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IGM Financial (TSE:IGM)
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IGM Financial (IGM) AI Stock Analysis

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TSE:IGM

IGM Financial

(OTC:IGM)

Rating:72Outperform
Price Target:
C$48.00
▲(5.49%Upside)
IGM Financial stands out with strong valuation metrics and robust earnings performance. However, challenges in revenue growth and market sentiment temper the overall outlook. Governance and strategic initiatives provide additional support.
Positive Factors
Institutional Asset Growth
An additional $1 billion in institutional assets under management is expected to be onboarded in the second quarter.
Target Price Increase
The target price for IGM Financial has increased to $47, reflecting a positive outlook despite certain challenges.
Year-over-Year Improvement
Q2/25 net inflows of $90mm are better than Q2/24’s net outflows of $1.1B, showing a year-over-year rebound.
Negative Factors
Earnings Performance
The company's adjusted EPS was below expectations due to lower net asset management fees and higher operational expenses.
Market Conditions
Uncertain market conditions result in a Market Perform rating being maintained.
Net Inflows
Q2/25 net inflows were weaker than expected, at $90mm, largely due to a $1B institutional inflow not transpiring as anticipated.

IGM Financial (IGM) vs. iShares MSCI Canada ETF (EWC)

IGM Financial Business Overview & Revenue Model

Company DescriptionIGM Financial Inc. is a leading Canadian financial services company, operating primarily in the asset management and wealth management sectors. The company offers a diverse range of financial products and services designed to meet the needs of individual and institutional investors. Through its key subsidiaries, IG Wealth Management, Mackenzie Investments, and Investment Planning Counsel, IGM Financial provides comprehensive financial planning, mutual funds, and investment management services.
How the Company Makes MoneyIGM Financial earns revenue primarily through management fees, advisory fees, and distribution fees associated with its wealth and asset management services. The company generates income from managing a wide array of investment products, including mutual funds, ETFs, and other investment vehicles. These fees are typically calculated as a percentage of assets under management (AUM), which means that as IGM grows its AUM through attracting new clients or increasing existing clients' investments, its revenue potential increases. Furthermore, IGM benefits from strategic partnerships and distribution agreements, which enhance its product offerings and expand its market reach, contributing to its financial performance.

IGM Financial Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: 4.02%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call reflected robust growth in client assets and strategic investments, with record-breaking earnings. However, market volatility and challenges in retail sales and M&A activities presented areas of concern.
Q1-2025 Updates
Positive Updates
Record-Breaking Q1 Earnings
Adjusted earnings per share reached a first-quarter record of $1, with core businesses achieving record high client assets.
Significant Growth in Client Assets
Client assets grew by 19% year-over-year, surpassing $0.5 trillion for the first time.
Strong Performance in Wealth Management
IG Wealth ended the quarter with $141.5 billion AUA, up 11% year-over-year. Record gross inflows and net inflows of $718 million were achieved.
Positive Institutional Sales
Mackenzie achieved net sales of $3.4 billion in Q1, with a strong contribution from institutional awards.
Growth in Strategic Investments
ChinaAMC's investment funds grew by 27% year-over-year, and Northleaf delivered consecutive quarters of $1 billion in fundraising.
Negative Updates
Market Volatility Impact
April was marked by significant volatility, leading to a 2% decline in assets compared to the end of March.
Challenges in Retail Sales
Retail net redemptions remained in line with last year despite an 11% increase in gross sales, indicating room for improvement in retail flows.
M&A and Asset Management Slowdown
Rockefeller's M&A business and asset management growth were slower than expected, impacting profitability targets.
Company Guidance
During the IGM Financial First Quarter 2025 Analyst Call, the company reported robust financial performance, setting a record with an adjusted earnings per share of $1. Key metrics highlighted include a 19% year-over-year growth in client assets, surpassing $0.5 trillion, driven by strategic investments and strong performance from core businesses IG Wealth and Mackenzie, both achieving record high client assets. The balance sheet remains strong with unallocated capital exceeding $600 million. Despite market volatility, net inflows for IG Wealth were $718 million, with gross inflows totaling $4.2 billion and gross sales of $4.9 billion. Mackenzie Investments saw a 7% increase in AUM to $219 billion, with net sales of $3.4 billion in Q1. Additionally, Wealthsimple and Rockefeller reported significant asset growth, with Wealthsimple's AUA increasing by 89% year-over-year. Operational highlights include a focus on expanding private asset offerings and maintaining strategic investments, all while navigating a complex economic landscape.

