SOLUTION FINANCIAL INC (SFI.CA) Stock Fundamental Analysis
TSX:SFI - Toronto Stock Exchange - CA83439G2009 - Common Stock - Currency: CAD
Taking everything into account, SFI scores 2 out of 10 in our fundamental rating. SFI was compared to 29 industry peers in the Financial Services industry. SFI may be in some trouble as it scores bad on both profitability and health. 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.
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 in line with its industry, outperforming 41.38% of the companies in the same industry.
With a Return On Equity value of 2.17%, SFI is not doing good in the industry: 82.76% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 2.97%, SFI is not doing good in the industry: 79.31% of the companies in the same industry are doing better.
SFI had an Average Return On Invested Capital over the past 3 years of 3.85%. This 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.
SFI has a Operating Margin of 9.53%. This is amonst the worse of the industry: SFI underperforms 89.66% of its industry peers.
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 65.52% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SFI 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.
The Altman-Z score of SFI (1.32) is worse than 68.97% of its industry peers.
SFI has a Debt/Equity ratio of 1.17. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.17, SFI is in line with its industry, outperforming 48.28% of the companies in the same industry.
| 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.
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.
Looking at the Quick ratio, with a value of 1.14, SFI is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
| 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%.
Measured over the past years, SFI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.26% on average per year.
SFI shows a decrease in Revenue. In the last year, the revenue decreased by -4.61%.
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
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
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
SFI pays out 127.76% of its income as dividend. 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