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IGM Financial
(TSX:IGM)
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Rating:80Outperform
Price Target:
C$93.00
â–²(25.35% Upside)
Action:Reiterated
Date:06/06/26
The score is driven primarily by strong financial profitability with improving recent growth, and reinforced by strong technical momentum (price above all key moving averages with positive MACD). Valuation is reasonable with a moderate dividend yield, while cash conversion and meaningful leverage are the main offsets.
Positive Factors
High profitability margins
Consistently strong operating and net margins reflect durable pricing power in fee-based wealth management and efficient cost structure. High margins support reinvestment, dividends and resilience across market cycles, providing a stable earnings base over the next 2–6 months.
Negative Factors
Low operating cash conversion
Relatively low operating cash flow versus revenue signals timing or working-capital variability in fee collection and client flows. This can make actual cash available for buybacks, dividends or debt paydown more volatile than earnings, challenging capital allocation in weaker months.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability margins
Consistently strong operating and net margins reflect durable pricing power in fee-based wealth management and efficient cost structure. High margins support reinvestment, dividends and resilience across market cycles, providing a stable earnings base over the next 2–6 months.
Read all positive factors
IGM Financial (IGM) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$17.79B
Dividend Yield3.59%
Average Volume (3M)315.56K
Price to Earnings (P/E)15.7
Beta (1Y)0.92
Revenue Growth17.16%
EPS Growth22.85%
CountryCA
Employees3,300
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)4.88
Shares Outstanding231,992,160
10 Day Avg. Volume320,535
30 Day Avg. Volume315,559
Financial Highlights & Ratios
PEG Ratio0.71
Price to Book (P/B)1.63
Price to Sales (P/S)3.83
P/FCF Ratio15.97
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$77.67Price Target Upside4.69% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)5.19
Revenue Forecast (FY)C$4.06B
IGM Financial Business Overview & Revenue Model
Company Description
IGM Financial Inc. operates as a prominent wealth and asset management enterprise, serving clients across Canada. The company organizes its extensive operations into three primary segments: Wealth Management, Asset Management, and Strategic Invest...
How the Company Makes Money
IGM primarily makes money by charging fees for managing client assets and providing wealth management services. The core revenue stream is management and advisory fees (often calculated as a percentage of assets under management (AUM) or assets un...
IGM Financial Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call highlighted broad-based growth across wealth and asset management businesses with multiple record metrics (record annual and quarterly EPS, record AUM figures, record net sales at Mackenzie, strong flows and client acquisition at IG Wealth, and significant value realization from the Rockefeller transaction). Management is returning capital to shareholders (NCIB, dividend increase) and has a healthy balance sheet (unallocated capital of ~CAD 1 billion, leverage 1.37x). Notable challenges include some variability and short-term earnings pressure at Mackenzie and from seed/investment items, temporary variability in Rockefeller earnings due to incentive accounting, ongoing fee/mix pressure and somewhat higher near-term expense growth driven by strategic investments and regulatory projects. Overall the positive operational momentum, strong capital allocation actions, and validation of strategic investments outweigh the manageable near-term lowlights.Positive Updates
Record Annual and Quarterly Adjusted EPS
Fiscal 2025 adjusted EPS rose 17% year-over-year to a record $4.61; Q4 adjusted EPS was a record $1.27, up 21% year-over-year.
Negative Updates
Mackenzie Earnings Pressure and Variable Items
Mackenzie reported Q4 earnings of $60.4 million, slightly down year-over-year. A primary driver was lower net investment income and other (seed capital gains were $8.5 million last year vs $2 million this quarter). Excluding that item, earnings would have been up ~6%.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Annual and Quarterly Adjusted EPS
Fiscal 2025 adjusted EPS rose 17% year-over-year to a record $4.61; Q4 adjusted EPS was a record $1.27, up 21% year-over-year.
