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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 Delivers Record Quarterly Earnings

IGM Financial reported a strong third quarter with adjusted EPS reaching a record high of $1.27, surpassing analyst estimates of $1.17. The company's core businesses, IG Wealth and Mackenzie Investments, demonstrated significant strength, with year-over-year earnings growth of 24% and 15%, respectively. The combined entity achieved $2.4 billion in net inflows during the quarter. Revenue growth is expected to continue, with analysts estimating a 7.6% increase in revenues for next year. The company's financial performance was diversified, driven by its core businesses and strategic investments.

Publication Date: Nov -15

📋 Highlights
  • Record Adjusted EPS:: Achieved $1.27, a 23% year-over-year increase and all-time high.
  • Net Inflows & Earnings Growth:: Combined $2.4 billion in net inflows; IG Wealth (24% YoY earnings growth) and Mackenzie (15% YoY earnings growth).
  • IG Wealth AUM&A:: Reaches $156 billion, up 14% YoY, with $1.2 billion in new client inflows (71% from mass affluent/high net worth).
  • Mackenzie Assets & Returns:: Ends with $240 billion in assets, up 6.6% from investment returns and $2 billion in net sales.
  • Unallocated Capital & Strategic Investments:: Unallocated capital grows to $700 million, while strategic investments (Rockefeller/Wealthsimple) gain $1.4 billion in value (approx. $16/share).

Segment Performance

IG Wealth Management, a key subsidiary, reported record assets under management and administration (AUM&A) of $156 billion, up 14% from the same quarter last year. The business continues to attract new clients, with record new client gross inflows of $1.2 billion. Mackenzie Investments also had a strong quarter, with record-high assets of just under $240 billion, driven by investment returns and net sales of $2 billion. The success in these core businesses underscores the company's leadership in the Canadian wealth management sector.

Valuation and Dividend Metrics

With a Price-to-Book Ratio (P/B Ratio) of 1.63 and a Dividend Yield of 4.05%, IGM Financial presents an attractive valuation profile, particularly for income-focused investors. The company's Return on Equity (ROE) stands at 12.46%, indicating a healthy return on shareholders' equity. The cash dividend payout ratio has decreased to 59%, suggesting a sustainable dividend policy. The unallocated capital and strategic investments, valued at $35 per share, add to the company's appeal, potentially supporting future growth or returning value to shareholders.

Strategic Investments and Growth Prospects

The company's strategic investments, including its stakes in Rockefeller and Wealthsimple, have increased in value, with the total value representing approximately $16 per share. James O'Sullivan's comments on M&A and Wealthsimple indicate a stable and supportive stance towards its current investments, suggesting no immediate changes are anticipated. With Wealthsimple managing $100 billion in assets and a diversified platform, the partnership with IGM Financial's subsidiaries appears to be yielding positive outcomes, contributing to the overall growth prospects of the company.

3. NewsRoom

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IGM FINANCIAL INC. ANNOUNCES NOVEMBER 2025 ASSETS UNDER MANAGEMENT & ADVISEMENT AND NET FLOWS

Dec -03

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Mackenzie Investments 2026 Market Outlook: Resilience, Diversification and Fundamentals Expected To Guide Investors Through Uncertainty

Nov -25

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Mackenzie Investments Announces November 2025 Distributions for its Exchange Traded Funds

Nov -24

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IGM Financial’s Valuation After Strategic Fintech Partnership and 22% Price Surge in 2025

Nov -24

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A Fresh Look at IGM Financial (TSX:IGM): Assessing Valuation After Recent Share Price Momentum

Nov -24

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BrandPilot AI Announces Board Changes and Debt Settlement

Nov -21

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IG Wealth Management 2026 Market Outlook: Policy Tailwinds, AI Investments and Wealth Effect Will Shape Growth

Nov -20

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Mackenzie Investments Announces 2025 Mackenzie Together Grant Recipients

Nov -19

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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: 7.7/10

Value: 5.9

Growth: 6.6

Quality: 8.0

Yield: 7.0

Momentum: 9.0

Volatility: 10.0

1-Year Total Return ->

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IGM Financial

A-Score: 7.0/10

Value: 4.6

Growth: 4.6

Quality: 6.3

Yield: 9.0

Momentum: 7.5

Volatility: 10.0

1-Year Total Return ->

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State Street

A-Score: 6.5/10

Value: 6.6

Growth: 4.7

Quality: 5.6

Yield: 6.0

Momentum: 7.5

Volatility: 8.3

1-Year Total Return ->

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FS KKR Capital

A-Score: 6.4/10

Value: 6.0

Growth: 4.4

Quality: 7.2

Yield: 10.0

Momentum: 1.5

Volatility: 9.0

1-Year Total Return ->

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Brookfield Asset Management

A-Score: 5.9/10

Value: 0.5

Growth: 5.8

Quality: 9.1

Yield: 6.0

Momentum: 6.5

Volatility: 7.7

1-Year Total Return ->

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Prospect Capital

A-Score: 5.9/10

Value: 6.3

Growth: 3.9

Quality: 6.9

Yield: 10.0

Momentum: 0.0

Volatility: 8.3

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

57.96$

Current Price

57.96$

Potential

-0.00%

Expected Cash-Flows