DEFINITY FINANCIAL CORP (DFY.CA) Stock Fundamental Analysis
Canada - TSX:DFY - CA24477T1003 - Common Stock
70.59 CAD
-0.14 (-0.2%)
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 has a great profitability rating, there are some minor concerns on its financial health. DFY shows excellent growth, but is valued quite expensive already. This makes DFY very considerable for growth investing!
1. Profitability
1.1 Basic Checks
DFY had positive earnings in the past year.
In the past year DFY had a positive cash flow from operations.
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
DFY has a Return On Assets of 4.99%. This is amongst the best in the industry. DFY outperforms 98.75% of its industry peers.
The Return On Equity of DFY (11.90%) is better than 75.00% of its industry peers.
With an excellent Return On Invested Capital value of 6.71%, DFY belongs to the best of the industry, outperforming 87.50% 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 2.46%.
The 3 year average ROIC (5.57%) for DFY is below the current ROIC(6.71%), indicating increased profibility in the last year.
| 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
With a Profit Margin value of 10.20%, DFY perfoms like the industry average, outperforming 46.25% of the companies in the same industry.
DFY's Profit Margin has improved in the last couple of years.
The Operating Margin of DFY (17.99%) is better than 67.50% of its industry peers.
DFY's Operating Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DFY is destroying value.
Compared to 1 year ago, DFY has less shares outstanding
Compared to 5 years ago, DFY has less shares outstanding
DFY has a better debt/assets ratio than last year.
2.2 Solvency
DFY has an Altman-Z score of 1.90. 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 (1.90) is better than 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.
With a Debt to FCF ratio value of 3.00, DFY perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
A Debt/Equity ratio of 0.29 indicates that DFY is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.29, DFY is not doing good in the industry: 61.25% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3 | ||
| Altman-Z | 1.9 |
ROIC/WACC0.86
WACC7.79%
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 87.50% of its industry peers.
A Quick Ratio of 0.56 indicates that DFY may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.56, DFY belongs to the top of the industry, outperforming 87.50% 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 26.54%, which is quite impressive.
The Earnings Per Share has been growing by 89.77% on average over the past years. This is a very strong growth
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)26.54%
EPS 3Y22.24%
EPS 5Y89.77%
EPS Q2Q%76.54%
Revenue 1Y (TTM)4.06%
Revenue growth 3Y14.8%
Revenue growth 5Y11.8%
Sales Q2Q%13.65%
3.2 Future
The Earnings Per Share is expected to grow by 22.56% on average over the next years. This is a very strong growth
Based on estimates for the next years, DFY will show a quite strong growth in Revenue. The Revenue will grow by 17.70% on average per year.
EPS Next Y20.59%
EPS Next 2Y18.98%
EPS Next 3Y18.28%
EPS Next 5Y22.56%
Revenue Next Year6.52%
Revenue Next 2Y10.29%
Revenue Next 3Y17.7%
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
A Price/Earnings ratio of 26.44 indicates a quite expensive valuation of DFY.
DFY's Price/Earnings ratio is rather expensive when compared to the industry. DFY is more expensive than 96.25% of the companies in the same industry.
When comparing the Price/Earnings ratio of DFY to the average of the S&P500 Index (25.07), we can say DFY is valued inline with the index average.
The Price/Forward Earnings ratio is 18.68, 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 70.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of DFY to the average of the S&P500 Index (34.08), we can say DFY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.44 | ||
| Fwd PE | 18.68 |
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 90.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.31 | ||
| 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 18.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.28
PEG (5Y)0.29
EPS Next 2Y18.98%
EPS Next 3Y18.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.09%, DFY has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.58, DFY's dividend is way lower than its industry peers. On top of this 90.00% of the companies listed in the same industry pay a better dividend than DFY!
With a Dividend Yield of 1.09, DFY pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
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
17.72% of the earnings are spent on dividend by DFY. This is a low number and sustainable payout ratio.
DP17.72%
EPS Next 2Y18.98%
EPS Next 3Y18.28%
TSX:DFY (11/20/2025, 7:00:00 PM)
70.59
-0.14 (-0.2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners64.96%
Inst Owner ChangeN/A
Ins Owners0.89%
Ins Owner ChangeN/A
Market Cap8.59B
Revenue(TTM)4.68B
Net Income(TTM)476.80M
Analysts68.57
Price Target79.76 (12.99%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
Yearly Dividend0.64
Dividend Growth(5Y)N/A
DP17.72%
Div Incr Years1
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)8.69%
Min Revenue beat(2)6.52%
Max Revenue beat(2)10.86%
Revenue beat(4)4
Avg Revenue beat(4)6.39%
Min Revenue beat(4)2.86%
Max Revenue beat(4)10.86%
Revenue beat(8)8
Avg Revenue beat(8)4.56%
Revenue beat(12)11
Avg Revenue beat(12)3.69%
Revenue beat(16)11
Avg Revenue beat(16)1.11%
PT rev (1m)-3.59%
PT rev (3m)-3.93%
EPS NQ rev (1m)-0.7%
EPS NQ rev (3m)-0.89%
EPS NY rev (1m)1.16%
EPS NY rev (3m)-1.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.44 | ||
| Fwd PE | 18.68 | ||
| P/S | 1.84 | ||
| P/FCF | 22.31 | ||
| P/OCF | 17.91 | ||
| P/B | 2.14 | ||
| P/tB | 3.53 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.67
EY3.78%
EPS(NY)3.78
Fwd EY5.35%
FCF(TTM)3.16
FCFY4.48%
OCF(TTM)3.94
OCFY5.58%
SpS38.44
BVpS32.95
TBVpS20.02
PEG (NY)1.28
PEG (5Y)0.29
Graham Number44.49
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 | 1.9 |
F-Score4
WACC7.79%
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)26.54%
EPS 3Y22.24%
EPS 5Y89.77%
EPS Q2Q%76.54%
EPS Next Y20.59%
EPS Next 2Y18.98%
EPS Next 3Y18.28%
EPS Next 5Y22.56%
Revenue 1Y (TTM)4.06%
Revenue growth 3Y14.8%
Revenue growth 5Y11.8%
Sales Q2Q%13.65%
Revenue Next Year6.52%
Revenue Next 2Y10.29%
Revenue Next 3Y17.7%
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 26.44 and the Price/Book (PB) ratio is 2.14.
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 20.59% in the next year.