IGM Financial (IGM) AI Stock Analysis

• Market Cap: C$11.85B
• Dividend Yield: 4.5%
• Average Volume (3M): 267.82K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 1.12
• Revenue Growth: -3.20%
• EPS Growth: -8.50%
• Country: CA
• Employees: 3,300
• Sector: Financial
• Sector Strength: 77
• Industry: Asset Management
• EPS (TTM): 1.07
• Shares Outstanding: 235,822,110
• 10 Day Avg. Volume: 332,666
• 30 Day Avg. Volume: 267,819
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$53.34
• Price Target Upside: 6.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 74 Outperform
• Price Target: C$54.00 ▲(8.06% Upside)

IGM Financial's strong earnings performance and reasonable valuation are the most significant factors contributing to its overall score. The company's robust financial position and strategic growth initiatives further enhance its attractiveness. However, technical indicators suggest caution due to overbought conditions.

Positive Factors

Asset Management

Q2/25 net inflows of $90mm are better than Q2/24’s net outflows of $1.1B, showing a year-over-year rebound.

Institutional Assets

An additional $1 billion in institutional assets under management is expected to be onboarded in Q2/25 as part of a global quantitative equity strategy.

Target Price

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

Negative Factors

Earnings Performance

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

Market Competition

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

Net Inflows

Q2/25 net inflows were weaker than expected, at $90mm, compared to the $580mm estimate.

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 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 demonstrates a strong financial position with consistent profitability and manageable leverage. While revenue and profit margins are robust, 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	1.43B	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: 49.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 49.97 is above the 20-day moving average (MA) of 48.76, above the 50-day MA of 46.03, and above the 200-day MA of 44.24, indicating a bullish trend. The MACD of 1.03 indicates Positive momentum. The RSI at 69.29 is Neutral, neither overbought nor oversold. The STOCH value of 85.46 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
CVG	77 Outperform	C$998.67M	8.44	9.77%	0.14%	132.11%	5511.22%
ONEX	77 Outperform	C$8.19B	11.64	6.19%	0.33%	-8.63%	-27.09%
AGF.B	75 Outperform	C$845.03M	7.83	9.24%	3.69%	16.93%	17.52%
IGM	74 Outperform	C$11.85B	12.22	12.60%	4.50%	-3.20%	-8.50%
GCG	69 Neutral	C$1.64B	10.54	11.80%	2.92%	96.56%	158.06%
Sector *	68 Neutral	$18.06B	11.97	10.24%	3.74%	9.75%	1.30%
BBUC	―	$3.26B	―	-301.45%	0.74%	―	―

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.