IGM Financial (IGM) AI Stock Analysis

• Market Cap: $12.85B
• Dividend Yield: 3.71%
• 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: 4.55
• Enterprise Value/Gross Profit: 8.81
• Enterprise Value/Ebitda: 11.40
• 1Y Price Target: $61.59
• Price Target Upside: 1.47% 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$67.00 ▲(10.38% Upside)

IGM Financial's strong financial performance and positive earnings call are the most significant factors driving the score. The company's robust profitability, strategic growth initiatives, and fair valuation contribute positively. However, technical indicators suggest caution due to overbought conditions, and the decline in free cash flow growth needs attention.

Positive Factors

Strong Core Business Performance

The strong performance in core businesses with significant net inflows indicates robust demand for IGM's investment products, supporting long-term revenue growth and market position.

Strategic Investments Growth

The substantial growth in strategic investments like Wealthsimple enhances IGM's competitive edge and diversifies its revenue streams, contributing to sustainable growth.

Record-Breaking Adjusted EPS

Achieving record EPS reflects strong operational efficiency and profitability, reinforcing IGM's financial health and ability to generate shareholder value.

Negative Factors

Decline in Free Cash Flow Growth

A decline in free cash flow growth can limit IGM's ability to invest in new opportunities and return capital to shareholders, potentially impacting long-term financial flexibility.

Decreased Advisory Fee Rate

A decrease in advisory fee rates could pressure revenue from advisory services, affecting profitability if not offset by higher volumes or cost efficiencies.

Challenges in Chinese Market

Volatility in the Chinese market poses risks to IGM's international growth strategy, potentially affecting asset management performance and client retention.

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, 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 maintains a strong financial position with consistent profitability and manageable leverage. The income statement shows stable revenue growth and healthy profit margins, though revenue growth has slightly declined. The balance sheet is solid with a manageable debt-to-equity ratio, but cash flow analysis reveals a slight decline in free cash flow growth, indicating potential cash management issues.

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	3.73B	3.49B	3.70B	3.15B	3.59B	3.15B
Gross Profit	1.93B	1.70B	1.43B	1.53B	1.74B	1.52B
EBITDA	1.49B	1.43B	1.36B	1.31B	1.48B	1.16B
Net Income	1.03B	933.51M	1.15B	867.24M	978.95M	764.41M
Balance Sheet
Total Assets	20.89B	20.68B	18.66B	18.74B	17.66B	16.06B
Cash, Cash Equivalents and Short-Term Investments	3.34B	2.26B	1.27B	1.68B	2.58B	1.36B
Total Debt	7.47B	7.59B	7.26B	6.90B	7.36B	8.46B
Total Liabilities	11.90B	12.81B	11.94B	12.61B	11.16B	11.02B
Stockholders Equity	8.89B	7.80B	6.66B	6.06B	6.45B	4.99B
Cash Flow
Free Cash Flow	922.71M	1.03B	683.50M	592.89M	857.67M	628.83M
Operating Cash Flow	1.04B	1.15B	837.28M	737.67M	943.59M	736.63M
Investing Cash Flow	-49.10M	-473.77M	-1.16B	134.71M	1.10B	673.38M
Financing Cash Flow	-590.13M	-313.42M	-203.77M	-1.09B	-1.52B	-1.36B

IGM Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 60.70
• 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 60.7 is above the 20-day moving average (MA) of 57.48, above the 50-day MA of 55.27, and above the 200-day MA of 47.17, indicating a bullish trend. The MACD of 1.37 indicates Negative momentum. The RSI at 78.63 is Negative, neither overbought nor oversold. The STOCH value of 94.56 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	79 Outperform	C$944.67M	8.42	9.85%	3.11%	11.23%	30.44%
SII	79 Outperform	$3.34B	47.58	14.90%	1.41%	35.51%	7.55%
IGM	76 Outperform	$12.85B	13.21	12.37%	3.71%	-1.02%	-5.65%
GCG	69 Neutral	C$1.65B	10.61	13.82%	2.29%	58.88%	82.03%
ONEX	69 Neutral	C$8.11B	11.52	5.15%	0.36%	2.46%	-27.48%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FSZ	61 Neutral	C$671.72M	17.89	11.26%	9.11%	-0.88%	-52.30%

IGM Financial Corporate Events

IGM Financial Expands Share Repurchase Program

IGM Financial Inc. has announced an amendment to its normal course issuer bid, increasing the maximum number of common shares that may be repurchased from 5,000,000 to 6,000,000. This adjustment aims to mitigate the dilutive effect of stock options and enhance capital management. The amendment reflects IGM’s strategic focus on optimizing shareholder value and maintaining a robust capital structure.

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.

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.

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.