DEFINITY FINANCIAL CORP (DFY.CA) Fundamental Analysis & Valuation

TSX:DFY • CA24477T1003

Current stock price

62.2 CAD
-1.84 (-2.87%)
Last:

This DFY.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. DFY.CA Profitability Analysis

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.
DFY.CA Yearly Net Income VS EBIT VS OCF VS FCFDFY.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M

1.2 Ratios

  • With an excellent Return On Assets value of 4.37%, DFY belongs to the best of the industry, outperforming 84.81% of the companies in the same industry.
  • DFY's Return On Equity of 10.33% is on the low side compared to the rest of the industry. DFY is outperformed by 63.29% of its industry peers.
  • DFY has a Return On Invested Capital of 6.52%. This is amongst the best in the industry. DFY outperforms 86.08% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for DFY is above the industry average of 3.17%.
Industry RankSector Rank
ROA 4.37%
ROE 10.33%
ROIC 6.52%
ROA(3y)4.93%
ROA(5y)3.93%
ROE(3y)11.86%
ROE(5y)9.66%
ROIC(3y)6.77%
ROIC(5y)5.34%
DFY.CA Yearly ROA, ROE, ROICDFY.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • Looking at the Profit Margin, with a value of 8.79%, DFY is doing worse than 65.82% of the companies in the same industry.
  • In the last couple of years the Profit Margin of DFY has grown nicely.
  • With a decent Operating Margin value of 17.42%, DFY is doing good in the industry, outperforming 65.82% of the companies in the same industry.
  • DFY's Operating Margin has improved in the last couple of years.
Industry RankSector Rank
OM 17.42%
PM (TTM) 8.79%
GM N/A
OM growth 3Y32.69%
OM growth 5Y18.32%
PM growth 3Y37.05%
PM growth 5Y9.01%
GM growth 3YN/A
GM growth 5YN/A
DFY.CA Yearly Profit, Operating, Gross MarginsDFY.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10 15

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5

2. DFY.CA Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DFY is destroying value.
  • The number of shares outstanding for DFY has been increased compared to 1 year ago.
  • The number of shares outstanding for DFY has been increased compared to 5 years ago.
  • Compared to 1 year ago, DFY has a worse debt to assets ratio.
DFY.CA Yearly Shares OutstandingDFY.CA Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
DFY.CA Yearly Total Debt VS Total AssetsDFY.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.2 Solvency

  • DFY has an Altman-Z score of 1.82. 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.
  • DFY's Altman-Z score of 1.82 is amongst the best of the industry. DFY outperforms 100.00% of its industry peers.
  • DFY has a debt to FCF ratio of 2.82. This is a good value and a sign of high solvency as DFY would need 2.82 years to pay back of all of its debts.
  • DFY has a Debt to FCF ratio of 2.82. This is in the better half of the industry: DFY outperforms 60.76% of its industry peers.
  • A Debt/Equity ratio of 0.29 indicates that DFY is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.29, DFY is in the better half of the industry, outperforming 60.76% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.29
Debt/FCF 2.82
Altman-Z 1.82
ROIC/WACC0.88
WACC7.39%
DFY.CA Yearly LT Debt VS Equity VS FCFDFY.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B 4B

2.3 Liquidity

  • DFY has a Current Ratio of 0.55. 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 Current ratio of 0.55. This is amongst the best in the industry. DFY outperforms 87.34% of its industry peers.
  • DFY has a Quick Ratio of 0.55. 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 Quick ratio of 0.55 is amongst the best of the industry. DFY outperforms 87.34% of its industry peers.
Industry RankSector Rank
Current Ratio 0.55
Quick Ratio 0.55
DFY.CA Yearly Current Assets VS Current LiabilitesDFY.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M 250M

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7

3. DFY.CA Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 31.46% over the past year.
  • The Earnings Per Share has been growing by 21.47% on average over the past years. This is a very strong growth
  • The Revenue has been growing slightly by 7.81% in the past year.
  • DFY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.03% yearly.
EPS 1Y (TTM)31.46%
EPS 3Y19.83%
EPS 5Y21.47%
EPS Q2Q%4.21%
Revenue 1Y (TTM)7.81%
Revenue growth 3Y13.57%
Revenue growth 5Y12.03%
Sales Q2Q%8.41%

