Is it a good company at a reasonable price? This stock is not well followed by analysts and I get few estimates for this company. However, the company is done quite well for its shareholders over the past 25 years. It is currently off of its recent high which occurred in the middle of 2025. However, at the current time it does seem to be on the expensive side, so if you like this stock, it may not be a good time to buy at this time.
I do not own this stock of IA Financial Corp (TSX-IAG, OTC-IDLLF). This was a stock shown as a dividend growth stock on the Canadian All Star List. The site is here.
When I was updating my spreadsheet, I noticed that since IFRS has changed revenue to income, every place you looks has a different value for Revenue. In my spreadsheet I have 4 different versions.
If you had invested in this company in December 2015, for $1,014.99 you would have bought 23 shares at $44.13 per share. In December 2025, after 10 years you would have received $523.83 in dividends. The stock would be worth $4,090.09. Your total return would have been $4,613.92. This would be a total return of 17.56% per year with 14.95% from capital gain and 2.60% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $44.13 | $1,014.99 | 23 | 10 | $523.83 | $4,090.09 | $4,613.92 |
The current dividend yield is moderate with dividend growth moderate. The current dividend yield is moderate (2% to 4% ranges) at 2.49%. The 5, 10 and historical dividend yields are moderate at 3.19%, 3.09% and 2.70%. The dividends were increased by 14.3% per year over the past 5 years. The last dividend increase was in 2026 and it was for 11.1%.
The Dividend Payout Ratios (DPR) are good. The DPR for 2025 for Earnings per Share (EPS) is good at 33% with 5 year coverage at 34%. The DPR for 2025 for Adjusted Earnings per Share (AEPS) is good at 29% with 5 year coverage at 29%. The DPR for 2025 for Cash Flow per Share (CFPS) is good at 26% with 5 year coverage at 32%. The DPR for 2025 for Free Cash Flow (FCF) is high at 74% with 5 year coverage at 35%. As far as I can see there is only one site giving FCF values, so only one value for 2025 of $470.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 33.48% | 33.70% |
| AEPS | 29.17% | 29.12% |
| CFPS | 25.84% | 31.59% |
| FCF | 74.47% | 24.53% |
Debt Ratios are fine. The Long Term Debt/Covering Assets Ratio for 2025 is good at 0.98 and currently at 0.98. This is more important ratios than the Long Term Debt/Market Cap Ratio which is 2.75 with 5 year ratio at 2.83. The Liquidity Ratio for 2025 is good at 2.22 and 2.19 currently. The Debt Ratio for 2025 is fine for a financial at 1.07 and 1.07 currently. The Financial Leverage for 2025 is fine at 16.3% (and highly conservative) and currently at 14.8%.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term A | 0.98 | 0.98 |
| Lg Term | 2.75 | 2.83 |
| Intang/GW | 0.25 | 0.26 |
| Liquidity | 2.22 | 2.19 |
| Liq. + CF | 1.93 | 1.88 |
| Debt Ratio | 1.07 | 1.07 |
| Fin Leverage | 16.3% | 14.8% |
The Total Return per year is shown below for years of 5 to 25 to the end of 2025. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2020 | 5 | 14.27% | 29.70% | 26.37% | 3.33% |
| 2015 | 10 | 12.54% | 17.56% | 14.95% | 2.60% |
| 2010 | 15 | 9.42% | 13.26% | 11.07% | 2.19% |
| 2005 | 20 | 10.64% | 11.56% | 9.48% | 2.08% |
| 2000 | 25 | 10.67% | 10.94% | 9.06% | 1.88% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 8.32, 11.14 and 12.45. The corresponding 10 year ratios are 7.61, 9.38 and 11.82. The corresponding historical ratios are 10.16, 11.44 and 16.40. The current ratio is 12.66 based on a stock price of $182.61 and EPS estimate for 2026 of $14.43. The current ratio is above the high ratio of the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Earnings per Share Ratios are 7.28, 9.19 and 10.00. The corresponding 10 year ratios are 7.15, 9.11 and 10.96. The corresponding historical ratios are 7.94, 9.50 and 12.28. The current ratio is 13.22 based on a stock price of $182.61 and EPS estimate for 2026 of $13.81. The current ratio is above the high ratio of the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
