Intact Financial Corporation (IFC) AI Stock Analysis

• Market Cap: C$50.60B
• Dividend Yield: 1.88%
• Average Volume (3M): 447.13K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.40
• Revenue Growth: 2.51%
• EPS Growth: 44.44%
• Country: CA
• Employees: 31,000
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 4.46
• Shares Outstanding: 178,342,770
• 10 Day Avg. Volume: 410,697
• 30 Day Avg. Volume: 447,135
• PEG Ratio: 0.26
• Price to Book (P/B): 2.57
• Price to Sales (P/S): 1.87
• P/FCF Ratio: 15.78
• 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$318.43
• Price Target Upside: 12.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: C$313.00 ▲(10.32% Upside)

Intact Financial Corporation's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. The company's robust profitability, effective cost management, and strategic growth initiatives are significant strengths. However, the decline in revenue growth and challenges in the UK&I market present areas for improvement. The technical analysis and valuation suggest a neutral to slightly positive outlook, supporting the overall score.

Positive Factors

Strong Cash Generation

The impressive free cash flow growth rate indicates robust cash generation capabilities, providing financial flexibility for investments and debt management.

Effective Margin Management

Maintaining a low combined ratio reflects effective cost control and underwriting discipline, supporting long-term profitability and competitive positioning.

AI Investment Benefits

The successful implementation of AI enhances pricing and underwriting efficiencies, contributing to sustained competitive advantages and operational improvements.

Negative Factors

Decline in Revenue Growth

A significant decline in revenue growth can impact future earnings potential and market share, necessitating strategic adjustments to regain momentum.

UK&I Premium Decline

The decline in UK&I premiums due to remediation efforts may affect regional market presence and revenue, requiring effective turnaround strategies.

High Catastrophe Losses

Significant catastrophe losses highlight exposure to natural disasters, which can strain financial resources and impact profitability if not mitigated.

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 of insurance premiums. The company collects premiums from policyholders in exchange for providing coverage against risks such as property damage, liability, and auto accidents. These premiums are a key revenue stream, as they provide the funds necessary to pay claims and cover operational expenses. Additionally, IFC invests the collected premiums in various financial instruments, allowing the company to earn investment income. The company's profit is influenced by its claims experience, underwriting discipline, and investment performance. Significant partnerships with brokers and agents also contribute to its revenue generation, as these relationships help expand market reach and enhance distribution capabilities, ultimately driving policy sales and increasing overall revenue.

Intact Financial Corporation Financial Statement Overview

Summary

Intact Financial Corporation demonstrates strong financial health with solid revenue growth, high profitability margins, and effective cash flow management. The balance sheet is stable with manageable leverage, and the company shows resilience in generating cash. While there are minor concerns regarding revenue fluctuations and debt levels, the overall financial position remains robust, supporting future growth prospects.

Income Statement

Intact Financial Corporation shows strong revenue growth with a 7.13% increase in TTM. The company maintains robust profitability with a net profit margin of 13.81% and an EBIT margin of 18.38% in TTM. The gross profit margin is exceptionally high, indicating efficient cost management. However, there is a slight decline in revenue compared to the previous year, which could be a concern if it continues.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.28 in TTM, indicating prudent leverage. The return on equity is strong at 13.08%, showcasing effective use of equity to generate profits. The equity ratio stands at a healthy level, supporting financial stability. However, the slight increase in debt over the years warrants monitoring.

Cash Flow

Cash flow analysis reveals a positive trend with a 7.14% growth in free cash flow in TTM, indicating strong cash generation capabilities. The free cash flow to net income ratio is high at 90.12%, suggesting efficient conversion of income into cash. However, the operating cash flow to net income ratio is low, which may indicate potential issues in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.57B	24.98B	23.29B	22.54B	17.58B	12.46B
Gross Profit	5.33B	4.03B	2.99B	3.66B	8.61B	5.58B
EBITDA	4.95B	3.83B	2.62B	3.75B	3.18B	1.79B
Net Income	3.07B	2.30B	1.32B	2.45B	2.07B	1.08B
Balance Sheet
Total Assets	62.97B	59.53B	55.98B	53.74B	66.35B	35.12B
Cash, Cash Equivalents and Short-Term Investments	19.74B	18.90B	17.94B	23.85B	4.12B	2.47B
Total Debt	5.46B	5.47B	5.74B	5.28B	6.31B	3.49B
Total Liabilities	43.01B	41.38B	39.50B	37.61B	38.20B	25.54B
Stockholders Equity	19.96B	18.15B	16.19B	15.84B	15.67B	9.58B
Cash Flow
Free Cash Flow	4.07B	2.96B	1.39B	3.25B	2.80B	2.19B
Operating Cash Flow	4.47B	3.39B	1.85B	3.67B	3.13B	2.35B
Investing Cash Flow	-2.20B	-1.61B	-2.00B	-2.75B	-5.97B	-2.44B
Financing Cash Flow	-1.67B	-2.01B	321.00M	-2.21B	4.19B	79.00M

Intact Financial Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 283.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 283.72 is above the 20-day moving average (MA) of 279.68, above the 50-day MA of 273.18, and below the 200-day MA of 284.22, indicating a neutral trend. The MACD of 1.89 indicates Negative momentum. The RSI at 59.48 is Neutral, neither overbought nor oversold. The STOCH value of 79.06 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
FFH	81 Outperform	C$59.76B	8.41	18.65%	0.85%	10.08%	24.18%
DFY	79 Outperform	C$9.13B	18.37	13.44%	1.00%	19.80%	-12.93%
GWO	76 Outperform	C$60.88B	15.42	15.09%	3.65%	-20.64%	14.88%
POW	76 Outperform	C$45.98B	15.03	13.24%	3.31%	-9.03%	44.14%
IFC	73 Outperform	C$50.60B	16.97	16.27%	1.88%	2.51%	44.44%
IAG	71 Outperform	C$16.12B	14.97	14.34%	2.16%	-25.13%	16.40%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Intact Financial Corporation Corporate Events

Intact Financial Completes $150 Million Preferred Share Offering

Intact Financial Corporation has successfully completed a $150 million preferred share offering, with the proceeds intended for general corporate purposes. The Series 13 Preferred Shares will trade on the Toronto Stock Exchange, providing shareholders with quarterly non-cumulative cash dividends. This financial move is expected to strengthen Intact’s operational capabilities and market position, benefiting stakeholders by enhancing the company’s financial flexibility.

Intact Financial Corporation Launches $150 Million Preferred Share Offering

Intact Financial Corporation announced a $150 million preferred share offering, involving the sale of 6,000,000 Non-Cumulative Class A Shares, Series 13, at $25.00 per share. The shares, yielding 5.50% annually, are expected to close on November 12, 2025, with proceeds used for general corporate purposes. This move is part of Intact’s strategy to strengthen its financial position and support its ongoing operations, potentially impacting its market presence positively.

Intact Financial Reports Strong Q3-2025 Results with Robust Growth

Intact Financial Corporation reported strong Q3-2025 results, with a 6% increase in operating direct premiums written, driven by growth in commercial and personal lines. The company achieved a combined ratio of 89.8% and a significant increase in net operating income per share to $4.46, reflecting robust underwriting performance and lower catastrophe losses. The operating return on equity rose to 19.6%, highlighting the company’s ability to navigate market cycles effectively.