IGM Financial (IGM) AI Stock Analysis

• Market Cap: $11.43B
• Dividend Yield: 4.66%
• Average Volume (3M): 245.20K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 1.09
• Revenue Growth: -3.20%
• EPS Growth: -8.50%
• Country: CA
• Employees: 3,300
• Sector: Financial
• Sector Strength: 72
• Industry: Asset Management
• EPS (TTM): 1.07
• Shares Outstanding: 235,822,110
• 10 Day Avg. Volume: 219,734
• 30 Day Avg. Volume: 245,196
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.49
• Enterprise Value/Revenue: 4.77
• Enterprise Value/Gross Profit: 9.64
• Enterprise Value/Ebitda: 11.95
• 1Y Price Target: $53.43
• Price Target Upside: 10.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 78 Outperform
• Price Target: C$54.00 ▲(11.41% Upside)

IGM Financial's overall stock score is driven by strong financial performance and attractive valuation metrics. The positive sentiment from the earnings call and recent corporate events further bolster the score. However, technical indicators suggest caution due to potential overbought conditions.

Positive Factors

Institutional Asset Growth

An additional $1 billion in institutional assets under management is expected to be onboarded in the second quarter.

Share Buybacks

Elevated share buybacks are consistent with management's strategic plan to reduce share count.

Target Price Increase

The target price for IGM Financial has increased to $47, reflecting a positive outlook despite certain challenges.

Negative Factors

Competitive Disadvantages

IGM trades at a valuation generally in line with its 5-year average, but faces strategic disadvantages versus banks.

Earnings Performance

The company's adjusted EPS was below expectations due to lower net asset management fees and higher operational expenses.

Market Uncertainty

The recommendation remains Market Perform due to market uncertainty and competitive pressures in the Canadian market.

IGM Financial Business Overview & Revenue Model

Company Description

IGM Financial Inc. is a leading financial services company based in Canada, primarily focused on wealth and asset management. It operates through its subsidiaries, including Investors Group and Mackenzie Investments, offering a range of financial products and services such as mutual funds, investment advice, financial planning, and retirement solutions. The company serves a diverse clientele, including individual investors, families, and institutions, and is committed to helping clients achieve their financial goals through tailored investment strategies.

How the Company Makes Money

IGM Financial generates revenue primarily through management fees charged on the assets under management (AUM) in its mutual funds and investment products. These fees are typically a percentage of the total AUM and vary based on the specific fund or service provided. Additionally, IGM earns income from advisory services, including financial planning and investment consulting, which may involve upfront fees or ongoing commissions. The company also benefits from performance fees on certain investment products that exceed benchmark returns. Strategic partnerships with financial advisors and institutions enhance its distribution capabilities, further contributing to its earnings. IGM's diversified product offerings and focus on long-term client relationships play a critical role in sustaining its revenue growth.

IGM Financial Financial Statement Overview

Summary

IGM Financial shows strong profitability with healthy net profit margins and ROE. However, stagnant revenue growth and declining free cash flow present potential risks. The balance sheet is stable but shows a slight decline in liquidity.

Income Statement

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.49B	3.70B	3.46B	3.90B	3.05B
Gross Profit	1.70B	1.43B	2.02B	2.25B	2.87B
EBITDA	1.43B	1.36B	1.20B	1.40B	1.23B
Net Income	933.51M	1.15B	867.24M	978.95M	764.41M
Balance Sheet
Total Assets	20.68B	18.66B	18.87B	17.66B	16.06B
Cash, Cash Equivalents and Short-Term Investments	2.26B	686.85M	1.68B	2.58B	1.36B
Total Debt	7.59B	7.26B	6.90B	7.36B	8.46B
Total Liabilities	12.81B	11.94B	12.61B	11.16B	11.02B
Stockholders Equity	7.80B	6.66B	6.20B	6.45B	4.99B
Cash Flow
Free Cash Flow	1.03B	683.50M	592.89M	857.67M	628.83M
Operating Cash Flow	1.15B	837.28M	737.67M	943.59M	736.63M
Investing Cash Flow	-473.77M	-1.16B	134.71M	1.10B	673.38M
Financing Cash Flow	-313.42M	-203.77M	-1.09B	-1.52B	-1.36B

IGM Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 48.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 48.47 is above the 20-day moving average (MA) of 46.20, above the 50-day MA of 44.20, and above the 200-day MA of 43.72, indicating a bullish trend. The MACD of 1.18 indicates Negative momentum. The RSI at 75.59 is Negative, neither overbought nor oversold. The STOCH value of 96.99 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
IGM	78 Outperform	$11.43B	11.79	12.60%	4.66%	-3.20%	-8.50%
CVG	77 Outperform	C$1.05B	8.79	9.77%	0.14%	132.11%	5511.22%
AGF.B	76 Outperform	C$775.48M	7.42	9.24%	4.02%	16.93%	17.52%
GCG	75 Outperform	C$1.02B	6.89	11.80%	4.46%	96.56%	158.06%
ONEX	74 Outperform	C$7.84B	11.15	6.19%	0.35%	-8.63%	-27.09%
Sector *	62 Neutral	C$15.64B	6.64	13.72%	5.97%	22.30%	-10.12%
BBUC	47 Neutral	C$4.06B	―	-301.45%	0.88%	-2.34%	-301.85%

IGM Financial Corporate Events

IGM Financial Achieves Record High Earnings and Asset Growth in Q2 2025

IGM Financial Inc. reported record high second quarter earnings for 2025, with adjusted net earnings reaching $252.7 million, marking a 14.7% increase from the previous year. The company also achieved record assets under management and advisement totaling $521.1 billion, driven by strong performance across its subsidiaries and strategic investments. Notably, IGM realized significant value from its fintech ecosystem by selling a portion of Conquest Planning, generating substantial returns. These results underscore IGM’s robust market positioning and potential for continued growth, benefiting stakeholders and solidifying its leadership in the wealth management sector.

The most recent analyst rating on (TSE:IGM) stock is a Hold with a C$39.00 price target. To see the full list of analyst forecasts on IGM Financial stock, see the TSE:IGM Stock Forecast page.