SOLUTION FINANCIAL INC (SFI.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:SFI - CA83439G2009 - Common Stock
0.275 CAD
0 (0%)
SFI gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 28 industry peers in the Financial Services industry. Both the profitability and financial health of SFI have multiple concerns. SFI is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- SFI had negative earnings in the past year.
- In the past year SFI has reported a negative cash flow from operations.
- In the past 5 years SFI has always been profitable.
- The reported operating cash flow has been mixed in the past 5 years: SFI reported negative operating cash flow in multiple years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 0.59%, SFI is in line with its industry, outperforming 42.86% of the companies in the same industry.
- SFI's Return On Equity of 1.78% is on the low side compared to the rest of the industry. SFI is outperformed by 78.57% of its industry peers.
- With a Return On Invested Capital value of 2.77%, SFI is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
- The Average Return On Invested Capital over the past 3 years for SFI is below the industry average of 7.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.59% | ||
| ROE | 1.78% | ||
| ROIC | 2.77% |
ROA(3y)1.36%
ROA(5y)1.63%
ROE(3y)3.1%
ROE(5y)3.98%
ROIC(3y)3.85%
ROIC(5y)3.88%
1.3 Margins
- The Profit Margin of SFI (2.00%) is worse than 64.29% of its industry peers.
- In the last couple of years the Profit Margin of SFI has grown nicely.
- SFI has a Operating Margin of 10.78%. This is amonst the worse of the industry: SFI underperforms 85.71% of its industry peers.
- In the last couple of years the Operating Margin of SFI has grown nicely.
- The Gross Margin of SFI (35.26%) is better than 60.71% of its industry peers.
- SFI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.78% | ||
| PM (TTM) | 2% | ||
| GM | 35.26% |
OM growth 3Y8.3%
OM growth 5Y5.76%
PM growth 3Y-13.83%
PM growth 5Y8.49%
GM growth 3Y10.36%
GM growth 5Y-0.5%
2. Health
2.1 Basic Checks
- SFI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for SFI has been reduced compared to 1 year ago.
- SFI has more shares outstanding than it did 5 years ago.
- SFI has a worse debt/assets ratio than last year.
2.2 Solvency
- SFI has an Altman-Z score of 1.12. This is a bad value and indicates that SFI is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.12, SFI is doing worse than 71.43% of the companies in the same industry.
- SFI has a Debt/Equity ratio of 1.28. This is a high value indicating a heavy dependency on external financing.
- SFI has a Debt to Equity ratio (1.28) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.12 |
ROIC/WACC0.48
WACC5.74%
2.3 Liquidity
- SFI has a Current Ratio of 1.15. This is a normal value and indicates that SFI is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.15, SFI is in the better half of the industry, outperforming 67.86% of the companies in the same industry.
- A Quick Ratio of 1.11 indicates that SFI should not have too much problems paying its short term obligations.
- SFI's Quick ratio of 1.11 is in line compared to the rest of the industry. SFI outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
- SFI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -42.22%.
- The Earnings Per Share has been growing by 12.26% on average over the past years. This is quite good.
- SFI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -20.72%.
- The Revenue has been growing slightly by 5.35% on average over the past years.
EPS 1Y (TTM)-42.22%
EPS 3Y-27.59%
EPS 5Y12.26%
EPS Q2Q%-47.62%
Revenue 1Y (TTM)-20.72%
Revenue growth 3Y-15.11%
Revenue growth 5Y5.35%
Sales Q2Q%-49.16%
3.2 Future
- No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SFI indicates a rather cheap valuation: SFI is cheaper than 82.14% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.48 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.45%, SFI has a reasonable but not impressive dividend return.
- With a Dividend Yield of 1.45, SFI pays less dividend than the industry average, which is at 6.56. 82.14% of the companies listed in the same industry pay a better dividend than SFI!
- SFI's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
5.2 History
- On average, the dividend of SFI grows each year by 31.95%, which is quite nice.
- SFI has been paying a dividend for over 5 years, so it has already some track record.
- SFI has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)31.95%
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
- 158.69% of the earnings are spent on dividend by SFI. This is not a sustainable payout ratio.
- The dividend of SFI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP158.69%
EPS Next 2YN/A
EPS Next 3YN/A
SOLUTION FINANCIAL INC / SFI.CA FAQ
Can you provide the ChartMill fundamental rating for SOLUTION FINANCIAL INC?
ChartMill assigns a fundamental rating of 2 / 10 to SFI.CA.
What is the valuation status for SFI stock?
ChartMill assigns a valuation rating of 1 / 10 to SOLUTION FINANCIAL INC (SFI.CA). This can be considered as Overvalued.
Can you provide the profitability details for SOLUTION FINANCIAL INC?
SOLUTION FINANCIAL INC (SFI.CA) has a profitability rating of 3 / 10.
Can you provide the financial health for SFI stock?
The financial health rating of SOLUTION FINANCIAL INC (SFI.CA) is 2 / 10.
How sustainable is the dividend of SOLUTION FINANCIAL INC (SFI.CA) stock?
The dividend rating of SOLUTION FINANCIAL INC (SFI.CA) is 3 / 10 and the dividend payout ratio is 158.69%.