INTACT FINANCIAL CORP (IFC.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:IFC - CA45823T1066 - Common Stock
259.79 CAD
-2.49 (-0.95%)
Taking everything into account, IFC scores 5 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 has a correct valuation and a medium 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.
- IFC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of IFC (4.73%) is better than 87.50% of its industry peers.
- IFC's Return On Equity of 14.93% is amongst the best of the industry. IFC outperforms 85.00% of its industry peers.
- IFC's Return On Invested Capital of 6.85% is amongst the best of the industry. IFC outperforms 88.75% of its industry peers.
| 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
- The Profit Margin of IFC (11.20%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of IFC has grown nicely.
- IFC has a better Operating Margin (20.28%) than 67.50% of its industry peers.
- 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
- IFC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- IFC has more shares outstanding than it did 5 years ago.
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.
- With a Debt to Equity ratio value of 0.27, IFC perfoms like the industry average, outperforming 47.50% of the companies in the same 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
- IFC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.79%, which is quite impressive.
- 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%.
- 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)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
- IFC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.35% yearly.
- The Revenue is expected to grow by 6.08% on average over the next years.
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.
- 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 13.94, the valuation of IFC can be described as correct.
- Compared to the rest of the industry, the Price/Earnings ratio of IFC indicates a slightly more expensive valuation: IFC is more expensive than 75.00% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, IFC is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 14.70, the valuation of IFC can be described as correct.
- 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.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. IFC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.94 | ||
| Fwd PE | 14.7 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, IFC is valued a bit cheaper than the industry average as 67.50% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, IFC is valued a bit more expensive than the industry average as 66.25% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.36 | ||
| 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 rather good when compared to the industry average which is at 4.29. IFC pays more dividend than 90.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, IFC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.59% |
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 34.08% of its income as dividend. This is a 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 5 / 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 13.94 and the Price/Book (PB) ratio is 2.31.
Is the dividend of INTACT FINANCIAL CORP sustainable?
The dividend rating of INTACT FINANCIAL CORP (IFC.CA) is 8 / 10 and the dividend payout ratio is 34.08%.