IGM Financial (IGM) AI Stock Analysis

• Market Cap: C$14.62B
• Dividend Yield: 3.59%
• Average Volume (3M): 315.56K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.85
• Revenue Growth: -1.02%
• EPS Growth: -5.65%
• Country: CA
• Employees: 3,300
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 1.27
• Shares Outstanding: 234,126,020
• 10 Day Avg. Volume: 320,535
• 30 Day Avg. Volume: 315,559
• PEG Ratio: 0.71
• Price to Book (P/B): 1.63
• Price to Sales (P/S): 3.83
• P/FCF Ratio: 15.97
• 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$68.25
• Price Target Upside: 9.29% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): 5.08
• Revenue Forecast (FY): C$4.07B

• Rating: 67 Neutral
• Price Target: C$69.00 ▲(10.49% Upside)
• Action: Downgraded Date: 03/14/26
• Date: Action: Downgraded 03/14/26

The score is primarily supported by strong profitability and improving balance-sheet leverage, plus reasonable valuation with a solid dividend. These positives are tempered by weaker technical momentum and volatility in recent cash flow and revenue trends.

Positive Factors

High profitability

Sustained high gross and net margins reflect a scalable, fee-based asset management model with low incremental product costs. Strong margins provide persistent cash generation capacity, support dividend funding and reinvestment, and create a durable earnings buffer through market cycles.

Improving leverage

A falling debt-to-equity ratio indicates strengthening capitalization and reduced financial risk over time. Improved leverage boosts optionality for capital allocation, lowers interest burden sensitivity, and increases resilience to market stress, supporting longer-term strategic flexibility.

Fee-based, recurring business model

AUM-linked, advice-led fee streams and distribution through affiliated and third-party advisors produce predictable, recurring revenues. This structural model enables steady fee income as AUM grows, promotes client-retention economics, and aligns incentives for long-term asset retention.

Negative Factors

Uneven revenue growth

Inconsistent top-line performance limits predictability of the core fee base and complicates multi-year planning. Revenues tied to market levels and flows can produce lumpy growth, constraining reliable investment pacing and making organic growth dependent on advisor distribution and volatile AUM trends.

Volatile free cash flow

Material swings in free cash flow weaken the firm's ability to consistently fund dividends, buybacks, or M&A from internal sources. Even with good margins, volatile cash conversion raises the need for external financing in weaker years and increases uncertainty around durable shareholder returns.

Sizable absolute debt

Although leverage ratios are improving, meaningful absolute debt levels leave exposure to interest rate and refinancing risk. This can constrain large strategic investments or acquisitions and requires continued earnings and cash generation to sustain debt service without eroding capital allocation priorities.

IGM Financial Business Overview & Revenue Model

Company Description

IGM Financial Inc. operates as a wealth and asset management company in Canada. It operates through Wealth Management, Asset Management, and Strategic Investments and Other segments. The company offers financial advisory services; IG Living Plan that provides financial planning services, such as investment vehicles, insurance products, mortgage and banking solutions, and charitable giving program; IG Wealth Management Advisor Portal, a customer relationship management platform; and IG Wealth Management's dealer platform, which provides increased automation and supports both MFDA and IIROC licensed advisors, as well as new products on its investment dealer platform. It also provides mutual funds; portfolios; IG Advisory Account, a fee-based account that enhances client experience by offering the ability to simplify and consolidate selected investments into a single account; iProfile Private portfolios, a portfolio management program for households with investments; iProfile Portfolios, a suite of four managed solutions; segregated funds; separately managed and fee-based brokerage accounts; insurance products; and securities services. In addition, the company offers management and related services; global private equity, private credit, and infrastructure investment solutions; and exchange traded funds. The company was incorporated in 1978 and is headquartered in Winnipeg, Canada. IGM Financial Inc. is a subsidiary of Power Financial Corporation.

