iA Financial Corporation Inc (IAG) AI Stock Analysis

• Market Cap: C$15.08B
• Dividend Yield: 2.26%
• Average Volume (3M): 249.62K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 1.30
• Revenue Growth: -4.55%
• EPS Growth: 42.41%
• Country: CA
• Employees: 7,000
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Diversified
• EPS (TTM): 3.49
• Shares Outstanding: 92,322,060
• 10 Day Avg. Volume: 208,907
• 30 Day Avg. Volume: 249,624
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$156.83
• Price Target Upside: -4.76% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 76 Outperform
• Price Target: C$185.00 ▲(12.35% Upside)

iA Financial Corporation Inc is well-positioned in the diversified insurance industry, with strong financial performance and positive earnings call sentiment. The technical indicators show bullish momentum, although caution is advised as the RSI approaches overbought levels. The valuation is fair, supported by a reasonable P/E ratio and attractive dividend yield.

Positive Factors

Strong Core EPS Growth

The significant increase in core EPS reflects strong profitability across all business segments, indicating robust financial health and effective management strategies, which are likely to sustain long-term growth.

Robust Capital Position

A strong solvency ratio and capital generation provide financial stability and flexibility, enabling the company to invest in growth opportunities and weather economic fluctuations effectively.

Acquisition of RF Capital

The acquisition of RF Capital is expected to enhance market position in the high net worth segment, providing strategic growth opportunities and potential revenue synergies over the long term.

Negative Factors

Decline in Free Cash Flow Growth

A decline in free cash flow growth can constrain the company's ability to reinvest in its business, pay down debt, or return capital to shareholders, potentially impacting long-term financial flexibility.

Challenges in Group Savings and Retirement

Declining sales in Group Savings and Retirement could indicate competitive pressures or market challenges, which may affect the company's ability to grow in this segment over the medium term.

Decline in Mutual Fund Sales

Decreasing mutual fund sales and net outflows suggest potential issues in product competitiveness or market demand, which could hinder revenue growth in the wealth management division.

iA Financial Corporation Inc Business Overview & Revenue Model

Company Description

iA Financial Corporation Inc (IAG) is a leading Canadian financial services company that operates primarily in the insurance and wealth management sectors. The company offers a diverse range of products and services, including life and health insurance, investment solutions, and retirement savings plans. With a strong focus on delivering innovative solutions to meet the evolving needs of its clients, iA Financial Corporation serves millions of customers across Canada and is dedicated to providing comprehensive financial planning and management services.

How the Company Makes Money

iA Financial Corporation generates revenue through multiple key streams. The primary source of income comes from the premiums collected on life and health insurance products, which are paid by policyholders. Additionally, the company earns money through investment income generated from its portfolio of invested assets, including stocks, bonds, and real estate. The wealth management division contributes to revenue via management fees on mutual funds, segregated funds, and other investment products. iA Financial Corporation also has significant partnerships with various financial advisors and institutions that facilitate the distribution of its products, further enhancing its market reach and revenue potential. Other factors contributing to its earnings include a focus on cost management and operational efficiency, which enable the company to maintain healthy profit margins.

iA Financial Corporation Inc Financial Statement Overview

Summary

iA Financial Corporation Inc demonstrates strong financial health with consistent revenue growth and solid profitability margins. The balance sheet is well-managed with low leverage, but the recent decline in free cash flow growth warrants attention.

Income Statement

iA Financial Corporation Inc shows a solid income statement with consistent revenue growth, evidenced by a 3.18% increase in TTM. The company maintains healthy margins, with a gross profit margin of 85.14% and a net profit margin of 9.08% in TTM. However, the EBIT margin has slightly decreased over the years, indicating potential cost pressures.

Balance Sheet

The balance sheet is strong, with a low debt-to-equity ratio of 0.20 in TTM, indicating prudent financial leverage. The return on equity is robust at 12.42%, reflecting efficient use of equity capital. The equity ratio is stable, suggesting a solid capital structure.

