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IGM Financial
(TSX:IGM)
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Rating:78Outperform
Price Target:
C$99.00
â–²(18.86% Upside)
Action:Reiterated
Date:07/31/26
The score is driven primarily by strong financial performance (high margins, solid and improving cash generation, and improving leverage) and supportive technical trend strength (price above all major moving averages). The latest earnings call reinforces momentum and disciplined capital returns, though fee-rate pressure and some flow/expense volatility temper the outlook. Valuation appears reasonable but not deeply discounted, which keeps the overall score below the highest tier.
Positive Factors
High and Stable Profitability
Sustained high margins indicate durable operating leverage across IGM’s wealth and asset management platforms. Strong profitability supports reinvestment, dividends, and buybacks while providing a buffer versus market-driven revenue swings, strengthening long-term earnings quality.
Negative Factors
Fee Rate Pressure
Persistent fee compression from product mix and institutional onboarding erodes revenue per asset over time. Even with AUM growth, lower average fees make revenue and margin improvement harder to sustain, pressuring long-term organic revenue growth.
Read all positive and negative factors
Positive Factors
Negative Factors
High and Stable Profitability
Sustained high margins indicate durable operating leverage across IGM’s wealth and asset management platforms. Strong profitability supports reinvestment, dividends, and buybacks while providing a buffer versus market-driven revenue swings, strengthening long-term earnings quality.
Read all positive factors
IGM Financial (IGM) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$20.18B
Dividend Yield2.71%
Average Volume (3M)315.56K
Price to Earnings (P/E)17.5
Beta (1Y)0.92
Revenue Growth19.92%
EPS Growth20.90%
CountryCA
Employees3,594
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)4.97
Shares Outstanding231,514,950
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$88.00Price Target Upside5.65% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)5.42
Revenue Forecast (FY)C$4.14B
IGM Financial Business Overview & Revenue Model
Company Description
IGM Financial Inc. operates as a prominent wealth and asset management enterprise, serving clients across Canada. The company organizes its extensive operations into three primary segments: Wealth Management, Asset Management, and Strategic Invest...
How the Company Makes Money
IGM primarily makes money by charging fees for managing client assets and providing wealth management services. The core revenue stream is management and advisory fees (often calculated as a percentage of assets under management (AUM) or assets un...
IGM Financial Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call emphasized broad-based growth across core businesses and strategic investments—record or multi-year highs in adjusted EPS, AUM/A growth, Wealthsimple revaluation, strong flows at IG Wealth and Mackenzie, and active capital returns—while also acknowledging manageable challenges: fee rate pressure from product mix and institutional onboarding, ChinaAMC flow disruptions tied to national stabilization activity, a restructuring charge to fund AI investments, and some accounting presentation changes tied to Northleaf consolidation. On balance the positives (robust earnings, diversified asset growth, strategic AI and partnership investments, and strong capital management) outweigh the headwinds.Positive Updates
Strong Adjusted Earnings
Adjusted EPS of $1.41, up ~32% year-over-year (reported EPS $1.12). Adjusted EPS growth driven by higher average AUM&A, $2.2B in net flows and strong investment returns.
Negative Updates
Fee Rate Pressure
Advisory fee rate decreased ~0.6 basis points in the quarter (IG Wealth) with an expected further decline of ~0.25–0.5 bps in Q3. Mackenzie third‑party fee rate (ex‑Canada Life) decreased ~3.9 bps in Q2 and is expected to decline another ~1.5 bps (ex‑Canada Life) in Q3, driven by institutional onboarding and product mix shifts.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Adjusted Earnings
Adjusted EPS of $1.41, up ~32% year-over-year (reported EPS $1.12). Adjusted EPS growth driven by higher average AUM&A, $2.2B in net flows and strong investment returns.