How the Company Makes Money

IGM primarily makes money by earning fees for managing and administering client assets. The company’s key revenue streams typically include: (1) Management fees earned on investment funds and managed accounts, calculated as a percentage of assets under management (AUM); these fees generally rise or fall with market levels, client inflows/outflows, and changes in fee schedules. (2) Distribution and advisory-related revenue tied to wealth management activities, including fees associated with financial planning and advice-led programs where clients pay for ongoing service and portfolio oversight (often structured as asset-based fees). (3) Administrative and service fees charged for operating investment products and client accounts (e.g., recordkeeping, fund administration, account and portfolio services), where applicable. (4) Net investment income and other revenues, which can include income earned on the company’s own balance sheet investments and other ancillary business lines. Earnings are influenced by AUM growth, client retention, product mix (higher- vs. lower-fee strategies), cost structure, and the effectiveness of distribution through its subsidiaries’ advisor channels and external partners. Specific material partnership terms or counterparties: null.

IGM Financial Financial Statement Overview

Summary

Strong profitability (high gross and net margins) supports the score, and leverage has been improving as debt-to-equity declines. Offsetting this, revenue growth has been uneven across years and free cash flow has shown notable volatility, including a sharp drop in 2025 versus 2024.

Income Statement

Profitability is a clear strength: the latest annual period shows strong gross and net profitability (gross profit margin ~64%, net profit margin ~29%) and healthy operating profitability. Revenue rebounded in 2025 after a softer 2024, indicating the business can re-accelerate, but the multi-year top-line pattern is uneven (down years mixed with up years), which limits the score despite consistently solid earnings.

Balance Sheet

Leverage is moderate and improving: debt-to-equity declined to ~0.83 in 2025 from above 1.0 in 2021–2023, supported by a rising equity base. Total debt is still sizable in absolute terms, so the balance sheet is not “low-risk,” but the trajectory (stronger equity capitalization and lower relative leverage) is favorable.

Cash Flow

Cash generation is generally supportive of earnings, with free cash flow tracking net income well across years (roughly 0.80–0.91 free cash flow to net income). The main concern is volatility: free cash flow dropped sharply in 2025 versus 2024 (negative growth), and cash conversion metrics remain modest overall, suggesting cash flow can swing year-to-year even when profitability looks steady.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.82B	3.49B	3.70B	3.15B	3.59B
Gross Profit	2.43B	1.70B	1.43B	1.53B	1.74B
EBITDA	1.85B	1.43B	1.36B	1.31B	1.48B
Net Income	1.10B	933.51M	1.15B	867.24M	978.95M
Balance Sheet
Total Assets	22.40B	20.68B	18.66B	18.74B	17.66B
Cash, Cash Equivalents and Short-Term Investments	3.69B	2.26B	1.27B	1.68B	2.58B
Total Debt	7.38B	7.59B	7.26B	6.90B	7.36B
Total Liabilities	13.36B	12.81B	11.94B	12.61B	11.16B
Stockholders Equity	8.94B	7.80B	6.66B	6.06B	6.45B
Cash Flow
Free Cash Flow	915.00M	1.03B	683.50M	592.89M	857.67M
Operating Cash Flow	1.03B	1.15B	837.28M	737.67M	943.59M
Investing Cash Flow	301.00M	-473.77M	-1.16B	134.71M	1.10B
Financing Cash Flow	-972.05M	-313.42M	-203.77M	-1.09B	-1.52B

IGM Financial Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 62.45
• 50DMA: Negative
• 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:IGM, the sentiment is Neutral. The current price of 62.45 is below the 20-day moving average (MA) of 66.16, below the 50-day MA of 66.01, and above the 200-day MA of 54.24, indicating a neutral trend. The MACD of -0.70 indicates Positive momentum. The RSI at 37.84 is Neutral, neither overbought nor oversold. The STOCH value of 20.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:IGM.