Read all positive updates
Company Guidance
Management guided to medium‑term adjusted EPS growth of ~9% per year, with 2026 operating expense growth targeted at about 4% (after 4.2% in 2025). They launched an NCIB for up to 11.8 million shares (5% of outstanding) and intend to repurchase the full 5%, while the Board approved a 10% quarterly dividend increase to $0.62 (from $0.5625) — trailing 12‑month payout was 57% (50% run‑rate) and the dividend will be reviewed if payout falls below 60% annually. Proceeds from the Rockefeller transaction (pretax proceeds ~$394M) raised unallocated capital to roughly $1.0B and are expected to support buybacks, representing a notional annualized earnings contribution of about $27M (~$0.12/share); IGM now holds 17.2% of Rockefeller (valued at CAD1.16B) with Rockefeller’s 2026 contribution expected to be approximately breakeven (≈$10M excluding incentive‑pay variability) and to accelerate contribution into 2027. Financial position metrics backing the guidance include Q4 adjusted EPS of $1.27 (+21% YoY), FY2025 adjusted EPS $4.61 (+17% YoY), consolidated adjusted net earnings +16% YoY (Q4 +21%), average AUM&A up 5.4% vs Q3 and 14% YoY, look‑through asset growth of 17%, and year‑end leverage of 1.37x.IGM Financial Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
73
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.84B | 3.82B | 3.49B | 3.70B | 3.15B | 3.59B |
| Gross Profit | 1.57B | 2.43B | 1.70B | 1.43B | 1.53B | 1.74B |
| EBITDA | 1.66B | 1.85B | 1.43B | 1.36B | 1.31B | 1.48B |
| Net Income | 1.15B | 1.10B | 933.51M | 1.15B | 867.24M | 978.95M |
Balance Sheet | ||||||
| Total Assets | 21.44B | 22.40B | 20.68B | 18.66B | 18.74B | 17.66B |
| Cash, Cash Equivalents and Short-Term Investments | 1.15B | 3.69B | 2.26B | 1.27B | 1.68B | 2.58B |
| Total Debt | 7.35B | 7.38B | 7.59B | 7.26B | 6.90B | 7.36B |
| Total Liabilities | 12.37B | 13.36B | 12.81B | 11.94B | 12.61B | 11.16B |
| Stockholders Equity | 8.97B | 8.94B | 7.80B | 6.66B | 6.06B | 6.45B |
Cash Flow | ||||||
| Free Cash Flow | 999.31M | 915.00M | 1.03B | 683.50M | 592.89M | 857.67M |
| Operating Cash Flow | 1.11B | 1.03B | 1.15B | 837.28M | 737.67M | 943.59M |
| Investing Cash Flow | 364.88M | 301.00M | -473.77M | -1.16B | 134.71M | 1.10B |
| Financing Cash Flow | -1.09B | -972.05M | -313.42M | -203.77M | -1.09B | -1.52B |
IGM Financial Technical Analysis
Neutral
74.19
Price Trends
77.74
Negative
71.87
Positive
64.28
Positive
Market Momentum
0.11
Positive
41.22
Neutral
7.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:IGM, the sentiment is Neutral. The current price of 74.19 is below the 20-day moving average (MA) of 79.98, below the 50-day MA of 77.74, and above the 200-day MA of 64.28, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 41.22 is Neutral, neither overbought nor oversold. The STOCH value of 7.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:IGM.
IGM Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | C$17.79B | 15.73 | 13.19% | 3.59% | 17.16% | 22.85% | |
80 Outperform | C$1.26B | 9.27 | 9.72% | 3.01% | 10.08% | 33.25% | |
73 Outperform | C$4.10B | 34.51 | 23.54% | 1.32% | 115.09% | 68.03% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | C$7.97B | 8.78 | 6.52% | 0.36% | 2.88% | 32.70% | |
60 Neutral | C$540.93M | 27.34 | 7.80% | 8.78% | -8.34% | -48.32% |
* Financial Sector Average
TSE:IGM
IGM Financial
79.18
37.77
91.19%
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AGF Management B NV
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57.86%
TSE:FSZ
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5.27
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-11.70%
TSE:ONEX
ONEX Corporation
106.06
-5.64
-5.05%
TSE:SII
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71.75%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.