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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. More Details


Snowflake Analysis

Established dividend payer with reasonable growth potential.


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

-0.6%

IFC

-0.4%

CA Insurance

-1.0%

CA Market


1 Year Return

6.9%

IFC

-14.0%

CA Insurance

-4.3%

CA Market

Return vs Industry: IFC exceeded the Canadian Insurance industry which returned -14.8% over the past year.

Return vs Market: IFC exceeded the Canadian Market which returned -4.2% over the past year.


Shareholder returns

IFCIndustryMarket
7 Day-0.6%-0.4%-1.0%
30 Day1.1%1.6%1.3%
90 Day4.0%3.7%1.9%
1 Year9.6%6.9%-9.7%-14.0%-0.9%-4.3%
3 Year47.2%36.2%-4.3%-15.7%6.4%-4.0%
5 Year72.9%51.9%14.2%-6.2%33.3%12.8%

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?

12.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IFC (CA$143.17) is trading below our estimate of fair value (CA$163.24)

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 (27.1x) compared to the CA Insurance industry average (14.6x).

PE vs Market: IFC is poor value based on its PE Ratio (27.1x) compared to the Canadian market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: IFC is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: IFC is overvalued based on its PB Ratio (2.7x) compared to the CA Insurance industry average (0.9x).


Next Steps

Future Growth

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

21.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IFC's forecast earnings growth (21.2% per year) is above the savings rate (1.7%).

Earnings vs Market: IFC's earnings (21.2% per year) are forecast to grow faster than the Canadian market (21.1% per year).

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

Revenue vs Market: IFC's revenue (6.5% per year) is forecast to grow faster than the Canadian market (5.8% per year).

High Growth Revenue: IFC's revenue (6.5% 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 (14.5%).


Next Steps

Past Performance

How has Intact Financial performed over the past 5 years?

2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IFC has a large one-off loss of CA$361.0M impacting its June 30 2020 financial results.

Growing Profit Margin: IFC's current net profit margins (6.3%) are lower than last year (6.6%).


Past Earnings Growth Analysis

Earnings Trend: IFC's earnings have grown by 2.3% per year over the past 5 years.

Accelerating Growth: IFC's earnings growth over the past year (3.3%) exceeds its 5-year average (2.3% per year).

Earnings vs Industry: IFC earnings growth over the past year (3.3%) exceeded the Insurance industry -2.5%.


Return on Equity

High ROE: IFC's Return on Equity (9%) is considered low.


Next Steps

Financial Health

How is Intact Financial's financial position?


Financial Position Analysis

Short Term Liabilities: IFC's short term assets (CA$7.1B) do not cover its short term liabilities (CA$20.1B).

Long Term Liabilities: IFC's short term assets (CA$7.1B) exceed its long term liabilities (CA$4.2B).


Debt to Equity History and Analysis

Debt Level: IFC's debt to equity ratio (27.6%) is considered satisfactory.

Reducing Debt: IFC's debt to equity ratio has increased from 20.2% to 27.6% over the past 5 years.

Debt Coverage: IFC's debt is well covered by operating cash flow (71.9%).

Interest Coverage: IFC's interest payments on its debt are well covered by EBIT (41.5x coverage).


Balance Sheet


Next Steps

Dividend

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

2.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IFC's dividend (2.32%) is higher than the bottom 25% of dividend payers in the Canadian market (1.69%).

High Dividend: IFC's dividend (2.32%) is low compared to the top 25% of dividend payers in the Canadian market (5.78%).


