DB:1OD

Stock Analysis Report

Executive Summary

iA Financial Corporation Inc., through its subsidiary, Industrial Alliance Insurance and Financial Services Inc., provides various life and health insurance products in Canada and the United States.

Snowflake

Fundamentals

Established dividend payer and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.5%

1OD

2.9%

DE Insurance

1.4%

DE Market


1 Year Return

34.5%

1OD

22.0%

DE Insurance

3.7%

DE Market

Return vs Industry: 1OD exceeded the German Insurance industry which returned 22% over the past year.

Return vs Market: 1OD exceeded the German Market which returned 3.7% over the past year.


Shareholder returns

1ODIndustryMarket
7 Day3.5%2.9%1.4%
30 Day3.2%4.1%1.3%
90 Day15.8%3.4%3.4%
1 Year39.2%34.5%27.3%22.0%7.0%3.7%
3 Year32.7%21.6%70.6%50.0%18.5%8.3%
5 Year58.8%37.5%119.6%75.9%42.2%22.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

50.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 1OD (€41.8) is trading below our estimate of fair value (€83.56)

Significantly Undervalued: 1OD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1OD is good value based on its PE Ratio (10.2x) compared to the Insurance industry average (13.4x).

PE vs Market: 1OD is good value based on its PE Ratio (10.2x) compared to the German market (19.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 1OD is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: 1OD is overvalued based on its PB Ratio (1.2x) compared to the DE Insurance industry average (1.1x).


Next Steps

Future Growth

How is iA Financial forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1OD's forecast earnings growth (4.4% per year) is above the savings rate (0.2%).

Earnings vs Market: 1OD's earnings (4.4% per year) are forecast to grow slower than the German market (12.7% per year).

High Growth Earnings: 1OD's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 1OD's revenue is forecast to grow faster than the German market.

High Growth Revenue: Insufficient data to determine if 1OD's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 1OD's Return on Equity is forecast to be low in 3 years time (11.7%).


Next Steps

Past Performance

How has iA Financial performed over the past 5 years?

11.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1OD's earnings have grown by 11.1% per year over the past 5 years.

Accelerating Growth: 1OD's earnings growth over the past year (12.5%) exceeds its 5-year average (11.1% per year).

Earnings vs Industry: 1OD earnings growth over the past year (12.5%) underperformed the Insurance industry 15.2%.


Return on Equity

High ROE: 1OD's Return on Equity (11.4%) is considered low.


Return on Assets

ROA vs Industry: 1OD has a higher Return on Assets than the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: 1OD has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is iA 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: 1OD has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1OD's debt is covered by short term assets (assets are 1.614510x debt).


Financial Institutions Analysis

Asset Level: 1OD's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if 1OD has a sufficient allowance for bad loans.

Low Risk Liabilities: 1OD reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 1OD has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 1OD has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 1OD has an appropriate level of bad loans.


Next Steps

Dividend

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

2.94%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%1.5%markettop25%3.8%industryaverage3.9%forecastin3Years3.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1OD's dividend (2.94%) is higher than the bottom 25% of dividend payers in the German market (1.47%).

High Dividend: 1OD's dividend (2.94%) is low compared to the top 25% of dividend payers in the German market (3.83%).

Stable Dividend: 1OD's dividends per share have been stable in the past 10 years.

Growing Dividend: 1OD's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.9%), 1OD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1OD's dividends in 3 years are forecast to be well covered by earnings (31.2% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Denis Ricard (57yo)

1.1yrs

Tenure

CA$3,660,248

Compensation

Mr. Denis Yves Ricard, F.S.A., F.C.I.A. has been President and Chief Executive Officer of iA Financial Corporation Inc. (Also known as Industrial Alliance Insurance and Financial Services Inc) since Septem ...


CEO Compensation Analysis

Compensation vs. Market: Denis has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the German market.

