Intact Financial Corporation (IFC) AI Stock Analysis

• Market Cap: C$50.58B
• Dividend Yield: 1.71%
• Average Volume (3M): 362.86K
• Price to Earnings (P/E): 23.0
• Beta (1Y): 0.55
• Revenue Growth: 5.02%
• EPS Growth: 77.36%
• Country: CA
• Employees: 30,000
• Sector: Financial
• Sector Strength: 77
• Industry: Insurance
• EPS (TTM): 12.38
• Shares Outstanding: 178,342,770
• 10 Day Avg. Volume: 389,390
• 30 Day Avg. Volume: 362,857
• PEG Ratio: 0.30
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.67
• Price to Cash Flow (P/CF): 11.50
• P/FCF Ratio: 11.00
• 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$305.25
• Price Target Upside: 7.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

Intact Financial Corporation demonstrates robust financial performance with solid revenue growth, profitability, and cash flow. Technical indicators suggest a strong upward trend, though slightly cautious due to nearing overbought levels. Valuation is balanced, aligning with industry standards. The positive earnings call outcomes and strategic corporate events further bolster the company's outlook, despite challenges in certain segments.

Positive Factors

Competitive advantage

Superior market positioning, strong defensive characteristics, competitive advantage in data analytics, and a management team that continues to deliver are expected to increase IFC's multiple.

Financial performance

A solid Q4/24 certainly puts IFC in the position of entering 2025 with lots of momentum.

Market performance

Top line better in Canada, reflecting rate/unit growth, up 8.2%, showing strong market performance.

Negative Factors

Intact Financial Corporation Business Overview & Revenue Model

Company Description

Intact Financial Corp is a property and casualty insurance company that provides written premiums in Canada. The company distributes insurance under the Intact Insurance brand through a network of brokers and a wholly owned subsidiary, BrokerLink, and directly to consumers through belairdirect. Most of the company's direct premiums are written in the personal automotive space. Intact directly manages its investments through subsidiary Intact Investment Management. The vast majority of these invested assets are fixed-income securities. Its asset mix is designed to generate interest and dividend income.

How the Company Makes Money

Intact Financial Corporation generates revenue primarily through the underwriting of insurance policies, which involves collecting premiums from policyholders. The company's key revenue streams include personal insurance, such as auto and home insurance, as well as commercial insurance products for businesses. IFC also earns income from investment activities, where premiums collected are invested in various financial instruments to generate returns. Partnerships with brokers and other distribution channels enable IFC to broaden its market reach and maintain a steady flow of new and renewal business, contributing to its revenue growth. The company's financial performance is influenced by factors such as underwriting profitability, investment income, and effective risk management strategies.

Intact Financial Corporation Financial Statement Overview

Summary

Intact Financial Corporation exhibits strong financial health, driven by consistent revenue growth, improved profitability, and robust cash flow management. The conservative leverage and effective equity utilization further enhance its financial stability. Nonetheless, the absence of EBIT data limits operational insight, and the reduction in total assets requires strategic consideration to sustain growth.

Income Statement

Intact Financial Corporation has demonstrated solid revenue growth over the years, with a revenue increase of 10.78% from 2023 to 2024. The gross profit margin remains robust at 100% due to an absence of cost of goods sold, typical for insurance companies. Net profit margin improved significantly to 9.40% in 2024 from 5.96% in the previous year, reflecting enhanced profitability. However, the absence of EBIT prevents a more comprehensive analysis of operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a debt-to-equity ratio of 0.30, indicating conservative leverage. Stockholders' equity has shown growth, contributing to a healthy equity ratio of 30.49%. Return on equity improved to 12.65%, showcasing effective utilization of equity. However, the decrease in total assets over the past few years suggests potential risks in asset management or strategic downsizing.

