iA Financial Corporation Inc (IAG) AI Stock Analysis

• Market Cap: C$13.71B
• Dividend Yield: 2.49%
• Average Volume (3M): 389.72K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 1.20
• Revenue Growth: -4.55%
• EPS Growth: 42.41%
• Country: CA
• Employees: 7,000
• Sector: Financial
• Sector Strength: 73
• Industry: Insurance - Diversified
• EPS (TTM): 3.49
• Shares Outstanding: 92,622,400
• 10 Day Avg. Volume: 698,714
• 30 Day Avg. Volume: 389,723
• 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$151.83
• Price Target Upside: 2.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 75 Outperform
• Price Target: C$165.00 ▲(11.23% Upside)

iA Financial Corporation Inc's strong financial performance and positive earnings call sentiment are the primary drivers of the score. The technical indicators support a bullish outlook, while the valuation remains reasonable. The decline in free cash flow growth and minor challenges in mutual fund sales are areas to watch.

Positive Factors

Earnings Performance

Q4 results reflect good quality beat, as core EPS beats consensus estimates, indicating strong performance.

Growth and Profitability

Increased target price multiple reflects continued solid growth and profitability, with core EPS growth in line with medium-term targets.

Sales Growth

Sales are strong, with significant increases in Canadian insurance and U.S. dealer services and insurance sales.

Negative Factors

Earnings Volatility

Reported EPS was weaker due to higher one-off/unusual items and actuarial assumption changes, despite some offsetting benefits.

Unusual Items Impact

Reported EPS weaker due to higher one-off/unusual items.

iA Financial Corporation Inc Business Overview & Revenue Model

Company Description

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 company operates through Individual Insurance, Individual Wealth Management, Group Insurance, Group Savings and Retirement, US Operations, and Other segments. It offers life, health, disability, and mortgage insurance products, as well as individual products and services for savings plans, securities brokerage, trust operations, and mutual funds. The company also provides group insurance products and services, including accidental death and dismemberment, dental care, short and long-term disability insurance, products for employee plans; creditor and replacement insurance, replacement warranties, extended warranties, and other products for dealer services; and specialized products. In addition, the company offers group products and services for savings plans, retirement, and segregated funds. Further, the company provides auto and home insurance products, as well as offers asset management and financing services. The company was founded in 1892 and is headquartered in Québec, Canada.

How the Company Makes Money

iA Financial Corporation Inc generates revenue primarily through the sale of insurance policies and wealth management services. The company's key revenue streams include premiums collected from life and health insurance policies, fees from asset management and advisory services, and premiums from group and property and casualty insurance products. iA Financial also earns through investment income, derived from the management of its investment portfolio, which includes bonds, stocks, and real estate. Significant partnerships with brokers, financial advisors, and other distribution networks help expand its reach and customer base, contributing to its earnings. Additionally, the company's focus on digital transformation and innovation aims to enhance customer experience and operational efficiency, further supporting its financial performance.

iA Financial Corporation Inc Financial Statement Overview

Summary

iA Financial Corporation Inc demonstrates a solid financial position with strong cash flow generation and improved profitability. Despite a decline in revenue, the company has enhanced its net income, reflecting efficient cost management. The balance sheet remains stable with a healthy equity base and manageable debt levels. Overall, the company is well-positioned financially, though it should focus on improving revenue growth and operating margins.

Income Statement

The company has shown improvement in its gross profit margin and net profit margin over the TTM, indicating efficient operations and cost management. Although revenue has decreased in the TTM compared to the previous annual report, the net income has increased, suggesting better profitability. However, the EBIT margin declined significantly, which may indicate pressure on operating income.

Balance Sheet

The company's balance sheet shows a solid equity base with a manageable debt level, as indicated by a favorable debt-to-equity ratio. The equity ratio remains stable, reflecting a good proportion of equity financing. However, given the industry context, the ROE is moderate, suggesting room for improvement in generating returns from equity.

