IGM Financial (IGM) AI Stock Analysis

• Market Cap: $12.85B
• Dividend Yield: 4.01%
• Average Volume (3M): 315.56K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 1.07
• 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: 236,567,930
• 10 Day Avg. Volume: 320,535
• 30 Day Avg. Volume: 315,559
• PEG Ratio: -0.63
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 2.81
• P/FCF Ratio: 10.54
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 4.68
• Enterprise Value/Gross Profit: 9.28
• Enterprise Value/Ebitda: 11.81
• 1Y Price Target: $61.66
• Price Target Upside: 9.59% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: C$61.00 ▲(8.43% Upside)

IGM Financial's strong earnings call performance and attractive valuation are the most significant factors contributing to its score. The company's robust financial performance and positive technical indicators further support its stable position in the asset management industry.

Positive Factors

Strategic Investments

The significant growth in Wealthsimple's assets under administration highlights IGM's successful strategic investments, enhancing its market position and long-term growth potential.

Core Business Performance

Strong net inflows and earnings growth in core businesses demonstrate IGM's effective market strategies and ability to attract and retain clients, supporting sustained revenue growth.

Record Earnings

Achieving record earnings per share indicates robust financial health and operational efficiency, reinforcing investor confidence and supporting future capital return strategies.

Negative Factors

Revenue Growth Challenges

The modest revenue growth rate suggests potential challenges in expanding market share or product offerings, which could impact long-term competitive positioning.

Cash Flow Decline

A decline in free cash flow growth may indicate inefficiencies in cash management, potentially affecting the company's ability to invest in growth opportunities or return capital to shareholders.

Advisory Fee Rate Decline

The decline in advisory fee rates could pressure revenue margins, especially if clients continue moving to higher wealth bands, necessitating adjustments in pricing strategies.

IGM Financial Business Overview & Revenue Model

Company Description

IGM Financial Inc. is a leading financial services company based in Canada, primarily involved in the provision of investment management and wealth management solutions. The company operates through its subsidiaries, including Investors Group and Mackenzie Investments, offering a range of products such as mutual funds, financial planning, and asset management services. IGM Financial serves a diverse clientele, including individual investors, corporations, and institutions, and is focused on delivering innovative financial solutions tailored to meet the unique needs of its clients.

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

IGM Financial demonstrates a strong financial position with consistent profitability and manageable leverage. However, the slight decline in cash flow growth and modest revenue growth rate highlight areas for potential improvement.

Income Statement

IGM Financial shows a stable income statement with consistent revenue growth, albeit modest at 1.94% in the TTM. The company maintains healthy profit margins, with a net profit margin of 26.54% and an EBIT margin of 38.00% in the TTM. However, the slight decline in revenue growth compared to previous periods suggests potential challenges in sustaining higher growth rates.

Balance Sheet

The balance sheet reflects a balanced financial structure with a debt-to-equity ratio of 0.96, indicating manageable leverage. The return on equity is solid at 12.47%, showcasing effective use of equity. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.

Cash Flow

Cash flow analysis reveals a slight decline in free cash flow growth at -3.27% in the TTM, which could indicate potential cash management issues. The operating cash flow to net income ratio is 0.38, suggesting moderate cash generation relative to net income. The free cash flow to net income ratio remains strong at 88.99%, indicating efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.63B	3.88B	3.70B	3.46B	3.90B	3.05B
Gross Profit	1.83B	1.70B	1.43B	2.02B	2.25B	2.87B
EBITDA	1.44B	1.39B	1.36B	1.20B	1.40B	1.23B
Net Income	974.43M	933.51M	1.15B	867.24M	978.95M	764.41M
Balance Sheet
Total Assets	20.16B	20.68B	18.66B	18.87B	17.66B	16.06B
Cash, Cash Equivalents and Short-Term Investments	2.44B	2.26B	686.85M	1.68B	2.58B	1.36B
Total Debt	7.52B	7.59B	7.26B	6.90B	7.36B	8.46B
Total Liabilities	11.98B	12.81B	11.94B	12.61B	11.16B	11.02B
Stockholders Equity	8.09B	7.80B	6.66B	6.20B	6.45B	4.99B
Cash Flow
Free Cash Flow	939.13M	1.03B	683.50M	592.89M	857.67M	628.83M
Operating Cash Flow	1.06B	1.15B	837.28M	737.67M	943.59M	736.63M
Investing Cash Flow	-292.95M	-473.77M	-1.16B	134.71M	1.10B	673.38M
Financing Cash Flow	-386.26M	-313.42M	-203.77M	-1.09B	-1.52B	-1.36B

