DEFINITY FINANCIAL CORP (DFY.CA) Stock Fundamental Analysis
TSX:DFY - Toronto Stock Exchange - CA24477T1003 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to DFY. DFY was compared to 81 industry peers in the Insurance industry. DFY scores excellent points on both the profitability and health parts. This is a solid base for a good stock. DFY is valued quite expensive, but it does show an excellent growth. With these ratings, DFY could be worth investigating further for growth and quality 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.
DFY had positive earnings in each of the past 5 years.
Each year in the past 5 years DFY had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 5.36%, DFY belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
DFY's Return On Equity of 12.39% is amongst the best of the industry. DFY outperforms 86.42% of its industry peers.
With an excellent Return On Invested Capital value of 7.19%, DFY belongs to the best of the industry, outperforming 97.53% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DFY is above the industry average of 2.70%.
The last Return On Invested Capital (7.19%) for DFY is above the 3 year average (5.57%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 12.39% | ||
| ROIC | 7.19% |
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
The Profit Margin of DFY (9.26%) is comparable to the rest of the industry.
DFY's Profit Margin has improved in the last couple of years.
DFY's Operating Margin of 16.29% is fine compared to the rest of the industry. DFY outperforms 67.90% of its industry peers.
DFY's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.29% | ||
| PM (TTM) | 9.26% | ||
| 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.
Compared to 5 years ago, DFY has less shares outstanding
The debt/assets ratio for DFY has been reduced compared to a year ago.
2.2 Solvency
DFY has an Altman-Z score of 2.32. 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.
With an excellent Altman-Z score value of 2.32, DFY belongs to the best of the industry, outperforming 98.77% of the companies in the same industry.
The Debt to FCF ratio of DFY is 0.48, which is an excellent value as it means it would take DFY, only 0.48 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DFY (0.48) is better than 97.53% of its industry peers.
DFY has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.04, DFY belongs to the top of the industry, outperforming 98.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.48 | ||
| Altman-Z | 2.32 |
ROIC/WACC0.91
WACC7.88%
2.3 Liquidity
DFY has a Current Ratio of 0.69. 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 Current ratio value of 0.69, DFY belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
DFY has a Quick Ratio of 0.69. 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 0.69. This is amongst the best in the industry. DFY outperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
DFY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.27%, 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 quite strong growth in Revenue. The Revenue has grown by 10.34% 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)20.27%
EPS 3Y22.24%
EPS 5Y89.77%
EPS Q2Q%0%
Revenue 1Y (TTM)10.34%
Revenue growth 3Y14.8%
Revenue growth 5Y11.8%
Sales Q2Q%12.1%
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 22.31% on average per year.
The Revenue is expected to grow by 9.58% on average over the next years. This is quite good.
EPS Next Y22.15%
EPS Next 2Y16.28%
EPS Next 3Y14.52%
EPS Next 5Y22.31%
Revenue Next Year6.88%
Revenue Next 2Y6.59%
Revenue Next 3Y9.58%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
DFY is valuated quite expensively with a Price/Earnings ratio of 27.64.
96.30% 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 26.82. DFY is around the same levels.
A Price/Forward Earnings ratio of 20.44 indicates a rather expensive valuation of DFY.
DFY's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. DFY is more expensive than 70.37% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DFY to the average of the S&P500 Index (36.21), we can say DFY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.64 | ||
| Fwd PE | 20.44 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, DFY is valued expensively inside the industry as 96.30% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.21 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
DFY's 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.
A more expensive valuation may be justified as DFY's earnings are expected to grow with 14.52% in the coming years.
PEG (NY)1.25
PEG (5Y)0.31
EPS Next 2Y16.28%
EPS Next 3Y14.52%
5. Dividend
5.1 Amount
With a yearly dividend of 0.97%, DFY is not a good candidate for dividend investing.
With a Dividend Yield of 0.97, DFY pays less dividend than the industry average, which is at 4.11. 95.06% of the companies listed in the same industry pay a better dividend than DFY!
With a Dividend Yield of 0.97, DFY pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
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 18.29% of its income as dividend. This is a sustainable payout ratio.
DP18.29%
EPS Next 2Y16.28%
EPS Next 3Y14.52%
TSX:DFY (8/1/2025, 7:00:00 PM)
73.79
-0.86 (-1.15%)
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 Cap8.97B
Analysts69.33
Price Target82.11 (11.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
Yearly Dividend0.64
Dividend Growth(5Y)N/A
DP18.29%
Div Incr Years1
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.49%
Min EPS beat(2)-6.77%
Max EPS beat(2)5.79%
EPS beat(4)3
Avg EPS beat(4)1020.84%
Min EPS beat(4)-6.77%
Max EPS beat(4)4036.17%
EPS beat(8)6
Avg EPS beat(8)580.22%
EPS beat(12)9
Avg EPS beat(12)392.21%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)4.09%
Min Revenue beat(2)2.86%
Max Revenue beat(2)5.33%
Revenue beat(4)4
Avg Revenue beat(4)3.57%
Min Revenue beat(4)1.91%
Max Revenue beat(4)5.33%
Revenue beat(8)8
Avg Revenue beat(8)3.43%
Revenue beat(12)9
Avg Revenue beat(12)1.34%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.33%
PT rev (3m)26.66%
EPS NQ rev (1m)-3.13%
EPS NQ rev (3m)-2.08%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.94%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.64 | ||
| Fwd PE | 20.44 | ||
| P/S | 1.99 | ||
| P/FCF | 29.21 | ||
| P/OCF | 23.41 | ||
| P/B | 2.66 | ||
| P/tB | 4.67 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.67
EY3.62%
EPS(NY)3.61
Fwd EY4.89%
FCF(TTM)2.53
FCFY3.42%
OCF(TTM)3.15
OCFY4.27%
SpS37.05
BVpS27.7
TBVpS15.8
PEG (NY)1.25
PEG (5Y)0.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 12.39% | ||
| ROCE | 9.52% | ||
| ROIC | 7.19% | ||
| ROICexc | 7.33% | ||
| ROICexgc | 9.72% | ||
| OM | 16.29% | ||
| PM (TTM) | 9.26% | ||
| GM | N/A | ||
| FCFM | 6.82% |
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-Score7
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.48 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 1.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 73.63% | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 2.32 |
F-Score7
WACC7.88%
ROIC/WACC0.91
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)20.27%
EPS 3Y22.24%
EPS 5Y89.77%
EPS Q2Q%0%
EPS Next Y22.15%
EPS Next 2Y16.28%
EPS Next 3Y14.52%
EPS Next 5Y22.31%
Revenue 1Y (TTM)10.34%
Revenue growth 3Y14.8%
Revenue growth 5Y11.8%
Sales Q2Q%12.1%
Revenue Next Year6.88%
Revenue Next 2Y6.59%
Revenue Next 3Y9.58%
Revenue Next 5YN/A
EBIT growth 1Y16.44%
EBIT growth 3Y32.99%
EBIT growth 5Y94.85%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y41.24%
FCF growth 3Y-27.42%
FCF growth 5Y14.99%
OCF growth 1Y24.21%
OCF growth 3Y-22.31%
OCF growth 5Y17.27%