DEFINITY FINANCIAL CORP (DFY.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:DFY • CA24477T1003
66.64 CAD
-1.21 (-1.78%)
Last: Jan 30, 2026, 07:00 PM
Taking everything into account, DFY scores 6 out of 10 in our fundamental rating. DFY was compared to 80 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 expensive, but it does show an excellent growth. With these ratings, DFY could be worth investigating further 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.
- Each year in the past 5 years DFY has been profitable.
- DFY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.99%, DFY belongs to the top of the industry, outperforming 98.75% of the companies in the same industry.
- DFY has a Return On Equity of 11.90%. This is comparable to the rest of the industry: DFY outperforms 46.25% of its industry peers.
- DFY has a better Return On Invested Capital (6.71%) than 87.50% of its industry peers.
- DFY had an Average Return On Invested Capital over the past 3 years of 5.57%. This is above the industry average of 3.04%.
- 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
- DFY's Profit Margin of 10.20% is in line compared to the rest of the industry. DFY outperforms 46.25% of its industry peers.
- In the last couple of years the Profit Margin of DFY has grown nicely.
- DFY's Operating Margin of 17.99% is fine compared to the rest of the industry. DFY outperforms 66.25% 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
- 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 reduced compared to 1 year ago.
- DFY has less shares outstanding than it did 5 years ago.
- DFY has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 1.86 indicates that DFY is not a great score, but indicates only limited risk for bankruptcy at the moment.
- DFY has a Altman-Z score of 1.86. This is amongst the best in the industry. DFY outperforms 100.00% of its industry peers.
- 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 of 3.00. This is comparable to the rest of the industry: DFY outperforms 43.75% 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 doing worse than 63.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3 | ||
| Altman-Z | 1.86 |
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.
- DFY's Current ratio of 0.56 is amongst the best of the industry. DFY outperforms 88.75% 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.
- With an excellent Quick ratio value of 0.56, DFY belongs to the best of the industry, outperforming 88.75% of the companies in the same industry.
| 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.
- 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.
- 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 Y30.69%
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
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 19.20, the valuation of DFY can be described as rather expensive.
- 80.00% of the companies in the same industry are cheaper than DFY, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.30. DFY is valued slightly cheaper when compared to this.
- The Price/Forward Earnings ratio is 17.53, which indicates a rather expensive current valuation of DFY.
- Based on the Price/Forward Earnings ratio, DFY is valued a bit more expensive than the industry average as 71.25% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, DFY is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.2 | ||
| Fwd PE | 17.53 |
4.2 Price Multiples
- 75.00% 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 | 21.06 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- 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 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 1.04%, DFY has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 4.42, DFY's dividend is way lower than its industry peers. On top of this 88.75% of the companies listed in the same industry pay a better dividend than DFY!
- With a Dividend Yield of 1.04, DFY pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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 17.72% of its income as dividend. This is a sustainable payout ratio.
DP17.72%
EPS Next 2Y19.33%
EPS Next 3Y19.11%
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%.