DEFINITY FINANCIAL CORP (DFY.CA) Stock Fundamental Analysis
TSX:DFY • CA24477T1003
66.86 CAD
-0.89 (-1.31%)
Last: Feb 19, 2026, 07:00 PM
Taking everything into account, DFY scores 6 out of 10 in our fundamental rating. DFY was compared to 76 industry peers in the Insurance industry. While DFY belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. DFY shows excellent growth, but is valued quite expensive already. With these ratings, DFY could be worth investigating further for growth 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.
- In the past 5 years DFY has always been profitable.
- Each year in the past 5 years DFY had a positive operating cash flow.
1.2 Ratios
- DFY has a Return On Assets of 4.99%. This is amongst the best in the industry. DFY outperforms 98.68% of its industry peers.
- Looking at the Return On Equity, with a value of 11.90%, DFY is in line with its industry, outperforming 44.74% of the companies in the same industry.
- DFY has a Return On Invested Capital of 6.71%. This is amongst the best in the industry. DFY outperforms 86.84% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for DFY is above the industry average of 2.99%.
- The 3 year average ROIC (5.57%) for DFY is below the current ROIC(6.71%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.99% | ||
| ROE | 11.9% | ||
| ROIC | 6.71% |
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 Profit Margin of 10.20%. This is comparable to the rest of the industry: DFY outperforms 44.74% of its industry peers.
- In the last couple of years the Profit Margin of DFY has grown nicely.
- DFY has a Operating Margin of 17.99%. This is in the better half of the industry: DFY outperforms 64.47% of its industry peers.
- DFY's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.99% | ||
| PM (TTM) | 10.2% | ||
| 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.
- DFY has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 1.85 indicates that DFY is not a great score, but indicates only limited risk for bankruptcy at the moment.
- DFY's Altman-Z score of 1.85 is amongst the best of the industry. DFY outperforms 100.00% of its industry peers.
- The Debt to FCF ratio of DFY is 3.00, which is a good value as it means it would take DFY, 3.00 years of fcf income to pay off all of its debts.
- DFY's Debt to FCF ratio of 3.00 is in line compared to the rest of the industry. DFY outperforms 40.79% of its industry peers.
- A Debt/Equity ratio of 0.29 indicates that DFY is not too dependend on debt financing.
- DFY's Debt to Equity ratio of 0.29 is on the low side compared to the rest of the industry. DFY is outperformed by 64.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3 | ||
| Altman-Z | 1.85 |
ROIC/WACC0.84
WACC7.95%
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.
- Looking at the Current ratio, with a value of 0.56, DFY belongs to the top of the industry, outperforming 88.16% 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.
- The Quick ratio of DFY (0.56) is better than 88.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
- DFY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.50%, which is quite impressive.
- DFY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 89.77% yearly.
- Looking at the last year, DFY shows a small growth in Revenue. The Revenue has grown by 4.06% 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)34.5%
EPS 3Y22.24%
EPS 5Y89.77%
EPS Q2Q%692.31%
Revenue 1Y (TTM)4.06%
Revenue growth 3Y14.8%
Revenue growth 5Y11.8%
Sales Q2Q%8.04%
3.2 Future
- DFY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.17% yearly.
- DFY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.88% yearly.
EPS Next Y30.69%
EPS Next 2Y19.33%
EPS Next 3Y19.11%
EPS Next 5Y22.17%
Revenue Next Year6.59%
Revenue Next 2Y11.19%
Revenue Next 3Y18.88%
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
- The Price/Earnings ratio is 19.27, which indicates a rather expensive current valuation of DFY.
- Based on the Price/Earnings ratio, DFY is valued expensively inside the industry as 80.26% of the companies are valued cheaper.
- Compared to an average S&P500 Price/Earnings ratio of 26.99, DFY is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 17.59, DFY is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, DFY is valued a bit more expensive than 71.05% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of DFY to the average of the S&P500 Index (28.06), we can say DFY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.27 | ||
| Fwd PE | 17.59 |
4.2 Price Multiples
- DFY's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. DFY is more expensive than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.13 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- DFY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of DFY may justify a higher PE ratio.
- A more expensive valuation may be justified as DFY's earnings are expected to grow with 19.11% in the coming years.
PEG (NY)0.63
PEG (5Y)0.21
EPS Next 2Y19.33%
EPS Next 3Y19.11%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.13%, DFY has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 3.93, DFY's dividend is way lower than its industry peers. On top of this 88.16% of the companies listed in the same industry pay a better dividend than DFY!
