IA FINANCIAL CORP INC (IAG.CA) Stock Fundamental Analysis
TSX:IAG - Toronto Stock Exchange - CA45075E1043 - Common Stock - Currency: CAD
IAG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 84 industry peers in the Insurance industry. Both the profitability and the financial health of IAG get a neutral evaluation. Nothing too spectacular is happening here. IAG has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year IAG was profitable.
IAG had a positive operating cash flow in the past year.
IAG had positive earnings in each of the past 5 years.
Each year in the past 5 years IAG had a positive operating cash flow.
1.2 Ratios
IAG has a better Return On Assets (0.92%) than 60.24% of its industry peers.
IAG's Return On Equity of 13.24% is fine compared to the rest of the industry. IAG outperforms 69.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.92% | ||
| ROE | 13.24% | ||
| ROIC | N/A |
ROA(3y)0.69%
ROA(5y)0.74%
ROE(3y)8.91%
ROE(5y)9.46%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 10.43%, IAG is in line with its industry, outperforming 57.83% of the companies in the same industry.
IAG's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 14.62%, IAG is not doing good in the industry: 68.67% of the companies in the same industry are doing better.
IAG's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.62% | ||
| PM (TTM) | 10.43% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5Y-5.46%
PM growth 3Y30.39%
PM growth 5Y10.76%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
IAG does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, IAG has less shares outstanding
IAG has less shares outstanding than it did 5 years ago.
The debt/assets ratio for IAG has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of IAG is 0.75, which is an excellent value as it means it would take IAG, only 0.75 years of fcf income to pay off all of its debts.
IAG has a better Debt to FCF ratio (0.75) than 83.13% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that IAG is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.20, IAG belongs to the top of the industry, outperforming 91.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.27%
2.3 Liquidity
A Current Ratio of 0.05 indicates that IAG may have some problems paying its short term obligations.
With a Current ratio value of 0.05, IAG perfoms like the industry average, outperforming 42.17% of the companies in the same industry.
A Quick Ratio of 0.05 indicates that IAG may have some problems paying its short term obligations.
IAG has a Quick ratio (0.05) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 |
3. Growth
3.1 Past
IAG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.87%, which is quite good.
IAG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.85% yearly.
IAG shows a decrease in Revenue. In the last year, the revenue decreased by -9.45%.
IAG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.53% yearly.
EPS 1Y (TTM)11.87%
EPS 3Y13.17%
EPS 5Y10.85%
EPS Q2Q%18.15%
Revenue 1Y (TTM)-9.45%
Revenue growth 3Y-17.2%
Revenue growth 5Y-5.53%
Sales Q2Q%-35.03%
3.2 Future
IAG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.67% yearly.
The Revenue is expected to decrease by -41.42% on average over the next years. This is quite bad
EPS Next Y18.33%
EPS Next 2Y14.71%
EPS Next 3Y12.67%
EPS Next 5YN/A
Revenue Next Year548.23%
Revenue Next 2Y-41.42%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.61 indicates a correct valuation of IAG.
Based on the Price/Earnings ratio, IAG is valued expensively inside the industry as 91.57% of the companies are valued cheaper.
When comparing the Price/Earnings ratio of IAG to the average of the S&P500 Index (28.12), we can say IAG is valued rather cheaply.
The Price/Forward Earnings ratio is 10.79, which indicates a very decent valuation of IAG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IAG indicates a slightly more expensive valuation: IAG is more expensive than 66.27% of the companies listed in the same industry.
IAG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 94.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.61 | ||
| Fwd PE | 10.79 |
4.2 Price Multiples
IAG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. IAG is cheaper than 63.86% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IAG is valued expensively inside the industry as 86.75% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.2 | ||
| EV/EBITDA | 7.68 |
4.3 Compensation for Growth
IAG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as IAG's earnings are expected to grow with 12.67% in the coming years.
