INTACT FINANCIAL CORP (IFC.CA) Stock Fundamental Analysis
TSX:IFC - Toronto Stock Exchange - CA45823T1066 - Common Stock - Currency: CAD
Overall IFC gets a fundamental rating of 4 out of 10. We evaluated IFC against 80 industry peers in the Insurance industry. IFC has a medium profitability rating, but doesn't score so well on its financial health evaluation. IFC is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
IFC had positive earnings in the past year.
In the past year IFC had a positive cash flow from operations.
In the past 5 years IFC has always been profitable.
Each year in the past 5 years IFC had a positive operating cash flow.
1.2 Ratios
IFC has a Return On Assets of 3.71%. This is in the better half of the industry: IFC outperforms 77.50% of its industry peers.
IFC has a Return On Equity of 12.16%. This is in the better half of the industry: IFC outperforms 75.00% of its industry peers.
IFC has a better Return On Invested Capital (5.49%) than 82.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.71% | ||
| ROE | 12.16% | ||
| ROIC | 5.49% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
IFC's Profit Margin of 8.33% is on the low side compared to the rest of the industry. IFC is outperformed by 65.00% of its industry peers.
IFC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 15.53%, IFC is in line with its industry, outperforming 42.50% of the companies in the same industry.
In the last couple of years the Operating Margin of IFC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.53% | ||
| PM (TTM) | 8.33% | ||
| GM | N/A |
OM growth 3Y-0.02%
OM growth 5Y12.07%
PM growth 3Y-9.83%
PM growth 5Y5.98%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IFC is destroying value.
Compared to 5 years ago, IFC has more shares outstanding
2.2 Solvency
The Debt to FCF ratio of IFC is 1.85, which is an excellent value as it means it would take IFC, only 1.85 years of fcf income to pay off all of its debts.
IFC has a better Debt to FCF ratio (1.85) than 66.25% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that IFC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.30, IFC is doing worse than 60.00% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for IFC, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.85 | ||
| Altman-Z | N/A |
ROIC/WACC0.72
WACC7.59%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
IFC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.54%, which is quite impressive.
IFC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.56% yearly.
Looking at the last year, IFC shows a small growth in Revenue. The Revenue has grown by 3.16% in the last year.
IFC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.42% yearly.
EPS 1Y (TTM)23.54%
EPS 3Y5.44%
EPS 5Y18.56%
EPS Q2Q%16.82%
Revenue 1Y (TTM)3.16%
Revenue growth 3Y14.34%
Revenue growth 5Y18.42%
Sales Q2Q%7.61%
3.2 Future
The Earnings Per Share is expected to grow by 9.40% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.36% on average over the next years. This is quite good.
EPS Next Y14.8%
EPS Next 2Y10.6%
EPS Next 3Y9.4%
EPS Next 5YN/A
Revenue Next Year7.27%
Revenue Next 2Y6.83%
Revenue Next 3Y9.36%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.17, the valuation of IFC can be described as rather expensive.
Based on the Price/Earnings ratio, IFC is valued more expensive than 93.75% of the companies in the same industry.
IFC is valuated rather cheaply when we compare the Price/Earnings ratio to 28.22, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 18.44, which indicates a rather expensive current valuation of IFC.
IFC's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. IFC is more expensive than 68.75% of the companies in the same industry.
IFC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.17 | ||
| Fwd PE | 18.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IFC is valued a bit cheaper than 61.25% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IFC is valued expensively inside the industry as 92.50% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.42 | ||
| EV/EBITDA | 12.07 |
4.3 Compensation for Growth
IFC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.43
PEG (5Y)1.14
EPS Next 2Y10.6%
EPS Next 3Y9.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.78%, IFC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.51, IFC's dividend is way lower than its industry peers. On top of this 81.25% of the companies listed in the same industry pay a better dividend than IFC!
Compared to the average S&P500 Dividend Yield of 2.44, IFC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
5.2 History
IFC has been paying a dividend for at least 10 years, so it has a reliable track record.