IGM Financial Financial Statement Overview

Summary
IGM Financial shows solid profitability with healthy margins and strong ROE. However, stagnant revenue growth and a decrease in free cash flow pose potential risks. The balance sheet is stable, though liquidity has slightly declined.
Income Statement
72
Positive
IGM Financial's TTM (Trailing-Twelve-Months) revenue shows a slight increase to CAD 3.51 billion compared to the previous year. The gross profit margin stands at 41.42%, and the net profit margin is 26.90%, indicating robust profitability. However, a decrease in gross profit from CAD 1.70 billion in 2024 to CAD 1.45 billion in the TTM period highlights potential challenges in cost management or revenue generation. Revenue growth is stagnant, but EBIT and EBITDA margins remain healthy at 32.35% and 38.63%, respectively.
Balance Sheet
68
Positive
The company's debt-to-equity ratio is 0.96, reflecting a balanced approach to leveraging, though slightly high for the asset management industry. Return on Equity (ROE) in the TTM period is strong at 11.97%, showcasing efficient equity utilization. The equity ratio is 38.97%, indicating a solid base of equity relative to total assets. However, a decrease in cash and short-term investments from CAD 2.26 billion in 2024 to CAD 2.14 billion in the TTM period suggests reduced liquidity.
Cash Flow
75
Positive
IGM Financial's TTM free cash flow stands at CAD 970.88 million, a slight decrease from CAD 1.03 billion in 2024. The operating cash flow to net income ratio is healthy at 1.16, indicating strong cash generation relative to earnings. The free cash flow to net income ratio is 1.03, which is indicative of efficient cash management. However, the free cash flow growth rate is negative due to a decrease from the previous period, highlighting potential cash flow pressures.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.49B3.70B3.46B3.59B3.15B
Gross Profit1.70B1.43B1.61B3.25B2.87B
EBITDA1.43B1.36B1.20B1.48B1.16B
Net Income933.51M1.15B867.24M978.95M764.41M
Balance Sheet
Total Assets20.68B18.66B18.87B17.66B16.06B
Cash, Cash Equivalents and Short-Term Investments2.26B686.85M1.68B2.58B1.36B
Total Debt7.59B7.26B6.90B7.36B8.46B
Total Liabilities12.81B11.94B12.61B11.16B11.02B
Stockholders Equity7.80B6.66B6.20B6.45B4.99B
Cash Flow
Free Cash Flow1.03B683.50M592.89M857.67M628.83M
Operating Cash Flow1.15B837.28M737.67M943.59M736.63M
Investing Cash Flow-473.77M-1.16B134.71M1.10B673.38M
Financing Cash Flow-313.42M-203.77M-1.09B-1.52B-1.36B

IGM Financial Technical Analysis

Technical Analysis Sentiment
Positive
Last Price45.50
Price Trends
50DMA
43.33
Positive
100DMA
42.99
Positive
200DMA
43.26
Positive
Market Momentum
MACD
0.58
Negative
RSI
80.64
Negative
STOCH
94.15
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 45.5 is above the 20-day moving average (MA) of 43.36, above the 50-day MA of 43.33, and above the 200-day MA of 43.26, indicating a bullish trend. The MACD of 0.58 indicates Negative momentum. The RSI at 80.64 is Negative, neither overbought nor oversold. The STOCH value of 94.15 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
C$819.34M7.899.24%3.81%16.93%17.52%
77
Outperform
C$1.07B8.7810.05%0.13%120.44%
72
Outperform
C$10.95B11.4412.84%4.85%-3.85%-4.41%
72
Outperform
C$7.86B13.265.40%<0.01%-10.83%-34.83%
71
Outperform
C$1.04B15.075.62%4.49%35.78%-24.67%
68
Neutral
$17.10B11.449.70%3.58%11.11%-4.78%
60
Neutral
$4.18B-247.20%0.02%-11.38%-259.72%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:IGM
IGM Financial
46.40
9.34
25.19%
TSE:CVG
Clairvest
74.34
0.61
0.83%
TSE:ONEX
ONEX Corporation
114.03
19.05
20.06%
TSE:GCG
Guardian Capital
43.26
1.34
3.20%
TSE:AGF.B
AGF Management B NV
12.59
4.69
59.37%
TSE:BBUC
Brookfield Business Corp. Class A
43.70
13.02
42.41%

IGM Financial Corporate Events

Executive/Board ChangesShareholder Meetings
IGM Financial Inc. Elects Directors at Annual Meeting
Positive
May 9, 2025

IGM Financial Inc. announced the election of its directors during the Annual Meeting of Shareholders, with all nominees listed in the management proxy circular being elected by a majority vote. This election reinforces the company’s governance structure and supports its strategic initiatives in the wealth and asset management industry, potentially impacting stakeholders positively by ensuring experienced leadership continues to guide the company.

Business Operations and StrategyFinancial Disclosures
IGM Financial Achieves Record First Quarter Earnings in 2025
Positive
May 8, 2025

IGM Financial Inc. reported record high first quarter earnings for 2025, with adjusted net earnings reaching $237.8 million, a 5.9% increase from the previous year. The company’s assets under management and advisement also hit a record high of $275 billion, driven by strong performances from IG Wealth Management and Mackenzie Investments. This growth reflects a significant improvement in net inflows and strategic investments, positioning IGM Financial favorably in the market.

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.Date of analysis: Jul 17, 2025