International Stock Story


USD 7.46  0.04  0.53%   

International General is scheduled to announce its earnings today. International General Free Cash Flow is projected to increase significantly based on the last few years of reporting. The past year's Free Cash Flow was at 128.3 Million. The current year Asset Turnover is expected to grow to 0.26, whereas Average Assets are forecasted to decline to about 1.1 B. While many traders are getting carried away by overanalyzing financial services space, it is reasonable to go over International General Insurance as an investment alternative.
Published over two months ago
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Continue to hold International (NASDAQ:IGIC) based on its current debt obligations?

The current year Debt to Equity Ratio is expected to grow to 2.68, whereas Average Equity is forecasted to decline to about 310.1 M. This firm has a current ratio of 0.69, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Debt can assist International General until it has trouble settling it off, either with new capital or with free cash flow. So, International General's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like International General sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for International to invest in growth at high rates of return. When we think about International General's use of debt, we should always consider it together with cash and equity.
International General financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of International General, including all of International General's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of International General assets, the company is considered highly leveraged. Understanding the composition and structure of overall International General debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding International Total Debt

International General liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. International General has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on International General balance sheet include debt obligations and money owed to different International General vendors, workers, and loan providers. Below is the chart of International main long-term debt accounts currently reported on its balance sheet.
You can use International General Insurance financial leverage analysis tool to get a better grip on understanding its financial position

How important is International General's Liquidity

International General financial leverage refers to using borrowed capital as a funding source to finance International General Insurance ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. International General financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between International General's total debt and its cash.

Breaking down the case for International General

The company reported the previous year's revenue of 368.46 M. Net Income was 43.32 M with profit before overhead, payroll, taxes, and interest of 87.85 M.

Asset Breakdown

Total Assets1.21 Billion
Current Assets158,400
Assets Non Current222.71 Million
Goodwill4.57 Million
Tax Assets456,756

Another 3 percent rise for International General

Downside variance is down to 6.92. It may suggest a possible volatility slip.
As of the 19th of May, International General retains the Market Risk Adjusted Performance of (0.008288), risk adjusted performance of 0.0081, and Downside Deviation of 2.63. International General technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Simply put, you can use this information to find out if the firm will indeed mirror its model of historical price patterns, or the prices will eventually revert. We were able to collect and analyze data for nineteen technical drivers for International General, which can be compared to its competitors. Please check out International General maximum drawdown, as well as the relationship between the downside variance and skewness to decide if International General is priced fairly, providing market reflects its last-minute price of 7.99 per share. Given that International General Insurance has jensen alpha of 0.0259, we strongly advise you to confirm International General's regular market performance to make sure the company can sustain itself at a future point.

Our Final Take On International General

Whereas other companies within the insurance—diversified industry are still a little expensive, even after the recent corrections, International General may offer a potential longer-term growth to investors. Taking everything into account, as of the 19th of May 2022, our actual 90 days buy-hold-sell recommendation on the company is Hold. We believe International General is undervalued with below average chance of distress for the next two years.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of International General Insurance. Please refer to our Terms of Use for any information regarding our disclosure principles.

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