IGM Financial, Inc. (IGM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sprott, Inc.

AGF Management Ltd.

Alaris Equity Partners Income Trust

IGM Financial, Inc.

Brookfield Corp.

ONEX Corp.

Brookfield Asset Management Ltd.

iA Financial Corp., Inc.

CI Financial Corp.

Clairvest Group, Inc.

Fairfax India Holdings Corp.

Why is IGM Financial, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 13.72%

Positive results in Jun 26

OPERATING CASH FLOW(Y) Highest at CAD 1,227.76 MM
ROCE(HY) Highest at 13.41%
DEBT-EQUITY RATIO (HY) Lowest at 66.29 %

With ROE of 12.83%, it has a attractive valuation with a 2.01 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 92.73%, its profits have risen by 22% ; the PEG ratio of the company is 0.7

Majority shareholders : FIIs

Market Beating performance in long term as well as near term

Along with generating 92.73% returns in the last 1 year, the stock has outperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to IGM Financial, Inc. should be less than 10%
Overall Portfolio exposure to Capital Markets should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is IGM Financial, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

IGM Financial, Inc.

91.67%

8.53

24.96%

S&P/TSX 60

29.63%

2.33

12.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.98%

EBIT Growth (5y)

4.90%

EBIT to Interest (avg)

5.60

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

28.40%

Dividend Payout Ratio

48.33%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

19.99%

ROE (avg)

13.72%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.01

EV to EBIT

12.46

EV to EBITDA

11.62

EV to Capital Employed

2.16

EV to Sales

4.66

PEG Ratio

0.66

Dividend Yield

ROCE (Latest)

17.32%

ROE (Latest)

12.83%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 1,227.76 MM

ROCE(HY)

Highest at 13.41%

DEBT-EQUITY RATIO (HY)

Lowest at 66.29 %

RAW MATERIAL COST(Y)

Fallen by 0.33% (YoY

CASH AND EQV(HY)

Highest at CAD 2,665.75 MM

DIVIDEND PER SHARE(HY)

Highest at CAD 11.08

NET SALES(Q)

Highest at CAD 983.43 MM

-1What is not working for the Company

PRE-TAX PROFIT(Q)

Lowest at CAD 256.24 MM

Here's what is working for IGM Financial, Inc.

Operating Cash Flow

Highest at CAD 1,227.76 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Debt-Equity Ratio

Lowest at 66.29 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Sales

Highest at CAD 983.43 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Cash and Eqv

Highest at CAD 2,665.75 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at CAD 11.08

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Raw Material Cost

Fallen by 0.33% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at CAD 26.24 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for IGM Financial, Inc.

Pre-Tax Profit

Lowest at CAD 256.24 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)