IGM Financial (IGM) AI Stock Analysis

• Market Cap: C$10.21B
• Dividend Yield: 5.21%
• Average Volume (3M): 282.08K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 1.07
• Revenue Growth: -3.85%
• EPS Growth: -4.41%
• Country: CA
• Employees: 3,300
• Sector: Financial
• Sector Strength: 82
• Industry: Asset Management
• EPS (TTM): 1.00
• Shares Outstanding: 236,318,270
• 10 Day Avg. Volume: 290,044
• 30 Day Avg. Volume: 282,080
• PEG Ratio: -0.93
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.20
• 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$46.99
• Price Target Upside: 8.73% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 73 Outperform
• Price Target: C$48.00 ▲(11.06%Upside)

IGM Financial's overall score reflects strong financial performance and attractive valuation, bolstered by positive earnings call highlights and strategic corporate events. However, technical indicators and market volatility pose cautions, requiring attention to cash flow management and retail sales challenges.

Positive Factors

Asset Management Growth

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

Institutional Wins

The company achieved a significant institutional win with a $4 billion Q1/25 sub-advisory contract.

Share Buybacks

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

Negative Factors

Competitive Pressures

There are continued competitive pressures in the mature and saturated Canadian market, where banks have inherent scale and distribution advantages.

Market Conditions

Uncertain market conditions contribute to a Market Perform rating for the stock.

Operating Expenses

Higher operating expenses in Q1/25 exceeded expectations, although the company maintains a 4% guidance for 2025.

IGM Financial Business Overview & Revenue Model

Company Description

IGM Financial Inc. operates as a wealth and asset management company in Canada. It operates through Wealth Management, Asset Management, and Strategic Investments and Other segments. The company offers financial advisory services; IG Living Plan that provides financial planning services, such as investment vehicles, insurance products, mortgage and banking solutions, and charitable giving program; IG Wealth Management Advisor Portal, a customer relationship management platform; and IG Wealth Management's dealer platform, which provides increased automation and supports both MFDA and IIROC licensed advisors, as well as new products on its investment dealer platform. It also provides mutual funds; portfolios; IG Advisory Account, a fee-based account that enhances client experience by offering the ability to simplify and consolidate selected investments into a single account; iProfile Private portfolios, a portfolio management program for households with investments; iProfile Portfolios, a suite of four managed solutions; segregated funds; separately managed and fee-based brokerage accounts; insurance products; and securities services. In addition, the company offers management and related services; global private equity, private credit, and infrastructure investment solutions; and exchange traded funds. The company was incorporated in 1978 and is headquartered in Winnipeg, Canada. IGM Financial Inc. is a subsidiary of Power Financial Corporation.

How the Company Makes Money

IGM Financial makes money through a diversified revenue model primarily centered around asset management and financial advisory services. The company earns management fees based on the assets under management (AUM) across its various funds and investment products. Additionally, IGM generates revenue through advisory fees for financial planning and wealth management services provided to individual and institutional clients. The company's subsidiaries, such as Mackenzie Investments, contribute significantly to revenue by offering a broad range of investment products, including mutual funds and ETFs. Key partnerships and distribution channels enhance IGM's market reach and client base, further supporting its earnings. Performance fees and commissions on investment products also play a role in the company's revenue generation.

IGM Financial Financial Statement Overview

Summary

IGM Financial shows strong profitability with high net profit margins and ROE. However, stagnant revenue growth and declining free cash flow indicate potential risks. The balance sheet is stable, but liquidity has slightly decreased.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.51B	3.49B	3.70B	3.46B	3.59B	3.15B
Gross Profit	1.45B	1.70B	1.43B	1.61B	3.25B	2.87B
EBITDA	1.36B	1.43B	1.36B	1.20B	1.48B	1.16B
Net Income	943.91M	933.51M	1.15B	867.24M	978.95M	764.41M
Balance Sheet
Total Assets	20.23B	20.68B	18.66B	18.87B	17.66B	16.06B
Cash, Cash Equivalents and Short-Term Investments	2.14B	2.26B	686.85M	1.68B	2.58B	1.36B
Total Debt	7.59B	7.59B	7.26B	6.90B	7.36B	8.46B
Total Liabilities	12.27B	12.81B	11.94B	12.61B	11.16B	11.02B
Stockholders Equity	7.88B	7.80B	6.66B	6.20B	6.45B	4.99B
Cash Flow
Free Cash Flow	970.88M	1.03B	683.50M	592.89M	857.67M	628.83M
Operating Cash Flow	1.09B	1.15B	837.28M	737.67M	943.59M	736.63M
Investing Cash Flow	-504.86M	-473.77M	-1.16B	134.71M	1.10B	673.38M
Financing Cash Flow	-314.06M	-313.42M	-203.77M	-1.09B	-1.52B	-1.36B

IGM Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 43.22
• 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 43.22 is above the 20-day moving average (MA) of 42.88, above the 50-day MA of 43.20, and above the 200-day MA of 42.93, indicating a bullish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 53.40 is Neutral, neither overbought nor oversold. The STOCH value of 46.13 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	78 Outperform	C$829.43M	7.89	9.24%	3.93%	16.93%	17.52%
CVG	77 Outperform	C$1.10B	9.03	10.05%	1.04%	120.44%	―
IGM	73 Outperform	C$10.21B	10.86	12.84%	5.21%	-3.85%	-4.41%
ONEX	72 Outperform	C$7.81B	13.10	5.40%	0.48%	-10.83%	-34.83%
GCG	71 Outperform	C$1.04B	14.95	5.62%	4.94%	35.78%	-24.67%
Sector *	67 Neutral	$17.01B	11.90	9.70%	3.76%	11.63%	-9.47%
BBUC		$3.11B	―	-247.20%	0.77%	―	―

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.