IGM Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGF.B	79 Outperform	C$1.22B	7.10	9.85%	3.01%	11.23%	30.44%
SII	78 Outperform	C$4.85B	36.86	20.71%	1.32%	35.51%	7.55%
GCG	69 Neutral	C$1.66B	5.53	13.66%	2.29%	58.88%	82.03%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IGM	67 Neutral	C$14.62B	13.28	12.37%	3.59%	-1.02%	-5.65%
ONEX	65 Neutral	C$7.44B	9.04	7.20%	0.36%	2.46%	-27.48%
FSZ	54 Neutral	C$553.37M	17.05	14.44%	8.78%	-0.88%	-52.30%

IGM Financial Corporate Events

IGM Financial Maps 2026 Leadership Transition to Sustain Growth Momentum

IGM Financial has announced a planned leadership transition in which Damon Murchison will become President and CEO of IGM Financial while retaining his position as President and CEO of IG Wealth Management, effective July 1, 2026. The move follows James O’Sullivan’s appointment as President and CEO of Power Corporation, with IGM’s board expected to name him Chair and maintain Jeffrey Orr as Chair until mid-2026, underscoring a focus on continuity, succession and strategic execution.

The company emphasizes Murchison’s track record in strengthening IG’s competitive position, developing a multi-channel strategy and targeting mass affluent and high-net-worth clients as key reasons for his elevation. Executives highlight that under O’Sullivan’s leadership IGM has sharpened its wealth and asset management pillars, improved financial performance and built a strong capital position, suggesting the transition is designed to sustain momentum and support future growth across its core businesses and strategic investments.

The most recent analyst rating on (TSE:IGM) stock is a Hold with a C$67.00 price target. To see the full list of analyst forecasts on IGM Financial stock, see the TSE:IGM Stock Forecast page.

IGM Financial Posts Record 2025 Earnings and Boosts Dividend 10%

IGM Financial reported record adjusted net earnings for both the fourth quarter and full year 2025, driven by higher assets under management and advisement, stronger net inflows, and growth in its core wealth management operations. The company’s AUM&A, including strategic investments, climbed to $566.2 billion, while IG Wealth Management posted record client assets and robust gross inflows, underscoring the strength of its advisory franchise and strategic investments.

Net earnings rose sharply year over year, and the board approved a 10% increase in the quarterly dividend, signaling confidence in cash generation and balance sheet strength. Management highlighted more than $1 billion in unallocated capital, low leverage, and record client assets as positioning IGM to return more capital to shareholders while maintaining growth and diversification across its wealth and asset management platforms.

The most recent analyst rating on (TSE:IGM) stock is a Hold with a C$60.00 price target. To see the full list of analyst forecasts on IGM Financial stock, see the TSE:IGM Stock Forecast page.

IGM Financial Renews Share Repurchase Program to Strengthen Capital Management

IGM Financial Inc. has received regulatory approval to renew its Normal Course Issuer Bid (NCIB) and Automatic Securities Purchase Plan (ASPP), allowing the company to repurchase and cancel up to 11,784,802 common shares, which represents approximately 5.0% of its outstanding shares. This move is part of the company’s capital management strategy to mitigate the dilutive effects of stock options and enhance shareholder value, aligning with its broader operational goals in wealth and asset management.

The most recent analyst rating on (TSE:IGM) stock is a Hold with a C$61.00 price target. To see the full list of analyst forecasts on IGM Financial stock, see the TSE:IGM Stock Forecast page.

IGM Financial Inc. Announces Renewal of Its Share Buyback Program

IGM Financial Inc. has renewed its Normal Course Issuer Bid (NCIB) and Automatic Securities Purchase Plan (ASPP), allowing the company to purchase up to 5% of its outstanding common shares for cancellation through the Toronto Stock Exchange or alternative trading systems. This program aligns with IGM’s strategic capital management goals, mitigating stock option dilution and positioning the company for improved shareholder value while maintaining its commitment to effective financial planning and investment management for clients.

The most recent analyst rating on (TSE:IGM) stock is a Hold with a C$61.00 price target. To see the full list of analyst forecasts on IGM Financial stock, see the TSE:IGM Stock Forecast page.