DEFINITY FINANCIAL CORP (DFY.CA) Stock Fundamental Analysis
TSX:DFY - Toronto Stock Exchange - CA24477T1003 - Common Stock - Currency: CAD
Taking everything into account, DFY scores 6 out of 10 in our fundamental rating. DFY was compared to 81 industry peers in the Insurance industry. Both the health and profitability get an excellent rating, making DFY a very profitable company, without any liquidiy or solvency issues. DFY is valued quite expensive, but it does show an excellent growth. This makes DFY very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
DFY had positive earnings in the past year.
DFY had a positive operating cash flow in the past year.
DFY had positive earnings in each of the past 5 years.
DFY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DFY has a Return On Assets of 5.36%. This is amongst the best in the industry. DFY outperforms 100.00% of its industry peers.
DFY has a Return On Equity of 12.39%. This is amongst the best in the industry. DFY outperforms 86.42% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.19%, DFY belongs to the top of the industry, outperforming 97.53% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DFY is above the industry average of 2.73%.
The last Return On Invested Capital (7.19%) for DFY is above the 3 year average (5.57%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 12.39% | ||
| ROIC | 7.19% |
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
The Profit Margin of DFY (9.26%) is comparable to the rest of the industry.
DFY's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 16.29%, DFY is in the better half of the industry, outperforming 69.14% of the companies in the same industry.
In the last couple of years the Operating Margin of DFY has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.29% | ||
| PM (TTM) | 9.26% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DFY is destroying value.
Compared to 1 year ago, DFY has less shares outstanding
The number of shares outstanding for DFY has been reduced compared to 5 years ago.
Compared to 1 year ago, DFY has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.32 indicates that DFY is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.32, DFY belongs to the top of the industry, outperforming 98.77% of the companies in the same industry.
DFY has a debt to FCF ratio of 0.48. This is a very positive value and a sign of high solvency as it would only need 0.48 years to pay back of all of its debts.
DFY has a better Debt to FCF ratio (0.48) than 97.53% of its industry peers.
A Debt/Equity ratio of 0.04 indicates that DFY is not too dependend on debt financing.
DFY's Debt to Equity ratio of 0.04 is amongst the best of the industry. DFY outperforms 98.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.48 | ||
| Altman-Z | 2.32 |
ROIC/WACC0.88
WACC8.13%
2.3 Liquidity
DFY has a Current Ratio of 0.69. This is a bad value and indicates that DFY is not financially healthy enough and could expect problems in meeting its short term obligations.
With an excellent Current ratio value of 0.69, DFY belongs to the best of the industry, outperforming 87.65% of the companies in the same industry.
DFY has a Quick Ratio of 0.69. 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 0.69. This is amongst the best in the industry. DFY outperforms 87.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.27% over the past 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.
Looking at the last year, DFY shows a quite strong growth in Revenue. The Revenue has grown by 10.34% in the last year.
Measured over the past years, DFY shows a quite strong growth in Revenue. The Revenue has been growing by 11.80% on average per year.
EPS 1Y (TTM)20.27%
EPS 3Y22.24%
EPS 5Y89.77%
EPS Q2Q%0%
Revenue 1Y (TTM)10.34%
Revenue growth 3Y14.8%
Revenue growth 5Y11.8%
Sales Q2Q%12.1%
3.2 Future
Based on estimates for the next years, DFY will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.52% on average per year.
DFY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.58% yearly.
EPS Next Y22.15%
EPS Next 2Y16.28%
EPS Next 3Y14.52%
EPS Next 5YN/A
Revenue Next Year6.88%
Revenue Next 2Y6.59%
Revenue Next 3Y9.58%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 29.21, DFY can be considered very expensive at the moment.
95.06% of the companies in the same industry are cheaper than DFY, based on the Price/Earnings ratio.
DFY is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.86, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 21.60 indicates a rather expensive valuation of DFY.
