TSX:IFC

Stock Analysis Report

Intact Financial

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

How has Intact Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.1%

TSX:IFC

-0.5%

CA Insurance

-1.4%

CA Market


1 Year Return

16.4%

TSX:IFC

-8.3%

CA Insurance

-4.4%

CA Market

IFC outperformed the Insurance industry which returned -9% over the past year.

IFC outperformed the Market in Canada which returned -4.7% over the past year.


Share holder returns

IFCIndustryMarket
7 Day-1.1%-0.5%-1.4%
30 Day-1.2%-5.4%-2.7%
90 Day7.1%-3.9%-3.1%
1 Year19.6%16.4%-4.4%-8.3%-1.0%-4.4%
3 Year46.6%35.4%21.4%8.7%13.4%3.4%
5 Year89.9%66.9%23.7%3.2%12.5%-3.3%

Price Volatility Vs. Market

How volatile is Intact Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Intact Financial undervalued based on future cash flows and its price relative to the stock market?

7%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Intact Financial's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Intact Financial's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Intact Financial is overvalued based on earnings compared to the CA Insurance industry average.

Intact Financial is overvalued based on earnings compared to the Canada market.


Price Based on Expected Growth

Intact Financial is poor value based on expected growth next year.


Price Based on Value of Assets

Intact Financial is overvalued based on assets compared to the CA Insurance industry average.


Next Steps

Future Growth

How is Intact Financial expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

17.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Intact Financial's revenue is expected to grow by 6.1% yearly, however this is not considered high growth (20% yearly).

Intact Financial's earnings are expected to grow by 17.4% yearly, however this is not considered high growth (20% yearly).

Intact Financial's revenue growth is expected to exceed the Canada market average.

Intact Financial's earnings growth is expected to exceed the Canada market average.

Intact Financial's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Intact Financial is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Intact Financial performed over the past 5 years?

0.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Intact Financial's year on year earnings growth rate has been positive over the past 5 years.

Intact Financial's 1-year earnings growth exceeds its 5-year average (14.4% vs 0.8%)

Intact Financial's earnings growth has exceeded the CA Insurance industry average in the past year (14.4% vs -0.8%).


Return on Equity

Intact Financial has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Intact Financial used its assets more efficiently than the CA Insurance industry average last year based on Return on Assets.


Return on Capital Employed

Intact Financial's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Intact Financial's financial position?


Financial Position Analysis

Intact Financial's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Intact Financial's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Intact Financial's level of debt (27.5%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (21.7% vs 27.5% today).

Debt is well covered by operating cash flow (53.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 9.1x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2.4x debt.


Next Steps

Dividend

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

2.61%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Intact Financial before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Intact Financial's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.04%).

Intact Financial's dividend is below the markets top 25% of dividend payers in Canada (6%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Charles Brindamour (49yo)

11.6yrs

Tenure

CA$8,516,842

Compensation

Mr. Charles Brindamour, B.Sc., has been the Chief Executive Officer at Intact Financial Corporation (also known as, ING Canada Inc) since January 1, 2008. Mr. Brindamour is a Co-founder of Gibraltar Ventur ...


CEO Compensation Analysis

Charles's remuneration is about average for companies of similar size in Canada.

Charles's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.4yrs

Average Tenure

The tenure for the Intact Financial management team is about average.


Board Age and Tenure

9.8yrs

Average Tenure

63.5yo

Average Age

The tenure for the Intact Financial board of directors is about average.


Insider Trading

Intact Financial individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellCA$118,61011 Jun 19
Joseph D’Annunzio
EntityIndividual
Shares1,000
Max PriceCA$118.61
SellCA$564,91011 Feb 19
Mark Tullis
EntityIndividual
Shares5,000
Max PriceCA$113.15
BuyCA$49,81120 Dec 18
William Young
EntityIndividual
Role
Member of the Board of Directors
Shares500
Max PriceCA$99.63
SellCA$345,05913 Dec 18
Mark Tullis
EntityIndividual
Shares3,400
Max PriceCA$102.02
SellCA$671,99807 Dec 18
Mark Tullis
EntityIndividual
Shares6,600
Max PriceCA$103.49
BuyCA$809,17703 Dec 18
William Young
EntityIndividual
Role
Member of the Board of Directors
Shares7,700
Max PriceCA$105.72
SellCA$348,83106 Sep 18
Mark Tullis
EntityIndividual
Shares3,400
Max PriceCA$102.85
SellCA$340,22104 Sep 18
Mark Tullis
EntityIndividual
Shares3,300
Max PriceCA$103.39
SellCA$341,57831 Aug 18
Mark Tullis
EntityIndividual
Shares3,300
Max PriceCA$103.74

Ownership Breakdown


Management Team

  • Louis Gagnon

    President of Canadian Operations

    • Tenure: 5.7yrs
    • Compensation: CA$3.21m
  • Louis Marcotte

    Senior VP & CFO

    • Tenure: 5.7yrs
    • Compensation: CA$1.59m
  • Christian Menkens

    Senior VP & CTO

    • Tenure: 0.3yrs
  • Charles Brindamour (49yo)

    CEO & Director

    • Tenure: 11.6yrs
    • Compensation: CA$8.52m
  • Frédéric Cotnoir

    Senior VP of Corporate & Legal Services and Secretary

    • Tenure: 3.3yrs
  • David Tremblay

    Deputy Senior VP & Chief Investment Officer

    • Tenure: 5.6yrs
  • Anne Fortin

    Senior VP of Direct Distribution & Chief Marketing Officer

    • Tenure: 6.6yrs
  • Ken Anderson

    VP of Investor Relations & Treasurer

    • Tenure: 2.6yrs
  • Mike Miller (60yo)

    President of U.S. & Specialty Solutions

    • Tenure: 1.9yrs
    • Compensation: CA$6.82m
  • Mathieu Lamy

    Executive VP & COO

    • Tenure: 1.6yrs

Board Members

  • Rob Leary (58yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: CA$226.00k
  • Carol Stephenson (68yo)

    Independent Director

    • Tenure: 14.7yrs
    • Compensation: CA$238.00k
  • Steve Snyder (70yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: CA$226.00k
  • Tim Penner (63yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: CA$239.00k
  • Fred Singer (56yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: CA$226.00k
  • Claude Dussault (65yo)

    Chairman of the Board

    • Tenure: 11.6yrs
    • Compensation: CA$417.06k
  • Janet De Silva (59yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: CA$222.00k
  • Bill Young (64yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: CA$145.91k
  • Charles Brindamour (49yo)

    CEO & Director

    • Tenure: 11.6yrs
    • Compensation: CA$8.52m
  • Eileen Mercier (72yo)

    Independent Director

    • Tenure: 14.7yrs
    • Compensation: CA$255.50k

Company Information

Intact Financial Corporation's company bio, 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
  • Market Cap: CA$17.332b
  • Shares outstanding: 139.19m
  • Website: Click here

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IFCTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 2004
I5UDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2004
IFCZ.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 2004
IFC.PRETSX (The Toronto Stock Exchange)PFD CL A SER 5CACADMay 2017
IFC.PRGTSX (The Toronto Stock Exchange)NON CUM PFD A 7CACADMay 2018

Biography

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; a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/16 23:55
End of Day Share Price2019/08/16 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.