| IGM Stock | | | CAD 47.39 0.17 0.36% |
Taking into consideration IGM Financial's profitability measurements, IGM Financial is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in December. Profitability indicators assess IGM Financial's ability to earn profits and add value for shareholders. At this time, IGM Financial's
Price To Sales Ratio is very stable compared to the past year. As of the 28th of November 2024,
Price Sales Ratio is likely to grow to 4.50, while
Days Sales Outstanding is likely to drop 26.69. At this time, IGM Financial's
Accumulated Other Comprehensive Income is very stable compared to the past year. As of the 28th of November 2024,
Income Tax Expense is likely to grow to about 230.5
M, while
Operating Income is likely to drop about 1
B.
For IGM Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of IGM Financial to generate income relative to revenue, assets, operating costs, and current equity. These
fundamental indicators attest to how well IGM Financial utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between IGM Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of IGM Financial over time as well as its relative position and ranking within its peers.
Check out
Risk vs Return Analysis.
Please note, there is a significant difference between IGM Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if IGM Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, IGM Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
IGM Financial Return On Equity vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining IGM Financial's current stock value. Our valuation model uses many indicators to compare IGM Financial value to that of its competitors to determine the firm's financial worth.
IGM Financial is rated
fifth overall in price to book category among its peers. It is rated
second overall in return on equity category among its peers reporting about
0.08 of Return On Equity per Price To Book. The ratio of Price To Book to Return On Equity for IGM Financial is roughly
11.79 . At this time, IGM Financial's Return On Equity is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value IGM Financial by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for IGM Financial's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.
IGM Return On Equity vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
IGM Financial | P/B | = | MV Per ShareBV Per Share |
| = | 1.49 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
IGM Financial | Return On Equity | = | Net IncomeTotal Equity |
| = | 0.13 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
IGM Return On Equity Comparison
IGM Financial is currently under evaluation in return on equity category among its peers.
IGM Financial Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in IGM Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, IGM Financial will eventually generate negative long term returns. The profitability progress is the general direction of IGM Financial's change in net profit over the period of time. It can combine
multiple indicators of IGM Financial, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
IGM Profitability Driver Comparison
Profitability drivers are factors that can directly affect your
investment outlook on IGM Financial. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of IGM Financial position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the IGM Financial's important profitability drivers and their relationship over time.
Use IGM Financial in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if IGM Financial position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in IGM Financial will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to IGM Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace IGM Financial when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back IGM Financial - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling IGM Financial to buy it.
The correlation of IGM Financial is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as IGM Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if IGM Financial moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for IGM Financial can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Use Investing Themes to Complement your IGM Financial position
In addition to having IGM Financial in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.
Recreation
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Recreation theme has 33 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can
partner with us for reliable portfolio optimization as you plan to utilize
Recreation Theme or any other
thematic opportunities.
Other Information on Investing in IGM Stock
To fully project IGM Financial's
future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the
financial position of IGM Financial at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include IGM Financial's income statement, its balance sheet, and the statement of cash flows.
Potential IGM Financial investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although IGM Financial investors may work on each financial statement separately, they are all related. The changes in IGM Financial's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on IGM Financial's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
