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 85 industry peers in the Insurance industry. There are concerns on the financial health of IFC while its profitability can be described as average. While showing a medium growth rate, IFC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year IFC was profitable.
IFC had a positive operating cash flow in the past year.
IFC had positive earnings in each of the past 5 years.
Each year in the past 5 years IFC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.71%, IFC is in the better half of the industry, outperforming 74.42% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.16%, IFC is in the better half of the industry, outperforming 70.93% of the companies in the same industry.
IFC has a Return On Invested Capital of 5.49%. This is in the better half of the industry: IFC outperforms 73.26% 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 has a Profit Margin of 8.33%. This is in the lower half of the industry: IFC underperforms 67.44% of its industry peers.
In the last couple of years the Profit Margin of IFC has grown nicely.
The Operating Margin of IFC (15.53%) is worse than 66.28% of its industry peers.
IFC's Operating Margin has improved in the last couple of years.
| 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.
IFC has more shares outstanding than it did 5 years ago.
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's Debt to FCF ratio of 1.85 is fine compared to the rest of the industry. IFC outperforms 69.77% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that IFC is not too dependend on debt financing.
IFC's Debt to Equity ratio of 0.30 is in line compared to the rest of the industry. IFC outperforms 44.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.85 | ||
| Altman-Z | N/A |
ROIC/WACC0.7
WACC7.85%
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 77.11%, which is quite impressive.
The Earnings Per Share has been growing by 19.46% on average over the past years. This is quite good.
IFC shows a small growth in Revenue. In the last year, the Revenue has grown by 3.16%.
The Revenue has been growing by 18.42% on average over the past years. This is quite good.
EPS 1Y (TTM)77.11%
EPS 3Y-0.2%
EPS 5Y19.46%
EPS Q2Q%28.61%
Revenue 1Y (TTM)3.16%
Revenue growth 3Y14.34%
Revenue growth 5Y18.42%
Sales Q2Q%19.83%
3.2 Future
IFC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.68% yearly.
The Revenue is expected to grow by 9.37% on average over the next years. This is quite good.
EPS Next Y19.05%
EPS Next 2Y12.4%
EPS Next 3Y10.68%
EPS Next 5YN/A
Revenue Next Year7.23%
Revenue Next 2Y6.82%
Revenue Next 3Y9.37%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
A Price/Earnings ratio of 23.48 indicates a rather expensive valuation of IFC.
Based on the Price/Earnings ratio, IFC is valued more expensive than 94.19% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, IFC is valued at the same level.
The Price/Forward Earnings ratio is 17.45, which indicates a rather expensive current valuation of IFC.
69.77% of the companies in the same industry are cheaper than IFC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.10. IFC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.48 | ||
| Fwd PE | 17.45 |
4.2 Price Multiples
70.93% of the companies in the same industry are more expensive than IFC, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IFC indicates a rather expensive valuation: IFC more expensive than 80.23% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.51 | ||
| EV/EBITDA | 11.56 |
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)1.23
PEG (5Y)1.21
EPS Next 2Y12.4%
EPS Next 3Y10.68%
5. Dividend
5.1 Amount
IFC has a Yearly Dividend Yield of 1.85%. Purely for dividend investing, there may be better candidates out there.
IFC's Dividend Yield is slightly below the industry average, which is at 4.24.
IFC's Dividend Yield is slightly below the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
5.2 History
On average, the dividend of IFC grows each year by 10.80%, which is quite nice.
IFC has paid a dividend for at least 10 years, which is 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
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.
The dividend of IFC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP43.18%
EPS Next 2Y12.4%
EPS Next 3Y10.68%
TSX:IFC (3/7/2025, 7:00:00 PM)
290.44
+2.24 (+0.78%)
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 Cap51.80B
Analysts74.12
Price Target305.06 (5.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
Yearly Dividend4.34
Dividend Growth(5Y)10.8%
DP43.18%
Div Incr Years19
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)4.93%
Min Revenue beat(2)-2.19%
Max Revenue beat(2)12.06%
Revenue beat(4)2
Avg Revenue beat(4)1.53%
Min Revenue beat(4)-4.33%
Max Revenue beat(4)12.06%
Revenue beat(8)3
Avg Revenue beat(8)-0.07%
Revenue beat(12)7
Avg Revenue beat(12)10.29%
Revenue beat(16)11
Avg Revenue beat(16)9.79%
PT rev (1m)5.08%
PT rev (3m)5.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.78%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)-0.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.48 | ||
| Fwd PE | 17.45 | ||
| P/S | 1.95 | ||
| P/FCF | 17.51 | ||
| P/OCF | 15.29 | ||
| P/B | 2.85 | ||
| P/tB | 6.04 | ||
| EV/EBITDA | 11.56 |
EPS(TTM)12.37
EY4.26%
EPS(NY)16.64
Fwd EY5.73%
FCF(TTM)16.59
FCFY5.71%
OCF(TTM)18.99
OCFY6.54%
SpS148.6
BVpS101.76
TBVpS48.12
PEG (NY)1.23
PEG (5Y)1.21
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
WACC7.85%
ROIC/WACC0.7
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)77.11%
EPS 3Y-0.2%
EPS 5Y19.46%
EPS Q2Q%28.61%
EPS Next Y19.05%
EPS Next 2Y12.4%
EPS Next 3Y10.68%
EPS Next 5YN/A
Revenue 1Y (TTM)3.16%
Revenue growth 3Y14.34%
Revenue growth 5Y18.42%
Sales Q2Q%19.83%
Revenue Next Year7.23%
Revenue Next 2Y6.82%
Revenue Next 3Y9.37%
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%