IGM Financial (TSE:IGM)
TSX:IGM
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IGM Financial
(TSX:IGM)
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Rating:82Outperform
Price Target:
C$89.00
â–²(19.96% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by strong financial performance (high margins and improved growth) and a constructive technical uptrend. Valuation is supportive with a low P/E and a ~3% dividend yield, while the earnings call reinforced positive guidance and shareholder returns (NCIB and dividend hike), tempered by fee/mix pressure and some near-term earnings variability.
Positive Factors
High operating profitability
Sustained high margins and recent revenue acceleration underpin durable free cash generation and operational resilience. Strong operating profitability supports reinvestment and shareholder returns, providing a structural buffer against market/AUM swings and improving long‑term earnings quality.
Negative Factors
Fee rate and mix pressure
A structural shift toward lower‑fee institutional SMA/ETF mandates and modest advisory rate declines reduce revenue per AUM. Persistent mix pressure can erode long‑term fee income and require higher AUM growth or cost savings to sustain margins and EPS growth trajectories.
Read all positive and negative factors
Positive Factors
Negative Factors
High operating profitability
Sustained high margins and recent revenue acceleration underpin durable free cash generation and operational resilience. Strong operating profitability supports reinvestment and shareholder returns, providing a structural buffer against market/AUM swings and improving long‑term earnings quality.
Read all positive factors
IGM Financial (IGM) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$18.05B
Dividend Yield3.59%
Average Volume (3M)315.56K
Price to Earnings (P/E)13.7
Beta (1Y)0.93
Revenue Growth17.16%
EPS Growth22.85%
CountryCA
Employees3,300
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)4.88
Shares Outstanding232,454,710
10 Day Avg. Volume320,535
30 Day Avg. Volume315,559
Financial Highlights & Ratios
PEG Ratio0.71
Price to Book (P/B)1.63
Price to Sales (P/S)3.83
P/FCF Ratio15.97
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$77.67Price Target Upside4.69% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)5.15
Revenue Forecast (FY)C$4.09B
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 t...
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 ...
IGM Financial Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call highlighted broad-based growth across wealth and asset management businesses with multiple record metrics (record annual and quarterly EPS, record AUM figures, record net sales at Mackenzie, strong flows and client acquisition at IG Wealth, and significant value realization from the Rockefeller transaction). Management is returning capital to shareholders (NCIB, dividend increase) and has a healthy balance sheet (unallocated capital of ~CAD 1 billion, leverage 1.37x). Notable challenges include some variability and short-term earnings pressure at Mackenzie and from seed/investment items, temporary variability in Rockefeller earnings due to incentive accounting, ongoing fee/mix pressure and somewhat higher near-term expense growth driven by strategic investments and regulatory projects. Overall the positive operational momentum, strong capital allocation actions, and validation of strategic investments outweigh the manageable near-term lowlights.Positive Updates
Record Annual and Quarterly Adjusted EPS
Fiscal 2025 adjusted EPS rose 17% year-over-year to a record $4.61; Q4 adjusted EPS was a record $1.27, up 21% year-over-year.
Negative Updates
Mackenzie Earnings Pressure and Variable Items
Mackenzie reported Q4 earnings of $60.4 million, slightly down year-over-year. A primary driver was lower net investment income and other (seed capital gains were $8.5 million last year vs $2 million this quarter). Excluding that item, earnings would have been up ~6%.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Annual and Quarterly Adjusted EPS
Fiscal 2025 adjusted EPS rose 17% year-over-year to a record $4.61; Q4 adjusted EPS was a record $1.27, up 21% year-over-year.
