Attractive stocks have exceptional fundamentals. In the case of Intact Financial Corporation (TSX:IFC), there’s is a financially-sound , dividend-paying company with a a strong track record of performance. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Intact Financial here.
Established dividend payer with proven track record
IFC delivered a bottom-line expansion of 39.61% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did IFC outperformed its past performance, its growth also surpassed the Insurance industry expansion, which generated a -12.37% earnings growth. This is an notable feat for the company. IFC’s debt-to-equity ratio stands at 30.50%, which means its debt level is acceptable. This implies that IFC has a healthy balance between taking advantage of low cost debt funding as well as sufficient financial flexibility without succumbing to the strict terms of debt. IFC appears to have made good use of debt, producing operating cash levels of 0.25x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
IFC is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
For Intact Financial, I’ve compiled three essential aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for IFC’s future growth? Take a look at our free research report of analyst consensus for IFC’s outlook.
- Valuation: What is IFC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether IFC is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of IFC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.