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IGM

IGM Financial TSX:IGM Stock Report

Last Price

CA$34.51

Market Cap

CA$8.2b

7D

-2.0%

1Y

-21.1%

Updated

29 Jun, 2022

Data

Company Financials +
IGM fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends6/6

IGM Stock Overview

IGM Financial Inc. operates as a wealth and asset management company in Canada.

Rewards

Trading at 59.3% below our estimate of its fair value

Earnings grew by 23.6% over the past year

Pays a high and reliable dividend of 6.52%

Risk Analysis

No risks detected for IGM from our risk checks.

IGM Financial Competitors

Partners Value Investments

TSXV:PVF.UN

CA$4.6b

CI Financial

TSX:CIX

CA$2.7b

Galaxy Digital Holdings

TSX:GLXY

CA$1.9b

Fiera Capital

TSX:FSZ

CA$950.5m

Price History & Performance

Summary of all time highs, changes and price drops for IGM Financial
Historical stock prices
Current Share PriceCA$34.51
52 Week HighCA$51.68
52 Week LowCA$34.37
Beta1.68
1 Month Change-11.74%
3 Month Change-21.87%
1 Year Change-21.14%
3 Year Change-8.90%
5 Year Change-15.21%
Change since IPO1,038.47%

Recent News & Updates

May 31
IGM Financial (TSE:IGM) Will Pay A Dividend Of CA$0.56

IGM Financial (TSE:IGM) Will Pay A Dividend Of CA$0.56

IGM Financial Inc.'s ( TSE:IGM ) investors are due to receive a payment of CA$0.56 per share on 29th of July. The...

May 12
IGM Financial (TSE:IGM) Is Due To Pay A Dividend Of CA$0.56

IGM Financial (TSE:IGM) Is Due To Pay A Dividend Of CA$0.56

The board of IGM Financial Inc. ( TSE:IGM ) has announced that it will pay a dividend on the 29th of July, with...

Shareholder Returns

IGMCA Capital MarketsCA Market
7D-2.0%1.5%0.3%
1Y-21.1%-17.0%-3.7%

Return vs Industry: IGM underperformed the Canadian Capital Markets industry which returned -18% over the past year.

Return vs Market: IGM underperformed the Canadian Market which returned -2.9% over the past year.

Price Volatility

Is IGM's price volatile compared to industry and market?
IGM volatility
IGM Average Weekly Movement4.1%
Capital Markets Industry Average Movement6.7%
Market Average Movement10.0%
10% most volatile stocks in CA Market17.2%
10% least volatile stocks in CA Market4.4%

Stable Share Price: IGM is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: IGM's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1978n/aJames O'Sullivanhttps://www.igmfinancial.com

IGM Financial Inc. operates as a wealth and asset management company in Canada. It operates through Wealth Management, Asset Management, and Strategic Investments and Other segments. The company offers financial advisory services; IG Living Plan that provides financial planning services, such as investment vehicles, insurance products, mortgage and banking solutions, and charitable giving program; IG Wealth Management Advisor Portal, a customer relationship management platform; and IG Wealth Management’s dealer platform, which provides increased automation and supports both MFDA and IIROC licensed advisors, as well as new products on its investment dealer platform.

IGM Financial Fundamentals Summary

How do IGM Financial's earnings and revenue compare to its market cap?
IGM fundamental statistics
Market CapCA$8.23b
Earnings (TTM)CA$996.09m
Revenue (TTM)CA$3.96b

8.3x

P/E Ratio

2.1x

P/S Ratio

Is IGM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
IGM income statement (TTM)
RevenueCA$3.96b
Cost of RevenueCA$2.42b
Gross ProfitCA$1.54b
Other ExpensesCA$545.91m
EarningsCA$996.09m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 04, 2022

Earnings per share (EPS)4.18
Gross Margin38.96%
Net Profit Margin25.17%
Debt/Equity Ratio32.7%

How did IGM perform over the long term?

See historical performance and comparison

Dividends

6.5%

Current Dividend Yield

54%

Payout Ratio

Does IGM pay a reliable dividends?

See IGM dividend history and benchmarks
When do you need to buy IGM by to receive an upcoming dividend?
IGM Financial dividend dates
Ex Dividend DateJun 29 2022
Dividend Pay DateJul 29 2022
Days until Ex dividend2 days
Days until Dividend pay date28 days

Does IGM pay a reliable dividends?

See IGM dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is IGM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IGM?

Other financial metrics that can be useful for relative valuation.

IGM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.3x
Enterprise Value/EBITDA6x
PEG Ratio17.3x

Price to Earnings Ratio vs Peers

How does IGM's PE Ratio compare to its peers?