Read all positive updates
Company Guidance
Management guided to medium‑term adjusted EPS growth of ~9% per year, with 2026 operating expense growth targeted at about 4% (after 4.2% in 2025). They launched an NCIB for up to 11.8 million shares (5% of outstanding) and intend to repurchase the full 5%, while the Board approved a 10% quarterly dividend increase to $0.62 (from $0.5625) — trailing 12‑month payout was 57% (50% run‑rate) and the dividend will be reviewed if payout falls below 60% annually. Proceeds from the Rockefeller transaction (pretax proceeds ~$394M) raised unallocated capital to roughly $1.0B and are expected to support buybacks, representing a notional annualized earnings contribution of about $27M (~$0.12/share); IGM now holds 17.2% of Rockefeller (valued at CAD1.16B) with Rockefeller’s 2026 contribution expected to be approximately breakeven (≈$10M excluding incentive‑pay variability) and to accelerate contribution into 2027. Financial position metrics backing the guidance include Q4 adjusted EPS of $1.27 (+21% YoY), FY2025 adjusted EPS $4.61 (+17% YoY), consolidated adjusted net earnings +16% YoY (Q4 +21%), average AUM&A up 5.4% vs Q3 and 14% YoY, look‑through asset growth of 17%, and year‑end leverage of 1.37x.IGM Financial Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
73
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.84B | 3.82B | 3.49B | 3.70B | 3.15B | 3.59B |
| Gross Profit | 1.57B | 2.43B | 1.70B | 1.43B | 1.53B | 1.74B |
| EBITDA | 1.66B | 1.85B | 1.43B | 1.36B | 1.31B | 1.48B |
| Net Income | 1.15B | 1.10B | 933.51M | 1.15B | 867.24M | 978.95M |
Balance Sheet | ||||||
| Total Assets | 21.44B | 22.40B | 20.68B | 18.66B | 18.74B | 17.66B |
| Cash, Cash Equivalents and Short-Term Investments | 1.15B | 3.69B | 2.26B | 1.27B | 1.68B | 2.58B |
| Total Debt | 7.35B | 7.38B | 7.59B | 7.26B | 6.90B | 7.36B |
| Total Liabilities | 12.37B | 13.36B | 12.81B | 11.94B | 12.61B | 11.16B |
| Stockholders Equity | 8.97B | 8.94B | 7.80B | 6.66B | 6.06B | 6.45B |
Cash Flow | ||||||
| Free Cash Flow | 999.31M | 915.00M | 1.03B | 683.50M | 592.89M | 857.67M |
| Operating Cash Flow | 1.11B | 1.03B | 1.15B | 837.28M | 737.67M | 943.59M |
| Investing Cash Flow | 364.88M | 301.00M | -473.77M | -1.16B | 134.71M | 1.10B |
| Financing Cash Flow | -1.09B | -972.05M | -313.42M | -203.77M | -1.09B | -1.52B |
IGM Financial Technical Analysis
Positive
74.19
Price Trends
69.91
Positive
67.46
Positive
59.58
Positive
Market Momentum
2.09
Positive
66.90
Neutral
88.29
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:IGM, the sentiment is Positive. The current price of 74.19 is below the 20-day moving average (MA) of 75.56, above the 50-day MA of 69.91, and above the 200-day MA of 59.58, indicating a bullish trend. The MACD of 2.09 indicates Positive momentum. The RSI at 66.90 is Neutral, neither overbought nor oversold. The STOCH value of 88.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:IGM.
IGM Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | C$18.05B | 13.67 | 13.19% | 3.59% | 17.16% | 22.85% | |
77 Outperform | C$4.57B | 44.53 | 24.78% | 1.32% | 115.09% | 68.03% | |
70 Outperform | C$8.30B | 10.50 | 6.52% | 0.36% | 2.88% | 32.70% | |
69 Neutral | C$1.09B | 18.29 | 9.72% | 3.01% | 4.44% | 18.34% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | C$581.09M | 50.26 | 7.80% | 8.78% | -8.34% | -48.32% |
* Financial Sector Average
TSE:IGM
IGM Financial
77.64
35.47
84.13%
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IGM Financial Corporate Events
Business Operations and StrategyExecutive/Board Changes
IGM Financial Maps 2026 Leadership Transition to Sustain Growth Momentum
Positive
Feb 18, 2026
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...
Business Operations and StrategyDividendsFinancial Disclosures
IGM Financial Posts Record 2025 Earnings and Boosts Dividend 10%
Positive
Feb 12, 2026
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 companyR...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.