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INTACT FINANCIAL CORP (IFC.CA) Stock Fundamental Analysis

TSX:IFC - Toronto Stock Exchange - CA45823T1066 - Common Stock - Currency: CAD

287.1  -3.16 (-1.09%)

Fundamental Rating

4

Taking everything into account, IFC scores 4 out of 10 in our fundamental rating. IFC was compared to 86 industry peers in the Insurance industry. While IFC is still in line with the averages on profitability rating, there are concerns on its financial health. IFC is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

In the past year IFC was profitable.
IFC had a positive operating cash flow in the past year.
In the past 5 years IFC has always been profitable.
In the past 5 years IFC always reported a positive cash flow from operatings.
IFC.CA Yearly Net Income VS EBIT VS OCF VS FCFIFC.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

1.2 Ratios

The Return On Assets of IFC (3.48%) is better than 74.12% of its industry peers.
IFC's Return On Equity of 11.61% is fine compared to the rest of the industry. IFC outperforms 61.18% of its industry peers.
IFC has a better Return On Invested Capital (5.38%) than 84.71% of its industry peers.
Industry RankSector Rank
ROA 3.48%
ROE 11.61%
ROIC 5.38%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
IFC.CA Yearly ROA, ROE, ROICIFC.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10

1.3 Margins

Looking at the Profit Margin, with a value of 7.68%, IFC is doing worse than 68.24% of the companies in the same industry.
IFC's Profit Margin has declined in the last couple of years.
The Operating Margin of IFC (14.79%) is worse than 65.88% of its industry peers.
In the last couple of years the Operating Margin of IFC has grown nicely.
Industry RankSector Rank
OM 14.79%
PM (TTM) 7.68%
GM N/A
OM growth 3Y-5.41%
OM growth 5Y4.01%
PM growth 3Y-16.33%
PM growth 5Y-5.31%
GM growth 3YN/A
GM growth 5YN/A
IFC.CA Yearly Profit, Operating, Gross MarginsIFC.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15

2

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), IFC is destroying value.
IFC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
IFC.CA Yearly Shares OutstandingIFC.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 50M 100M 150M
IFC.CA Yearly Total Debt VS Total AssetsIFC.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 20B 40B 60B

2.2 Solvency

The Debt to FCF ratio of IFC is 2.57, which is a good value as it means it would take IFC, 2.57 years of fcf income to pay off all of its debts.
IFC's Debt to FCF ratio of 2.57 is in line compared to the rest of the industry. IFC outperforms 42.35% of its industry peers.
IFC has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of IFC (0.32) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 2.57
Altman-Z N/A
ROIC/WACC0.69
WACC7.76%
IFC.CA Yearly LT Debt VS Equity VS FCFIFC.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
IFC.CA Yearly Current Assets VS Current LiabilitesIFC.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B 4B

6

3. Growth

3.1 Past

IFC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.04%, which is quite impressive.
The Earnings Per Share has been growing by 15.27% on average over the past years. This is quite good.
Looking at the last year, IFC shows a quite strong growth in Revenue. The Revenue has grown by 8.03% in the last year.
IFC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.39% yearly.
EPS 1Y (TTM)27.04%
EPS 3Y5.6%
EPS 5Y15.27%
EPS Q2Q%-51.9%
Revenue 1Y (TTM)8.03%
Revenue growth 3Y26.87%
Revenue growth 5Y19.39%
Sales Q2Q%5.34%

3.2 Future

Based on estimates for the next years, IFC will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.84% on average per year.
The Revenue is expected to grow by 6.78% on average over the next years.
EPS Next Y18.98%
EPS Next 2Y19.49%
EPS Next 3Y14.84%
EPS Next 5YN/A
Revenue Next Year6.56%
Revenue Next 2Y6.92%
Revenue Next 3Y6.78%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
IFC.CA Yearly Revenue VS EstimatesIFC.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 5B 10B 15B 20B 25B
IFC.CA Yearly EPS VS EstimatesIFC.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 5 10 15

2

4. Valuation

4.1 Price/Earnings Ratio

IFC is valuated rather expensively with a Price/Earnings ratio of 20.93.
Compared to the rest of the industry, the Price/Earnings ratio of IFC indicates a rather expensive valuation: IFC more expensive than 92.94% of the companies listed in the same industry.
IFC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.27.
Based on the Price/Forward Earnings ratio of 17.22, the valuation of IFC can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IFC indicates a slightly more expensive valuation: IFC is more expensive than 69.41% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 96.48, IFC is valued rather cheaply.
Industry RankSector Rank
PE 20.93
Fwd PE 17.22
IFC.CA Price Earnings VS Forward Price EarningsIFC.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as IFC.
94.12% of the companies in the same industry are cheaper than IFC, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 22.76
EV/EBITDA 11.98
IFC.CA Per share dataIFC.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150

4.3 Compensation for Growth

IFC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
IFC's earnings are expected to grow with 14.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.1
PEG (5Y)1.37
EPS Next 2Y19.49%
EPS Next 3Y14.84%

5

5. Dividend

5.1 Amount

IFC has a Yearly Dividend Yield of 1.76%. Purely for dividend investing, there may be better candidates out there.
IFC's Dividend Yield is slightly below the industry average, which is at 4.22.
Compared to the average S&P500 Dividend Yield of 2.31, IFC is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.76%

