IGM Financial Inc.
IGM Financial Inc. Fundamental Analysis
IGM Financial Inc. (IGM.TO) shows strong financial fundamentals with a PE ratio of 14.48, profit margin of 28.81%, and ROE of 13.03%. The company generates $3.8B in annual revenue with moderate year-over-year growth of 4.72%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 60.3/100 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 IGM.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakIGM.TO struggles to generate sufficient returns from assets.
Valuation Score
ModerateIGM.TO shows balanced valuation metrics.
Growth Score
WeakIGM.TO faces weak or negative growth trends.
Financial Health Score
ExcellentIGM.TO maintains a strong and stable balance sheet.
Profitability Score
ModerateIGM.TO maintains healthy but balanced margins.
Key Financial Metrics
Is IGM.TO Expensive or Cheap?
P/E Ratio
IGM.TO trades at 14.48 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, IGM.TO's PEG of 2.10 indicates potential overvaluation.
Price to Book
The market values IGM Financial Inc. at 1.78 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.22 times EBITDA. This is generally considered low.
How Well Does IGM.TO Make Money?
Net Profit Margin
For every $100 in sales, IGM Financial Inc. keeps $28.81 as profit after all expenses.
Operating Margin
Core operations generate 33.01 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.03 in profit for every $100 of shareholder equity.
ROA
IGM Financial Inc. generates $4.91 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
IGM Financial Inc. generates strong operating cash flow of $1.03B, reflecting robust business health.
Free Cash Flow
IGM Financial Inc. generates strong free cash flow of $910.80M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.89 in free cash annually.
FCF Yield
IGM.TO converts 5.78% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.48
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.78
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.15
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.83
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.55
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How IGM.TO Stacks Against Its Sector Peers
| Metric | IGM.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.48 | 18.94 | Better (Cheaper) |
| ROE | 13.03% | 846.00% | Weak |
| Net Margin | 28.81% | 4054.00% | Weak |
| Debt/Equity | 0.83 | 0.89 | Neutral |
| Current Ratio | 4.55 | 660.05 | Strong Liquidity |
| ROA | 4.91% | -24865.00% (disorted) | Weak |
IGM.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 IGM Financial Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
29.20%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
25.47%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
62.97%
Industry Style: Value, Dividend, Cyclical
High Growth