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IFC

Intact FinancialTSX:IFC Stock Report

Last Price

CA$162.19

Market Cap

CA$28.6b

7D

-1.4%

1Y

12.7%

Updated

18 Jan, 2022

Data

Company Financials +
IFC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance5/6
Financial Health4/6
Dividends5/6

IFC Stock Overview

Intact Financial Corporation, through its subsidiaries, provides property and casualty insurance products to individuals and businesses in Canada and the United States.

Intact Financial Competitors

Definity Financial

TSX:DFY

CA$3.4b

Royal Bank of Canada

TSX:RY

CA$212.5b

Toronto-Dominion Bank

TSX:TD

CA$189.8b

Allianz

XTRA:ALV

€92.7b

Price History & Performance

Summary of all time highs, changes and price drops for Intact Financial
Historical stock prices
Current Share PriceCA$162.19
52 Week HighCA$178.28
52 Week LowCA$140.50
Beta0.69
1 Month Change-0.42%
3 Month Change-2.68%
1 Year Change12.71%
3 Year Change57.57%
5 Year Change72.95%
Change since IPO461.60%

Recent News & Updates

Shareholder Returns

IFCCA InsuranceCA Market
7D-1.4%1.8%2.4%
1Y12.7%19.6%19.9%

Return vs Industry: IFC underperformed the Canadian Insurance industry which returned 20.1% over the past year.

Return vs Market: IFC underperformed the Canadian Market which returned 19.1% over the past year.

Price Volatility

Is IFC's price volatile compared to industry and market?
IFC volatility
IFC Average Weekly Movement2.0%
Insurance Industry Average Movement3.0%
Market Average Movement9.7%
10% most volatile stocks in CA Market17.6%
10% least volatile stocks in CA Market3.7%

Stable Share Price: IFC is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: IFC's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
180926,000Charles J. Brindamourhttps://www.intactfc.com

Intact Financial Corporation, through its subsidiaries, provides property and casualty insurance products to individuals and businesses in Canada and the United States. It offers personal auto insurance; insurance for motor homes, recreational vehicles, motorcycles, snowmobiles, and all-terrain vehicles; personal property insurance, such as protection for homes and contents from risks, such as fire, theft, vandalism, water damage, and other damages, as well as personal liability coverage; and property coverage for tenants, condominium owners, non-owner occupied residences, and seasonal residences. The company also provides insurance products for commercial lines for a group of small and medium sized businesses; commercial property insurance for the protection of physical assets of the business; and liability coverages, including commercial general, product, and professional liability, as well as cyber endorsement.

Intact Financial Fundamentals Summary

How do Intact Financial's earnings and revenue compare to its market cap?
IFC fundamental statistics
Market CapCA$28.56b
Earnings (TTM)CA$1.70b
Revenue (TTM)CA$15.51b

16.8x

P/E Ratio

1.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
IFC income statement (TTM)
RevenueCA$15.51b
Cost of RevenueCA$13.16b
Gross ProfitCA$2.36b
ExpensesCA$656.00m
EarningsCA$1.70b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 09, 2022

Earnings per share (EPS)9.65
Gross Margin15.19%
Net Profit Margin10.96%
Debt/Equity Ratio32.8%

How did IFC perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

30%

Payout Ratio

Valuation

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

39.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IFC (CA$162.19) is trading below our estimate of fair value (CA$268.19)

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


Price To Earnings Ratio

PE vs Industry: IFC is poor value based on its PE Ratio (16.8x) compared to the Canadian Insurance industry average (10.4x).

PE vs Market: IFC is poor value based on its PE Ratio (16.8x) compared to the Canadian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: IFC is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: IFC is overvalued based on its PB Ratio (2x) compared to the CA Insurance industry average (1.3x).


Future Growth

How is Intact Financial forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IFC's forecast earnings growth (9.2% per year) is above the savings rate (1.6%).

Earnings vs Market: IFC's earnings (9.2% per year) are forecast to grow slower than the Canadian market (11% per year).

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

Revenue vs Market: IFC's revenue (15.1% per year) is forecast to grow faster than the Canadian market (5.5% per year).

High Growth Revenue: IFC's revenue (15.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IFC's Return on Equity is forecast to be low in 3 years time (15.2%).


Past Performance

How has Intact Financial performed over the past 5 years?

21.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IFC has high quality earnings.

Growing Profit Margin: IFC's current net profit margins (11%) are higher than last year (7.3%).


Past Earnings Growth Analysis

Earnings Trend: IFC's earnings have grown significantly by 21% per year over the past 5 years.

Accelerating Growth: IFC's earnings growth over the past year (90.2%) exceeds its 5-year average (21% per year).

Earnings vs Industry: IFC earnings growth over the past year (90.2%) exceeded the Insurance industry 60.9%.


Return on Equity

High ROE: IFC's Return on Equity (10.9%) is considered low.


Financial Health

How is Intact Financial's financial position?


Financial Position Analysis

Short Term Liabilities: IFC's short term assets (CA$19.5B) do not cover its short term liabilities (CA$41.3B).

Long Term Liabilities: IFC's short term assets (CA$19.5B) exceed its long term liabilities (CA$8.7B).


Debt to Equity History and Analysis

Debt Level: IFC's net debt to equity ratio (11%) is considered satisfactory.

Reducing Debt: IFC's debt to equity ratio has increased from 23.5% to 32.8% over the past 5 years.

Debt Coverage: IFC's debt is well covered by operating cash flow (54.8%).

Interest Coverage: IFC's interest payments on its debt are well covered by EBIT (14.1x coverage).


Balance Sheet


Dividend

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

2.24%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IFC's dividend (2.24%) is higher than the bottom 25% of dividend payers in the Canadian market (1.59%).

High Dividend: IFC's dividend (2.24%) is low compared to the top 25% of dividend payers in the Canadian market (4.6%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.1%), IFC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IFC's dividends in 3 years are forecast to be well covered by earnings (30.4% payout ratio).


Next Steps

Management

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

6.8yrs

Average management tenure


CEO

Charles J. Brindamour (51 yo)

14yrs

Tenure

CA$10,113,249

Compensation

Mr. Charles J. G. Brindamour, B.Sc., serves as an Independent Director at Canadian Imperial Bank of Commerce since February 1, 2020. He has been the Chief Executive Officer at Intact Financial Corporation...


CEO Compensation Analysis

Compensation vs Market: Charles J.'s total compensation ($USD8.08M) is above average for companies of similar size in the Canadian market ($USD5.90M).

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


Leadership Team

Experienced Management: IFC's management team is seasoned and experienced (6.8 years average tenure).


Board Members

Experienced Board: IFC's board of directors are considered experienced (6.7 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 been diluted in the past year, with total shares outstanding growing by 23.1%.


Top Shareholders

Company Information

Intact Financial Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Intact Financial Corporation
  • Ticker: IFC
  • Exchange: TSX
  • Founded: 1809
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Implied Market Cap: CA$28.559b
  • Shares outstanding: 176.08m
  • Website: https://www.intactfc.com

Number of Employees


Location

  • Intact Financial Corporation
  • 700 University Avenue
  • Suite 1500-A
  • Toronto
  • Ontario
  • M5G 0A1
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/18 01:09
End of Day Share Price2022/01/17 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.