DEFINITY FINANCIAL CORP (DFY.CA) Stock Fundamental Analysis
Canada - TSX:DFY - CA24477T1003 - Common Stock
69.31 CAD
-0.89 (-1.27%)
Taking everything into account, DFY scores 6 out of 10 in our fundamental rating. DFY was compared to 80 industry peers in the Insurance industry. DFY is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. DFY is valued quite expensively, but it does show have an excellent growth rating. These ratings could make DFY a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
DFY had positive earnings in the past year.
In the past year DFY had a positive cash flow from operations.
DFY had positive earnings in each of the past 5 years.
Each year in the past 5 years DFY had a positive operating cash flow.
1.2 Ratios
The Return On Assets of DFY (4.68%) is better than 100.00% of its industry peers.
DFY has a Return On Equity of 10.32%. This is in the lower half of the industry: DFY underperforms 76.25% of its industry peers.
DFY has a better Return On Invested Capital (6.92%) than 98.75% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DFY is above the industry average of 2.17%.
The 3 year average ROIC (5.57%) for DFY is below the current ROIC(6.92%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.68% | ||
| ROE | 10.32% | ||
| ROIC | 6.92% |
ROA(3y)4.01%
ROA(5y)3.53%
ROE(3y)9.87%
ROE(5y)9.28%
ROIC(3y)5.57%
ROIC(5y)4.57%
1.3 Margins
Looking at the Profit Margin, with a value of 8.33%, DFY is doing worse than 63.75% of the companies in the same industry.
DFY's Profit Margin has improved in the last couple of years.
The Operating Margin of DFY (16.16%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of DFY has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.16% | ||
| PM (TTM) | 8.33% | ||
| GM | N/A |
OM growth 3Y15.85%
OM growth 5Y74.28%
PM growth 3Y10.09%
PM growth 5Y69.91%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
DFY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
DFY has less shares outstanding than it did 1 year ago.
The number of shares outstanding for DFY has been reduced compared to 5 years ago.
DFY has a better debt/assets ratio than last year.
2.2 Solvency
DFY has an Altman-Z score of 2.17. This is not the best score and indicates that DFY is in the grey zone with still only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.17, DFY belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Debt to FCF ratio of DFY is 0.43, which is an excellent value as it means it would take DFY, only 0.43 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.43, DFY belongs to the best of the industry, outperforming 98.75% of the companies in the same industry.
DFY has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.04, DFY belongs to the top of the industry, outperforming 98.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.43 | ||
| Altman-Z | 2.17 |
ROIC/WACC0.89
WACC7.79%
2.3 Liquidity
DFY has a Current Ratio of 0.56. This is a bad value and indicates that DFY is not financially healthy enough and could expect problems in meeting its short term obligations.
DFY's Current ratio of 0.56 is amongst the best of the industry. DFY outperforms 88.75% of its industry peers.
DFY has a Quick Ratio of 0.56. This is a bad value and indicates that DFY is not financially healthy enough and could expect problems in meeting its short term obligations.
DFY has a Quick ratio of 0.56. This is amongst the best in the industry. DFY outperforms 88.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The earnings per share for DFY have decreased by -1.15% in the last year.
Measured over the past years, DFY shows a very strong growth in Earnings Per Share. The EPS has been growing by 89.77% on average per year.
The Revenue has grown by 11.93% in the past year. This is quite good.
The Revenue has been growing by 11.80% on average over the past years. This is quite good.
EPS 1Y (TTM)-1.15%
EPS 3Y22.24%
EPS 5Y89.77%
EPS Q2Q%-10.64%
Revenue 1Y (TTM)11.93%
Revenue growth 3Y14.8%
Revenue growth 5Y11.8%
Sales Q2Q%11.09%
3.2 Future
DFY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.56% yearly.
Based on estimates for the next years, DFY will show a quite strong growth in Revenue. The Revenue will grow by 17.70% on average per year.
EPS Next Y20.59%
EPS Next 2Y18.98%
EPS Next 3Y18.28%
EPS Next 5Y22.56%
Revenue Next Year6.52%
Revenue Next 2Y10.29%
Revenue Next 3Y17.7%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 26.97 indicates a quite expensive valuation of DFY.
Based on the Price/Earnings ratio, DFY is valued expensively inside the industry as 97.50% of the companies are valued cheaper.
The average S&P500 Price/Earnings ratio is at 26.28. DFY is around the same levels.
The Price/Forward Earnings ratio is 18.34, which indicates a rather expensive current valuation of DFY.
Based on the Price/Forward Earnings ratio, DFY is valued a bit more expensive than 71.25% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 33.61, DFY is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.97 | ||
| Fwd PE | 18.34 |
4.2 Price Multiples
93.75% of the companies in the same industry are cheaper than DFY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.88 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
DFY has a very decent profitability rating, which may justify a higher PE ratio.
DFY's earnings are expected to grow with 18.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.31
PEG (5Y)0.3
EPS Next 2Y18.98%
EPS Next 3Y18.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.11%, DFY has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.67, DFY's dividend is way lower than its industry peers. On top of this 90.00% of the companies listed in the same industry pay a better dividend than DFY!
With a Dividend Yield of 1.11, DFY pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
5.2 History
DFY has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
DFY pays out 20.69% of its income as dividend. This is a sustainable payout ratio.