IFC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)N/A
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
IFC pays out 43.18% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP43.18%
EPS Next 2Y10.6%
EPS Next 3Y9.4%
TSX:IFC (5/2/2025, 7:00:00 PM)
305.47
+1.22 (+0.4%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners54.88%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner ChangeN/A
Market Cap54.48B
Analysts74.12
Price Target304.43 (-0.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP43.18%
Div Incr Years19
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)70.63%
Min EPS beat(2)13.21%
Max EPS beat(2)128.05%
EPS beat(4)4
Avg EPS beat(4)45.87%
Min EPS beat(4)5.69%
Max EPS beat(4)128.05%
EPS beat(8)7
Avg EPS beat(8)30.5%
EPS beat(12)10
Avg EPS beat(12)22.8%
EPS beat(16)14
Avg EPS beat(16)26.14%
Revenue beat(2)0
Avg Revenue beat(2)-1.39%
Min Revenue beat(2)-2.19%
Max Revenue beat(2)-0.6%
Revenue beat(4)1
Avg Revenue beat(4)-1.64%
Min Revenue beat(4)-4.33%
Max Revenue beat(4)0.56%
Revenue beat(8)2
Avg Revenue beat(8)-1.65%
Revenue beat(12)6
Avg Revenue beat(12)9.23%
Revenue beat(16)10
Avg Revenue beat(16)8.99%
PT rev (1m)-0.21%
PT rev (3m)5.12%
EPS NQ rev (1m)-2.4%
EPS NQ rev (3m)-5.03%
EPS NY rev (1m)-0.46%
EPS NY rev (3m)-0.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.17 | ||
| Fwd PE | 18.44 | ||
| P/S | 2.06 | ||
| P/FCF | 18.42 | ||
| P/OCF | 16.08 | ||
| P/B | 3 | ||
| P/tB | 6.35 | ||
| EV/EBITDA | 12.07 |
EPS(TTM)14.43
EY4.72%
EPS(NY)16.56
Fwd EY5.42%
FCF(TTM)16.59
FCFY5.43%
OCF(TTM)18.99
OCFY6.22%
SpS148.6
BVpS101.76
TBVpS48.12
PEG (NY)1.43
PEG (5Y)1.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.71% | ||
| ROE | 12.16% | ||
| ROCE | 7.15% | ||
| ROIC | 5.49% | ||
| ROICexc | 5.61% | ||
| ROICexgc | 7.63% | ||
| OM | 15.53% | ||
| PM (TTM) | 8.33% | ||
| GM | N/A | ||
| FCFM | 11.16% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
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)N/A
ROCE(5y)N/A
ROICexcg growth 3Y18.12%
ROICexcg growth 5Y18.02%
ROICexc growth 3Y16.62%
ROICexc growth 5Y16.95%
OM growth 3Y-0.02%
OM growth 5Y12.07%
PM growth 3Y-9.83%
PM growth 5Y5.98%
GM growth 3YN/A
GM growth 5YN/A
F-ScoreN/A
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.85 | ||
| Debt/EBITDA | 1.13 | ||
| Cap/Depr | 59.09% | ||
| Cap/Sales | 1.62% | ||
| Interest Coverage | 18.29 | ||
| Cash Conversion | 69.95% | ||
| Profit Quality | 134.03% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-ScoreN/A
WACC7.59%
ROIC/WACC0.72
Cap/Depr(3y)69.6%
Cap/Depr(5y)66.33%
Cap/Sales(3y)1.78%
Cap/Sales(5y)1.69%
Profit Quality(3y)128.11%
Profit Quality(5y)147.37%
High Growth Momentum
Growth
EPS 1Y (TTM)23.54%
EPS 3Y5.44%
EPS 5Y18.56%
EPS Q2Q%16.82%
EPS Next Y14.8%
EPS Next 2Y10.6%
EPS Next 3Y9.4%
EPS Next 5YN/A
Revenue 1Y (TTM)3.16%
Revenue growth 3Y14.34%
Revenue growth 5Y18.42%
Sales Q2Q%7.61%
Revenue Next Year7.27%
Revenue Next 2Y6.83%
Revenue Next 3Y9.36%
Revenue Next 5YN/A
EBIT growth 1Y31.33%
EBIT growth 3Y14.32%
EBIT growth 5Y32.71%
EBIT Next Year14.29%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y113.11%
FCF growth 3Y1.62%
FCF growth 5Y20.32%
OCF growth 1Y83.48%
OCF growth 3Y2.49%
OCF growth 5Y21.3%