PEG (NY)0.69
PEG (5Y)1.16
EPS Next 2Y14.71%
EPS Next 3Y12.67%
5. Dividend
5.1 Amount
IAG has a Yearly Dividend Yield of 2.65%.
IAG's Dividend Yield is slightly below the industry average, which is at 4.31.
Compared to an average S&P500 Dividend Yield of 2.29, IAG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
5.2 History
The dividend of IAG is nicely growing with an annual growth rate of 12.31%!
IAG has been paying a dividend for at least 10 years, so it has a reliable track record.
IAG has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)12.31%
Div Incr Years11
Div Non Decr Years18
5.3 Sustainability
35.26% of the earnings are spent on dividend by IAG. This is a low number and sustainable payout ratio.
The dividend of IAG is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP35.26%
EPS Next 2Y14.71%
EPS Next 3Y12.67%
IA FINANCIAL CORP INC
TSX:IAG (2/7/2025, 7:00:00 PM)
131.87
-0.65 (-0.49%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners47.97%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap12.39B
Analysts75
Price Target141.4 (7.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
Yearly Dividend3.21
Dividend Growth(5Y)12.31%
DP35.26%
Div Incr Years11
Div Non Decr Years18
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.92%
Min EPS beat(2)6.88%
Max EPS beat(2)10.97%
EPS beat(4)3
Avg EPS beat(4)3.44%
Min EPS beat(4)-6.2%
Max EPS beat(4)10.97%
EPS beat(8)6
Avg EPS beat(8)2.5%
EPS beat(12)8
Avg EPS beat(12)1.25%
EPS beat(16)10
Avg EPS beat(16)1.65%
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.31%
PT rev (3m)24.19%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)6.27%
EPS NY rev (1m)0.01%
EPS NY rev (3m)3.57%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)74.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.61 | ||
| Fwd PE | 10.79 | ||
| P/S | 1.33 | ||
| P/FCF | 6.2 | ||
| P/OCF | 5.44 | ||
| P/B | 1.69 | ||
| P/tB | 3.13 | ||
| EV/EBITDA | 7.68 |
EPS(TTM)10.46
EY7.93%
EPS(NY)12.22
Fwd EY9.27%
FCF(TTM)21.28
FCFY16.14%
OCF(TTM)24.23
OCFY18.37%
SpS99
BVpS77.98
TBVpS42.13
PEG (NY)0.69
PEG (5Y)1.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.92% | ||
| ROE | 13.24% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 14.62% | ||
| PM (TTM) | 10.43% | ||
| GM | N/A | ||
| FCFM | 21.49% |
ROA(3y)0.69%
ROA(5y)0.74%
ROE(3y)8.91%
ROE(5y)9.46%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)1.38%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5Y-5.46%
PM growth 3Y30.39%
PM growth 5Y10.76%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.75 | ||
| Debt/EBITDA | 0.89 | ||
| Cap/Depr | 88.78% | ||
| Cap/Sales | 2.98% | ||
| Interest Coverage | 23.86 | ||
| Cash Conversion | 136.12% | ||
| Profit Quality | 206.08% | ||
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 | ||
| Altman-Z | N/A |
F-Score7
WACC7.27%
ROIC/WACCN/A
Cap/Depr(3y)70.9%
Cap/Depr(5y)69.16%
Cap/Sales(3y)3.14%
Cap/Sales(5y)2.39%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.87%
EPS 3Y13.17%
EPS 5Y10.85%
EPS Q2Q%18.15%
EPS Next Y18.33%
EPS Next 2Y14.71%
EPS Next 3Y12.67%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.45%
Revenue growth 3Y-17.2%
Revenue growth 5Y-5.53%
Sales Q2Q%-35.03%
Revenue Next Year548.23%
Revenue Next 2Y-41.42%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y8.63%
EBIT growth 3YN/A
EBIT growth 5Y-10.68%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y788.44%
FCF growth 3Y-14.2%
FCF growth 5Y37.66%
OCF growth 1Y352.49%
OCF growth 3Y-10.31%
OCF growth 5Y27.91%