Carney
President6.83yrsCA$7.64m0.0045% CA$250.8k
Marcel Coutu
Independent Corporate Director5.83yrsCA$170.00k0.00038% CA$21.2k
André Desmarais
Independent Director27.83yrsCA$177.50kno data
Paul Desmarais
Independent Director36.42yrsCA$177.50kno data
Marc Bibeau
Independent Director10.83yrsCA$185.00kno data
Gregory Tretiak
Independent Director7.83yrsCA$195.00k0.043% CA$2.4m
John McCallum
Independent Director21.83yrsCA$220.00k0.00042% CA$23.4k
Robert Orr
Independent Chairman of the Boardno dataCA$292.50k0.050% CA$2.8m
Claude Généreux
Independent Director4.83yrsCA$190.00k0.0046% CA$257.0k
Sharon Hodgson
Independent Director4.67yrsCA$182.50kno data

7.8yrs

Average Tenure

61yo

Average Age

Experienced Board: IGM's board of directors are considered experienced (7.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Top Shareholders

Company Information

IGM Financial Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: IGM Financial Inc.
  • Ticker: IGM
  • Exchange: TSX
  • Founded: 1978
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: CA$5.574b
  • Shares outstanding: 238.31m
  • Website: https://www.igmfinancial.com

Number of Employees


Location

  • IGM Financial Inc.
  • 447 Portage Avenue
  • Winnipeg
  • Manitoba
  • R3B 3H5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IGMTSX (The Toronto Stock Exchange)YesCommon SharesCACADNov 1986
C7GDB (Deutsche Boerse AG)YesCommon SharesDEEURNov 1986
IGIF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDNov 1986

Biography

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 incorporated in 1978 and is headquartered in Winnipeg, Canada. IGM Financial Inc. is a subsidiary of Power Financial Corporation. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 01:29
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
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.