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 (60.1%), 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 (40.7% 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 (50 yo)

12.75yrs

Tenure

CA$9,119,934

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Charles J.'s total compensation ($USD6.94M) is about average for companies of similar size in the Canadian market ($USD7.07M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Charles J. Brindamour
CEO & Director12.75yrsCA$9.12m0.21%
CA$ 42.3m
Louis Marcotte
Senior VP & CFO6.83yrsCA$1.59m0.014%
CA$ 2.9m
Mathieu Lamy
Executive VP & COO2.75yrsCA$1.81m0.013%
CA$ 2.6m
Louis Gagnon
President of Canadian Operations6.83yrsCA$3.41m0.049%
CA$ 10.0m
Timothy Miller
President of U.S. & Specialty Solutions3.08yrsCA$6.97mno data
David Tremblay
Deputy Senior VP & Chief Investment Officer of Intact Investment Management Inc6.75yrsno data0.0070%
CA$ 1.4m
Christian Menkens
Senior VP & CTO1.42yrsno datano data
Kenneth Anderson
Senior VP of Investor Relations & Corporate Development3.75yrsno data0.0064%
CA$ 1.3m
Frédéric Cotnoir
Senior VP of Corporate & Legal Services and Secretary4.42yrsno data0.0042%
CA$ 861.6k
Anne Fortin
Senior VP of Direct Distribution & Chief Marketing Officer7.75yrsno data0.0046%
CA$ 928.6k
Lucie Martel
Senior VP & Chief Human Resources Officer9.08yrsno data0.0029%
CA$ 599.4k
Mark Tullis
Vice Chairman14.5yrsCA$2.12m0.025%
CA$ 5.1m

6.8yrs

Average Tenure

60yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Charles J. Brindamour
CEO & Director12.75yrsCA$9.12m0.21%
CA$ 42.3m
William Young
Independent Director2.42yrsCA$264.29k0.0057%
CA$ 1.2m
Claude Dussault
Independent Chairman of the Board12.75yrsCA$464.92k0.023%
CA$ 4.6m
Carol Stephenson
Independent Director15.83yrsCA$237.67k0.0057%
CA$ 1.2m
Sylvie Paquette
Independent Director3.42yrsCA$236.00k0.0014%
CA$ 284.5k
Robert Leary
Independent Director5.42yrsCA$253.30k0.0019%
CA$ 375.9k
Frederick G. Singer
Independent Director7.42yrsCA$233.58k0.00096%
CA$ 195.1k
Timothy Penner
Independent Director10.42yrsCA$249.00k0.013%
CA$ 2.7m
Janet De Silva
Independent Director7.42yrsCA$232.00k0.0037%
CA$ 753.9k
Jane Kinney
Independent Director1.42yrsCA$153.01k0.00035%
CA$ 71.1k
Stuart Russell
Independent Director0.42yrno data0.000080%
CA$ 16.3k

7.4yrs

Average Tenure

60yo

Average Age

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


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: IFC insiders have only sold shares 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 2.8%.


Top Shareholders

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$20.320b
  • Shares outstanding: 143.02m
  • Website: https://www.intactfc.com

Number of Employees


Location

  • Intact Financial Corporation
  • 700 University Avenue
  • Suite 1500
  • 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.PRATSX (The Toronto Stock Exchange)CL A PFD SH 1CACADJul 2011
IFC.PRCTSX (The Toronto Stock Exchange)PFD-3CACADAug 2011
INTA.FOTCPK (Pink Sheets LLC)PFD-3USUSDAug 2011
IFC.PRDTSX (The Toronto Stock Exchange)NCUM PFD SER 4CACADOct 2016
IFCP.FOTCPK (Pink Sheets LLC)NCUM PFD SER 4USUSDOct 2016
IFC.PRETSX (The Toronto Stock Exchange)5.2 PF CL A SR 5CACADMay 2017
INFF.FOTCPK (Pink Sheets LLC)5.2 PF CL A SR 5USUSDMay 2017
IFC.PRFTSX (The Toronto Stock Exchange)PFD CL A SER 6CACADAug 2017
IFC.PRGTSX (The Toronto Stock Exchange)NON CUM PFD A 7CACADMay 2018
IFC.PRITSX (The Toronto Stock Exchange)5.40 PFD A SER 9CACADFeb 2020

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 Analysis2020/10/21 23:46
End of Day Share Price2020/10/21 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.