5.2 History

The dividend of IFC is nicely growing with an annual growth rate of 10.80%!
IFC has been paying a dividend for at least 10 years, so it has a reliable track record.
IFC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.8%
Div Incr Years19
Div Non Decr Years19
IFC.CA Yearly Dividends per shareIFC.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1 2 3 4

5.3 Sustainability

IFC pays out 45.25% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of IFC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP45.25%
EPS Next 2Y19.49%
EPS Next 3Y14.84%
IFC.CA Yearly Income VS Free CF VS DividendIFC.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B
IFC.CA Dividend Payout.IFC.CA Dividend Payout, showing the Payout Ratio.IFC.CA Dividend Payout.PayoutRetained Earnings

INTACT FINANCIAL CORP

TSX:IFC (2/13/2025, 7:00:00 PM)

287.1

-3.16 (-1.09%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)11-05 2024-11-05/amc
Earnings (Next)02-11 2025-02-11/amc
Inst Owners53.45%
Inst Owner ChangeN/A
Ins Owners0.25%
Ins Owner ChangeN/A
Market Cap51.21B
Analysts74.12
Price Target290.31 (1.12%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.76%
Yearly Dividend4.34
Dividend Growth(5Y)10.8%
DP45.25%
Div Incr Years19
Div Non Decr Years19
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)82.28%
Min EPS beat(2)36.51%
Max EPS beat(2)128.05%
EPS beat(4)4
Avg EPS beat(4)48.47%
Min EPS beat(4)5.69%
Max EPS beat(4)128.05%
EPS beat(8)7
Avg EPS beat(8)29.9%
EPS beat(12)10
Avg EPS beat(12)25.26%
EPS beat(16)14
Avg EPS beat(16)27.39%
Revenue beat(2)0
Avg Revenue beat(2)-3.26%
Min Revenue beat(2)-4.33%
Max Revenue beat(2)-2.19%
Revenue beat(4)1
Avg Revenue beat(4)-1.99%
Min Revenue beat(4)-4.33%
Max Revenue beat(4)0.56%
Revenue beat(8)3
Avg Revenue beat(8)0.28%
Revenue beat(12)7
Avg Revenue beat(12)9.74%
Revenue beat(16)11
Avg Revenue beat(16)9.81%
PT rev (1m)0.24%
PT rev (3m)5.23%
EPS NQ rev (1m)0.75%
EPS NQ rev (3m)5.4%
EPS NY rev (1m)0.12%
EPS NY rev (3m)5.01%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)70.99%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.19%
Valuation
Industry RankSector Rank
PE 20.93
Fwd PE 17.22
P/S 1.9
P/FCF 22.76
P/OCF 19.03
P/B 2.88
P/tB 6.16
EV/EBITDA 11.98
EPS(TTM)13.72
EY4.78%
EPS(NY)16.68
Fwd EY5.81%
FCF(TTM)12.61
FCFY4.39%
OCF(TTM)15.09
OCFY5.26%
SpS150.72
BVpS99.69
TBVpS46.64
PEG (NY)1.1
PEG (5Y)1.37
Profitability
Industry RankSector Rank
ROA 3.48%
ROE 11.61%
ROCE 6.93%
ROIC 5.38%
ROICexc 5.51%
ROICexgc 7.58%
OM 14.79%
PM (TTM) 7.68%
GM N/A
FCFM 8.37%
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 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-5.41%
OM growth 5Y4.01%
PM growth 3Y-16.33%
PM growth 5Y-5.31%
GM growth 3YN/A
GM growth 5YN/A
F-Score9
Asset Turnover0.45
Health
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 2.57
Debt/EBITDA 1.24
Cap/Depr 64.01%
Cap/Sales 1.64%
Interest Coverage 17.68
Cash Conversion 57.67%
Profit Quality 109.01%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score9
WACC7.76%
ROIC/WACC0.69
Cap/Depr(3y)73.55%
Cap/Depr(5y)64.47%
Cap/Sales(3y)1.85%
Cap/Sales(5y)1.58%
Profit Quality(3y)130.09%
Profit Quality(5y)153.65%
High Growth Momentum
Growth
EPS 1Y (TTM)27.04%
EPS 3Y5.6%
EPS 5Y15.27%
EPS Q2Q%-51.9%
EPS Next Y18.98%
EPS Next 2Y19.49%
EPS Next 3Y14.84%
EPS Next 5YN/A
Revenue 1Y (TTM)8.03%
Revenue growth 3Y26.87%
Revenue growth 5Y19.39%
Sales Q2Q%5.34%
Revenue Next Year6.56%
Revenue Next 2Y6.92%
Revenue Next 3Y6.78%
Revenue Next 5YN/A
EBIT growth 1Y35.83%
EBIT growth 3Y20.01%
EBIT growth 5Y24.18%
EBIT Next Year32.24%
EBIT Next 3Y14.87%
EBIT Next 5YN/A
FCF growth 1Y-30.77%
FCF growth 3Y-14.09%
FCF growth 5Y14.16%
OCF growth 1Y-26.23%
OCF growth 3Y-7.76%
OCF growth 5Y17.25%