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 29 industry peers in the Financial Services industry. SFI may be in some trouble as it scores bad on both profitability and health. 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.
Each year in the past 5 years SFI has 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.
The Return On Equity of SFI (2.17%) is worse than 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
Looking at the Profit Margin, with a value of 2.12%, SFI is doing worse than 82.76% of the companies in the same industry.
SFI's Profit Margin has improved in the last couple of years.
SFI has a worse Operating Margin (9.53%) than 89.66% of its industry peers.
SFI's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 29.79%, SFI is doing good in 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
SFI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
SFI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SFI has been increased compared to 5 years ago.
The debt/assets ratio for SFI is higher compared to a year ago.
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.
Looking at the Altman-Z score, with a value of 1.32, SFI is doing worse than 68.97% of the companies in the same industry.
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/WACC0.54
WACC5.51%
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's Current ratio of 1.20 is fine compared to the rest of the industry. SFI outperforms 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.
The Revenue has decreased by -4.61% in the past year.
Measured over the past years, SFI shows a small growth in Revenue. The Revenue has been growing by 5.35% on average per year.
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
Based on the Enterprise Value to EBITDA ratio, SFI is valued cheaper than 89.66% of the companies 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%.
With a Dividend Yield of 1.40, SFI pays less dividend than the industry average, which is at 6.44. 86.21% 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 2.39.
| 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 (6/11/2025, 7:00:00 PM)
0.28
0 (-1.75%)
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 Cap23.98M
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 | 1.88 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.93 | ||
| P/tB | 1.93 | ||
| 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
WACC5.51%
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