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


Management Age and Tenure

0.8yrs

Average Tenure

Experienced Management: 1OD's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

2.2yrs

Average Tenure

57yo

Average Age

Experienced Board: 1OD's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


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$67,59723 May 19
Michel Tremblay
EntityIndividual
Shares2,000
Max PriceCA$33.80
SellCA$164,40228 Mar 19
Michel Tremblay
EntityIndividual
Shares5,000
Max PriceCA$32.88
SellCA$162,81626 Mar 19
Michel Tremblay
EntityIndividual
Shares5,000
Max PriceCA$32.56
SellCA$161,55025 Mar 19
Michel Tremblay
EntityIndividual
Shares5,000
Max PriceCA$32.31
BuyCA$34,22426 Feb 19
Jacques Martin
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares1,000
Max PriceCA$34.22
SellCA$69,40411 Jan 19
Michael Stickney
EntityIndividual
Shares27,400
Max PriceCA$34.70

Ownership Breakdown


Management Team

  • Paul Grimes

    Senior Vice President of Sales

    • Tenure: 0yrs
  • Denis Ricard (57yo)

    CEO, President & Director

    • Tenure: 1.1yrs
    • Compensation: CA$3.66m
  • Alain Bergeron

    Executive VP & Chief Investment Officer

    • Tenure: 0.08yrs
  • Manon Gauthier

    Senior Vice-President of Administration

    • Tenure: 0yrs
  • Lilia Sham

    Executive Vice-President of Corporate Development

    • Tenure: 0.4yrs
  • Jacques Potvin

    Executive VP

    • Tenure: 1.7yrs
    • Compensation: CA$1.49m
  • Carl Mustos

    Executive Vice President of Wealth Management

    • Tenure: 2.8yrs
    • Compensation: CA$1.87m
  • Lyne Pelchat

    Vice-President of Accounting & Taxation

    • Tenure: 0yrs
  • Marie-Annick Bonneau

    Head of Investor Relations

    • Tenure: 0.5yrs
  • Pierre Picard

    Manager of Public Relations

    • Tenure: 0yrs

Board Members

  • Claude Lamoureux (76yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: CA$121.50k
  • Louis Têtu (54yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: CA$104.25k
  • Marc Poulin (57yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: CA$76.08k
  • Denis Ricard (57yo)

    CEO, President & Director

    • Tenure: 1.1yrs
    • Compensation: CA$3.66m
  • Danielle Morin (63yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: CA$122.00k
  • Benoit Daignault (55yo)

    Independent Director

    • Tenure: 0.4yrs
  • Nick Darveau-Garneau (50yo)

    Independent Director

    • Tenure: 1.4yrs
  • Jacques Martin (63yo)

    Independent Chairman

    • Tenure: 1.1yrs
    • Compensation: CA$191.27k
  • Emma Griffin (46yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: CA$117.34k
  • Agathe Côté (60yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: CA$114.90k

Company Information

iA Financial Corporation Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: iA Financial Corporation Inc.
  • Ticker: 1OD
  • Exchange: DB
  • Founded: 1892
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: CA$6.517b
  • Listing Market Cap: CA$4.454b
  • Shares outstanding: 106.33m
  • Website: https://www.ia.ca

Number of Employees


Location

  • iA Financial Corporation Inc.
  • 1080 Grande Allée West
  • Station Terminus
  • Québec
  • Quebec
  • G1K 7M3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IAGTSX (The Toronto Stock Exchange)YesNew Common SharesCACADFeb 2000
1ODDB (Deutsche Boerse AG)YesNew Common SharesDEEURFeb 2000
IAF.PRBTSX (The Toronto Stock Exchange)PFD SER BCACADFeb 2006
IAF.PRGTSX (The Toronto Stock Exchange)4.3 NCM 5Y PFD GCACADJun 2012
IAF.PRITSX (The Toronto Stock Exchange)NON CUM PDF A ICACADMar 2018

Biography

iA Financial Corporation Inc., through its subsidiary, Industrial Alliance Insurance and Financial Services Inc., provides various life and health insurance products in Canada and the United States. The co ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 21:48
End of Day Share Price2019/10/18 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.