IGM Financial (IGM) AI Stock Analysis

• Market Cap: C$10.95B
• Dividend Yield: 4.85%
• Average Volume (3M): 278.31K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 1.09
• Revenue Growth: -3.85%
• EPS Growth: -4.41%
• Country: CA
• Employees: 3,300
• Sector: Financial
• Sector Strength: 72
• Industry: Asset Management
• EPS (TTM): 1.00
• Shares Outstanding: 236,054,800
• 10 Day Avg. Volume: 254,425
• 30 Day Avg. Volume: 278,305
• PEG Ratio: 8.44
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.45
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$50.80
• Price Target Upside: 11.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 72 Outperform
• 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 Business Overview & Revenue Model

Company Description

IGM 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 Money

IGM 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 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

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	3.59B	3.15B
Gross Profit	1.70B	1.43B	1.61B	3.25B	2.87B
EBITDA	1.43B	1.36B	1.20B	1.48B	1.16B
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: 45.50
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGF.B	81 Outperform	C$819.34M	7.89	9.24%	3.81%	16.93%	17.52%
CVG	77 Outperform	C$1.07B	8.78	10.05%	0.13%	120.44%	―
IGM	72 Outperform	C$10.95B	11.44	12.84%	4.85%	-3.85%	-4.41%
ONEX	72 Outperform	C$7.86B	13.26	5.40%	<0.01%	-10.83%	-34.83%
GCG	71 Outperform	C$1.04B	15.07	5.62%	4.49%	35.78%	-24.67%
Sector *	68 Neutral	$17.10B	11.44	9.70%	3.58%	11.11%	-4.78%
BBUC	60 Neutral	$4.18B	―	-247.20%	0.02%	-11.38%	-259.72%

IGM Financial Corporate Events

IGM Financial Inc. Elects Directors at Annual Meeting

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.

IGM Financial Achieves Record First Quarter Earnings in 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.