DEFINITY FINANCIAL CORP (DFY.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DFY - CA24477T1003 - Common Stock
76.47 CAD
+0.87 (+1.15%)
Taking everything into account, DFY scores 6 out of 10 in our fundamental rating. DFY was compared to 82 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 is valued quite expensively, but it does show have an excellent growth rating. These ratings would make DFY suitable for growth 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.
In the past 5 years DFY has always been profitable.
In the past 5 years DFY always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.99%, DFY belongs to the top of the industry, outperforming 98.78% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.90%, DFY is in line with its industry, outperforming 45.12% 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 87.80% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DFY is above the industry average of 2.47%.
The last Return On Invested Capital (6.71%) for DFY is above the 3 year average (5.57%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 10.20%, DFY is in line with its industry, outperforming 46.34% 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 17.99%. This is in the better half of the industry: DFY outperforms 67.07% of its industry peers.
In the last couple of years the Operating Margin of DFY has grown nicely.
| 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
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.
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 1.96 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 1.96, DFY belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
DFY has a debt to FCF ratio of 3.00. This is a good value and a sign of high solvency as DFY would need 3.00 years to pay back of all of its debts.
DFY has a Debt to FCF ratio (3.00) which is in line with its industry peers.
DFY has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
DFY has a worse Debt to Equity ratio (0.29) than 62.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3 | ||
| Altman-Z | 1.96 |
ROIC/WACC0.87
WACC7.75%
2.3 Liquidity
A Current Ratio of 0.56 indicates that DFY may have some problems paying its short term obligations.
With an excellent Current ratio value of 0.56, DFY belongs to the best of the industry, outperforming 87.80% of the companies in the same industry.
DFY has a Quick 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.
DFY has a Quick ratio of 0.56. This is amongst the best in the industry. DFY outperforms 87.80% 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.
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.
The Revenue has been growing slightly by 4.06% in the past 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)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
Based on estimates for the next years, DFY will show a very strong growth in Earnings Per Share. The EPS will grow by 22.17% 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 18.88% on average per year.
EPS Next Y30.59%
EPS Next 2Y18.83%
EPS Next 3Y18.9%
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
A Price/Earnings ratio of 22.04 indicates a rather expensive valuation of DFY.
Based on the Price/Earnings ratio, DFY is valued more expensive than 98.78% of the companies in the same industry.
DFY is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.50, which is the current average of the S&P500 Index.
DFY is valuated rather expensively with a Price/Forward Earnings ratio of 20.28.
Based on the Price/Forward Earnings ratio, DFY is valued a bit more expensive than 71.95% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DFY to the average of the S&P500 Index (23.93), we can say DFY is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.04 | ||
| Fwd PE | 20.28 |
4.2 Price Multiples
DFY's Price/Free Cash Flow ratio is rather expensive when compared to the industry. DFY is more expensive than 97.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.17 | ||
| 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 18.90% in the coming years.
PEG (NY)0.72
PEG (5Y)0.25
EPS Next 2Y18.83%
EPS Next 3Y18.9%
5. Dividend
5.1 Amount
With a yearly dividend of 0.99%, DFY is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.40, DFY's dividend is way lower than its industry peers. On top of this 86.59% 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 1.87.
| 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
DFY pays out 17.72% of its income as dividend. This is a sustainable payout ratio.
DP17.72%
EPS Next 2Y18.83%
EPS Next 3Y18.9%
TSX:DFY (12/23/2025, 7:00:00 PM)
76.47
+0.87 (+1.15%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners68.46%
Inst Owner ChangeN/A
Ins Owners0.89%
Ins Owner ChangeN/A
Market Cap9.30B
Revenue(TTM)4.68B
Net Income(TTM)476.80M
Analysts70
Price Target80.27 (4.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
Yearly Dividend0.64
Dividend Growth(5Y)N/A
DP17.72%
Div Incr Years1
Div Non Decr Years2
Ex-Date
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)0.64%
PT rev (3m)-2.97%
EPS NQ rev (1m)-0.98%
EPS NQ rev (3m)-4.38%
EPS NY rev (1m)8.3%
EPS NY rev (3m)9.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.04 | ||
| Fwd PE | 20.28 | ||
| P/S | 1.99 | ||
| P/FCF | 24.17 | ||
| P/OCF | 19.4 | ||
| P/B | 2.32 | ||
| P/tB | 3.82 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.47
EY4.54%
EPS(NY)3.77
Fwd EY4.93%
FCF(TTM)3.16
FCFY4.14%
OCF(TTM)3.94
OCFY5.15%
SpS38.44
BVpS32.95
TBVpS20.02
PEG (NY)0.72
PEG (5Y)0.25
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 | 1.96 |
F-Score4
WACC7.75%
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)34.5%
EPS 3Y22.24%
EPS 5Y89.77%
EPS Q2Q%692.31%
EPS Next Y30.59%
EPS Next 2Y18.83%
EPS Next 3Y18.9%
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 for DFY stock?
ChartMill assigns a valuation rating of 2 / 10 to DEFINITY FINANCIAL CORP (DFY.CA). This can be considered as Overvalued.
How profitable is DEFINITY FINANCIAL CORP (DFY.CA) stock?
DEFINITY FINANCIAL CORP (DFY.CA) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for DFY stock?
The Price/Earnings (PE) ratio for DEFINITY FINANCIAL CORP (DFY.CA) is 22.04 and the Price/Book (PB) ratio is 2.32.
Can you provide the expected EPS growth for DFY stock?
The Earnings per Share (EPS) of DEFINITY FINANCIAL CORP (DFY.CA) is expected to grow by 30.59% in the next year.