Cash Flow

Cash flow analysis reveals some concerns, with a significant decline in free cash flow growth of -51.91% in TTM. However, the free cash flow to net income ratio remains healthy at 0.89, indicating good cash conversion. The operating cash flow to net income ratio is not available for TTM, which limits full assessment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.93B	10.71B	7.93B	6.55B	15.51B	17.70B
Gross Profit	5.44B	11.58B	11.23B	6.55B	15.51B	17.70B
EBITDA	1.67B	1.61B	1.38B	799.00M	1.39B	998.00M
Net Income	1.04B	962.00M	789.00M	800.00M	859.00M	632.00M
Balance Sheet
Total Assets	114.48B	109.86B	93.85B	87.42B	94.66B	86.47B
Cash, Cash Equivalents and Short-Term Investments	2.21B	1.57B	1.38B	1.36B	1.55B	1.95B
Total Debt	1.50B	2.09B	1.87B	2.07B	1.65B	1.67B
Total Liabilities	106.42B	102.39B	86.81B	80.28B	87.41B	79.95B
Stockholders Equity	8.05B	7.47B	7.04B	7.14B	7.25B	6.51B
Cash Flow
Free Cash Flow	1.01B	763.00M	1.06B	326.00M	-63.00M	1.68B
Operating Cash Flow	1.27B	1.04B	1.34B	613.00M	185.00M	1.86B
Investing Cash Flow	-610.00M	-491.00M	-307.00M	-287.00M	-294.00M	-1.14B
Financing Cash Flow	-446.00M	-397.00M	-1.01B	-525.00M	-294.00M	111.00M

iA Financial Corporation Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 164.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:IAG, the sentiment is Positive. The current price of 164.66 is above the 20-day moving average (MA) of 159.94, above the 50-day MA of 155.33, and above the 200-day MA of 139.83, indicating a bullish trend. The MACD of 2.23 indicates Negative momentum. The RSI at 62.07 is Neutral, neither overbought nor oversold. The STOCH value of 87.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:IAG.

iA Financial Corporation Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IAG	―	C$15.08B	15.12	13.43%	2.26%	-4.55%	42.41%
GWO	―	C$54.74B	14.79	14.19%	4.05%	15.27%	4.72%
POW	―	C$39.03B	14.13	12.07%	4.41%	11.56%	1.15%
SLF	―	$48.43B	15.43	13.38%	3.99%	-0.61%	6.69%
MFC	―	$77.76B	14.67	11.57%	3.79%	9.37%	32.06%
IFC	―	C$46.12B	19.82	13.23%	2.01%	5.25%	15.06%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

iA Financial Corporation Inc Corporate Events

iA Financial’s Earnings Call Highlights Growth and Stability

The recent earnings call for iA Financial Corporation painted a predominantly positive picture, underscoring the company’s strong financial performance and strategic growth initiatives. The call highlighted significant growth in U.S. operations and strategic acquisitions, despite minor declines in mutual fund sales and Group Savings and Retirement. The company’s robust capital position and strategic acquisitions suggest continued growth and stability.

iA Financial Corporation Increases Quarterly Dividend by 10%

iA Financial Corporation Inc. has announced a 10% increase in its quarterly dividend, raising it to $0.9900 per common share, payable on September 15, 2025. This move reflects the company’s robust financial health and commitment to providing value to its shareholders, potentially enhancing its attractiveness to investors and strengthening its position in the financial services industry.

The most recent analyst rating on (TSE:IAG) stock is a Buy with a C$150.00 price target. To see the full list of analyst forecasts on iA Financial Corporation Inc stock, see the TSE:IAG Stock Forecast page.

iA Financial Group Reports Robust Q2 Results and Dividend Increase

iA Financial Group reported a strong second quarter with a 27% year-over-year increase in core earnings per share and a core return on equity of 17.0%, aligning with its 2027 target. The company announced a 10% increase in its common dividend and plans to acquire RF Capital Group Inc., indicating a strategic move to enhance its wealth distribution capabilities and deliver long-term value to shareholders.

The most recent analyst rating on (TSE:IAG) stock is a Buy with a C$150.00 price target. To see the full list of analyst forecasts on iA Financial Corporation Inc stock, see the TSE:IAG Stock Forecast page.