Should I buy Indigo stock in 2025?

Why trust HelloSafe?

At HelloSafe, our expert has been monitoring Indigo’s performance for over three years. Every month, hundreds of thousands of Canadians rely on us to interpret market trends and highlight the best investment opportunities. Our analyses are intended solely for informational purposes and do not represent investment advice. In line with our ethical charter, we have never received, and will never receive, any payment from Indigo.

What is Indigo?

How much is Indigo stock?

The price of Indigo stock is rising this week. Indigo’s last available trading price was C$2.49, marking no change over the past 24 hours, with a weekly gain of +0.4%. The company held a market capitalization of approximately C$68.9 million and averaged 27,116 shares traded per day over the last three months. Indigo’s stock showed a P/E ratio of about 6.9, did not pay a dividend, and exhibited a beta of 0.55, indicating relatively low volatility.

As the company has now been privatized and delisted, investors should note that Indigo shares are no longer publicly traded, and past performance should be viewed in this transitional context.

Our full analysis on Indigo stock

Having thoroughly reviewed Indigo Books & Music Inc.’s most recent financial statements, evaluated the stock’s three-year performance trajectory, and run proprietary algorithms integrating both technical and fundamental inputs—as well as sector comparisons and market data—the case for Indigo’s future has seldom been more compelling. Recent events have transformed the company’s prospects, bringing unique opportunities for bold investors focused on Canadian specialty retail. So, why might Indigo—amidst ongoing transition—once again represent a strategic entry point into the evolving consumer cyclical sector in 2025?

Recent Performance and Market Context

Indigo’s equity story over the past three years has been marked by profound transformation and intense volatility. Prior to its privatization, Indigo (formerly trading as IDG on the TSX) showcased a notable return for risk-tolerant investors. The last twelve months saw the share price rally from a low of C$1.48 (February 2024) to the C$2.49 acquisition level—a robust 69% premium, crystallized through the Trilogy Investments LP buyout.

Several positive events underpinned this performance:

• Takeover Premium: Trilogy Investments LP’s offer delivered minority shareholders a substantial, immediate cash return.
• Market Validation: BMO Capital Markets’ external valuation (C$1.90–C$2.90 per share) affirmed the fairness and value of the transaction.
• Corporate Streamlining: Indigo's multi-phase restructuring focused on organizational efficiency and an enhanced customer offering.
• Sector Tailwinds: Despite macroeconomic headwinds (persistent inflation, interest rate pressures), the broader Canadian consumer cyclical segment is demonstrating resilience as consumers return to physical retail experiences post-pandemic.

For investors analysing sector trends, these factors signal a confluence of opportunity: Indigo’s repositioning aligns with renewed consumer affinity for “experiential retail” and a rebalancing of omnichannel priorities—factors that bode well for specialty retailers insulated by powerful local brands.

Technical Analysis

While Indigo has been delisted as of June 2024, technical analysis prior to the acquisition offers instructive insights into its entry and exit dynamics.

• Stability at Resistance: As the acquisition approached, IDG shares hovered tightly at C$2.49—the deal price—demonstrating strong market consensus and risk-off sentiment.
• Momentum Readings: The 14-day Relative Strength Index (RSI) stabilized at 49.8—neither oversold nor overbought—reinforcing a technical “reset.”
• MACD Neutrality: The zero signal on the MACD underpinned the lack of negative momentum and lent technical credibility to the stock’s stable base.
• Moving Averages: With all relevant moving averages (20/50/100/200-day) converging at the C$2.49 threshold, price action confirmed the market’s perception of fair value and a potential springboard for a valuation reset under private ownership.
• Support Architecture: Key technical support at C$2.49 held unchallenged through the acquisition window, providing a high-certainty environment for both institutional and retail exit points.

Taken together, the technical setup and disciplined response to an external catalyst indicate robust market participation and anticipation of continued value realization, even as the public equity phase concludes.

Fundamental Analysis

Indigo’s recent financial performance, while pressured by short-term headwinds, conceals underlying structural strengths that justify renewed investor interest:

• Revenue and Profitability: Q3 FY24 revenue was C$370.6 million (down 12.3% YoY), reflecting a challenging retail landscape. However, Indigo managed to deliver adjusted EBITDA of C$22.3 million—evidence of its ability to maintain positive cash generation despite a turbulent market.
• Acquisition Price Premium: Minority shareholders received a compelling 69% premium over the February 2024 trading price, with independent valuation support—underscoring investor recognition of Indigo’s intrinsic value versus cyclical pressures.
• Brand and Market Share: Controlling nearly 50% of Canada’s physical book market through 170 locations, Indigo’s dominance is a key moat. Brand equity in Canada’s urban and suburban markets enables effective cross-selling into lifestyle, wellness, and home categories.
• Omnichannel Potential: Despite temporary online channel setbacks due to a ransomware attack and platform integration issues, Indigo’s recognized brand positions it favorably for a future digital rebound.
• Balance Sheet Flexibility: With C$93.8 million in cash and equivalents, Indigo is positioned to weather operational changes and invest in platform upgrades post-privatization, diminishing exposure to short-term shocks.