I get a Graham Price of $167.21. The 10-year low, median, and high median Price/Graham Price Ratios are 0.54, 0.66 and 0.80. The current ratio is 1.09 based on a stock price of $182.61. The current ratio is above the high ratio of the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
I get a 10-year median Price/Book Value per Share Ratio of 1.12. The current ratio is 20.3 based on a stock price of $182.61, Book Value of $8,109M and Book Value per Share of $89.98. The current ratio is 81% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
I also have a Book Value per Share estimate for 2026 of $84.46. This analyst calculates the Book Value differently than I do and, in this case, the 10 year median ratio is 1.28. This Book Value per Share of $84.46 implies a Book Value of $7,611M, a ratio of 2.16 and with a stock price of $182.61. This ratio is 93% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
I get a 10-year median Price/Cash Flow per Share Ratio of 9.98. The current ratio is 18.87 based on Cash Flow for the last 12 months of $872M, Cash Flow per Share of $9.68 and a stock price of $182.61. This ratio is 89% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
I get an historical median dividend yield of 2.70%. The current dividend yield is 2.41% based on a stock price of $182.61 and dividends of $4.40. The current dividend yield is 11% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get a 10 year median dividend yield of 3.09%. The current dividend yield is 2.41% based on a stock price of $182.61 and dividends of $4.40. The current dividend yield is 22% below the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively expensive.
The 10-year median Price/Sales (Revenue) Ratio is 0.54. The current ratio is 0.66 based on Revenue for the last 12 months of $24,815M, Revenue per Share of $275.36 and a stock price of $182.61. The current ratio is 23% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
Results of stock price testing is that the stock price is probably expensive. I would say a Hold. The 10 year dividend yield testing is saying that the stock price is expensive. It is confirmed by the P/S Ratio test. Most of the rest of the testing is saying the same thing.
When I look at analysts’ recommendations, I find Strong Buy (1) and Hold (6). The consensus is a Hold. The 12 month stock price is $176.14 with a high of $190.00 and low of $167.00. The consensus stock price of $176.14 implies a total loss of 1.13% with 3.54% from capital loss and 2.41% from dividends based on a current stock price of $182.61.
This company is not well followed by analysts on Stock Chase. There is an entry for November 2025 where an analyst says do not buy because he likes SLF and MFC stocks better. The stock was well liked in 2020. Amy Legate-Wolfe on Motley Fool thinks this company is a good blue chip pick. Jitendra Parashar on Motley Fool likes this company for its consistent earnings growth and strong sales momentum. The company put out a press release via Globe and Mail about their fourth quarter results for 2025. The company put out a Press Release about their first quarter of 2026.
Simply Wall Street via Yahoo Finance talks about this company appointing a new Chief Economist. Simply Wall Street gives this stock 3 and one half stars. It says they have no risk warnings on this stock.
iA Financial Corp Inc is an insurance and wealth management group based in Canada. The company's products and services are offered on both an individual and group basis and extend throughout Canada and the United States. Its operating segments are: Insurance, Canada; Wealth Management; U.S. Operations; Investment; and Corporate. Maximum revenue is generated from the Insurance, Canada segment. Its web site is here IA Financial Corp.
The last stock I wrote about was about was RB Global Inc (TSX-RBA, NYSE-RBA) ... learn more. The next stock I will write about will be Adentra Inc (TSX-ADEN, OTC-HDIUF) ... learn more on Wednesday, June 17, 2026 around 5 pm. Tomorrow on my other blog I will write about Review with Joe Canavan.... learn more on Tuesday, June 16, 2026 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. 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 site for an index to these blog entries and for stocks followed. 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
No comments:
Post a Comment