INTACT FINANCIAL CORP (IFC.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:IFC - CA45823T1066 - Common Stock
258.45 CAD
-1.34 (-0.52%)
Taking everything into account, IFC scores 4 out of 10 in our fundamental rating. IFC was compared to 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 not valued too expensively and it also shows a decent growth rate. Finally IFC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- IFC had positive earnings in the past year.
- IFC had a positive operating cash flow in the past year.
- 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
- The Return On Assets of IFC (4.73%) is better than 87.50% of its industry peers.
- IFC has a better Return On Equity (14.93%) than 83.75% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 6.85%, IFC belongs to the top of the industry, outperforming 88.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.73% | ||
| ROE | 14.93% | ||
| ROIC | 6.85% |
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 11.20% is in line compared to the rest of the industry. IFC outperforms 52.50% 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 20.28%, IFC is in the better half of the industry, outperforming 67.50% of the companies in the same industry.
- IFC's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.28% | ||
| PM (TTM) | 11.2% | ||
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), IFC is destroying value.
- Compared to 5 years ago, IFC has more shares outstanding
2.2 Solvency
- IFC has a debt to FCF ratio of 1.34. This is a very positive value and a sign of high solvency as it would only need 1.34 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 1.34, IFC is doing good in the industry, outperforming 70.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.27 indicates that IFC is not too dependend on debt financing.
- The Debt to Equity ratio of IFC (0.27) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.34 | ||
| Altman-Z | N/A |
ROIC/WACC0.86
WACC7.93%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 35.79% over the past year.
- The Earnings Per Share has been growing by 18.56% on average over the past years. This is quite good.
- IFC shows a decrease in Revenue. In the last year, the revenue decreased by -1.02%.
- Measured over the past years, IFC shows a quite strong growth in Revenue. The Revenue has been growing by 18.42% on average per year.
EPS 1Y (TTM)35.79%
EPS 3Y5.44%
EPS 5Y18.56%
EPS Q2Q%341.58%
Revenue 1Y (TTM)-1.02%
Revenue growth 3Y14.34%
Revenue growth 5Y18.42%
Sales Q2Q%6.54%
3.2 Future
- The Earnings Per Share is expected to grow by 9.35% on average over the next years. This is quite good.
- Based on estimates for the next years, IFC will show a small growth in Revenue. The Revenue will grow by 6.08% on average per year.
EPS Next Y28.34%
EPS Next 2Y10.65%
EPS Next 3Y9.35%
EPS Next 5YN/A
Revenue Next Year5.25%
Revenue Next 2Y5.59%
Revenue Next 3Y6.08%
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 decreasing.
- 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
- IFC is valuated correctly with a Price/Earnings ratio of 13.87.
- 76.25% of the companies in the same industry are cheaper than IFC, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of IFC to the average of the S&P500 Index (27.25), we can say IFC is valued slightly cheaper.
- The Price/Forward Earnings ratio is 14.63, which indicates a correct valuation of IFC.
- IFC's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. IFC is more expensive than 70.00% of the companies in the same industry.
- IFC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.87 | ||
| Fwd PE | 14.63 |
4.2 Price Multiples
- 67.50% 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 slightly more expensive valuation: IFC is more expensive than 67.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.3 | ||
| EV/EBITDA | 8.02 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- IFC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.49
PEG (5Y)0.75
EPS Next 2Y10.65%
EPS Next 3Y9.35%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.59%, IFC is a good candidate for dividend investing.
- IFC's Dividend Yield is a higher than the industry average which is at 4.42.
- Compared to an average S&P500 Dividend Yield of 1.82, IFC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.59% |
5.2 History
- IFC has paid a dividend for at least 10 years, which is 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
- 34.08% of the earnings are spent on dividend by IFC. This is a low number and sustainable payout ratio.
DP34.08%
EPS Next 2Y10.65%
EPS Next 3Y9.35%
INTACT FINANCIAL CORP / IFC.CA FAQ
What is the ChartMill fundamental rating of INTACT FINANCIAL CORP (IFC.CA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to IFC.CA.
Can you provide the valuation status for INTACT FINANCIAL CORP?
ChartMill assigns a valuation rating of 4 / 10 to INTACT FINANCIAL CORP (IFC.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for INTACT FINANCIAL CORP?
INTACT FINANCIAL CORP (IFC.CA) has a profitability rating of 6 / 10.
What are the PE and PB ratios of INTACT FINANCIAL CORP (IFC.CA) stock?
The Price/Earnings (PE) ratio for INTACT FINANCIAL CORP (IFC.CA) is 13.87 and the Price/Book (PB) ratio is 2.3.
Is the dividend of INTACT FINANCIAL CORP sustainable?
The dividend rating of INTACT FINANCIAL CORP (IFC.CA) is 7 / 10 and the dividend payout ratio is 34.08%.