TSX:IGM

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

6 star dividend payer with adequate balance sheet.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.0%

IGM

-2.6%

CA Capital Markets

-1.2%

CA Market


1 Year Return

-15.7%

IGM

-8.2%

CA Capital Markets

-5.5%

CA Market

Return vs Industry: IGM underperformed the Canadian Capital Markets industry which returned -5.3% over the past year.

Return vs Market: IGM underperformed the Canadian Market which returned -3.6% over the past year.


Shareholder returns

IGMIndustryMarket
7 Day-1.0%-2.6%-1.2%
30 Day-0.5%-0.7%0.4%
90 Day-7.2%-4.5%-0.3%
1 Year-9.1%-15.7%-6.2%-8.2%-2.1%-5.5%
3 Year-16.1%-31.2%18.3%10.0%3.9%-6.2%
5 Year13.2%-17.6%44.5%25.9%32.3%12.0%

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?

21.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IGM (CA$31.28) is trading below our estimate of fair value (CA$39.62)

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


Price To Earnings Ratio

PE vs Industry: IGM is poor value based on its PE Ratio (10.1x) compared to the CA Capital Markets industry average (8.2x).

PE vs Market: IGM is good value based on its PE Ratio (10.1x) compared to the Canadian market (16.2x).


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 (1.6x) compared to the CA Capital Markets industry average (1x).


Next Steps

Future Growth

How is IGM Financial forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-1.4%

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 (-1.4% per year).

Earnings vs Market: IGM's earnings are forecast to decline over the next 3 years (-1.4% per year).

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

Revenue vs Market: IGM's revenue (2% per year) is forecast to grow slower than the Canadian market (5.9% per year).

High Growth Revenue: IGM's revenue (2% per year) is forecast to grow slower than 20% 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 (14.4%).


Next Steps

Past Performance

How has IGM Financial performed over the past 5 years?

-0.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IGM has high quality earnings.

Growing Profit Margin: IGM's current net profit margins (22%) are higher than last year (21.8%).


Past Earnings Growth Analysis

Earnings Trend: IGM's earnings have declined by 0.9% per year over the past 5 years.

Accelerating Growth: IGM's earnings growth over the past year (1.1%) exceeds its 5-year average (-0.9% per year).

Earnings vs Industry: IGM earnings growth over the past year (1.1%) underperformed the Capital Markets industry 27.9%.


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$3.0B).

Long Term Liabilities: IGM's short term assets (CA$9.4B) exceed its long term liabilities (CA$7.9B).


Debt to Equity History and Analysis

Debt Level: IGM's debt to equity ratio (45.3%) is considered high.

Reducing Debt: IGM's debt to equity ratio has increased from 28.5% to 45.3% over the past 5 years.

Debt Coverage: IGM's debt is well covered by operating cash flow (35.7%).

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?

7.19%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IGM's dividend (7.19%) is higher than the bottom 25% of dividend payers in the Canadian market (1.68%).

High Dividend: IGM's dividend (7.19%) is in the top 25% of dividend payers in the Canadian market (5.83%)


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 (72.6%), 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 (73% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Diversified Financials industry.

Management

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

1.4yrs

Average management tenure


CEO

James O'Sullivan

0.083

Tenure

Mr. James O'Sullivan is the 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 Busin ...


Leadership Team

NamePositionTenureCompensationOwnership
Luke Gould
Executive VP of Finance & CFO2.75yrsCA$1.42mno data
Michael Dibden
Chief Operating Officer3.33yrsCA$2.60m0.00099%
CA$ 76.7k
Jeffrey Carney
0.083yrCA$7.64m0%
CA$ 0
Barry McInerney
President & CEO of Mackenzie Investments4.25yrsCA$6.74mno data
James O'Sullivan
President0.083yrno datano data
Keith Potter
Head of Investor Relations & Treasurerno datano datano data
Rhonda Goldberg
Executive VP & General Counselno datano data0.0013%
CA$ 96.8k
Douglas Gordon Milne
Executive VP and Chief Marketing & Strategy Officerno datano data0.00076%
CA$ 58.9k
Blaine Shewchuk
Executive VPno datano data0.0013%
CA$ 101.5k
Cynthia Currie
Executive VP & Chief Human Resources Officer2.08yrsno datano data
Mark Kinzel
Executive Vice-President of Financial Services & Vice Chair - IG Wealth Management0.083yrCA$952.15k0.0053%
CA$ 409.7k
Damon Murchison
President & CEO of IG Wealth Management0.083yrno data0.0024%
CA$ 184.3k

1.4yrs

Average Tenure

Experienced Management: IGM's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
James O'Sullivan
President0.083yrno datano data
Mark Kinzel
Executive Vice-President of Financial Services & Vice Chair - IG Wealth Management0.083yrCA$952.15k0.0053%
CA$ 409.7k
Marcel Coutu
Independent Corporate Director6.42yrsCA$170.00k0.00038%
CA$ 29.4k
Andre Desmarais
Independent Director28.5yrsCA$177.50kno data
Paul Desmarais
Independent Director37.08yrsCA$177.50kno data
Marc Bibeau
Independent Director11.42yrsCA$185.00kno data
Gregory Tretiak
Independent Director8.42yrsCA$195.00k0.043%
CA$ 3.4m
John McCallum
Independent Director22.5yrsCA$220.00k0.00042%
CA$ 32.5k
Robert Orr
Independent Chairman of the Boardno dataCA$292.50k0.050%
CA$ 3.9m
Claude Généreux
Independent Director5.42yrsCA$190.00k0.0025%
CA$ 195.2k
Sharon Hodgson
Independent Director5.33yrsCA$182.50kno data
Gary Doer
Independent Director4.42yrsCA$167.50kno data

6.4yrs

Average Tenure

63.5yo

Average Age

Experienced Board: IGM's board of directors are considered experienced (6.4 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$7.745b
  • 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 fi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/27 00:10
End of Day Share Price2020/10/26 00:00
Earnings2020/06/30
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.