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1. Company Snapshot

1.a. Company Description

IGM Financial Inc.operates as a wealth and asset management company in Canada.It operates through Wealth Management, Asset Management, and Strategic Investments and Other segments.


The company offers financial advisory services; IG Living Plan that provides financial planning services, such as investment vehicles, insurance products, mortgage and banking solutions, and charitable giving program; IG Wealth Management Advisor Portal, a customer relationship management platform; and IG Wealth Management's dealer platform, which provides increased automation and supports both MFDA and IIROC licensed advisors, as well as new products on its investment dealer platform.It also provides mutual funds; portfolios; IG Advisory Account, a fee-based account that enhances client experience by offering the ability to simplify and consolidate selected investments into a single account; iProfile Private portfolios, a portfolio management program for households with investments; iProfile Portfolios, a suite of four managed solutions; segregated funds; separately managed and fee-based brokerage accounts; insurance products; and securities services.In addition, the company offers management and related services; global private equity, private credit, and infrastructure investment solutions; and exchange traded funds.


The company was incorporated in 1978 and is headquartered in Winnipeg, Canada.IGM Financial Inc.is a subsidiary of Power Financial Corporation.

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1.b. Last Insights on IGM

IGM Financial Inc.'s recent performance was driven by strong Q3 2024 earnings, with revenue increasing 10% year-over-year to CA$935.9 million. The company reported record asset growth, with total client assets rising 23% and assets under management and advisement reaching CA$264.8 billion, up 18% from the previous year. Additionally, IGM Financial announced a CA$0.5625 dividend per share, affirming its commitment to shareholder returns. The company's strategic focus on organic growth and navigating industry challenges contributed to its strong financial performance.

1.c. Company Highlights

2. IGM Financial's Strong Q4 2025 Earnings: A Closer Look

IGM Financial reported a robust fourth quarter, with adjusted earnings per share (EPS) of $1.27, exceeding analyst estimates of $1.18 by 7.6%. The company's adjusted net earnings rose 16% year-over-year, driven by a 17% growth in client assets across its wealth and asset management businesses. The asset growth was fueled by a strong performance in IG Wealth Management and Mackenzie Investments, with record-high assets under management and administration (AUM&A) of $159 billion and $244 billion, respectively. The company's revenue growth was accompanied by a moderate headwind in expense growth, which is expected to be around 4% in 2026.

Publication Date: Feb -17

📋 Highlights
  • Record Adjusted EPS Growth: Adjusted earnings per share surged 17% YoY to $4.61, driven by wealth and asset management expansion.
  • Strong Q4 Net Earnings Growth: Adjusted net earnings rose 21% in Q4, with annual growth of 16%, reflecting robust asset growth across all 6 businesses.
  • IG Wealth AUM&A Record: IG Wealth Management reported $159 billion in assets under management and administration (AUM&A), a 13% increase from Q4 2024.
  • Mackenzie Assets Hit $244 Billion: Mackenzie Investments achieved a record $244 billion in assets, driven by $1.5 billion in net sales and 2% Q4 growth.
  • Shareholder Returns Accelerate: $263 million returned to shareholders in Q4, including $130 million in buybacks, alongside a 10% dividend hike to $0.62/share.

Segment Performance

IG Wealth Management reported a record quarter-end AUM&A of $159 billion, up 13% from Q4 2024, driven by strong gross flows and sales. Mackenzie Investments also achieved a record high in assets, with a 2% increase in the quarter, driven by investment returns and net sales. The company's other businesses, including ChinaAMC, Rockefeller, and Northleaf, also contributed to the overall growth, with Rockefeller's earnings driven by its core family office business and strategic advisory M&A practice.

Valuation and Dividend

IGM Financial's current valuation metrics indicate a reasonable price-to-earnings (P/E) ratio of 15.1 and a price-to-book (P/B) ratio of 1.76. The company's dividend yield stands at 3.4%, with a recent 10% increase in the quarterly dividend. The management team's confidence in the company's medium-term EPS growth is reflected in the dividend growth rate, which is expected to be supported by the company's strong financial condition, with a low leverage ratio.

Growth Prospects and AI Integration

The management team expressed confidence in the company's growth prospects, driven by its wealth management model and the potential for AI to improve client outcomes. IGM Financial is integrating AI tools to enhance the adviser and client experience, with a focus on building a better adviser experience and client experience. The company views AI as an opportunity to improve its services, rather than a disruption, and is committed to investing in the necessary technology and infrastructure to support AI integration.

Outlook and Analyst Estimates

Analysts estimate IGM Financial's revenue growth to be around 5.7% next year. The company's strong Q4 2025 earnings and growth prospects are expected to drive its financial performance in the coming year. With a solid track record of delivering value to shareholders, IGM Financial is well-positioned to continue its growth trajectory, driven by its diversified wealth and asset management businesses. The expected contribution from Rockefeller to EPS growth in 2026 and beyond is also a positive factor.

