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 has a expensive valuation and it also scores bad on growth.
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.
In multiple years SFI reported negative operating cash flow during the last 5 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's Return On Equity of 2.17% is on the low side compared to the rest of the industry. SFI is outperformed by 82.76% of its industry peers.
SFI has a worse Return On Invested Capital (2.97%) than 79.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
With a Profit Margin value of 2.12%, SFI is not doing good in the industry: 82.76% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of SFI has grown nicely.
Looking at the Operating Margin, with a value of 9.53%, SFI is doing worse than 89.66% of the companies in the same industry.
In the last couple of years the Operating Margin of SFI has grown nicely.
The Gross Margin of SFI (29.79%) is better 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SFI is destroying value.
Compared to 1 year ago, SFI has less shares outstanding
SFI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SFI has a worse debt to assets ratio.
2.2 Solvency
SFI has an Altman-Z score of 1.32. This is a bad value and indicates that SFI is not financially healthy and even 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 of 1.17. This is comparable to the rest of the industry: SFI outperforms 48.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.32 |
ROIC/WACC0.54
WACC5.52%
2.3 Liquidity
A Current Ratio of 1.20 indicates that SFI should not have too much problems paying its short term obligations.
The Current ratio of SFI (1.20) is better 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
SFI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.33%.
SFI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.26% yearly.
Looking at the last year, SFI shows a decrease in Revenue. The Revenue has decreased by -4.61% in the last 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
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SFI indicates a rather cheap valuation: SFI is cheaper than 89.66% of the companies listed in the same industry.
| 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
SFI has a Yearly Dividend Yield of 1.40%.
Compared to an average industry Dividend Yield of 6.44, 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 2.39, SFI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
5.2 History
The dividend of SFI is nicely growing with an annual growth rate of 31.95%!
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 (6/6/2025, 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 Cap24.41M
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 | 1.92 | ||
| 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
WACC5.52%
ROIC/WACC0.54
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