Read all positive updates
Company Guidance
IGM reiterated disciplined forward guidance: maintain operations/support expense growth of ~4%, fund meaningful AI and technology reinvestment from identified structural savings, and continue returning capital (Q2 returns $345M including $200M buybacks) while preserving financial flexibility with $935M of unallocated capital and gross debt/EBITDA of 1.25x (comfortable long‑term target <2x). Near‑term operating guidance includes IG Wealth advisory fee rate down ~0.25–0.5 bps in Q3 (after a 0.6 bps Q2 decline) with a modest rise in asset‑based compensation and seasonally lower Q3 expenses, Mackenzie third‑party fee rate (ex‑Canada Life) down ~1.5 bps in Q3 (overall third‑party rate down ~0.7 bps) as institutional onboardings continue, and consolidation of Northleaf effective July 1 (Mackenzie economic interest to 60.9%) with an expected Q3 non‑cash gain of ~$187M pre‑tax ($149M after noncontrolling interest); management expects unallocated capital to decline over Q3–Q4 as share repurchases resume under the NCIB.IGM Financial Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
71
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.91B | 3.82B | 3.49B | 3.70B | 3.15B | 3.59B |
| Gross Profit | 1.27B | 2.43B | 1.70B | 1.43B | 1.53B | 1.74B |
| EBITDA | 1.70B | 1.85B | 1.43B | 1.36B | 1.31B | 1.48B |
| Net Income | 1.17B | 1.10B | 933.51M | 1.15B | 867.24M | 978.95M |
Balance Sheet | ||||||
| Total Assets | 21.78B | 22.40B | 20.68B | 18.66B | 18.74B | 17.66B |
| Cash, Cash Equivalents and Short-Term Investments | 1.52B | 3.69B | 2.26B | 1.27B | 1.68B | 2.58B |
| Total Debt | 7.68B | 7.38B | 7.59B | 7.26B | 6.90B | 7.36B |
| Total Liabilities | 12.40B | 13.36B | 12.81B | 11.94B | 12.61B | 11.16B |
| Stockholders Equity | 9.29B | 8.94B | 7.80B | 6.66B | 6.06B | 6.45B |
Cash Flow | ||||||
| Free Cash Flow | 1.14B | 915.00M | 1.03B | 683.50M | 592.89M | 857.67M |
| Operating Cash Flow | 1.23B | 1.03B | 1.15B | 837.28M | 737.67M | 943.59M |
| Investing Cash Flow | 298.14M | 301.00M | -473.77M | -1.16B | 134.71M | 1.10B |
| Financing Cash Flow | -841.12M | -972.05M | -313.42M | -203.77M | -1.09B | -1.52B |
IGM Financial Technical Analysis
Positive
83.29
Price Trends
81.83
Positive
76.56
Positive
68.51
Positive
Market Momentum
2.27
Negative
65.12
Neutral
76.04
Neutral
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 83.29 is below the 20-day moving average (MA) of 85.68, above the 50-day MA of 81.83, and above the 200-day MA of 68.51, indicating a bullish trend. The MACD of 2.27 indicates Negative momentum. The RSI at 65.12 is Neutral, neither overbought nor oversold. The STOCH value of 76.04 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | C$1.45B | 10.56 | 11.40% | 2.28% | 10.08% | 33.25% | |
78 Outperform | C$20.18B | 17.54 | 12.91% | 2.84% | 19.92% | 20.90% | |
70 Outperform | C$3.72B | 31.43 | 23.54% | 1.32% | 115.09% | 68.03% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | C$8.19B | 9.21 | 6.52% | 0.38% | 2.88% | 32.70% | |
56 Neutral | C$527.14M | 26.44 | 7.80% | 9.27% | -8.34% | -48.32% |
* Financial Sector Average
TSE:IGM
IGM Financial
90.20
44.37
96.80%
TSE:AGF.B
AGF Management B NV
23.88
12.36
107.31%
TSE:FSZ
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4.75
-1.51
-24.07%
TSE:ONEX
ONEX Corporation
111.96
0.75
0.68%
TSE:SII
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78.79%
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.