IGM PE Ratio vs Peers
The above table shows the PE ratio for IGM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average31.7x
PVF.UN Partners Value Investments
100.5xn/aCA$4.6b
CIX CI Financial
6.3x14.4%CA$2.7b
GLXY Galaxy Digital Holdings
2.6xn/aCA$1.9b
FSZ Fiera Capital
17.4x13.1%CA$950.5m
IGM IGM Financial
8.3x0.5%CA$8.2b

Price-To-Earnings vs Peers: IGM is good value based on its Price-To-Earnings Ratio (8.3x) compared to the peer average (31.7x).

Price to Earnings Ratio vs Industry

How does IGM's PE Ratio compare vs other companies in the CA Capital Markets Industry?

Price-To-Earnings vs Industry: IGM is good value based on its Price-To-Earnings Ratio (8.3x) compared to the Canadian Capital Markets industry average (8.7x)

Price to Earnings Ratio vs Fair Ratio

What is IGM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IGM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.3x
Fair PE Ratio15.5x

Price-To-Earnings vs Fair Ratio: IGM is good value based on its Price-To-Earnings Ratio (8.3x) compared to the estimated Fair Price-To-Earnings Ratio (15.5x).

Share Price vs Fair Value

What is the Fair Price of IGM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IGM (CA$34.51) is trading below our estimate of fair value (CA$84.74)

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

Price to Earnings Growth Ratio

PEG Ratio: IGM is poor value based on its PEG Ratio (17.3x)

Discover undervalued companies

Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE

0.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: IGM's forecast earnings growth (0.5% per year) is below the savings rate (1.6%).

Earnings vs Market: IGM's earnings (0.5% per year) are forecast to grow slower than the Canadian market (7.3% per year).

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

Revenue vs Market: IGM's revenue is expected to decline over the next 3 years (-0.9% per year).

High Growth Revenue: IGM's revenue is forecast to decline over the next 3 years (-0.9% 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 (12.3%).

Discover growth companies

Past Performance

How has IGM Financial performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE

6.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: IGM has high quality earnings.

Growing Profit Margin: IGM's current net profit margins (25.2%) are higher than last year (22.7%).

Past Earnings Growth Analysis

Earnings Trend: IGM's earnings have grown by 6% per year over the past 5 years.

Accelerating Growth: IGM's earnings growth over the past year (23.6%) exceeds its 5-year average (6% per year).

Earnings vs Industry: IGM earnings growth over the past year (23.6%) exceeded the Capital Markets industry 0.2%.

Return on Equity

High ROE: IGM's Return on Equity (15.6%) is considered low.

Discover strong past performing companies

Financial Health

How is IGM Financial's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: IGM's short term assets (CA$9.5B) exceed its short term liabilities (CA$4.2B).

Long Term Liabilities: IGM's short term assets (CA$9.5B) exceed its long term liabilities (CA$6.9B).

Debt to Equity History and Analysis

Debt Level: IGM's net debt to equity ratio (12.2%) is considered satisfactory.

Reducing Debt: IGM's debt to equity ratio has reduced from 40.5% to 32.7% over the past 5 years.

Debt Coverage: IGM's debt is well covered by operating cash flow (45.5%).

Interest Coverage: IGM's interest payments on its debt are well covered by EBIT (6.7x coverage).

Balance Sheet

Discover healthy companies

Dividend

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

Dividend Score

6/6

Dividend Score 6/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

6.52%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: IGM's dividend (6.52%) is higher than the bottom 25% of dividend payers in the Canadian market (2%).

High Dividend: IGM's dividend (6.52%) is in the top 25% of dividend payers in the Canadian market (5.26%)

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.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (54%), IGM's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (61.8%), IGM's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

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

2.8yrs

Average management tenure

CEO

James O'Sullivan (57 yo)

1.75yrs

Tenure

CA$5,602,525

Compensation

Mr. James O'Sullivan has been President, Chief Executive Officer and Director at IGM Financial Inc. since September 14, 2020. He is currently a Member of the Dean’s Advisory Council, Schulich School of Bus...

CEO Compensation Analysis

Compensation vs Market: James's total compensation ($USD4.35M) is about average for companies of similar size in the Canadian market ($USD4.64M).

Compensation vs Earnings: James's compensation has increased by more than 20% in the past year.

Leadership Team

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

Board Members

Experienced Board: IGM's board of directors are considered experienced (9.1 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.

Recent Insider Transactions

Ownership Breakdown

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

Top Shareholders

Company Information

IGM Financial Inc.'s 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
  • Implied Market Cap: CA$8.226b
  • Shares outstanding: 238.37m
  • Website: https://www.igmfinancial.com

Number of Employees

Location

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

Listings

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/29 00:00
End of Day Share Price2022/06/29 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.