iA Financial Corporation Inc. Fundamental Analysis (TSX: IAG.TO)
iA Financial Corporation Inc. Fundamental Analysis (TSX: IAG.TO)
iA Financial Corporation Inc. (TSX: IAG.TO) shows moderate financial fundamentals with a PE ratio of 16.78, profit margin of 8.29%, and ROE of 13.70%. The company generates $13.5B in annual revenue with strong year-over-year growth of 42.70%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 72.5/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze IAG.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakIAG.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentIAG.TO trades at attractive valuation levels.
Growth Score
ExcellentIAG.TO delivers strong and consistent growth momentum.
Financial Health Score
ModerateIAG.TO shows balanced financial health with some risks.
Profitability Score
WeakIAG.TO struggles to sustain strong margins.
Key Financial Metrics
Is IAG.TO Expensive or Cheap?
P/E Ratio
IAG.TO trades at 16.78 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, IAG.TO's PEG of 1.95 indicates fair valuation.
Price to Book
The market values iA Financial Corporation Inc. at 2.16 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.91 times EBITDA. This is generally considered low.
How Well Does IAG.TO Make Money?
Net Profit Margin
For every $100 in sales, iA Financial Corporation Inc. keeps $8.29 as profit after all expenses.
Operating Margin
Core operations generate 10.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.70 in profit for every $100 of shareholder equity.
ROA
iA Financial Corporation Inc. generates $0.84 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
iA Financial Corporation Inc. produces operating cash flow of $2.96B, showing steady but balanced cash generation.
Free Cash Flow
iA Financial Corporation Inc. generates strong free cash flow of $2.68B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $30.09 in free cash annually.
FCF Yield
IAG.TO converts 15.29% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.78
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.95
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.16
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.29
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How IAG.TO Stacks Against Its Sector Peers
| Metric | IAG.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.78 | 21.03 | Better (Cheaper) |
| ROE | 13.70% | 647.00% | Weak |
| Net Margin | 8.29% | -1591.00% (disorted) | Weak |
| Debt/Equity | 0.25 | 0.90 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 912.43 | Weak Liquidity |
| ROA | 0.84% | -579.00% (disorted) | Weak |
IAG.TO outperforms its industry in 2 out of 6 key metrics, 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
-26.40%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
99.52%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
113.04%
Industry Style: Value, Dividend, Cyclical
High Growth