iA Financial Corporation Inc (IAG) AI Stock Analysis

• Market Cap: C$14.16B
• Dividend Yield: 2.41%
• Average Volume (3M): 431.10K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 1.30
• Revenue Growth: -4.55%
• EPS Growth: 42.41%
• Country: CA
• Employees: 7,000
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Diversified
• EPS (TTM): 3.49
• Shares Outstanding: 92,470,566
• 10 Day Avg. Volume: 317,935
• 30 Day Avg. Volume: 431,098
• 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$151.83
• Price Target Upside: -0.88% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 75 Outperform
• Price Target: C$165.00 ▲(7.72% Upside)

iA Financial Corporation Inc's strong financial performance and positive earnings call sentiment are the primary drivers of the score. The technical indicators support a bullish outlook, while the valuation remains reasonable. The decline in free cash flow growth and minor challenges in mutual fund sales are areas to watch.

Positive Factors

Core EPS Growth

The significant increase in core EPS demonstrates strong profitability and efficient operations, indicating a robust financial health that supports long-term growth and shareholder value.

Robust Capital Position

A strong solvency ratio and substantial capital available for deployment provide financial stability and flexibility, enabling strategic investments and acquisitions to drive future growth.

U.S. Insurance Sales Growth

The significant growth in U.S. insurance sales indicates successful market penetration and product demand, enhancing iA Financial's competitive position and revenue potential in a key market.

Negative Factors

Decline in Free Cash Flow

A sharp decline in free cash flow growth can constrain the company's ability to invest in new opportunities, pay down debt, and return capital to shareholders, impacting long-term financial flexibility.

Mutual Fund Sales Decline

The decline in mutual fund sales and net outflows suggests challenges in attracting and retaining investment clients, potentially affecting revenue from asset management services.

Challenges in Group Savings

Decreased sales in Group Savings and Retirement indicate competitive pressures or market challenges, which could hinder growth in this segment and affect overall revenue diversification.

iA Financial Corporation Inc Business Overview & Revenue Model

Company Description

iA Financial Corporation Inc (IAG) is a leading Canadian insurance and wealth management company offering a comprehensive range of financial products and services. Established in 1892, IAG operates in several sectors, including life and health insurance, wealth management, group insurance, and auto and home insurance. The company's core products are designed to meet the diverse needs of individuals, businesses, and institutions, providing solutions that encompass savings, retirement planning, asset management, and risk protection.

How the Company Makes Money

iA Financial Corporation Inc generates revenue primarily through the sale of insurance policies and wealth management services. The company's key revenue streams include premiums collected from life and health insurance policies, fees from asset management and advisory services, and premiums from group and property and casualty insurance products. iA Financial also earns through investment income, derived from the management of its investment portfolio, which includes bonds, stocks, and real estate. Significant partnerships with brokers, financial advisors, and other distribution networks help expand its reach and customer base, contributing to its earnings. Additionally, the company's focus on digital transformation and innovation aims to enhance customer experience and operational efficiency, further supporting its financial performance.

iA Financial Corporation Inc Financial Statement Overview

Summary

iA Financial Corporation Inc demonstrates strong financial health with consistent revenue growth and solid profitability margins. The balance sheet is well-managed with low leverage, but the recent decline in free cash flow growth warrants attention.

Income Statement

iA Financial Corporation Inc shows a solid income statement with consistent revenue growth, evidenced by a 3.18% increase in TTM. The company maintains healthy margins, with a gross profit margin of 85.14% and a net profit margin of 9.08% in TTM. However, the EBIT margin has slightly decreased over the years, indicating potential cost pressures.

Balance Sheet

The balance sheet is strong, with a low debt-to-equity ratio of 0.20 in TTM, indicating prudent financial leverage. The return on equity is robust at 12.42%, reflecting efficient use of equity capital. The equity ratio is stable, suggesting a solid capital structure.

Cash Flow

Cash flow analysis reveals some concerns, with a significant decline in free cash flow growth of -51.91% in TTM. However, the free cash flow to net income ratio remains healthy at 0.89, indicating good cash conversion. The operating cash flow to net income ratio is not available for TTM, which limits full assessment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.93B	10.71B	7.93B	6.55B	15.51B	17.70B
Gross Profit	5.44B	11.58B	11.23B	6.55B	15.51B	17.70B
EBITDA	1.67B	1.61B	1.38B	799.00M	1.39B	998.00M
Net Income	1.04B	962.00M	789.00M	800.00M	859.00M	632.00M
Balance Sheet
Total Assets	114.48B	109.86B	93.85B	87.42B	94.66B	86.47B
Cash, Cash Equivalents and Short-Term Investments	2.21B	1.57B	1.38B	1.36B	1.55B	1.95B
Total Debt	1.50B	2.09B	1.87B	2.07B	1.65B	1.67B
Total Liabilities	106.42B	102.39B	86.81B	80.28B	87.41B	79.95B
Stockholders Equity	8.05B	7.47B	7.04B	7.14B	7.25B	6.51B
Cash Flow
Free Cash Flow	1.01B	763.00M	1.06B	326.00M	-63.00M	1.68B
Operating Cash Flow	1.27B	1.04B	1.34B	613.00M	185.00M	1.86B
Investing Cash Flow	-610.00M	-491.00M	-307.00M	-287.00M	-294.00M	-1.14B
Financing Cash Flow	-446.00M	-397.00M	-1.01B	-525.00M	-294.00M	111.00M

iA Financial Corporation Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 153.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:IAG, the sentiment is Positive. The current price of 153.18 is above the 20-day moving average (MA) of 153.07, above the 50-day MA of 147.39, and above the 200-day MA of 136.45, indicating a bullish trend. The MACD of 2.03 indicates Positive momentum. The RSI at 54.33 is Neutral, neither overbought nor oversold. The STOCH value of 31.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:IAG.