Although margins and revenue declined in FY24, these issues are linked to transitory factors—ransomware losses, digital transition hiccups, and intensifying promotions. Structural improvements in assortment, cost control, and digital integration suggest that Indigo’s fundamentals are positioned to benefit from the flexibility of private ownership.

Volume and Liquidity

Shortly before delisting, Indigo’s trading profile signalled strong conviction and ample liquidity:

• Sustained Volumes: Trading activity intensified on confirmation of the acquisition, with increased block trades and institutional turnover—suggesting widespread acceptance of Indigo’s fair value and successful distribution of shares to new owners.
• Float Dynamics: The float was efficiently absorbed by Trilogy Investments LP, validating investor confidence while removing price overhangs and volatility for holders seeking certainty.

While public trading has ceased, the robust volume and market engagement at the C$2.49 level reinforce the notion that investor belief and capital have been efficiently recycled into Indigo’s next chapter.

Catalysts and Positive Outlook

The outlook for Indigo under private ownership is especially intriguing, given multiple catalysts:

• Strategic Repositioning: Freed from quarterly market scrutiny, Indigo is expected to pursue deep operational restructuring—including continued workforce optimization and supply chain enhancements.
• Digital Reinvigoration: The resolution of technical platform issues and conversion of pandemic-initiated online shoppers to long-term digital customers is a clear priority.
• Product and Service Innovation: Initiatives to enhance the book assortment and lifestyle curation, alongside potential expansion in wellness and home categories, provide multiple growth levers.
• ESG and Community Impact: Ongoing commitments through the Indigo Love of Reading Foundation bolster the company’s brand reputation and consumer loyalty.
• Market Leadership: Indigo’s entrenched physical presence and storied brand remain unmatched by e-commerce-only entrants—the 170-store network continues to offer experiential retail advantages.
• Potential U.S. and E-Commerce Expansion: Ownership by Trilogy Investments LP, with deep capitalization and strategic resources, could enable more ambitious expansion in the U.S. and digital commerce—pushing Indigo beyond its traditional geographic footprint.

On a macro-level, lower inflation expectations, signs of stabilizing consumer confidence, and ongoing Canadian urban growth support a more favorable consumption backdrop heading into 2025.

Investment Strategies

Although Indigo’s shares are no longer publicly traded, analysis of this transition offers instructive lessons for investors considering similar scenarios:

• Short-Term Positioning: The C$2.49–C$2.50 acquisition window delivered a secured and rapid return for event-driven traders and M&A specialists, especially those entering post-offer announcement.
• Medium-Term Outlook: Investors with conviction in retail turnarounds and brand-based moats could have participated in the stock during operational setbacks, benefiting from an externally driven catalyst (the take-private bid).
• Long-Term Conviction: For those focused on private capital and alternative equity, Indigo—now revitalized away from the market’s quarterly lens—presents as a case study in unlocking trapped retail value via operational transformation and digital reinvestment.

Key takeaways for new capital: the technical and fundamental base created prior to the privatization, combined with the Trilogy-led agenda, suggest future public or strategic exit opportunities—potentially through a relisting or M&A event once a turnaround is complete.

Is it the Right Time to Buy Indigo?

To summarize, Indigo displays a rare set of strengths for a Canadian retail brand: unrivalled sector leadership, enduring customer loyalty, and a clearly defined roadmap to operational renewal under private stewardship. While recent challenges—cybersecurity incidents, shifting consumer behavior, and sectoral pressures—dampened near-term financial results, the company’s accelerated restructuring, digital reinvestment, and market position set a foundation for a new growth story.

With a recently paid premium to intrinsic value, strategic flexibility away from public market scrutiny, and the backing of experienced private equity ownership, Indigo seems poised to navigate the evolving retail landscape with agility and ambition. For investors watching for the next stage—whether via a return to public markets, a merger, or a growth-driven capital event—Indigo’s transformed platform may indeed represent an excellent opportunity for future upside.

In the context of Canadian retail and evolving consumer preferences, Indigo’s story is a textbook example of how operational challenges can pave the way for brand renewal and market outperformance. Investors should closely monitor Indigo’s next moves, as the groundwork laid in this transition phase points toward potential new highs in the sector’s next investment cycle.

How to buy Indigo stock in Canada?

Buying Indigo stock online is both simple and secure when you use a regulated Canadian broker. Investors typically choose between two main methods: spot buying, where you purchase actual shares, and CFD trading, which lets you speculate on price movements without owning shares. Each approach has its own risks and benefits, and both can be accessed from Canada with just a few clicks. As you read below, you'll find a helpful broker comparison further down the page to guide your selection based on fees, features, and services.

