IGM Financial (IGM) AI Stock Analysis

• Market Cap: $15.90B
• Dividend Yield: 3.59%
• Average Volume (3M): 315.56K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.83
• 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: 234,245,360
• 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: 1.38
• Enterprise Value/Revenue: 5.73
• Enterprise Value/Gross Profit: 11.67
• Enterprise Value/Ebitda: 13.95
• 1Y Price Target: $68.33
• Price Target Upside: 0.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): 5.08
• Revenue Forecast (FY): $4.07B

• Rating: 75 Outperform
• Price Target: C$75.00 ▲(10.52% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven mainly by solid financial performance (strong margins and improving leverage) and constructive technicals (price above key moving averages with positive MACD). Valuation looks reasonable with a supportive dividend, and the latest earnings call adds upside via record EPS and strong inflows, partially tempered by fee-rate pressure and cash-flow volatility.

Positive Factors

High and durable profitability margins

Sustained gross margins near 64% and net margins around 29% reflect durable fee-based economics and operating leverage. High margins provide ongoing cash available for reinvestment, dividends and strategic initiatives, and create a buffer against market-driven top-line swings.

Improving leverage and stronger balance sheet trajectory

Declining debt-to-equity to ~0.83 signals meaningful de-risking and stronger capitalization. Improved leverage enhances financial flexibility for capital returns, M&A or product investment, and lowers refinancing risk across multi-quarter horizons even if markets soften.

Consistent net inflows and scale from Wealthsimple growth

Robust net inflows across IG Wealth and Mackenzie plus Wealthsimple's rapid AUA expansion (to $100.8B) indicate durable distribution strength and product-market fit. Growing AUA diversifies fees, enhances scale economics and supports sustainable long-term fee revenue.

Negative Factors

Uneven multi-year revenue trends

An inconsistent top-line trajectory—with intermittent down years—reduces revenue predictability and complicates multi-quarter planning. Even with solid margins, uneven revenue growth makes earnings less reliable and increases execution demands on distribution and product strategies.

Free cash flow volatility

Material swings in free cash flow—despite FCF generally tracking earnings—reduce the company's ability to consistently fund buybacks, dividends or opportunistic investments. Volatile cash conversion raises sensitivity to one-time items and limits dependable capital allocation over several quarters.

Advisory fee-rate pressure at IG Wealth

A decline in advisory fee rate, even modest, signals structural margin pressure if client mix or product pricing trends persist. Lower revenue per AUM can erode long-term fee income unless offset by higher AUM growth, product repricing, or sustained cost reductions.

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 Financial generates revenue primarily through management fees, which are collected from the assets under management (AUM) in its various investment products, including mutual funds and segregated funds. Additionally, the company earns performance fees based on the investment returns of its managed portfolios. Another significant revenue stream comes from advisory fees associated with financial planning services provided to clients. IGM also benefits from distribution fees for the sale of its investment products through its extensive network of financial advisors. Strategic partnerships with other financial institutions and service providers further enhance IGM's ability to attract new clients and expand its service offerings, contributing to its overall earnings.

IGM Financial Financial Statement Overview

Summary

Strong profitability (gross margin ~64%, net margin ~29%) and improving leverage (debt-to-equity down to ~0.83) support the score. It’s tempered by uneven multi-year revenue trends and recent free-cash-flow volatility, including a sharp FCF drop in 2025 vs. 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: Positive
• Last Price: 67.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 67.86 is above the 20-day moving average (MA) of 66.55, above the 50-day MA of 65.14, and above the 200-day MA of 52.67, indicating a bullish trend. The MACD of 0.91 indicates Negative momentum. The RSI at 55.06 is Neutral, neither overbought nor oversold. The STOCH value of 85.53 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGF.B	79 Outperform	C$1.33B	10.34	9.85%	3.01%	11.23%	30.44%
SII	78 Outperform	C$5.70B	60.65	14.90%	1.32%	35.51%	7.55%
IGM	75 Outperform	$15.90B	14.58	12.37%	3.59%	-1.02%	-5.65%
GCG	69 Neutral	C$1.66B	8.81	13.82%	2.29%	58.88%	82.03%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ONEX	65 Neutral	C$7.74B	8.12	5.15%	0.36%	2.46%	-27.48%
FSZ	62 Neutral	C$622.68M	16.06	11.26%	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.