SOLUTION FINANCIAL INC (SFI.CA) Stock Fundamental Analysis
TSX:SFI - Toronto Stock Exchange - CA83439G2009 - Common Stock - Currency: CAD
We assign a fundamental rating of 2 out of 10 to SFI. SFI was compared to 29 industry peers in the Financial Services industry. SFI has a bad profitability rating. Also its financial health evaluation is rather negative. SFI does not seem to be growing, but still is valued expensively.
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
With a Return On Assets value of 0.79%, SFI perfoms like the industry average, outperforming 41.38% of the companies in the same industry.
SFI has a Return On Equity of 2.17%. This is amonst the worse of the industry: SFI underperforms 82.76% of its industry peers.
SFI's Return On Invested Capital of 2.97% is on the low side compared to the rest of the industry. SFI is outperformed by 79.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SFI is below the industry average of 5.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 2.17% | ||
| ROIC | 2.97% |
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
SFI has a worse Profit Margin (2.12%) than 82.76% of its industry peers.
SFI's Profit Margin has improved in the last couple of years.
The Operating Margin of SFI (9.53%) is worse than 89.66% of its industry peers.
In the last couple of years the Operating Margin of SFI has grown nicely.
SFI has a better Gross Margin (29.79%) than 65.52% of its industry peers.
In the last couple of years the Gross Margin of SFI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.53% | ||
| PM (TTM) | 2.12% | ||
| GM | 29.79% |
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.
Compared to 5 years ago, SFI has more shares outstanding
SFI has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.32, we must say that SFI is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.32, SFI is not doing good in the industry: 68.97% of the companies in the same industry are doing better.
SFI has a Debt/Equity ratio of 1.17. This is a high value indicating a heavy dependency on external financing.
SFI has a Debt to Equity ratio (1.17) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.32 |
ROIC/WACC0.6
WACC4.92%
2.3 Liquidity
SFI has a Current Ratio of 1.20. This is a normal value and indicates that SFI is financially healthy and should not expect problems in meeting its short term obligations.
SFI has a better Current ratio (1.20) than 72.41% of its industry peers.
SFI has a Quick Ratio of 1.14. This is a normal value and indicates that SFI is financially healthy and should not expect problems in meeting its short term obligations.
SFI has a Quick ratio of 1.14. This is in the better half of the industry: SFI outperforms 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The earnings per share for SFI have decreased strongly by -33.33% in the last year.
The Earnings Per Share has been growing by 12.26% on average over the past years. This is quite good.
SFI shows a decrease in Revenue. In the last year, the revenue decreased by -4.61%.
SFI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.35% yearly.
EPS 1Y (TTM)-33.33%
EPS 3Y-27.59%
EPS 5Y12.26%
EPS Q2Q%-333.33%
Revenue 1Y (TTM)-4.61%
Revenue growth 3Y-15.11%
Revenue growth 5Y5.35%
Sales Q2Q%-19.86%
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
89.66% of the companies in the same industry are more expensive than SFI, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.2 |
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 1.43%, SFI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 7.85, SFI's dividend is way lower than its industry peers. On top of this 86.21% of the companies listed in the same industry pay a better dividend than SFI!
Compared to an average S&P500 Dividend Yield of 2.40, SFI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
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.
As SFI did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)31.95%
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
127.76% 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.
DP127.76%
EPS Next 2YN/A
EPS Next 3YN/A
TSX:SFI (6/13/2025, 7:00:00 PM)
0.285
+0 (+1.79%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins Owners67.62%
Ins Owner ChangeN/A
Market Cap24.41M
Analysts0
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
Yearly Dividend0
Dividend Growth(5Y)31.95%
DP127.76%
Div Incr Years0
Div Non Decr Years5
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1.92 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.96 | ||
| P/tB | 1.96 | ||
| EV/EBITDA | 20.2 |
EPS(TTM)0
EYN/A
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)-0.08
FCFYN/A
OCF(TTM)-0.08
OCFYN/A
SpS0.15
BVpS0.15
TBVpS0.15
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 2.17% | ||
| ROCE | 5.04% | ||
| ROIC | 2.97% | ||
| ROICexc | 3.1% | ||
| ROICexgc | 3.1% | ||
| OM | 9.53% | ||
| PM (TTM) | 2.12% | ||
| GM | 29.79% | ||
| FCFM | N/A |
ROA(3y)1.36%
ROA(5y)1.63%
ROE(3y)3.1%
ROE(5y)3.98%
ROIC(3y)3.85%
ROIC(5y)3.88%
ROICexc(3y)4.06%
ROICexc(5y)4.19%
ROICexgc(3y)4.06%
ROICexgc(5y)4.19%
ROCE(3y)6.6%
ROCE(5y)7.4%
ROICexcg growth 3Y-1.88%
ROICexcg growth 5Y9.55%
ROICexc growth 3Y-1.88%
ROICexc growth 5Y9.55%
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%
F-Score3
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.09 | ||
| Cap/Depr | 13.26% | ||
| Cap/Sales | 0.61% | ||
| Interest Coverage | 151.89 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 1.32 |
F-Score3
WACC4.92%
ROIC/WACC0.6
Cap/Depr(3y)5.44%
Cap/Depr(5y)62.95%
Cap/Sales(3y)0.61%
Cap/Sales(5y)19.07%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-33.33%
EPS 3Y-27.59%
EPS 5Y12.26%
EPS Q2Q%-333.33%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-4.61%
Revenue growth 3Y-15.11%
Revenue growth 5Y5.35%
Sales Q2Q%-19.86%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y17.63%
EBIT growth 3Y-8.07%
EBIT growth 5Y11.42%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y48.9%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y47.31%
OCF growth 3YN/A
OCF growth 5YN/A