DEFINITY FINANCIAL CORP (DFY.CA) Stock Fundamental Analysis
Canada - TSX:DFY - CA24477T1003 - Common Stock
67.8 CAD
-1.51 (-2.18%)
Overall DFY gets a fundamental rating of 6 out of 10. We evaluated DFY against 80 industry peers in the Insurance industry. While DFY has a great health rating, its profitability is only average at the moment. DFY is valued quite expensive, but it does show an excellent growth. These ratings would make DFY suitable 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.
In the past 5 years DFY has always been profitable.
DFY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DFY has a better Return On Assets (4.68%) than 100.00% of its industry peers.
With a Return On Equity value of 10.32%, DFY is not doing good in the industry: 76.25% of the companies in the same industry are doing better.
DFY has a Return On Invested Capital of 6.92%. This is amongst the best in the industry. DFY outperforms 98.75% of its industry peers.
DFY had an Average Return On Invested Capital over the past 3 years of 5.57%. This is above the industry average of 2.18%.
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
DFY has a worse Profit Margin (8.33%) than 62.50% of its industry peers.
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.
DFY's Operating Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for DFY has been reduced compared to 1 year ago.
DFY has less shares outstanding than it did 5 years ago.
DFY has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.14 indicates that DFY is not a great score, but indicates only limited risk for bankruptcy at the moment.
DFY's Altman-Z score of 2.14 is amongst the best of the industry. DFY outperforms 100.00% of its industry peers.
DFY has a debt to FCF ratio of 0.43. This is a very positive value and a sign of high solvency as it would only need 0.43 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.43, DFY belongs to the best of the industry, outperforming 97.50% 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.
The Debt to Equity ratio of DFY (0.04) is better than 98.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.43 | ||
| Altman-Z | 2.14 |
ROIC/WACC0.87
WACC7.99%
2.3 Liquidity
A Current Ratio of 0.56 indicates that DFY may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.56, DFY belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
A Quick Ratio of 0.56 indicates that DFY may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.56, DFY belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
DFY shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.15%.
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 11.93% in the last year.
DFY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.80% yearly.
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
Based on estimates for the next years, DFY will show a very strong growth in Earnings Per Share. The EPS will grow by 22.71% on average per year.
Based on estimates for the next years, DFY will show a quite strong growth in Revenue. The Revenue will grow by 17.78% on average per year.
EPS Next Y19.2%
EPS Next 2Y18.41%
EPS Next 3Y18.06%
EPS Next 5Y22.71%
Revenue Next Year6.42%
Revenue Next 2Y10.36%
Revenue Next 3Y17.78%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 26.38 indicates a quite expensive valuation of DFY.
Based on the Price/Earnings ratio, DFY is valued expensively inside the industry as 96.25% of the companies are valued cheaper.
DFY's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.53.
The Price/Forward Earnings ratio is 18.11, which indicates a rather expensive current valuation of DFY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DFY indicates a slightly more expensive valuation: DFY is more expensive than 70.00% of the companies listed in the same industry.
DFY's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.38 | ||
| Fwd PE | 18.11 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, DFY is valued expensively inside the industry as 92.50% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.34 | ||
| 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.
The decent profitability rating of DFY may justify a higher PE ratio.
DFY's earnings are expected to grow with 18.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.37
PEG (5Y)0.29
EPS Next 2Y18.41%
EPS Next 3Y18.06%
5. Dividend
5.1 Amount
DFY has a Yearly Dividend Yield of 1.09%.
With a Dividend Yield of 1.09, DFY pays less dividend than the industry average, which is at 5.02. 95.00% of the companies listed in the same industry pay a better dividend than DFY!
With a Dividend Yield of 1.09, DFY pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
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
20.69% of the earnings are spent on dividend by DFY. This is a low number and sustainable payout ratio.
DP20.69%
EPS Next 2Y18.41%
EPS Next 3Y18.06%
TSX:DFY (10/15/2025, 7:00:00 PM)
67.8
-1.51 (-2.18%)
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 Cap8.25B
Analysts69.23
Price Target82.73 (22.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
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)0%
PT rev (3m)3.11%
EPS NQ rev (1m)-0.52%
EPS NQ rev (3m)1.06%
EPS NY rev (1m)-0.31%
EPS NY rev (3m)-2.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.38 | ||
| Fwd PE | 18.11 | ||
| P/S | 1.77 | ||
| P/FCF | 24.34 | ||
| P/OCF | 19.45 | ||
| P/B | 2.19 | ||
| P/tB | 3.75 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.57
EY3.79%
EPS(NY)3.74
Fwd EY5.52%
FCF(TTM)2.79
FCFY4.11%
OCF(TTM)3.49
OCFY5.14%
SpS38.33
BVpS30.94
TBVpS18.1
PEG (NY)1.37
PEG (5Y)0.29
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%
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-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 | 2.14 |
F-Score5
WACC7.99%
ROIC/WACC0.87
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 Y19.2%
EPS Next 2Y18.41%
EPS Next 3Y18.06%
EPS Next 5Y22.71%
Revenue 1Y (TTM)11.93%
Revenue growth 3Y14.8%
Revenue growth 5Y11.8%
Sales Q2Q%11.09%
Revenue Next Year6.42%
Revenue Next 2Y10.36%
Revenue Next 3Y17.78%
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%