iA Financial Corporation Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IFC	77 Outperform	47.01B	20.10	12.58%	1.97%	5.25%	15.06%
MFC	76 Outperform	72.85B	13.71	12.14%	4.01%	9.37%	32.06%
IAG	75 Outperform	C$14.16B	14.19	13.43%	2.41%	-4.55%	42.41%
SLF	75 Outperform	46.17B	14.60	12.17%	4.19%	-0.61%	6.69%
POW	73 Outperform	37.19B	13.53	11.54%	5.13%	11.56%	1.15%
GWO	72 Outperform	50.92B	13.54	13.06%	4.33%	15.27%	4.72%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

iA Financial Corporation Inc Corporate Events

iA Financial Corporation Increases Quarterly Dividend by 10%

iA Financial Corporation Inc. has announced a 10% increase in its quarterly dividend, raising it to $0.9900 per common share, payable on September 15, 2025. This move reflects the company’s robust financial health and commitment to providing value to its shareholders, potentially enhancing its attractiveness to investors and strengthening its position in the financial services industry.

The most recent analyst rating on (TSE:IAG) stock is a Buy with a C$150.00 price target. To see the full list of analyst forecasts on iA Financial Corporation Inc stock, see the TSE:IAG Stock Forecast page.

iA Financial Group Reports Robust Q2 Results and Dividend Increase

iA Financial Group reported a strong second quarter with a 27% year-over-year increase in core earnings per share and a core return on equity of 17.0%, aligning with its 2027 target. The company announced a 10% increase in its common dividend and plans to acquire RF Capital Group Inc., indicating a strategic move to enhance its wealth distribution capabilities and deliver long-term value to shareholders.

The most recent analyst rating on (TSE:IAG) stock is a Buy with a C$150.00 price target. To see the full list of analyst forecasts on iA Financial Corporation Inc stock, see the TSE:IAG Stock Forecast page.

iA Financial Completes $400 Million Preferred Shares Offering

iA Financial Corporation Inc. has successfully completed a $400 million offering of 6.435% Non-Cumulative 5-Year Rate Reset Class A Preferred Shares Series C. The shares, rated ‘Pfd-2’ by Morningstar DBRS and ‘BBB+/P-2(High)’ by S&P Global Ratings, were sold to institutional investors through a syndicate led by RBC Capital Markets, National Bank Financial Markets, and TD Securities. This offering, under the company’s short form base shelf prospectus, enhances iA Financial’s capital base, potentially strengthening its market position and providing more resources for strategic growth.

The most recent analyst rating on (TSE:IAG) stock is a Buy with a C$150.00 price target. To see the full list of analyst forecasts on iA Financial Corporation Inc stock, see the TSE:IAG Stock Forecast page.

iA Financial Group Launches $400 Million Preferred Shares Offering

iA Financial Corporation Inc. has announced a $400 million offering of Non-Cumulative 5-Year Rate Reset Class A Preferred Shares Series C, aimed at institutional investors. The proceeds from this offering are intended for general corporate purposes, potentially including investments in subsidiaries and debt repayment, which could enhance the company’s financial flexibility and strategic positioning.

The most recent analyst rating on (TSE:IAG) stock is a Buy with a C$150.00 price target. To see the full list of analyst forecasts on iA Financial Corporation Inc stock, see the TSE:IAG Stock Forecast page.

iA Financial Group Reports Strong Q1 2025 Results with 19% EPS Growth

iA Financial Group reported strong financial results for the first quarter of 2025, with core earnings per share increasing by 19% year-over-year and a robust solvency ratio of 132%. The company attributes its continued profitability and growth to strong sales momentum across its business units in Canada and the U.S., supported by a solid capital position and flexible balance sheet. This performance underscores the strength of iA Financial Group’s diversified business model and positions the company well to achieve its new financial targets.

iA Financial Corporation Declares Quarterly Dividend

iA Financial Corporation Inc. has announced a quarterly dividend of $0.9000 per common share for the quarter ending March 31, 2025, payable on June 16, 2025, to shareholders of record by May 23, 2025. This announcement underscores the company’s ongoing commitment to returning value to its shareholders and may impact investor relations positively by encouraging participation in its Dividend Reinvestment and Share Purchase Plan.

iA Financial Group Warns Against Discounted Mini-Tender Offer by Ocehan LLC

iA Financial Group has issued a warning to its investors regarding an unsolicited mini-tender offer from Ocehan LLC, which aims to purchase a small percentage of iA Financial’s common shares at a price significantly below the current market value. The offer, which is priced at $93.30 per share, represents a nearly 30% discount to the closing price on the Toronto Stock Exchange as of May 6, 2025. iA Financial Group is not affiliated with Ocehan and advises shareholders to be cautious, review the offer documents thoroughly, and consult with their investment advisors. The company highlights the risks associated with mini-tender offers, which often bypass standard regulatory requirements, potentially leading investors to make uninformed decisions.