DFY's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. DFY is more expensive than 69.14% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.43. DFY is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.21 | ||
| Fwd PE | 21.6 |
4.2 Price Multiples
DFY's Price/Free Cash Flow ratio is rather expensive when compared to the industry. DFY is more expensive than 95.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.41 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
DFY's 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 14.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.32
PEG (5Y)0.33
EPS Next 2Y16.28%
EPS Next 3Y14.52%
5. Dividend
5.1 Amount
DFY has a yearly dividend return of 0.99%, which is pretty low.
Compared to an average industry Dividend Yield of 5.01, DFY's dividend is way lower than its industry peers. On top of this 93.83% of the companies listed in the same industry pay a better dividend than DFY!
With a Dividend Yield of 0.99, DFY pays less dividend than the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
5.2 History
DFY has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
18.29% of the earnings are spent on dividend by DFY. This is a low number and sustainable payout ratio.
DP18.29%
EPS Next 2Y16.28%
EPS Next 3Y14.52%
TSX:DFY (6/26/2025, 7:00:00 PM)
78
+0.44 (+0.57%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners64.61%
Inst Owner ChangeN/A
Ins Owners0.93%
Ins Owner ChangeN/A
Market Cap9.03B
Analysts51.67
Price Target80.24 (2.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
Yearly Dividend0.64
Dividend Growth(5Y)N/A
DP18.29%
Div Incr Years1
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.49%
Min EPS beat(2)-6.77%
Max EPS beat(2)5.79%
EPS beat(4)3
Avg EPS beat(4)1020.84%
Min EPS beat(4)-6.77%
Max EPS beat(4)4036.17%
EPS beat(8)6
Avg EPS beat(8)580.22%
EPS beat(12)9
Avg EPS beat(12)392.21%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)4.09%
Min Revenue beat(2)2.86%
Max Revenue beat(2)5.33%
Revenue beat(4)4
Avg Revenue beat(4)3.57%
Min Revenue beat(4)1.91%
Max Revenue beat(4)5.33%
Revenue beat(8)8
Avg Revenue beat(8)3.43%
Revenue beat(12)9
Avg Revenue beat(12)1.34%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)20.65%
PT rev (3m)22.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.21 | ||
| Fwd PE | 21.6 | ||
| P/S | 2.01 | ||
| P/FCF | 29.41 | ||
| P/OCF | 23.57 | ||
| P/B | 2.68 | ||
| P/tB | 4.7 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.67
EY3.42%
EPS(NY)3.61
Fwd EY4.63%
FCF(TTM)2.65
FCFY3.4%
OCF(TTM)3.31
OCFY4.24%
SpS38.9
BVpS29.08
TBVpS16.59
PEG (NY)1.32
PEG (5Y)0.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 12.39% | ||
| ROCE | 9.52% | ||
| ROIC | 7.19% | ||
| ROICexc | 7.33% | ||
| ROICexgc | 9.72% | ||
| OM | 16.29% | ||
| PM (TTM) | 9.26% | ||
| GM | N/A | ||
| FCFM | 6.82% |
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%
ROICexcg growth 3Y32.47%
ROICexcg 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-Score7
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.48 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 1.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 73.63% | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 2.32 |
F-Score7
WACC8.13%
ROIC/WACC0.88
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)20.27%
EPS 3Y22.24%
EPS 5Y89.77%
EPS Q2Q%0%
EPS Next Y22.15%
EPS Next 2Y16.28%
EPS Next 3Y14.52%
EPS Next 5YN/A
Revenue 1Y (TTM)10.34%
Revenue growth 3Y14.8%
Revenue growth 5Y11.8%
Sales Q2Q%12.1%
Revenue Next Year6.88%
Revenue Next 2Y6.59%
Revenue Next 3Y9.58%
Revenue Next 5YN/A
EBIT growth 1Y16.44%
EBIT growth 3Y32.99%
EBIT growth 5Y94.85%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y41.24%
FCF growth 3Y-27.42%
FCF growth 5Y14.99%
OCF growth 1Y24.21%
OCF growth 3Y-22.31%
OCF growth 5Y17.27%