3. NewsRoom

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Placements Mackenzie (MAGV, MAUV, MBQG, MAUG) ouvre les marchés

Feb -17

Source: feeds.newsfilecorp.com

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Mackenzie Investments (MAGV, MAUV, MBQG, MAUG) Opens the Market

Feb -17

Source: feeds.newsfilecorp.com

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IGM Financial ETF Expansion Meets Undervalued Share Price And Solid Returns

Feb -17

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Mackenzie Investments Expands ETF Lineup with Value-Based and Diversifying Portfolio Solutions

Feb -17

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IGM Financial Q4 Earnings Call Highlights

Feb -13

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IGM Financial Inc (IGIFF) Q4 2025 Earnings Call Highlights: Record Growth in Earnings and ...

Feb -13

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IGM FINANCIAL REPORTS RECORD FOURTH QUARTER AND FULL YEAR 2025 ADJUSTED EARNINGS AND ANNOUNCES DIVIDEND INCREASE OF 10%

Feb -12

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Is It Too Late To Reconsider IGM Financial (TSX:IGM) After Its Strong Multi‑Year Rally?

Feb -12

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.37%)

6. Segments

Wealth Management

Expected Growth: 8.37%

IGM Financial Inc.'s Wealth Management segment growth of 8.37% is driven by increasing demand for investment products, strategic acquisitions, and expansion of advisory services. Additionally, the company's focus on digital transformation, improved customer experience, and diversified product offerings have contributed to the growth.

Asset Management

Expected Growth: 8.37%

IGM Financial Inc.'s Asset Management segment growth of 8.37% is driven by increasing demand for wealth management services, expansion of investment products, and strategic acquisitions. Additionally, the company's focus on digital transformation, cost savings initiatives, and strong distribution networks have contributed to its growth.

Adjustments

Expected Growth: 8.97%

IGM Financial Inc.'s 8.97% growth is driven by strong investment performance, increased assets under management, and a growing wealth management business. Additionally, the company's diversified revenue streams, cost savings initiatives, and strategic acquisitions have contributed to its robust growth.

Corporate and Other

Expected Growth: 4.83%

IGM Financial Inc.'s Corporate and Other segment growth of 4.83% is driven by increased investment income, lower operating expenses, and a favorable tax environment. Additionally, the company's strategic initiatives, such as cost savings and efficiency programs, have contributed to the segment's growth.

7. Detailed Products

Investment Management

IGM Financial Inc. offers investment management services through its subsidiaries, including IG Wealth Management and Mackenzie Investments. These services include portfolio management, investment advice, and wealth management solutions for individual and institutional clients.

Wealth Management

IGM Financial Inc. provides wealth management services, including financial planning, retirement planning, and estate planning, to help clients achieve their financial goals.

Mutual Funds

IGM Financial Inc. offers a range of mutual funds through its subsidiaries, including Mackenzie Investments, providing investors with access to a diversified portfolio of stocks, bonds, and other securities.

Exchange-Traded Funds (ETFs)

IGM Financial Inc. offers ETFs through its subsidiaries, providing investors with a flexible and cost-effective way to invest in a diversified portfolio of securities.

Retirement Savings Plans

IGM Financial Inc. offers retirement savings plans, including Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs), to help clients save for their retirement goals.

Insurance Services

IGM Financial Inc. offers insurance services, including life insurance, disability insurance, and critical illness insurance, through its subsidiaries.

8. IGM Financial Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for IGM Financial Inc. is medium due to the presence of alternative investment products and services offered by other financial institutions.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of concentration of buyers in the market, and the high switching costs associated with changing financial institutions.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the presence of multiple suppliers of investment products and services, and the lack of concentration of suppliers in the market.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the financial services industry, including regulatory hurdles and the need for significant capital investment.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of multiple competitors in the market, and the need for IGM Financial Inc. to differentiate itself through its products and services.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 51.55%
Debt Cost 4.75%
Equity Weight 48.45%
Equity Cost 11.71%
WACC 8.12%
Leverage 106.42%

11. Quality Control: IGM Financial Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Federated Hermes

A-Score: 7.5/10

Value: 6.0

Growth: 6.6

Quality: 8.5

Yield: 6.0

Momentum: 8.0

Volatility: 9.7

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IGM Financial

A-Score: 7.0/10

Value: 4.5

Growth: 4.2

Quality: 6.4

Yield: 9.0

Momentum: 8.0

Volatility: 10.0

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State Street

A-Score: 6.6/10

Value: 6.7

Growth: 4.7

Quality: 5.6

Yield: 6.0

Momentum: 8.0

Volatility: 8.7

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FS KKR Capital

A-Score: 6.3/10

Value: 6.2

Growth: 4.6

Quality: 5.8

Yield: 10.0

Momentum: 2.0

Volatility: 9.0

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Brookfield Asset Management

A-Score: 5.6/10

Value: 0.5

Growth: 5.8

Quality: 8.4

Yield: 6.0

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

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Prospect Capital

A-Score: 5.5/10

Value: 6.5

Growth: 3.9

Quality: 4.7

Yield: 10.0

Momentum: 0.5

Volatility: 7.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

67.07$

Current Price

67.07$

Potential

-0.00%

Expected Cash-Flows