DEFINITY FINANCIAL CORP (DFY.CA) Stock Fundamental Analysis
TSX:DFY - Toronto Stock Exchange - CA24477T1003 - Common Stock - Currency: CAD
Overall DFY gets a fundamental rating of 6 out of 10. We evaluated DFY against 81 industry peers in the Insurance industry. DFY has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. DFY is valued quite expensively, but it does show have an excellent growth rating. This makes DFY very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year DFY was profitable.
In the past year DFY had a positive cash flow from operations.
Each year in the past 5 years DFY has been profitable.
In the past 5 years DFY always reported a positive cash flow from operatings.
1.2 Ratios
DFY has a better Return On Assets (5.36%) than 100.00% of its industry peers.
With an excellent Return On Equity value of 12.39%, DFY belongs to the best of the industry, outperforming 86.42% of the companies in the same industry.
DFY has a better Return On Invested Capital (7.19%) than 97.53% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DFY is above the industry average of 2.70%.
The 3 year average ROIC (5.57%) for DFY is below the current ROIC(7.19%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 9.26%, DFY is in line with its industry, outperforming 55.56% of the companies in the same industry.
In the last couple of years the Profit Margin of DFY has grown nicely.
DFY has a Operating Margin of 16.29%. This is in the better half of the industry: DFY outperforms 67.90% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DFY is destroying value.
DFY has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, DFY has less shares outstanding
The debt/assets ratio for DFY has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.37 indicates that DFY is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of DFY (2.37) is better than 98.77% of its industry peers.
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 Debt to FCF ratio of 0.48. This is amongst the best in the industry. DFY outperforms 97.53% of its industry peers.
DFY has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
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 | 2.37 |
ROIC/WACC0.92
WACC7.8%
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.
DFY has a better Current ratio (0.69) than 87.65% of its industry peers.
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.
Looking at the Quick ratio, with a value of 0.69, DFY belongs to the top of the industry, outperforming 87.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
DFY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.27%, which is quite impressive.
The Earnings Per Share has been growing by 89.77% on average over the past years. This is a very strong growth
The Revenue has grown by 10.34% 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)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
DFY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.31% yearly.
Based on estimates for the next years, DFY will show a quite strong growth in Revenue. The Revenue will grow by 9.58% on average per year.
EPS Next Y22.15%
EPS Next 2Y16.28%
EPS Next 3Y14.52%
EPS Next 5Y22.31%
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
The Price/Earnings ratio is 29.03, which means the current valuation is very expensive for DFY.
95.06% of the companies in the same industry are cheaper than DFY, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of DFY to the average of the S&P500 Index (27.41), we can say DFY is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 21.47, the valuation of DFY can be described as rather expensive.
69.14% of the companies in the same industry are cheaper than DFY, based on the Price/Forward Earnings ratio.
DFY's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.03 | ||
| Fwd PE | 21.47 |
4.2 Price Multiples
95.06% 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 | 30.68 | ||
| 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)1.31
PEG (5Y)0.32
EPS Next 2Y16.28%
EPS Next 3Y14.52%
5. Dividend
5.1 Amount
DFY has a yearly dividend return of 0.97%, which is pretty low.
With a Dividend Yield of 0.97, DFY pays less dividend than the industry average, which is at 5.18. 93.83% of the companies listed in the same industry pay a better dividend than DFY!
Compared to an average S&P500 Dividend Yield of 2.35, DFY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
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 18.29% of its income as dividend. This is a sustainable payout ratio.
DP18.29%
EPS Next 2Y16.28%
EPS Next 3Y14.52%
TSX:DFY (7/11/2025, 7:00:00 PM)
77.5
+0.19 (+0.25%)
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 Cap9.43B
Analysts69.33
Price Target80.24 (3.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
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)15.69%
PT rev (3m)23.56%
EPS NQ rev (1m)-2.35%
EPS NQ rev (3m)-1.29%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.94%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.03 | ||
| Fwd PE | 21.47 | ||
| P/S | 2.09 | ||
| P/FCF | 30.68 | ||
| P/OCF | 24.59 | ||
| P/B | 2.8 | ||
| P/tB | 4.91 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.67
EY3.45%
EPS(NY)3.61
Fwd EY4.66%
FCF(TTM)2.53
FCFY3.26%
OCF(TTM)3.15
OCFY4.07%
SpS37.05
BVpS27.7
TBVpS15.8
PEG (NY)1.31
PEG (5Y)0.32
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 | 2.37 |
F-Score7
WACC7.8%
ROIC/WACC0.92
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 5Y22.31%
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%