Intact Financial Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Financial. The Stock Price seems to be in a reasonable range. See my spreadsheet on Intact Financial Corp.

I do not own this stock of Intact Financial Corp (TSX-IFC, OTC-IFCZF). I am following this stock because in November 2011, the TD Bank put out a special report on the merits of dividend investing. At the end of the report they listed a number of Canadian stocks as Equity Yield ideas. This was one stock listed that I did not follow. This and Wajax are from TD Report on dividend investing.

The dividends are moderate as is the dividend growth. The current dividend is 2.66% with a historical median of 2.69% and a 5 year median of 2.62%. The dividends have grown at 9.4% and 8.8% per year over the past 5 and 10 years. The last dividend increase was for 10.3% and it occurred in 2017.

They can afford their dividends. The Dividend Payout Ratio for EPS is 58% in 2017 with a 5 year payout of 43%. The DPR for CFPS is 38% in 2017 and the 5 year payout is 30%.

The Return on Equity for 2016 was 8.9% with a 5 year median of 12%. It has been below 10% twice in the last 5 years and 4 times in the last 10 years. It is desirable to have the ROE at 10% or better. But general insurance can be a volatile business. The 5 year median ROE has been above 10% each year of the past 5 years.

The 5 year low, median and high median Price/Earnings per Share Ratios are 15.92, 17.19 and 18.46. The corresponding 10 year ratios are 14.41, 15.57 and 16.73. The corresponding 13 year ratios are 11.93, 13.42 and 14.90. It would seem that P/E Ratios have been increasing. The current P/E Ratio is 15.97. This is based on a stock price of $96.14 and 2017 EPS estimate of $6.02. This stock price testing suggests that the stock price is reasonable and around the median.

I get a Graham Price of $76.43. The 10 year low, median and high median Price/Graham Price Ratios are 1.03, 1.19 and 1.30. The current P/GP Ratio is 1.26 based on a stock price of $96.14. This stock price testing suggests that the stock price is reasonable but above the median.

I get a 10 year median Price/Book Value per Share Ratio of 1.81. The current P/B Ratio is 2.23 based on BV of $5,652M, $43.13 BVPS and a stock price of $96.14. The current ratio is some 23% higher than the 10 year median. This stock price testing suggests that the stock price is relatively expensive.

I get a historical median dividend yield of 2.69%. The current dividend is 2.66% based on dividends of $2.56 and a stock price of $96.14. The current dividend yield is lower than the historical median yield by 1%. This stock price testing suggests that the stock price is reasonable and around the median.

I get a P/S Ratio of 1.34. The current P/S Ratio is 1.50 based on 2017 Revenue Estimate of $8,396M, Revenue per Share at 64.07 and a stock price of $96.14. The current P/S Ratio is some 12% higher than the 10 year median ratio. This stock price testing suggests that the stock price is reasonable but above the median.

When I look at analysts' recommendations I find Strong Buy, Buy and Hold recommendations. Most of the recommendations are a Buy and the consensus recommendation is a Buy. The 12 month stock price target is $103.34. This implies a total return of 10.15% with 7.49% from capital gains and $2.66% from dividends.

Ryan Goldsman on Motley Fool likes this company. Cole Patterson on Simply Wall Street looks at what sort of dividend stock this company is. Jacob Falcon on Weekly Register talks about what analysts are giving as recommendations. See what analysts are saying about this company on Stock Chase. There is not much coverage but what there is, is positive.

Intact Financial Corporation is the largest provider of property and casualty insurance in Canada. Intact offers home, auto and business insurance through Intact Insurance and a network of brokers including Belair Direct and BrokerLink. Its web site is here Intact Financial Corp.

The last stock I wrote about was about was AGT Food and Ingredients Inc. (TSX-AGT, OTC-AGXXF)... learn more. The next stock I will write about will be Premium Brands Holdings Corp (TSX-PBH, OTC-PRBZF)... learn more on Monday, July 3, 2017 around 5 pm.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.