Cash Flow

The cash flow analysis reveals a strong free cash flow growth in the TTM, indicating effective cash management and operational efficiency. The operating cash flow to net income ratio is robust, highlighting strong cash generation relative to accounting profits. However, the free cash flow to net income ratio suggests potential fluctuations in free cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.17B	10.71B	7.93B	6.55B	15.51B	17.70B
Gross Profit	8.66B	11.58B	11.23B	6.55B	15.51B	17.70B
EBITDA	1.52B	1.61B	1.38B	799.00M	1.39B	998.00M
Net Income	923.00M	962.00M	789.00M	800.00M	859.00M	632.00M
Balance Sheet
Total Assets	111.68B	109.86B	93.85B	87.42B	94.66B	86.47B
Cash, Cash Equivalents and Short-Term Investments	1.79B	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	104.11B	102.39B	86.81B	80.28B	87.41B	79.95B
Stockholders Equity	7.56B	7.47B	7.04B	7.14B	7.25B	6.51B
Cash Flow
Free Cash Flow	2.09B	763.00M	1.06B	326.00M	-63.00M	1.68B
Operating Cash Flow	2.36B	1.04B	1.34B	613.00M	185.00M	1.86B
Investing Cash Flow	-1.36B	-491.00M	-307.00M	-287.00M	-294.00M	-1.14B
Financing Cash Flow	-694.00M	-397.00M	-1.01B	-525.00M	-294.00M	111.00M

iA Financial Corporation Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 148.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 148.34 is above the 20-day moving average (MA) of 144.57, above the 50-day MA of 143.91, and above the 200-day MA of 134.24, indicating a bullish trend. The MACD of 1.97 indicates Negative momentum. The RSI at 60.44 is Neutral, neither overbought nor oversold. The STOCH value of 45.45 is Neutral, 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	75 Outperform	C$13.71B	13.84	13.43%	2.49%	-4.55%	42.41%
Sector *	68 Neutral	$17.84B	12.03	10.32%	3.73%	9.70%	0.76%
MFC	―	$51.12B	13.35	11.57%	4.05%	―	―
SLF	―	$32.94B	14.33	13.38%	4.24%	―	―
IFC	77 Outperform	C$48.57B	21.10	13.23%	1.84%	5.25%	15.06%
GWO	76 Outperform	C$50.50B	13.64	14.19%	4.34%	15.27%	4.72%
POW	73 Outperform	C$36.90B	13.50	12.07%	5.20%	11.56%	1.15%

iA Financial Corporation Inc Corporate Events

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.

iA Financial Completes $400 Million Preferred Shares Offering

iA Financial Corporation Inc. has successfully completed a $400 million offering of 6.435% Non-Cumulative 5-Year Rate Reset Class A Preferred Shares Series C. The shares, rated ‘Pfd-2’ by Morningstar DBRS and ‘BBB+/P-2(High)’ by S&P Global Ratings, were sold to institutional investors through a syndicate led by RBC Capital Markets, National Bank Financial Markets, and TD Securities. This offering, under the company’s short form base shelf prospectus, enhances iA Financial’s capital base, potentially strengthening its market position and providing more resources for strategic growth.

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 Launches $400 Million Preferred Shares Offering

iA Financial Corporation Inc. has announced a $400 million offering of Non-Cumulative 5-Year Rate Reset Class A Preferred Shares Series C, aimed at institutional investors. The proceeds from this offering are intended for general corporate purposes, potentially including investments in subsidiaries and debt repayment, which could enhance the company’s financial flexibility and strategic positioning.

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 Strong Q1 2025 Results with 19% EPS Growth

iA Financial Group reported strong financial results for the first quarter of 2025, with core earnings per share increasing by 19% year-over-year and a robust solvency ratio of 132%. The company attributes its continued profitability and growth to strong sales momentum across its business units in Canada and the U.S., supported by a solid capital position and flexible balance sheet. This performance underscores the strength of iA Financial Group’s diversified business model and positions the company well to achieve its new financial targets.

iA Financial Corporation Declares Quarterly Dividend

iA Financial Corporation Inc. has announced a quarterly dividend of $0.9000 per common share for the quarter ending March 31, 2025, payable on June 16, 2025, to shareholders of record by May 23, 2025. This announcement underscores the company’s ongoing commitment to returning value to its shareholders and may impact investor relations positively by encouraging participation in its Dividend Reinvestment and Share Purchase Plan.

iA Financial Group Warns Against Discounted Mini-Tender Offer by Ocehan LLC

iA Financial Group has issued a warning to its investors regarding an unsolicited mini-tender offer from Ocehan LLC, which aims to purchase a small percentage of iA Financial’s common shares at a price significantly below the current market value. The offer, which is priced at $93.30 per share, represents a nearly 30% discount to the closing price on the Toronto Stock Exchange as of May 6, 2025. iA Financial Group is not affiliated with Ocehan and advises shareholders to be cautious, review the offer documents thoroughly, and consult with their investment advisors. The company highlights the risks associated with mini-tender offers, which often bypass standard regulatory requirements, potentially leading investors to make uninformed decisions.