3.2 Future

  • DFY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.44% yearly.
  • DFY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.39% yearly.
EPS Next Y8%
EPS Next 2Y12.69%
EPS Next 3Y13.44%
EPS Next 5YN/A
Revenue Next Year38.64%
Revenue Next 2Y23.43%
Revenue Next 3Y18.39%
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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
DFY.CA Yearly Revenue VS EstimatesDFY.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2B 4B 6B
DFY.CA Yearly EPS VS EstimatesDFY.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 2028 2031 1 2 3 4 5

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3

4. DFY.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 17.72, the valuation of DFY can be described as rather expensive.
  • Based on the Price/Earnings ratio, DFY is valued a bit more expensive than 79.75% of the companies in the same industry.
  • DFY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.78.
  • The Price/Forward Earnings ratio is 16.41, which indicates a correct valuation of DFY.
  • DFY's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. DFY is more expensive than 70.89% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of DFY to the average of the S&P500 Index (23.54), we can say DFY is valued slightly cheaper.
Industry RankSector Rank
PE 17.72
Fwd PE 16.41
DFY.CA Price Earnings VS Forward Price EarningsDFY.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DFY indicates a somewhat cheap valuation: DFY is cheaper than 67.09% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, DFY is valued a bit more expensive than the industry average as 70.89% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 18.32
EV/EBITDA 8.91
DFY.CA Per share dataDFY.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DFY does not grow enough to justify the current Price/Earnings ratio.
  • DFY has a very decent profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as DFY's earnings are expected to grow with 13.44% in the coming years.
PEG (NY)2.22
PEG (5Y)0.83
EPS Next 2Y12.69%
EPS Next 3Y13.44%

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3

5. DFY.CA Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.34%, DFY has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 3.85, DFY's dividend is way lower than its industry peers. On top of this 87.34% of the companies listed in the same industry pay a better dividend than DFY!
  • Compared to the average S&P500 Dividend Yield of 1.89, DFY is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.34%

5.2 History

  • DFY has been paying a dividend for over 5 years, so it has already some track record.
  • DFY has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years3
DFY.CA Yearly Dividends per shareDFY.CA Yearly Dividends per shareYearly Dividends per share 2022 2023 2024 2025 2026 0.2 0.4 0.6

5.3 Sustainability

  • DFY pays out 21.16% of its income as dividend. This is a sustainable payout ratio.
DP21.16%
EPS Next 2Y12.69%
EPS Next 3Y13.44%
DFY.CA Yearly Income VS Free CF VS DividendDFY.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M
DFY.CA Dividend Payout.DFY.CA Dividend Payout, showing the Payout Ratio.DFY.CA Dividend Payout.PayoutRetained Earnings

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DFY.CA Fundamentals: All Metrics, Ratios and Statistics

DEFINITY FINANCIAL CORP

TSX:DFY (4/10/2026, 7:00:00 PM)

