Intact Financial Corporation (IFC) AI Stock Analysis

• Market Cap: C$55.70B
• Dividend Yield: 1.7%
• Average Volume (3M): 243.27K
• Price to Earnings (P/E): 25.2
• Beta (1Y): 0.51
• Revenue Growth: 4.73%
• EPS Growth: 44.14%
• Country: CA
• Employees: 31,000
• Sector: Financial
• Sector Strength: 78
• Industry: Insurance - Property & Casualty
• EPS (TTM): 4.01
• Shares Outstanding: 178,342,770
• 10 Day Avg. Volume: 283,489
• 30 Day Avg. Volume: 243,269
• PEG Ratio: 1.41
• Price to Book (P/B): 2.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.52
• 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$326.75
• Price Target Upside: 4.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 76 Outperform
• Price Target: C$352.00 ▲(12.70%Upside)

Intact Financial Corporation's overall score reflects strong financial performance and strategic corporate actions. The company shows robust profitability and operational efficiency, though concerns about revenue decline and high valuation persist. Positive technical indicators and corporate events support a favorable outlook, but challenges noted in the earnings call warrant caution.

Positive Factors

Financial Performance

Intact Financial has a strong track record of prudent reserving practices, which contributes to better-than-expected reserve development.

Market Position

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

Negative Factors

Catastrophic 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 of late will only serve 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 performance with robust income statement metrics. The company maintains solid profitability margins and efficient cash flow management, although there is concern over the 21.5% revenue decline. Despite this, prudent leverage and effective equity use provide a stable financial position.

Income Statement

Intact Financial Corporation shows a robust income statement with a strong Gross Profit Margin of 104.8% TTM, indicating efficient cost management. The Net Profit Margin is healthy at 12.0% TTM, reflecting profitability. However, Total Revenue has decreased by 21.5% from the previous year, which could be a concern if the trend continues. The EBIT and EBITDA margins remain solid at 15.9% and 19.4% TTM, respectively, highlighting operational efficiency.

Balance Sheet

The balance sheet reveals a stable financial position with a moderate Debt-to-Equity Ratio of 0.29 TTM, showcasing prudent leverage. The Return on Equity stands at a strong 12.3%, indicating effective use of equity. However, the Equity Ratio is at 31.0% TTM, suggesting a balanced mix of debt and equity, though slightly lower equity backing could imply potential risk in volatility.

Cash Flow

Intact Financial Corporation demonstrates a solid cash flow position with a Free Cash Flow Growth Rate of 10.7%, indicating strong cash generation capabilities. The Operating Cash Flow to Net Income Ratio is 1.61 TTM, and the Free Cash Flow to Net Income Ratio is 1.42 TTM, both reflecting strong cash conversion and liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.19B	24.44B	22.07B	19.67B	723.00M	12.46B
Gross Profit	20.11B	513.00M	22.09B	398.00M	570.00M	12.46B
EBITDA	3.71B	3.83B	2.40B	3.08B	3.03B	1.74B
Net Income	2.30B	2.30B	1.32B	2.45B	2.07B	1.08B
Balance Sheet
Total Assets	60.58B	59.53B	55.98B	53.74B	66.35B	35.12B
Cash, Cash Equivalents and Short-Term Investments	19.47B	18.90B	17.94B	23.85B	4.12B	2.47B
Total Debt	5.48B	5.47B	5.74B	5.28B	6.31B	3.49B
Total Liabilities	41.81B	41.38B	39.50B	37.61B	38.20B	25.54B
Stockholders Equity	18.77B	18.15B	16.19B	15.84B	15.67B	9.58B
Cash Flow
Free Cash Flow	3.28B	2.96B	1.39B	3.25B	2.80B	2.19B
Operating Cash Flow	3.69B	3.39B	1.85B	3.67B	3.13B	2.35B
Investing Cash Flow	-2.00B	-1.61B	-2.00B	-2.75B	-5.97B	-2.44B
Financing Cash Flow	-1.33B	-2.01B	321.00M	-2.21B	4.19B	79.00M

Intact Financial Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 312.34
• 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:IFC, the sentiment is Positive. The current price of 312.34 is above the 20-day moving average (MA) of 308.77, above the 50-day MA of 303.61, and above the 200-day MA of 276.04, indicating a bullish trend. The MACD of 2.26 indicates Negative momentum. The RSI at 59.26 is Neutral, neither overbought nor oversold. The STOCH value of 69.03 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	76 Outperform	C$55.70B	25.20	12.95%	1.70%	4.73%	44.14%
Sector *	67 Neutral	$16.66B	11.44	9.71%	3.91%	11.61%	-10.70%
SLF		$37.26B	16.70	13.18%	3.86%	―	―
FRFHF		$43.02B	9.70	17.21%	0.84%	―	―
IAG	81 Outperform	C$13.70B	15.55	12.54%	2.44%	-7.31%	28.65%
DFY	80 Outperform	C$9.52B	21.50	13.25%	0.96%	18.15%	18.11%
GWO	73 Outperform	C$48.07B	12.57	14.65%	6.47%	17.48%	25.54%

Intact Financial Corporation Corporate Events

Intact Financial Completes $2.9 Billion Note Amendment

Intact Financial Corporation announced the successful completion of its consent and proxy solicitation regarding $2.9 billion of medium term notes. The company received the necessary consents to amend the indenture governing these notes, allowing for a proposed amendment to take effect. This move reflects Intact’s strategic financial management and could enhance its operational flexibility, potentially impacting stakeholders positively.

The most recent analyst rating on (TSE:IFC) stock is a Buy with a C$263.00 price target. To see the full list of analyst forecasts on Intact Financial Corporation stock, see the TSE:IFC Stock Forecast page.

Intact Financial Seeks Amendments to $2.9 Billion Medium-Term Notes

Intact Financial Corporation has initiated a consent and proxy solicitation to amend the indenture governing ten series of its Canadian dollar-denominated medium-term notes, totaling $2.9 billion in principal. The company seeks approval from noteholders for a proposed amendment, with a meeting scheduled if the required consent threshold is not met. This move could impact Intact’s financial operations and stakeholder relations, as it involves potential changes to the terms of significant debt instruments.

The most recent analyst rating on (TSE:IFC) stock is a Buy with a C$275.00 price target. To see the full list of analyst forecasts on Intact Financial Corporation stock, see the TSE:IFC Stock Forecast page.

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.

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.