SOLUTION FINANCIAL INC (SFI.CA) Stock Fundamental Analysis
TSX:SFI - Toronto Stock Exchange - CA83439G2009 - Common Stock - Currency: CAD
Overall SFI gets a fundamental rating of 2 out of 10. We evaluated SFI against 30 industry peers in the Financial Services industry. Both the profitability and financial health of SFI have multiple concerns. SFI does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year SFI has reported negative net income.
SFI had a negative operating cash flow in the past year.
SFI had positive earnings in each of the past 5 years.
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 0.79%, SFI is doing worse than 60.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 2.17%, SFI is doing worse than 70.00% of the companies in the same industry.
With a Return On Invested Capital value of 2.97%, SFI is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for SFI is in line with the industry average of 5.68%.
| 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's Profit Margin of 2.12% is on the low side compared to the rest of the industry. SFI is outperformed by 70.00% of its industry peers.
SFI's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 9.53%, SFI is not doing good in the industry: 90.00% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of SFI has grown nicely.
Looking at the Gross Margin, with a value of 29.79%, SFI is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SFI is destroying value.
The number of shares outstanding for SFI has been reduced compared to 1 year ago.
The number of shares outstanding for SFI has been increased compared to 5 years ago.
SFI has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.33, we must say that SFI is in the distress zone and has some risk of bankruptcy.
SFI has a Altman-Z score of 1.33. This is in the lower half of the industry: SFI underperforms 70.00% of its industry peers.
A Debt/Equity ratio of 1.17 is on the high side and indicates that SFI has dependencies on debt financing.
With a Debt to Equity ratio value of 1.17, SFI perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.33 |
ROIC/WACC0.45
WACC6.55%
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.
Looking at the Current ratio, with a value of 1.20, SFI is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
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.
The Quick ratio of SFI (1.14) is better than 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
SFI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.33%.
The Earnings Per Share has been growing by 12.26% on average over the past years. This is quite good.
The Revenue has decreased by -4.61% in the past year.
The Revenue has been growing slightly by 5.35% on average over the past years.
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
90.00% 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 | 20.28 |
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
SFI has a Yearly Dividend Yield of 1.40%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 8.27, SFI's dividend is way lower than its industry peers. On top of this 86.67% of the companies listed in the same industry pay a better dividend than SFI!
With a Dividend Yield of 1.40, SFI pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
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.
SFI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP127.76%
EPS Next 2YN/A
EPS Next 3YN/A
TSX:SFI (5/2/2025, 7:00:00 PM)
0.285
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins Owners66.64%
Ins Owner ChangeN/A
Market Cap24.56M
Analysts0
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
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 | 1.93 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.97 | ||
| P/tB | 1.97 | ||
| EV/EBITDA | 20.28 |
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
BVpS0.14
TBVpS0.14
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 | 1.33 |
F-Score3
WACC6.55%
ROIC/WACC0.45
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