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IGM Financial (TSX:IGM) just reported Q4 and full year 2025 results, with net income of CA$322.39 million for the quarter and CA$1.10b for the year, alongside a 10% dividend increase.
See our latest analysis for IGM Financial.
IGM Financial’s share price has climbed 19.66% over the past 90 days and its 1 year total shareholder return of 55.14% and 5 year total shareholder return of 154.03% suggest momentum has been building alongside record earnings, a higher dividend and active buybacks.
If this earnings update has you thinking about where else capital could work hard, it might be a good moment to scan our 3 top founder-led companies as potential next ideas.
With record earnings, a higher dividend, active buybacks and a share price that already climbed 19.66% in 90 days, the key question now is whether IGM still trades below its intrinsic value or if the market already reflects its current fundamentals.
IGM Financial’s fair value in the most followed narrative sits at CA$68.13, only slightly above the last close of CA$66.94, which keeps expectations finely balanced.
Operational efficiency gains and cost management, driven by digital transformation and streamlining of business structures (e.g., merger of mutual fund and investment dealers), are translating into improved productivity, lower expense run-rates, and enhanced profitability, all supportive of net margins and earnings.
Curious what kind of revenue path and profit margins sit behind that fair value, or how much multiple expansion the narrative bakes in? The full story connects modest top line assumptions, a tight margin profile and a higher future P/E to arrive at CA$68.13.
Result: Fair Value of CA$68.13 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, there are still clear risks, including pressure from low cost passive products and digital platforms, as well as rising regulatory and compliance costs that could weigh on margins.
Find out about the key risks to this IGM Financial narrative.
Given this mix of strong recent metrics and real risks, it is worth moving quickly to check the underlying data and decide where you stand, starting with 3 key rewards and 1 important warning sign.
If IGM has sharpened your focus, do not stop here. Put the same discipline to work by comparing other opportunities side by side using targeted screens.