DEFINITY FINANCIAL CORP (DFY.CA) Stock Fundamental Analysis
TSX:DFY - CA24477T1003 - Common Stock
73.6 CAD
-0.37 (-0.5%)
Overall DFY gets a fundamental rating of 6 out of 10. We evaluated DFY against 80 industry peers in the Insurance industry. DFY has an excellent financial health rating, but there are some minor concerns on its profitability. 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
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's Return On Assets of 4.68% is amongst the best of the industry. DFY outperforms 92.50% of its industry peers.
The Return On Equity of DFY (10.32%) is worse than 76.25% of its industry peers.
DFY has a better Return On Invested Capital (6.92%) than 98.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DFY is above the industry average of 2.34%.
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's Profit Margin of 8.33% is on the low side compared to the rest of the industry. DFY is outperformed by 65.00% of its industry peers.
In the last couple of years the Profit Margin of DFY has grown nicely.
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
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.
The number of shares outstanding for DFY has been reduced compared to 5 years ago.
Compared to 1 year ago, DFY has an improved debt to assets ratio.
2.2 Solvency
DFY has an Altman-Z score of 2.24. 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.
The Altman-Z score of DFY (2.24) is better than 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.
DFY has a Debt to Equity ratio of 0.04. This is amongst the best in the industry. DFY outperforms 98.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.43 | ||
| Altman-Z | 2.24 |
ROIC/WACC0.86
WACC8.05%
2.3 Liquidity
A Current Ratio of 0.56 indicates that DFY may have some problems paying its short term obligations.
DFY's Current ratio of 0.56 is amongst the best of the industry. DFY outperforms 90.00% of its industry peers.
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 better Quick ratio (0.56) than 90.00% of its industry peers.
| 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.
The Revenue has been growing by 11.80% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 22.22% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 17.78% on average over the next years. This is quite good.
EPS Next Y19.57%
EPS Next 2Y18.48%
EPS Next 3Y18.21%
EPS Next 5Y22.22%
Revenue Next Year6.42%
Revenue Next 2Y8.55%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 28.64, DFY can be considered very expensive at the moment.
Based on the Price/Earnings ratio, DFY is valued more expensive than 96.25% of the companies in the same industry.
DFY's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.03.
DFY is valuated rather expensively with a Price/Forward Earnings ratio of 19.64.
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 is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.54, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.64 | ||
| Fwd PE | 19.64 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DFY indicates a rather expensive valuation: DFY more expensive than 95.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.42 | ||
| 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.
DFY has a very decent profitability rating, which may justify a higher PE ratio.
DFY's earnings are expected to grow with 18.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.46
PEG (5Y)0.32
EPS Next 2Y18.48%
EPS Next 3Y18.21%
5. Dividend
5.1 Amount
DFY has a Yearly Dividend Yield of 1.02%.
With a Dividend Yield of 1.02, DFY pays less dividend than the industry average, which is at 4.81. 95.00% of the companies listed in the same industry pay a better dividend than DFY!
Compared to an average S&P500 Dividend Yield of 2.45, DFY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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
20.69% of the earnings are spent on dividend by DFY. This is a low number and sustainable payout ratio.
DP20.69%
EPS Next 2Y18.48%
EPS Next 3Y18.21%
TSX:DFY (9/10/2025, 7:00:00 PM)
73.6
-0.37 (-0.5%)
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 Cap8.95B
Analysts68.57
Price Target82.73 (12.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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)0.76%
PT rev (3m)19.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.18%
EPS NY rev (1m)-2.11%
EPS NY rev (3m)-2.11%
Revenue NQ rev (1m)-0.71%
Revenue NQ rev (3m)-4.53%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.64 | ||
| Fwd PE | 19.64 | ||
| P/S | 1.92 | ||
| P/FCF | 26.42 | ||
| P/OCF | 21.12 | ||
| P/B | 2.38 | ||
| P/tB | 4.07 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.57
EY3.49%
EPS(NY)3.75
Fwd EY5.09%
FCF(TTM)2.79
FCFY3.78%
OCF(TTM)3.49
OCFY4.74%
SpS38.33
BVpS30.94
TBVpS18.1
PEG (NY)1.46
PEG (5Y)0.32
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 | 2.24 |
F-Score5
WACC8.05%
ROIC/WACC0.86
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 Y19.57%
EPS Next 2Y18.48%
EPS Next 3Y18.21%
EPS Next 5Y22.22%
Revenue 1Y (TTM)11.93%
Revenue growth 3Y14.8%
Revenue growth 5Y11.8%
Sales Q2Q%11.09%
Revenue Next Year6.42%
Revenue Next 2Y8.55%
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%