INTACT FINANCIAL CORP (IFC.CA) Stock Fundamental Analysis
TSX:IFC - Toronto Stock Exchange - CA45823T1066 - Common Stock - Currency: CAD
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. While IFC is still in line with the averages on profitability rating, there are concerns on its financial health. IFC is valied quite expensively at the moment, while it does show a decent growth rate.
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.
Each year in the past 5 years IFC has 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 (3.71%) is better than 77.50% of its industry peers.
The Return On Equity of IFC (12.16%) is better than 75.00% of its industry peers.
The Return On Invested Capital of IFC (5.49%) is better 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 has a worse Profit Margin (8.33%) than 65.00% of its industry peers.
IFC's Profit Margin has improved in the last couple of years.
IFC has a Operating Margin (15.53%) which is in line with 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.
The number of shares outstanding for IFC has been increased compared to 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 has a Debt to FCF ratio of 1.85. This is in the better half of the industry: IFC outperforms 66.25% of its industry peers.
IFC has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
IFC has a worse Debt to Equity ratio (0.30) than 60.00% of its industry peers.
Although IFC does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| 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
The Earnings Per Share has grown by an impressive 23.54% over the past year.
The Earnings Per Share has been growing by 18.56% on average over the past years. This is quite good.
The Revenue has been growing slightly by 3.16% in the past 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.
IFC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.36% yearly.
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
IFC is valuated rather expensively with a Price/Earnings ratio of 20.67.
Based on the Price/Earnings ratio, IFC is valued more expensive than 93.75% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.87. IFC is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 18.01, the valuation of IFC can be described as rather expensive.
Based on the Price/Forward Earnings ratio, IFC is valued a bit more expensive than 68.75% of the companies in the same industry.
IFC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.67 | ||
| Fwd PE | 18.01 |
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.
92.50% of the companies in the same industry are cheaper than IFC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.98 | ||
| EV/EBITDA | 11.8 |
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)1.4
PEG (5Y)1.11
EPS Next 2Y10.6%
EPS Next 3Y9.4%
5. Dividend
5.1 Amount
IFC has a Yearly Dividend Yield of 1.78%.
With a Dividend Yield of 1.78, IFC pays less dividend than the industry average, which is at 4.51. 81.25% of the companies listed in the same industry pay a better dividend than IFC!
IFC's Dividend Yield is slightly below the S&P500 average, which is at 2.46.
| 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 their dividend for at least 10 years, which is a reliable track record.
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 (4/28/2025, 7:00:00 PM)
298.28
+1.37 (+0.46%)
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 Cap53.20B
Analysts74.12
Price Target304.43 (2.06%)
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 | 20.67 | ||
| Fwd PE | 18.01 | ||
| P/S | 2.01 | ||
| P/FCF | 17.98 | ||
| P/OCF | 15.71 | ||
| P/B | 2.93 | ||
| P/tB | 6.2 | ||
| EV/EBITDA | 11.8 |
EPS(TTM)14.43
EY4.84%
EPS(NY)16.56
Fwd EY5.55%
FCF(TTM)16.59
FCFY5.56%
OCF(TTM)18.99
OCFY6.37%
SpS148.6
BVpS101.76
TBVpS48.12
PEG (NY)1.4
PEG (5Y)1.11
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%