iA Financial Corporation Inc.
iA Financial Corporation Inc. Fundamental Analysis
iA Financial Corporation Inc. (IAF-PI.TO) shows strong financial fundamentals with a PE ratio of 8.84, profit margin of 12.22%, and ROE of 11.12%. The company generates $6.5B in annual revenue with strong year-over-year growth of 46.05%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 67.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze IAF-PI.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakIAF-PI.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentIAF-PI.TO trades at attractive valuation levels.
Growth Score
ExcellentIAF-PI.TO delivers strong and consistent growth momentum.
Financial Health Score
ExcellentIAF-PI.TO maintains a strong and stable balance sheet.
Profitability Score
WeakIAF-PI.TO struggles to sustain strong margins.
Key Financial Metrics
Is IAF-PI.TO Expensive or Cheap?
P/E Ratio
IAF-PI.TO trades at 8.84 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, IAF-PI.TO's PEG of 0.09 indicates potential undervaluation.
Price to Book
The market values iA Financial Corporation Inc. at 0.99 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.58 times EBITDA. This is generally considered low.
How Well Does IAF-PI.TO Make Money?
Net Profit Margin
For every $100 in sales, iA Financial Corporation Inc. keeps $12.22 as profit after all expenses.
Operating Margin
Core operations generate 15.63 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.12 in profit for every $100 of shareholder equity.
ROA
iA Financial Corporation Inc. generates $0.92 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
iA Financial Corporation Inc. generates limited operating cash flow of $613.00M, signaling weaker underlying cash strength.
Free Cash Flow
iA Financial Corporation Inc. produces free cash flow of $326.00M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.15 in free cash annually.
FCF Yield
IAF-PI.TO converts 4.61% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.84
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.08
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.29
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.74
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.009
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How IAF-PI.TO Stacks Against Its Sector Peers
| Metric | IAF-PI.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.84 | 18.66 | Better (Cheaper) |
| ROE | 11.12% | 806.00% | Weak |
| Net Margin | 12.22% | -451.00% (disorted) | Strong |
| Debt/Equity | 0.29 | 1.00 | Strong (Low Leverage) |
| Current Ratio | 1.74 | 662.02 | Neutral |
| ROA | 0.92% | -24409.00% (disorted) | Weak |
IAF-PI.TO outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews iA Financial Corporation Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-13.90%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
56.66%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
183.49%
Industry Style: Value, Dividend, Cyclical
High Growth