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 82 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.
In the past 5 years DFY always reported a positive cash flow from operatings.
1.2 Ratios
DFY's Return On Assets of 5.59% is amongst the best of the industry. DFY outperforms 100.00% of its industry peers.
With an excellent Return On Equity value of 12.96%, DFY belongs to the best of the industry, outperforming 86.59% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.40%, DFY belongs to the top of the industry, outperforming 97.56% 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 2.83%.
The 3 year average ROIC (5.57%) for DFY is below the current ROIC(7.40%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.59% | ||
| ROE | 12.96% | ||
| ROIC | 7.4% |
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 9.75%, DFY is in line with its industry, outperforming 56.10% of the companies in the same industry.
In the last couple of years the Profit Margin of DFY has grown nicely.
The Operating Margin of DFY (16.80%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of DFY has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.8% | ||
| PM (TTM) | 9.75% | ||
| 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.
Compared to 1 year ago, DFY has less shares outstanding
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
DFY has an Altman-Z score of 2.17. 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.
Looking at the Altman-Z score, with a value of 2.17, DFY belongs to the top of the industry, outperforming 98.78% of the companies in the same industry.
The Debt to FCF ratio of DFY is 0.65, which is an excellent value as it means it would take DFY, only 0.65 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DFY (0.65) is better than 84.15% of its industry peers.
DFY has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.05, DFY belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | 2.17 |
ROIC/WACC0.98
WACC7.58%
2.3 Liquidity
DFY has a Current Ratio of 0.33. 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 0.33 is amongst the best of the industry. DFY outperforms 80.49% of its industry peers.
DFY has a Quick Ratio of 0.33. This is a bad value and indicates that DFY is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.33, DFY belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.33 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.54% over the past year.
DFY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 89.77% yearly.
DFY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.53%.
The Revenue has been growing by 11.80% on average over the past years. This is quite good.
EPS 1Y (TTM)26.54%
EPS 3Y22.24%
EPS 5Y89.77%
EPS Q2Q%10.47%
Revenue 1Y (TTM)10.53%
Revenue growth 3Y14.8%
Revenue growth 5Y11.8%
Sales Q2Q%12.06%
3.2 Future
The Earnings Per Share is expected to grow by 14.52% on average over the next years. This is quite good.
Based on estimates for the next years, DFY will show a quite strong growth in Revenue. The Revenue will grow by 9.58% on average per year.
EPS Next Y22.15%
EPS Next 2Y16.28%
EPS Next 3Y14.52%
EPS Next 5YN/A
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
A Price/Earnings ratio of 25.97 indicates a quite expensive valuation of DFY.
Compared to the rest of the industry, the Price/Earnings ratio of DFY indicates a rather expensive valuation: DFY more expensive than 93.90% of the companies listed in the same industry.
DFY's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.99.
The Price/Forward Earnings ratio is 21.26, which indicates a rather expensive current valuation of DFY.
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 69.51% of the companies listed in the same industry.
DFY's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.97 | ||
| Fwd PE | 21.26 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, DFY is valued expensively inside the industry as 96.34% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.67 | ||
| 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 14.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.17
PEG (5Y)0.29
EPS Next 2Y16.28%
EPS Next 3Y14.52%
5. Dividend
5.1 Amount
DFY has a Yearly Dividend Yield of 1.10%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 1.10, DFY pays less dividend than the industry average, which is at 4.35. 81.71% of the companies listed in the same industry pay a better dividend than DFY!
Compared to an average S&P500 Dividend Yield of 2.44, DFY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
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
17.12% of the earnings are spent on dividend by DFY. This is a low number and sustainable payout ratio.
DP17.12%
EPS Next 2Y16.28%
EPS Next 3Y14.52%
TSX:DFY (5/6/2025, 7:00:00 PM)
69.33
+0.66 (+0.96%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners66.78%
Inst Owner ChangeN/A
Ins Owners0.79%
Ins Owner ChangeN/A
Market Cap8.03B
Analysts66.67
Price Target64.83 (-6.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
Yearly Dividend0.64
Dividend Growth(5Y)N/A
DP17.12%
Div Incr Years1
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2020.98%
Min EPS beat(2)5.79%
Max EPS beat(2)4036.17%
EPS beat(4)3
Avg EPS beat(4)1019.84%
Min EPS beat(4)-10.79%
Max EPS beat(4)4036.17%
EPS beat(8)6
Avg EPS beat(8)580.32%
EPS beat(12)10
Avg EPS beat(12)395.62%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)3.62%
Min Revenue beat(2)1.91%
Max Revenue beat(2)5.33%
Revenue beat(4)4
Avg Revenue beat(4)3.29%
Min Revenue beat(4)1.72%
Max Revenue beat(4)5.33%
Revenue beat(8)8
Avg Revenue beat(8)3.3%
Revenue beat(12)8
Avg Revenue beat(12)0.01%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.17%
PT rev (3m)8.09%
EPS NQ rev (1m)-12.65%
EPS NQ rev (3m)-18.24%
EPS NY rev (1m)-0.92%
EPS NY rev (3m)-0.92%
Revenue NQ rev (1m)-0.64%
Revenue NQ rev (3m)-0.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.97 | ||
| Fwd PE | 21.26 | ||
| P/S | 1.82 | ||
| P/FCF | 34.67 | ||
| P/OCF | 26.14 | ||
| P/B | 2.42 | ||
| P/tB | 4.18 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.67
EY3.85%
EPS(NY)3.26
Fwd EY4.7%
FCF(TTM)2
FCFY2.88%
OCF(TTM)2.65
OCFY3.83%
SpS38.11
BVpS28.66
TBVpS16.6
PEG (NY)1.17
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.59% | ||
| ROE | 12.96% | ||
| ROCE | 9.8% | ||
| ROIC | 7.4% | ||
| ROICexc | 7.73% | ||
| ROICexgc | 10.23% | ||
| OM | 16.8% | ||
| PM (TTM) | 9.75% | ||
| GM | N/A | ||
| FCFM | 5.25% |
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 Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.65 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 1.71% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 53.81% | ||
| Current Ratio | 0.33 | ||
| Quick Ratio | 0.33 | ||
| Altman-Z | 2.17 |
F-Score7
WACC7.58%
ROIC/WACC0.98
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)26.54%
EPS 3Y22.24%
EPS 5Y89.77%
EPS Q2Q%10.47%
EPS Next Y22.15%
EPS Next 2Y16.28%
EPS Next 3Y14.52%
EPS Next 5YN/A
Revenue 1Y (TTM)10.53%
Revenue growth 3Y14.8%
Revenue growth 5Y11.8%
Sales Q2Q%12.06%
Revenue Next Year6.88%
Revenue Next 2Y6.59%
Revenue Next 3Y9.58%
Revenue Next 5YN/A
EBIT growth 1Y20.24%
EBIT growth 3Y32.99%
EBIT growth 5Y94.85%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-12.37%
FCF growth 3Y-27.42%
FCF growth 5Y14.99%
OCF growth 1Y-12.68%
OCF growth 3Y-22.31%
OCF growth 5Y17.27%