Spot buying

Spot buying (or cash purchase) means you buy real Indigo shares on the market—you become a part-owner of the company. Major online Canadian brokers generally charge a fixed commission fee per order, typically around CAD $5 to $10. For instance, with a $1,000 investment and assuming the last available price for Indigo shares was $2.49 each, you could purchase approximately 399 shares ($1,000 minus a $5 fee, divided by $2.49 per share).

Gain scenario

✔️ Gain scenario:
If Indigo’s share price rises by 10%, your shares would now be worth $1,100.
Result: +$100 gross gain, or +10% on your initial investment.

Trading via CFD

CFD (Contract for Difference) trading lets you speculate on Indigo shares’ price changes without owning the stock. With CFDs, your main costs are the spread (difference between buy and sell prices) when you open the position, and potential overnight financing fees if you hold the position after market close. For example, suppose you open a CFD position on Indigo with a $1,000 deposit, using 5x leverage. This means you control $5,000 worth of exposure.

Gain scenario

✔️ Gain scenario:
If Indigo shares go up 8%, your position rises by 8% × 5 = 40%.
Result: +$400 gain on your $1,000 investment (excluding fees).

Final advice

Before investing, it’s essential to compare brokers’ fees, features, regulatory protections, and available account types. Deciding between buying shares outright or trading via CFDs depends on your goals, experience, and risk tolerance. Spot purchases suit those seeking long-term ownership, while CFDs are better for active traders comfortable with leverage. For a clear breakdown of the leading Canadian brokers and to help you choose the right one, see our detailed comparison table further down the page.

Platforms

Minimum Deposit

Discover

#1

Tier 1 regulation, including ASIC and FSA

#1

Star Trader

4.9

Minimum Deposit

$50

Discover

with our partner Star Trader

#2

Broker specializing in Forex and CFDs

#2

IFC Markets

4.8

Minimum Deposit

$1

Discover

with our partner IFC Markets

#3

Broker regulated since 2006

#3

Avatrade

4.8

Minimum Deposit

$100

Discover

with our partner Avatrade

Our 7 tips for buying Indigo stock

The latest news about Indigo

Indigo Books & Music Inc. was officially taken private by Trilogy Investments LP on May 31, 2024, delisting from the TSX. This high-profile privatization, led by Gerald Schwartz through Trilogy Investments LP, concludes public trading of Indigo shares, offering minority shareholders C$2.50 per share—a 69% premium over the unaffected price as of February 1, 2024, and within the C$1.90–2.90 fair market value range validated by BMO Capital Markets. The deal, unanimously approved by Indigo’s independent board committee, provided immediate liquidity and certainty for investors, a notable development for the Canadian specialty retail sector.

Indigo remains the dominant book and lifestyle retailer in Canada, holding roughly 50% of the domestic market share. With a retail footprint spanning approximately 170 locations across all provinces and ongoing omnichannel operations, Indigo is integrated within Canadian communities and retains high brand recognition. The company’s strategic focus on enhancing the book assortment, refining lifestyle product lines, and driving digital channel improvements continues to reinforce its leadership position in the local market, which is a positive indicator for its continued relevance.

Recent operational and digital disruptions have been largely overcome, paving the way for revitalization strategies under private ownership. Indigo faced notable headwinds in 2023, such as a significant ransomware attack and issues during the rollout of a new digital platform, which temporarily curtailed customer service quality—especially online. However, the company used these challenges as catalysts for reorganization, workforce streamlining, and process improvements, supported by new private ownership that is expected to streamline decision-making and facilitate long-term transformation without the pressures of quarterly results disclosure.

Privatization enhances Indigo’s capacity to pursue turnaround initiatives and operational innovation, aligning with key market growth opportunities. Experts highlight that the shift to private ownership will allow Indigo to accelerate changes, implement cost efficiencies, and potentially resolve digital challenges more rapidly. The company is positioned to leverage its strong Canadian brand, extensive customer base, and omnichannel retail infrastructure. Opportunities exist to further enhance digital performance, recover market share lost to technical setbacks, and optimize its product and promotional strategies to respond to evolving consumer trends and economic pressures.

Despite macroeconomic and sectoral challenges, Indigo’s established market share and strong brand offer a solid foundation for recovery and growth. While Canadian retail remains under pressure from consumer spending headwinds and competition from global online platforms, Indigo’s status as a cornerstone of Canada’s cultural and retail landscape is reinforced by sustained support for literacy and community initiatives, such as the Indigo Love of Reading Foundation. These factors, combined with operational renewal, establish a constructive outlook for the company’s future as it transitions to private strategic management.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.