DP20.69%
EPS Next 2Y18.98%
EPS Next 3Y18.28%
TSX:DFY (11/10/2025, 7:00:00 PM)
69.31
-0.89 (-1.27%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners64.96%
Inst Owner ChangeN/A
Ins Owners0.89%
Ins Owner ChangeN/A
Market Cap8.43B
Revenue(TTM)4.66B
Net Income(TTM)388.50M
Analysts68.57
Price Target79.76 (15.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
Yearly Dividend0.64
Dividend Growth(5Y)N/A
DP20.69%
Div Incr Years1
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.91%
Min EPS beat(2)-6.77%
Max EPS beat(2)10.6%
EPS beat(4)3
Avg EPS beat(4)1011.45%
Min EPS beat(4)-6.77%
Max EPS beat(4)4036.17%
EPS beat(8)6
Avg EPS beat(8)578.79%
EPS beat(12)9
Avg EPS beat(12)389.92%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)4.69%
Min Revenue beat(2)2.86%
Max Revenue beat(2)6.52%
Revenue beat(4)4
Avg Revenue beat(4)4.15%
Min Revenue beat(4)1.91%
Max Revenue beat(4)6.52%
Revenue beat(8)8
Avg Revenue beat(8)3.58%
Revenue beat(12)10
Avg Revenue beat(12)2.75%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-3.59%
PT rev (3m)-3.93%
EPS NQ rev (1m)3.16%
EPS NQ rev (3m)2.62%
EPS NY rev (1m)1.16%
EPS NY rev (3m)-1.28%
Revenue NQ rev (1m)0.54%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.97 | ||
| Fwd PE | 18.34 | ||
| P/S | 1.81 | ||
| P/FCF | 24.88 | ||
| P/OCF | 19.89 | ||
| P/B | 2.24 | ||
| P/tB | 3.83 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.57
EY3.71%
EPS(NY)3.78
Fwd EY5.45%
FCF(TTM)2.79
FCFY4.02%
OCF(TTM)3.49
OCFY5.03%
SpS38.33
BVpS30.94
TBVpS18.1
PEG (NY)1.31
PEG (5Y)0.3
Graham Number42.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.68% | ||
| ROE | 10.32% | ||
| ROCE | 9.17% | ||
| ROIC | 6.92% | ||
| ROICexc | 7.33% | ||
| ROICexgc | 9.78% | ||
| OM | 16.16% | ||
| PM (TTM) | 8.33% | ||
| GM | N/A | ||
| FCFM | 7.27% |
ROA(3y)4.01%
ROA(5y)3.53%
ROE(3y)9.87%
ROE(5y)9.28%
ROIC(3y)5.57%
ROIC(5y)4.57%
ROICexc(3y)5.78%
ROICexc(5y)4.81%
ROICexgc(3y)7.49%
ROICexgc(5y)5.93%
ROCE(3y)7.42%
ROCE(5y)6.09%
ROICexgc growth 3Y32.47%
ROICexgc growth 5Y94.14%
ROICexc growth 3Y23.54%
ROICexc growth 5Y85.7%
OM growth 3Y15.85%
OM growth 5Y74.28%
PM growth 3Y10.09%
PM growth 5Y69.91%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.43 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 1.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 87.21% | ||
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 2.17 |
F-Score5
WACC7.79%
ROIC/WACC0.89
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)2.23%
Cap/Sales(5y)2%
Profit Quality(3y)107.72%
Profit Quality(5y)179.61%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.15%
EPS 3Y22.24%
EPS 5Y89.77%
EPS Q2Q%-10.64%
EPS Next Y20.59%
EPS Next 2Y18.98%
EPS Next 3Y18.28%
EPS Next 5Y22.56%
Revenue 1Y (TTM)11.93%
Revenue growth 3Y14.8%
Revenue growth 5Y11.8%
Sales Q2Q%11.09%
Revenue Next Year6.52%
Revenue Next 2Y10.29%
Revenue Next 3Y17.7%
Revenue Next 5YN/A
EBIT growth 1Y11.32%
EBIT growth 3Y32.99%
EBIT growth 5Y94.85%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y61.87%
FCF growth 3Y-27.42%
FCF growth 5Y14.99%
OCF growth 1Y45.07%
OCF growth 3Y-22.31%
OCF growth 5Y17.27%
DEFINITY FINANCIAL CORP / DFY.CA FAQ
What is the fundamental rating for DFY stock?
ChartMill assigns a fundamental rating of 6 / 10 to DFY.CA.
What is the valuation status for DFY stock?
ChartMill assigns a valuation rating of 2 / 10 to DEFINITY FINANCIAL CORP (DFY.CA). This can be considered as Overvalued.
How profitable is DEFINITY FINANCIAL CORP (DFY.CA) stock?
DEFINITY FINANCIAL CORP (DFY.CA) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for DFY stock?
The Price/Earnings (PE) ratio for DEFINITY FINANCIAL CORP (DFY.CA) is 26.97 and the Price/Book (PB) ratio is 2.24.
Can you provide the expected EPS growth for DFY stock?
The Earnings per Share (EPS) of DEFINITY FINANCIAL CORP (DFY.CA) is expected to grow by 20.59% in the next year.