- DFY's Dividend Yield is slightly below the S&P500 average, which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
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
- DFY pays out 17.72% of its income as dividend. This is a sustainable payout ratio.
DP17.72%
EPS Next 2Y19.33%
EPS Next 3Y19.11%
TSX:DFY (2/19/2026, 7:00:00 PM)
66.86
-0.89 (-1.31%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-12 2026-02-12/amc
Earnings (Next)05-07 2026-05-07
Inst Owners68.39%
Inst Owner ChangeN/A
Ins Owners0.89%
Ins Owner ChangeN/A
Market Cap8.13B
Revenue(TTM)4.68B
Net Income(TTM)476.80M
Analysts72
Price Target82.34 (23.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
Yearly Dividend0.64
Dividend Growth(5Y)N/A
DP17.72%
Div Incr Years1
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)24.31%
Min EPS beat(2)10.6%
Max EPS beat(2)38.02%
EPS beat(4)3
Avg EPS beat(4)11.91%
Min EPS beat(4)-6.77%
Max EPS beat(4)38.02%
EPS beat(8)6
Avg EPS beat(8)517.51%
EPS beat(12)9
Avg EPS beat(12)391.65%
EPS beat(16)13
Avg EPS beat(16)299.74%
Revenue beat(2)2
Avg Revenue beat(2)5.96%
Min Revenue beat(2)5.4%
Max Revenue beat(2)6.52%
Revenue beat(4)4
Avg Revenue beat(4)5.02%
Min Revenue beat(4)2.86%
Max Revenue beat(4)6.52%
Revenue beat(8)8
Avg Revenue beat(8)3.88%
Revenue beat(12)11
Avg Revenue beat(12)3.24%
Revenue beat(16)11
Avg Revenue beat(16)0.77%
PT rev (1m)2.58%
PT rev (3m)3.23%
EPS NQ rev (1m)2.22%
EPS NQ rev (3m)-1.64%
EPS NY rev (1m)0.08%
EPS NY rev (3m)8.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.27 | ||
| Fwd PE | 17.59 | ||
| P/S | 1.74 | ||
| P/FCF | 21.13 | ||
| P/OCF | 16.97 | ||
| P/B | 2.03 | ||
| P/tB | 3.34 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.47
EY5.19%
EPS(NY)3.8
Fwd EY5.69%
FCF(TTM)3.16
FCFY4.73%
OCF(TTM)3.94
OCFY5.89%
SpS38.44
BVpS32.95
TBVpS20.02
PEG (NY)0.63
PEG (5Y)0.21
Graham Number50.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.99% | ||
| ROE | 11.9% | ||
| ROCE | 8.89% | ||
| ROIC | 6.71% | ||
| ROICexc | 6.97% | ||
| ROICexgc | 8.93% | ||
| OM | 17.99% | ||
| PM (TTM) | 10.2% | ||
| GM | N/A | ||
| FCFM | 8.23% |
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-Score4
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 2.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 80.7% | ||
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 1.85 |
F-Score4
WACC7.95%
ROIC/WACC0.84
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)34.5%
EPS 3Y22.24%
EPS 5Y89.77%
EPS Q2Q%692.31%
EPS Next Y30.69%
EPS Next 2Y19.33%
EPS Next 3Y19.11%
EPS Next 5Y22.17%
Revenue 1Y (TTM)4.06%
Revenue growth 3Y14.8%
Revenue growth 5Y11.8%
Sales Q2Q%8.04%
Revenue Next Year6.59%
Revenue Next 2Y11.19%
Revenue Next 3Y18.88%
Revenue Next 5YN/A
EBIT growth 1Y-4.99%
EBIT growth 3Y32.99%
EBIT growth 5Y94.85%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y56.55%
FCF growth 3Y-27.42%
FCF growth 5Y14.99%
OCF growth 1Y42.52%
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 of DEFINITY FINANCIAL CORP (DFY.CA) stock?
ChartMill assigns a valuation rating of 3 / 10 to DEFINITY FINANCIAL CORP (DFY.CA). This can be considered as Overvalued.
What is the profitability of DFY stock?
DEFINITY FINANCIAL CORP (DFY.CA) has a profitability rating of 7 / 10.
Can you provide the financial health for DFY stock?
The financial health rating of DEFINITY FINANCIAL CORP (DFY.CA) is 5 / 10.
How sustainable is the dividend of DEFINITY FINANCIAL CORP (DFY.CA) stock?
The dividend rating of DEFINITY FINANCIAL CORP (DFY.CA) is 2 / 10 and the dividend payout ratio is 17.72%.