62.2

-1.84 (-2.87%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-12
Earnings (Next)05-07
Inst Owners69.5%
Inst Owner ChangeN/A
Ins Owners0.98%
Ins Owner ChangeN/A
Market Cap7.56B
Revenue(TTM)4.76B
Net Income(TTM)418.20M
Analysts72
Price Target80.67 (29.69%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.34%
Yearly Dividend0.76
Dividend Growth(5Y)N/A
DP21.16%
Div Incr Years2
Div Non Decr Years3
Ex-Date03-11
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.58%
Min EPS beat(2)5.14%
Max EPS beat(2)38.02%
EPS beat(4)3
Avg EPS beat(4)11.75%
Min EPS beat(4)-6.77%
Max EPS beat(4)38.02%
EPS beat(8)6
Avg EPS beat(8)515.79%
EPS beat(12)9
Avg EPS beat(12)390.79%
EPS beat(16)13
Avg EPS beat(16)299.65%
Revenue beat(2)2
Avg Revenue beat(2)4.55%
Min Revenue beat(2)3.7%
Max Revenue beat(2)5.4%
Revenue beat(4)4
Avg Revenue beat(4)4.62%
Min Revenue beat(4)2.86%
Max Revenue beat(4)6.52%
Revenue beat(8)8
Avg Revenue beat(8)3.95%
Revenue beat(12)12
Avg Revenue beat(12)3.74%
Revenue beat(16)12
Avg Revenue beat(16)1.16%
PT rev (1m)0%
PT rev (3m)0.5%
EPS NQ rev (1m)1.18%
EPS NQ rev (3m)0.48%
EPS NY rev (1m)0%
EPS NY rev (3m)0.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)32.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)22.48%
Valuation
Industry RankSector Rank
PE 17.72
Fwd PE 16.41
P/S 1.59
P/FCF 18.32
P/OCF 14.76
P/B 1.87
P/tB 3.04
EV/EBITDA 8.91
EPS(TTM)3.51
EY5.64%
EPS(NY)3.79
Fwd EY6.09%
FCF(TTM)3.4
FCFY5.46%
OCF(TTM)4.21
OCFY6.78%
SpS39.13
BVpS33.3
TBVpS20.45
PEG (NY)2.22
PEG (5Y)0.83
Graham Number51.28
Profitability
Industry RankSector Rank
ROA 4.37%
ROE 10.33%
ROCE 8.76%
ROIC 6.52%
ROICexc 6.78%
ROICexgc 8.64%
OM 17.42%
PM (TTM) 8.79%
GM N/A
FCFM 8.68%
ROA(3y)4.93%
ROA(5y)3.93%
ROE(3y)11.86%
ROE(5y)9.66%
ROIC(3y)6.77%
ROIC(5y)5.34%
ROICexc(3y)7.03%
ROICexc(5y)5.58%
ROICexgc(3y)9.14%
ROICexgc(5y)7.03%
ROCE(3y)9.14%
ROCE(5y)7.2%
ROICexgc growth 3Y36.79%
ROICexgc growth 5Y25.91%
ROICexc growth 3Y34.3%
ROICexc growth 5Y21.31%
OM growth 3Y32.69%
OM growth 5Y18.32%
PM growth 3Y37.05%
PM growth 5Y9.01%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.5
Health
Industry RankSector Rank
Debt/Equity 0.29
Debt/FCF 2.82
Debt/EBITDA 1.21
Cap/Depr 72.97%
Cap/Sales 2.09%
Interest Coverage 78.19
Cash Conversion 53.1%
Profit Quality 98.76%
Current Ratio 0.55
Quick Ratio 0.55
Altman-Z 1.82
F-Score4
WACC7.39%
ROIC/WACC0.88
Cap/Depr(3y)72%
Cap/Depr(5y)N/A
Cap/Sales(3y)2%
Cap/Sales(5y)2.1%
Profit Quality(3y)76.02%
Profit Quality(5y)141.22%
High Growth Momentum
Growth
EPS 1Y (TTM)31.46%
EPS 3Y19.83%
EPS 5Y21.47%
EPS Q2Q%4.21%
EPS Next Y8%
EPS Next 2Y12.69%
EPS Next 3Y13.44%
EPS Next 5YN/A
Revenue 1Y (TTM)7.81%
Revenue growth 3Y13.57%
Revenue growth 5Y12.03%
Sales Q2Q%8.41%
Revenue Next Year38.64%
Revenue Next 2Y23.43%
Revenue Next 3Y18.39%
Revenue Next 5YN/A
EBIT growth 1Y11.79%
EBIT growth 3Y50.69%
EBIT growth 5Y32.56%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y78.32%
FCF growth 3Y24.31%
FCF growth 5Y-1.59%
OCF growth 1Y66.86%
OCF growth 3Y18.79%
OCF growth 5Y0.9%

DEFINITY FINANCIAL CORP / DFY.CA Fundamental Analysis FAQ

What is the fundamental rating for DFY stock?

ChartMill assigns a fundamental rating of 5 / 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.


Can you provide the profitability details for DEFINITY FINANCIAL CORP?

DEFINITY FINANCIAL CORP (DFY.CA) has a profitability rating of 6 / 10.


What is the valuation of DEFINITY FINANCIAL CORP based on its PE and PB ratios?

The Price/Earnings (PE) ratio for DEFINITY FINANCIAL CORP (DFY.CA) is 17.72 and the Price/Book (PB) ratio is 1.87.


How financially healthy is DEFINITY FINANCIAL CORP?

The financial health rating of DEFINITY FINANCIAL CORP (DFY.CA) is 5 / 10.