Canadian wildfires can be a serious problem for large parts of North America, as anyone who remembers the persistent smell of smoke last summer will attest. And that’s before you factor in the phenomenal, life-altering damage to those in their path. But Intact Financial Corp (TSE:IFC), one of Canada’s biggest names in insurance, is working to make wildfires a little easier to work with and recover from. Trading is closed today in Canada for Victoria Day, but shares were up in Friday’s closing.
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Intact has already hit the ground running with its new fire-prevention project, having sent teams to Fort McMurray, Alta., to engage in mass fireproofing against a wildfire that was closing in. It’s a new project between Intact and a company called Wildfire Defense Systems operating out of Montana.
The project offers a slate of fireproofing tactics to help blunt a wildfire before it can hit: gathering up and clearing various flammables from around buildings, installing temporary sprinkler systems, covering exterior vents to keep embers out of homes, and even coating items in fire retardant substances. The move helps reduce the damages, which, of course, means less payout for Intact after the fact and fewer lives altered or destroyed by wildfire.
Net Income Nearly Doubled
This news comes just a couple of weeks after Intact showed off its first-quarter earnings, a move that revealed some impressive numbers. Intact’s net income nearly doubled from C$377 million in 2023 to C$673 million in 2024. Intact said that it was an all-around effort that saw its numbers surge, with multiple segments seeing growth sufficient to send its numbers up and return “…mid-teens return on equity,” according to CEO Charles Brindamour.
Is Intact Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Intact Financial stock based on seven Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 16.16% rally in its share price over the past year, the average IFC price target of C$251.78 per share implies 9.65% upside potential.
Is IFC the Right Stock to Buy for Passive Income?
Before you hurry to invest in IFC, think about the following:
TipRanks’ team has built a Smart Dividend Stock Portfolio for investors, and Intact Financial is not included. Our portfolio highlights companies that have been hand-picked for their potential to deliver significant passive income for years to come.
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