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.

Rewards

Trading at 15.3% below its fair value

Earnings are forecast to grow 23.86% per year

Earnings grew by 8.7% over the past year

Pays a high and reliable dividend of 2.21%

Risk Analysis

No risks detected for IFC from our risk checks.


Snowflake Analysis

Established dividend payer with proven track record.


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

Stable Share Price: IFC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.2%

IFC

-0.9%

CA Insurance

-0.3%

CA Market


1 Year Return

36.8%

IFC

21.1%

CA Insurance

10.7%

CA Market

Return vs Industry: IFC exceeded the Canadian Insurance industry which returned 21.1% over the past year.

Return vs Market: IFC exceeded the Canadian Market which returned 10.7% over the past year.


Shareholder returns

IFCIndustryMarket
7 Day1.2%-0.9%-0.3%
30 Day0.1%-1.0%0.1%
90 Day6.0%8.5%1.7%
1 Year40.4%36.8%26.2%21.1%14.4%10.7%
3 Year58.7%47.5%19.2%6.1%16.0%5.6%
5 Year90.4%68.5%42.2%18.2%41.5%20.6%

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 compared to its fair value and its price relative to the market?

15.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IFC (CA$137.4) is trading below our estimate of fair value (CA$162.18)

Significantly Below Fair Value: IFC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: IFC is poor value based on its PE Ratio (26.8x) compared to the Insurance industry average (13.4x).

PE vs Market: IFC is poor value based on its PE Ratio (26.8x) compared to the Canadian market (15.3x).


Price to Earnings Growth Ratio

PEG Ratio: IFC is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: IFC is overvalued based on its PB Ratio (2.7x) compared to the CA Insurance industry average (1.2x).


Next Steps

Future Growth

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

23.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IFC's forecast earnings growth (23.9% per year) is above the savings rate (1.4%).

Earnings vs Market: IFC's earnings (23.9% per year) are forecast to grow faster than the Canadian market (10.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: IFC's revenue (7.9% per year) is forecast to grow faster than the Canadian market (4.9% per year).

High Growth Revenue: IFC's revenue (7.9% 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 (14.6%).


Next Steps

Past Performance

How has Intact Financial performed over the past 5 years?

-0.08%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IFC has high quality earnings.

Growing Profit Margin: IFC's current net profit margins (6.4%) are higher than last year (6.3%).


Past Earnings Growth Analysis

Earnings Trend: IFC's earnings have declined by -0.08% per year over the past 5 years.

Accelerating Growth: IFC's earnings growth over the past year (8.7%) exceeds its 5-year average (-0.08% per year).

Earnings vs Industry: IFC earnings growth over the past year (8.7%) exceeded the Insurance industry 2.5%.


Return on Equity

High ROE: IFC's Return on Equity (9.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Intact 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: IFC has a low level of unsold assets or inventory.

Debt Coverage by Assets: IFC's debt is covered by short term assets (assets are 2.7x debt).


Financial Institutions Analysis

Asset Level: IFC's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if IFC has a sufficient allowance for bad loans.

Low Risk Liabilities: IFC reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if IFC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: IFC has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if IFC has an appropriate level of bad loans.


Next Steps

Dividend

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

2.21%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company2.2%marketbottom25%2.0%markettop25%5.7%industryaverage3.9%forecastin3Years2.4%

Current dividend yield vs market & industry

Notable Dividend: IFC's dividend (2.21%) is higher than the bottom 25% of dividend payers in the Canadian market (2.02%).

High Dividend: IFC's dividend (2.21%) is low compared to the top 25% of dividend payers in the Canadian market (5.68%).


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 reasonable payout ratio (58.2%), IFC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IFC's dividends in 3 years are forecast to be well covered by earnings (40.3% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Charles Brindamour (49yo)

11.9yrs

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

Compensation vs Market: Charles's total compensation ($USD6.44M) is about average for companies of similar size in the Canadian market ($USD6.87M).

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


Management Age and Tenure

4.8yrs

Average Tenure

Experienced Management: IFC's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

10.1yrs

Average Tenure

63.5yo

Average Age

Experienced Board: IFC's board of directors are seasoned and experienced ( 10.1 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.


Recent Insider Transactions

SellCA$496,27523 Aug 19
Martin Beaulieu
EntityIndividual
Shares3,900
Max PriceCA$127.25
SellCA$795,15522 Aug 19
Mark Tullis
EntityIndividual
Shares6,300
Max PriceCA$126.28
SellCA$506,20022 Aug 19
Martin Beaulieu
EntityIndividual
Shares4,000
Max PriceCA$126.55
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
Independent Director
Shares500
Max PriceCA$99.63

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Mike Miller (60yo)

    President of U.S. & Specialty Solutions

    • Tenure: 2.3yrs
    • Compensation: CA$6.82m
  • Charles Brindamour (49yo)

    CEO & Director

    • Tenure: 11.9yrs
    • Compensation: CA$8.52m
  • Mathieu Lamy

    Executive VP & COO

    • Tenure: 1.9yrs
  • Louis Gagnon

    President of Canadian Operations

    • Tenure: 6yrs
    • Compensation: CA$3.21m
  • Anne Fortin

    Senior VP of Direct Distribution & Chief Marketing Officer

    • Tenure: 6.9yrs
  • Ken Anderson

    VP of Investor Relations & Treasurer

    • Tenure: 2.9yrs
  • Louis Marcotte

    Senior VP & CFO

    • Tenure: 6yrs
    • Compensation: CA$1.59m
  • David Tremblay

    Deputy Senior VP & Chief Investment Officer of Intact Investment Management Inc

    • Tenure: 5.9yrs
  • Frédéric Cotnoir

    Senior VP of Corporate & Legal Services and Secretary

    • Tenure: 3.6yrs
  • Christian Menkens

    Senior VP & CTO

    • Tenure: 0.6yrs

Board Members

  • Bill Young (64yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: CA$145.91k
  • Eileen Mercier (72yo)

    Independent Director

    • Tenure: 15yrs
    • Compensation: CA$255.50k
  • Steve Snyder (70yo)

    Independent Director

    • Tenure: 10.6yrs
    • Compensation: CA$226.00k
  • Claude Dussault (65yo)

    Independent Chairman of the Board

    • Tenure: 11.9yrs
    • Compensation: CA$417.06k
  • Carol Stephenson (68yo)

    Independent Director

    • Tenure: 15yrs
    • Compensation: CA$238.00k
  • Charles Brindamour (49yo)

    CEO & Director

    • Tenure: 11.9yrs
    • Compensation: CA$8.52m
  • Rob Leary (58yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: CA$226.00k
  • Fred Singer (56yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: CA$226.00k
  • Tim Penner (63yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: CA$239.00k
  • Janet De Silva (59yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: CA$222.00k

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$19.529b
  • Shares outstanding: 143.02m
  • Website: https://www.intactfc.com

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 Analysis2019/12/10 00:07
End of Day Share Price2019/12/09 00:00
Earnings2019/09/30
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.