Intact Financial Corporation (IFC) AI Stock Analysis

• Market Cap: C$55.15B
• Dividend Yield: 1.66%
• Average Volume (3M): 290.10K
• Price to Earnings (P/E): 24.8
• Beta (1Y): 0.53
• Revenue Growth: 4.73%
• EPS Growth: 44.14%
• Country: CA
• Employees: 31,000
• Sector: Financial
• Sector Strength: 88
• Industry: Insurance - Property & Casualty
• EPS (TTM): 4.01
• Shares Outstanding: 178,342,770
• 10 Day Avg. Volume: 246,180
• 30 Day Avg. Volume: 290,099
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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$316.89
• Price Target Upside: 6.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

Intact Financial Corporation's overall stock score reflects its robust financial performance, strategic growth initiatives, and positive earnings call outcomes. While technical indicators show strong momentum, caution is advised due to potential overbought conditions. The company's valuation is balanced, making it a solid choice for investors seeking stability and growth in the insurance sector.

Positive Factors

Management and Strategy

The company benefits from a competitive advantage in data analytics and a management team that continues to deliver.

Market Positioning

Intact Financial has superior market positioning and strong defensive characteristics.

Top-line Growth

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

Negative Factors

CAT Losses

The announcement of CAT losses of $244 million, driven by weather events and commercial fires, is higher than previously estimated.

Market Conditions

The outsized CAT losses are expected to prolong firm market conditions, especially in personal property.

Intact Financial Corporation Business Overview & Revenue Model

Company Description

Intact Financial Corporation, through its subsidiaries, provides property and casualty insurance products to individuals and businesses in Canada, the United States, the United Kingdom, Ireland, rest of Europe, and the Middle East. It offers personal auto insurance; insurance for motor homes, recreational vehicles, motorcycles, snowmobiles, and all-terrain vehicles; personal property insurance, such as protection for homes and contents from risks, including fire, theft, vandalism, water damage, and other damages, as well as personal liability coverage; and property coverage for tenants, condominium owners, non-owner occupied residences, and seasonal residences. The company also provides insurance products for commercial lines for a group of small and medium sized businesses; commercial property insurance for the protection of physical assets of the business; and liability coverages comprising commercial general, product, and professional liability, as well as cyber endorsement. In addition, it offers commercial vehicle insurance coverages for the protection for commercial auto, fleets, garage operations, light trucks, public vehicles, and the specific needs of the sharing economy. Further, the company provides various personal levels of coverage to customers for their home, motor, pet, and other insurance products; general insurance, specialty lines, and risk management solutions; specialty insurance products for various product and customer groups, including accident and health, technology, ocean and inland marine, public entities, and entertainment, as well as financial services and institutions; and various products to specialty property, surety, tuition reimbursement, management liability, cyber, and environmental institutions. The company was formerly known as ING Canada Inc. and changed its name to Intact Financial Corporation in 2009. Intact Financial Corporation was founded in 1809 and is based in Toronto, Canada.

How the Company Makes Money

Intact Financial Corporation generates revenue primarily through the underwriting and selling of insurance policies. These revenues are derived from premiums collected from policyholders who seek protection against various risks. The company's key revenue streams include personal insurance products, such as auto and home insurance, and commercial insurance offerings that cater to businesses of all sizes. Additionally, IFC benefits from investment income by managing and investing the premiums collected until claims are paid out. Strategic acquisitions and partnerships also play a significant role in expanding its market presence and enhancing its product offerings, contributing to its financial performance.

Intact Financial Corporation Financial Statement Overview

Summary

Intact Financial Corporation exhibits strong financial health with consistent revenue growth, improved profitability, and robust cash flow management. Despite the absence of EBIT data and a reduction in total assets, the company's financial stability is bolstered by conservative leverage and effective equity utilization.

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
2.88B	1.80B	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: Neutral
• Last Price: 298.04
• 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 Neutral. The current price of 298.04 is below the 20-day moving average (MA) of 298.93, above the 50-day MA of 290.13, and above the 200-day MA of 267.01, indicating a neutral trend. The MACD of 4.76 indicates Positive momentum. The RSI at 51.59 is Neutral, neither overbought nor oversold. The STOCH value of 44.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:IFC.

Intact Financial Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DFY	81 Outperform	C$7.92B	18.25	13.25%	1.00%	18.15%	18.11%
IFC	78 Outperform	C$55.15B	24.79	12.95%	1.66%	4.73%	44.14%
IAG	73 Outperform	C$12.38B	13.71	12.54%	2.54%	-7.31%	28.65%
GWO	66 Neutral	C$48.88B	12.53	14.65%	4.36%	17.48%	25.54%
Sector *	64 Neutral	$12.60B	9.73	7.92%	16985.68%	12.21%	-5.55%

Intact Financial Corporation Corporate Events

Intact Financial Corporation Announces Shareholder Meeting Results

Intact Financial Corporation held its 2025 Annual Meeting of Shareholders virtually, where the election of directors, appointment of Ernst & Young LLP as auditor, and the approach to executive compensation were approved by shareholders. The results indicate strong support for the company’s leadership and strategic direction, which may reinforce its market position and stakeholder confidence.

Spark’s Take on TSE:IFC Stock

According to Spark, TipRanks’ AI Analyst, TSE:IFC is a Outperform.

Intact Financial Corporation demonstrates robust financial performance with consistent revenue growth, improved profitability, and strategic cash management. While the technical outlook shows strong momentum, caution is advised due to potential overbought conditions. Valuation is balanced, reflecting industry norms. Positive earnings call outcomes and strategic corporate events further support the company’s outlook, despite minor challenges in asset management and specific market segments.

To see Spark’s full report on TSE:IFC stock, click here.

Intact Financial Corporation Reports Strong Q1-2025 Results

Intact Financial Corporation reported a strong start to 2025, with a 3% growth in operating direct premiums written, driven by momentum in personal lines. The company maintained a stable combined ratio of 91.3% despite increased catastrophe losses, and achieved a 10% increase in net operating income per share to $4.01. The company’s operating return on equity stood at 16.5%, supported by solid underwriting results and increased investment and distribution income. Intact Financial is well-positioned to continue achieving its financial objectives amidst economic uncertainties, with expectations of continued premium growth in both personal and commercial lines.

Spark’s Take on TSE:IFC Stock

According to Spark, TipRanks’ AI Analyst, TSE:IFC is a Outperform.

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.

To see Spark’s full report on TSE:IFC stock, click here.

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.