Cash Flow

The cash flow performance is strong, with a substantial increase in free cash flow from the previous year, marking a 113.12% growth. The operating cash flow to net income ratio of 1.47 indicates efficient cash generation relative to earnings, while the free cash flow to net income ratio of 1.29 highlights strong cash conversion. These metrics reflect the company's robust cash management, although fluctuations in financing activities warrant attention.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
24.44B	22.07B	21.15B	17.48B	12.46B
	Gross Profit
24.44B	22.09B	21.15B	17.48B	12.46B
	EBIT
0.00	-96.00M	3.12B	1.87B	897.00M
	EBITDA
3.83B	2.53B	3.64B	3.10B	1.74B
	Net Income Common Stockholders
2.30B	1.32B	2.45B	2.07B	1.08B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
19.15B	2.56B	23.85B	25.00B	2.47B
	Total Assets
59.53B	55.98B	64.96B	66.35B	35.12B
	Total Debt
5.47B	5.74B	5.14B	5.87B	3.49B
	Net Debt
4.33B	4.57B	4.13B	3.59B	2.57B
	Total Liabilities
41.38B	39.50B	49.27B	49.57B	25.54B
	Stockholders Equity
18.15B	16.19B	15.40B	15.67B	9.58B
Cash Flow		Free Cash Flow
2.96B	1.39B	3.25B	2.80B	2.19B
	Operating Cash Flow
3.39B	1.85B	3.67B	3.13B	2.35B
	Investing Cash Flow
-1.61B	-2.00B	-2.75B	-5.97B	-2.44B
	Financing Cash Flow
-2.01B	321.00M	-2.21B	4.21B	79.00M

Intact Financial Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 284.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:IFC, the sentiment is Positive. The current price of 284.26 is below the 20-day moving average (MA) of 284.78, above the 50-day MA of 270.18, and above the 200-day MA of 254.90, indicating a neutral trend. The MACD of 4.23 indicates Positive momentum. The RSI at 56.67 is Neutral, neither overbought nor oversold. The STOCH value of 29.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:IFC.

Intact Financial Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IFC	78 Outperform	C$50.58B	22.97	13.38%	1.71%	5.02%	77.36%
GWO	69 Neutral	C$47.63B	12.46	15.52%	4.34%	-2.40%	42.24%
IAG	66 Neutral	C$11.56B	12.62	13.26%	2.78%	-17.69%	29.19%
Sector *	64 Neutral	$13.79B	10.52	9.20%	4.24%	17.25%	-7.60%

Intact Financial Corporation Corporate Events

Intact Financial Corporation Announces $300 Million Note Issuance

Intact Financial Corporation has announced a $300 million private placement of Series 16 unsecured medium-term notes to accredited investors in Canada. The notes, which will bear interest at a fixed annual rate of 4.645% until 2055, are intended to refinance the company’s outstanding $300 million Series 8 notes due in March 2025. This strategic financial move is expected to enhance Intact’s debt management and operational flexibility.

Intact Financial Corporation Announces Share Buyback Plan

Intact Financial Corporation has announced the approval of a normal course issuer bid (NCIB) that allows the company to repurchase up to 5,350,283 of its common shares, equating to approximately 3% of its total outstanding shares. This move, approved by the Toronto Stock Exchange, is part of Intact Financial’s strategy to effectively manage excess capital and provide value to shareholders. The share repurchase will be conducted through open market transactions and other approved methods, with purchases starting on or about February 17, 2025, and potentially running until February 16, 2026. This initiative reflects the company’s ongoing commitment to optimizing capital distribution and enhancing shareholder returns.

Intact Financial Reports Robust Q4-2024 Results and Increases Dividends

Intact Financial Corporation reported strong financial results for Q4-2024, highlighted by a 5% growth in operating direct premiums written and a favorable combined ratio of 86.5%. The company’s net operating income per share increased by 23%, reflecting strong underwriting and investment performance. Intact’s resilience was demonstrated by managing $1.5 billion in catastrophe losses while maintaining a solid balance sheet and increasing dividends for the 20th consecutive year. The company expects continued growth in personal and commercial insurance lines, positioning itself to exceed industry ROE benchmarks.