IGM Financial (IGM) AI Stock Analysis

• Market Cap: $12.74B
• Dividend Yield: 4.17%
• Average Volume (3M): 315.56K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 1.10
• Revenue Growth: -3.20%
• EPS Growth: -8.50%
• Country: CA
• Employees: 3,300
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 1.07
• Shares Outstanding: 236,567,930
• 10 Day Avg. Volume: 320,535
• 30 Day Avg. Volume: 315,559
• 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: 1.33
• Enterprise Value/Revenue: 4.68
• Enterprise Value/Gross Profit: 9.28
• Enterprise Value/Ebitda: 11.81
• 1Y Price Target: $57.64
• Price Target Upside: 5.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 77 Outperform
• Price Target: C$61.00 ▲(11.50% Upside)

IGM Financial's strong earnings performance and favorable valuation are the most significant factors driving the stock score. The positive technical indicators further support the bullish outlook. While financial performance is solid, slight declines in cash flow growth present a minor concern.

Positive Factors

Record High Adjusted EPS

Achieving record high EPS indicates strong operational efficiency and profitability, supporting long-term earnings growth and shareholder value.

AUM Growth

Significant growth in assets under management enhances revenue potential through increased management fees, bolstering future financial performance.

Wealthsimple Valuation Increase

The increase in Wealthsimple's valuation reflects successful strategic investments, enhancing IGM's market position in digital financial services.

Negative Factors

Revenue Growth Challenges

Slower revenue growth may indicate challenges in expanding market share or product offerings, potentially limiting future earnings expansion.

Cash Flow Decline

Declining cash flow growth could impact the company's ability to invest in growth opportunities and maintain financial flexibility.

Volatility Impact on Assets

Asset volatility can affect fee-based revenue and investor confidence, posing risks to stable income generation and growth.

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 charged on the assets under management (AUM) in its mutual funds and investment products. These fees are typically a percentage of the total AUM and vary based on the specific fund or service provided. Additionally, IGM earns income from advisory services, including financial planning and investment consulting, which may involve upfront fees or ongoing commissions. The company also benefits from performance fees on certain investment products that exceed benchmark returns. Strategic partnerships with financial advisors and institutions enhance its distribution capabilities, further contributing to its earnings. IGM's diversified product offerings and focus on long-term client relationships play a critical role in sustaining its revenue growth.

IGM Financial Financial Statement Overview

Summary

IGM Financial demonstrates a strong financial position with consistent profitability and manageable leverage. While revenue and profit margins are robust, the slight decline in cash flow growth and modest revenue growth rate highlight areas for potential improvement.

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	3.63B	3.88B	3.70B	3.46B	3.90B	3.05B
Gross Profit	1.83B	1.70B	1.43B	2.02B	2.25B	2.87B
EBITDA	1.44B	1.43B	1.36B	1.20B	1.40B	1.23B
Net Income	974.43M	933.51M	1.15B	867.24M	978.95M	764.41M
Balance Sheet
Total Assets	20.16B	20.68B	18.66B	18.87B	17.66B	16.06B
Cash, Cash Equivalents and Short-Term Investments	2.44B	2.26B	686.85M	1.68B	2.58B	1.36B
Total Debt	7.52B	7.59B	7.26B	6.90B	7.36B	8.46B
Total Liabilities	11.98B	12.81B	11.94B	12.61B	11.16B	11.02B
Stockholders Equity	8.09B	7.80B	6.66B	6.20B	6.45B	4.99B
Cash Flow
Free Cash Flow	939.13M	1.03B	683.50M	592.89M	857.67M	628.83M
Operating Cash Flow	1.06B	1.15B	837.28M	737.67M	943.59M	736.63M
Investing Cash Flow	-292.95M	-473.77M	-1.16B	134.71M	1.10B	673.38M
Financing Cash Flow	-386.26M	-313.42M	-203.77M	-1.09B	-1.52B	-1.36B

IGM Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 54.71
• 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:IGM, the sentiment is Positive. The current price of 54.71 is above the 20-day moving average (MA) of 53.07, above the 50-day MA of 51.05, and above the 200-day MA of 45.19, indicating a bullish trend. The MACD of 0.93 indicates Positive momentum. The RSI at 60.83 is Neutral, neither overbought nor oversold. The STOCH value of 22.49 is Neutral, 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	―	C$903.64M	8.04	9.85%	3.48%	11.23%	30.44%
ONEX	―	C$8.26B	11.74	6.19%	0.33%	-8.63%	-27.09%
IGM	―	$12.74B	12.88	12.60%	4.17%	-3.20%	-8.50%
CVG	―	C$1.02B	8.50	9.77%	0.14%	132.11%	5511.22%
GCG	―	C$1.64B	10.60	11.80%	2.73%	96.56%	158.06%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BBUC	―	$4.94B	―	-301.45%	0.68%	-2.34%	-301.85%

IGM Financial Corporate Events

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.

The most recent analyst rating on (TSE:IGM) stock is a Hold with a C$50.00 price target. To see the full list of analyst forecasts on IGM Financial stock, see the TSE:IGM Stock Forecast page.

IGM Financial Reports Record Earnings and Strategic Growth

The recent earnings call for IGM Financial painted a largely positive picture, showcasing significant achievements and growth across various segments of the company. Record-breaking earnings and substantial growth in strategic investments were highlighted, alongside robust performance in wealth and asset management. Despite some challenges, such as volatility affecting average assets under management (AUM) and continued negative earnings from Rockefeller, the positive aspects of the call substantially outweighed the negatives.

IGM Financial Reports Record Earnings and Asset Growth

IGM Financial Inc., a prominent Canadian wealth and asset management firm, provides comprehensive financial planning and investment management services, primarily through its subsidiaries IG Wealth Management and Mackenzie Investments. The company also holds strategic investments in Rockefeller Capital Management, Wealthsimple, ChinaAMC, and Northleaf Capital, enhancing its market reach and diversification.

IGM Financial Achieves Record High Earnings and Asset Growth in Q2 2025

IGM Financial Inc. reported record high second quarter earnings for 2025, with adjusted net earnings reaching $252.7 million, marking a 14.7% increase from the previous year. The company also achieved record assets under management and advisement totaling $521.1 billion, driven by strong performance across its subsidiaries and strategic investments. Notably, IGM realized significant value from its fintech ecosystem by selling a portion of Conquest Planning, generating substantial returns. These results underscore IGM’s robust market positioning and potential for continued growth, benefiting stakeholders and solidifying its leadership in the wealth management sector.

The most recent analyst rating on (TSE:IGM) stock is a Hold with a C$39.00 price target. To see the full list of analyst forecasts on IGM Financial stock, see the TSE:IGM Stock Forecast page.