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

Fundamentals

6 star dividend payer with acceptable track record.


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


Market Performance


7 Day Return

1.6%

IGM

0.5%

CA Capital Markets

0.2%

CA Market


1 Year Return

13.1%

IGM

14.5%

CA Capital Markets

1.2%

CA Market

Return vs Industry: IGM matched the Canadian Capital Markets industry which returned 14.5% over the past year.

Return vs Market: IGM exceeded the Canadian Market which returned 1.2% over the past year.


Shareholder returns

IGMIndustryMarket
7 Day1.6%0.5%0.2%
30 Day-2.3%-1.8%-2.5%
90 Day-0.1%6.2%-1.5%
1 Year20.7%13.1%19.7%14.5%4.7%1.2%
3 Year23.8%3.5%38.9%21.9%14.0%3.8%
5 Year16.1%-13.6%39.5%10.6%26.4%8.1%

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?

37.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: IGM (CA$37.15) is trading below our estimate of fair value (CA$59.15)

Significantly Undervalued: IGM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: IGM is poor value based on its PE Ratio (12.2x) compared to the Capital Markets industry average (10.4x).

PE vs Market: IGM is good value based on its PE Ratio (12.2x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: IGM is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: IGM is overvalued based on its PB Ratio (2x) 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 6 analysts?

7.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IGM's forecast earnings growth (7.6% per year) is above the savings rate (1.9%).

Earnings vs Market: IGM's earnings (7.6% per year) are forecast to grow slower than the Canadian market (13.3% per year).

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

Revenue vs Market: IGM's revenue (3.9% per year) is forecast to grow slower than the Canadian market (5.7% per year).

High Growth Revenue: IGM's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: IGM's Return on Equity is forecast to be low in 3 years time (17.8%).


Next Steps

Past Performance

How has IGM Financial performed over the past 5 years?

-2.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: IGM's earnings have declined by -2.5% per year over the past 5 years.

Accelerating Growth: IGM's earnings growth over the past year (19.2%) exceeds its 5-year average (-2.5% per year).

Earnings vs Industry: IGM earnings growth over the past year (19.2%) exceeded the Capital Markets industry 9.2%.


Return on Equity

High ROE: IGM's Return on Equity (16.8%) is considered low.


Return on Assets

ROA vs Industry: IGM's Return on Assets is below or equal to the Capital Markets industry average last year.


Return on Capital Employed

ROCE Improving: IGM has improved its Return on Capital Employed over the past 3 years.


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 4.426120x 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?

6.06%

Current Dividend Yield


Dividend Yield vs Market

company6.1%marketbottom25%2.0%markettop25%5.9%industryaverage4.4%forecastin3Years6.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: IGM's dividend (6.06%) is higher than the bottom 25% of dividend payers in the Canadian market (2%).

High Dividend: IGM's dividend (6.06%) is in the top 25% of dividend payers in the Canadian market (5.94%)

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 (74%), 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 (66.4% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Jeff Carney (57yo)

6.4yrs

Tenure

CA$7,261,362

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 Co-President and Co-Chief Executiv ...


CEO Compensation Analysis

Compensation vs. Market: Jeff's total compensation ($USD5.51M) is about average for companies of similar size in the Canadian market ($USD3.99M).

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


Management Age and Tenure

2.8yrs

Average Tenure

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


Board Age and Tenure

7.4yrs

Average Tenure

61yo

Average Age

Experienced Board: IGM's board of directors are considered experienced (7.4 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Jeff Carney (57yo)

    President

    • Tenure: 6.4yrs
    • Compensation: CA$7.26m
  • Tony Elavia (63yo)

    Executive VP & Chief Investment Officer of Mackenzie Investments

    • Tenure: 7.6yrs
    • Compensation: CA$3.86m
  • Barry McInerney

    President & CEO of Mackenzie Investments

    • Tenure: 3.3yrs
    • Compensation: CA$6.30m
  • Blaine Shewchuk

    Senior Vice President of Corporate Planning & Development

    • Tenure: 0yrs
  • Luke Gould

    Executive VP of Finance & CFO

    • Tenure: 1.8yrs
    • Compensation: CA$1.22m
  • Rhonda Goldberg

    Executive VP & General Counsel

    • Tenure: 0yrs
  • Douglas Milne

    Executive VP and Chief Marketing & Strategy Officer

    • Tenure: 0yrs
  • Mike Dibden

    Chief Operating Officer

    • Tenure: 2.3yrs
    • Compensation: CA$1.99m
  • Keith Potter

    Senior Vice President Finance & Treasurer

    • Tenure: 0yrs
  • Cynthia Currie

    Executive VP & Chief Human Resources Officer

    • Tenure: 1.1yrs

Board Members

  • Marcel Coutu (65yo)

    Corporate Director

    • Tenure: 5.4yrs
    • Compensation: CA$136.50k
  • Jeff Carney (57yo)

    President

    • Tenure: 6.4yrs
    • Compensation: CA$7.26m
  • André Desmarais (62yo)

    Independent Director

    • Tenure: 27.5yrs
    • Compensation: CA$137.83k
  • Paul Desmarais (65yo)

    Independent Director

    • Tenure: 36.1yrs
    • Compensation: CA$131.50k
  • Marc Bibeau (60yo)

    Independent Director

    • Tenure: 10.4yrs
    • Compensation: CA$150.25k
  • Greg Tretiak (63yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: CA$157.75k
  • John McCallum (75yo)

    Independent Director

    • Tenure: 21.5yrs
    • Compensation: CA$183.75k
  • Robert Orr (60yo)

    Independent Chairman of the Board

    • Tenure: 0yrs
    • Compensation: CA$253.70k
  • Claude Généreux (57yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: CA$149.00k
  • Sharon Hodgson (53yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: CA$141.02k

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$8.852b
  • Shares outstanding: 238.27m
  • 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, a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:52
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.