IGM Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 56.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 56.26 is above the 20-day moving average (MA) of 54.14, above the 50-day MA of 51.94, and above the 200-day MA of 45.58, indicating a bullish trend. The MACD of 0.97 indicates Negative momentum. The RSI at 66.83 is Neutral, neither overbought nor oversold. The STOCH value of 67.47 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGF.B	79 Outperform	C$951.00M	8.46	9.85%	3.56%	11.23%	30.44%
CVG	77 Outperform	C$992.05M	8.53	9.77%	0.14%	132.11%	5511.22%
ONEX	77 Outperform	C$8.11B	11.52	5.15%	0.36%	2.46%	-27.48%
IGM	76 Outperform	$12.85B	13.21	12.37%	4.01%	-1.02%	-5.65%
GCG	69 Neutral	C$1.65B	10.61	11.80%	2.72%	96.56%	158.06%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BBUC	45 Neutral	$4.81B	-3.41	―	0.77%	-0.16%	-2945.66%

IGM Financial Corporate Events

IGM Financial Reports Record Third Quarter Earnings

IGM Financial Inc. is a leading Canadian diversified wealth and asset management organization, providing a wide range of financial planning and investment management services primarily through its subsidiaries IG Wealth Management and Mackenzie Investments.

IGM Financial Achieves Record Third-Quarter Earnings and Asset Growth

IGM Financial Inc. reported record third-quarter earnings for 2025, with adjusted net earnings reaching $301.2 million, a 23.4% increase from the previous year. The company’s assets under management and advisement hit an all-time high of $562.4 billion, driven by strong net inflows and increased fair value of investments in Wealthsimple and Rockefeller. This performance underscores IGM’s robust growth and market positioning, benefiting stakeholders through enhanced asset levels and investment valuations.

The most recent analyst rating on (TSE:IGM) stock is a Hold with a C$54.00 price target. To see the full list of analyst forecasts on IGM Financial stock, see the TSE:IGM Stock Forecast page.

IGM Financial Boosts Wealthsimple Investment Amid New Financing Round

IGM Financial announced a significant increase in the value of its investment in Wealthsimple following a new financing round of up to $750 million. This transaction, co-led by GIC and Dragoneer, will allow Wealthsimple to accelerate its growth, increasing IGM’s investment value by $680 million to $2.16 billion. IGM will invest an additional $100 million, maintaining its position as the largest shareholder with a 25.5% interest. This move underscores IGM’s strategic focus on high-growth investments and enhances shareholder value.

The most recent analyst rating on (TSE:IGM) stock is a Buy 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’s Investment in Rockefeller Capital Management Sees Significant Growth

IGM Financial Inc. announced a significant increase in the valuation of its investment in Rockefeller Capital Management, now valued at C$1.58 billion, up C$750 million from its initial investment in June 2023. This transaction highlights IGM’s strategic positioning as a major stakeholder in Rockefeller, reinforcing its commitment to long-term growth in the wealth management sector. The transaction is expected to close in the fourth quarter of 2025, further supporting IGM’s risk-smart investment strategy and enhancing its market presence.

The most recent analyst rating on (TSE:IGM) stock is a Hold with a C$50.00 price target. To see the full list of analyst forecasts on IGM Financial stock, see the TSE:IGM Stock Forecast page.

IGM Financial Reports Record Earnings and Strategic Growth

The recent earnings call for IGM Financial painted a largely positive picture, showcasing significant achievements and growth across various segments of the company. Record-breaking earnings and substantial growth in strategic investments were highlighted, alongside robust performance in wealth and asset management. Despite some challenges, such as volatility affecting average assets under management (AUM) and continued negative earnings from Rockefeller, the positive aspects of the call substantially outweighed the negatives.