TSX:IGM

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Established 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

-1.0%

IGM

0.4%

CA Capital Markets

0.8%

CA Market


1 Year Return

-14.8%

IGM

3.5%

CA Capital Markets

-11.1%

CA Market

Return vs Industry: IGM underperformed the Canadian Capital Markets industry which returned 3.5% over the past year.

Return vs Market: IGM underperformed the Canadian Market which returned -11.1% over the past year.


Shareholder returns

IGMIndustryMarket
7 Day-1.0%0.4%0.8%
30 Day-1.3%-0.6%-0.8%
90 Day24.9%22.0%9.1%
1 Year-8.4%-14.8%8.7%3.5%-8.0%-11.1%
3 Year-4.1%-21.0%23.1%6.8%4.4%-5.5%
5 Year9.4%-20.2%47.1%15.8%22.0%3.5%

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?

43.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IGM (CA$32.17) is trading below our estimate of fair value (CA$57.09)

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 (10.4x) compared to the CA Capital Markets industry average (29.2x).

PE vs Market: IGM is good value based on its PE Ratio (10.4x) compared to the Canadian market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: IGM is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: IGM is overvalued based on its PB Ratio (1.7x) compared to the CA Capital Markets industry average (0.9x).


Next Steps

Future Growth

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

2.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IGM's forecast earnings growth (2.6% per year) is above the savings rate (1.7%).

Earnings vs Market: IGM's earnings (2.6% per year) are forecast to grow slower than the Canadian market (23.7% per year).

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

Revenue vs Market: IGM's revenue (0.6% per year) is forecast to grow slower than the Canadian market (5.6% per year).

High Growth Revenue: IGM's revenue (0.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has IGM Financial performed over the past 5 years?

-1.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IGM has high quality earnings.

Growing Profit Margin: IGM's current net profit margins (21.8%) are lower than last year (22.3%).


Past Earnings Growth Analysis

Earnings Trend: IGM's earnings have declined by -1.2% 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 (-1.2%) over the past year, making it difficult to compare to the Capital Markets industry average (-5.4%).


Return on Equity

High ROE: IGM's Return on Equity (15.9%) is considered low.


Next Steps

Financial Health

How is IGM Financial's financial position?


Financial Position Analysis

Short Term Liabilities: IGM's short term assets (CA$9.4B) exceed its short term liabilities (CA$2.8B).

Long Term Liabilities: IGM's short term assets (CA$9.4B) exceed its long term liabilities (CA$8.1B).


Debt to Equity History and Analysis

Debt Level: IGM's debt to equity ratio (45.2%) is considered high.

Reducing Debt: IGM's debt to equity ratio has increased from 27.4% to 45.2% over the past 5 years.

Debt Coverage: IGM's debt is well covered by operating cash flow (36.8%).

Interest Coverage: IGM's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet


Next Steps

Dividend

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

6.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IGM's dividend (6.99%) is higher than the bottom 25% of dividend payers in the Canadian market (1.87%).

High Dividend: IGM's dividend (6.99%) is in the top 25% of dividend payers in the Canadian market (6.07%)


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 (72.5%), IGM's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Jeff Carney (58yo)

7.17yrs

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 ($USD5.62M) is above average for companies of similar size in the Canadian market ($USD3.49M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Carney
President7.17yrsCA$7.64m0.0052% CA$396.4k
Luke Gould
Executive VP of Finance & CFO2.5yrsCA$1.42mno data
Michael Dibden
Chief Operating Officer3.08yrsCA$2.60m0.00099% CA$75.9k
Barry McInerney
President & CEO of Mackenzie Investments4yrsCA$6.74mno data
Keith Potter
Head of Investor Relations & Treasurerno datano datano data
Rhonda Goldberg
Executive VP & General Counselno datano data0.0013% CA$95.8k
Douglas Gordon Milne
Executive VP and Chief Marketing & Strategy Officerno datano data0.00076% CA$58.3k
Blaine Shewchuk
Executive VPno datano data0.0013% CA$100.4k
Cynthia Currie
Executive VP & Chief Human Resources Officer1.83yrsno datano data
Christopher Reynolds
Vice-Chairmanno datano datano data

3.1yrs

Average Tenure

Experienced Management: IGM's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Carney
President7.17yrsCA$7.64m0.0052% CA$396.4k
Marcel Coutu
Independent Corporate Director6.17yrsCA$170.00k0.00038% CA$29.1k
Andre Desmarais
Independent Director28.25yrsCA$177.50kno data
Paul Desmarais
Independent Director36.83yrsCA$177.50kno data
Marc Bibeau
Independent Director11.17yrsCA$185.00kno data
Gregory Tretiak
Independent Director8.17yrsCA$195.00k0.043% CA$3.3m
John McCallum
Independent Director22.25yrsCA$220.00k0.00042% CA$32.2k
Robert Orr
Independent Chairman of the Boardno dataCA$292.50k0.050% CA$3.9m
Claude Généreux
Independent Director5.17yrsCA$190.00k0.0025% CA$193.2k
Sharon Hodgson
Independent Director5.08yrsCA$182.50kno data

8.2yrs

Average Tenure

62yo

Average Age

Experienced Board: IGM's board of directors are considered experienced (8.2 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: 1894
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: CA$7.666b
  • 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. operates as a wealth and asset management company in Canada. It operates through IG Wealth Management, 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; 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/11 23:57
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
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.