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SOLUTION FINANCIAL INC (SFI.CA) Stock Fundamental Analysis

TSX:SFI - Toronto Stock Exchange - CA83439G2009 - Common Stock - Currency: CAD

0.285  0 (0%)

Fundamental Rating

2

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.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

SFI had negative earnings in the past year.
SFI had a negative operating cash flow in the past year.
In the past 5 years SFI has always been profitable.
In multiple years SFI reported negative operating cash flow during the last 5 years.
SFI.CA Yearly Net Income VS EBIT VS OCF VS FCFSFI.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5M -5M

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.
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.
SFI has a worse Return On Invested Capital (2.97%) than 79.31% of its industry peers.
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 RankSector 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%
SFI.CA Yearly ROA, ROE, ROICSFI.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 -10 -15 -20

1.3 Margins

SFI has a Profit Margin of 2.12%. This is amonst the worse of the industry: SFI underperforms 82.76% of its industry peers.
SFI's Profit Margin has improved in the last couple of years.
SFI's Operating Margin of 9.53% is on the low side compared to the rest of the industry. SFI is outperformed by 89.66% of its industry peers.
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.
SFI's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
SFI.CA Yearly Profit, Operating, Gross MarginsSFI.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40

3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SFI is destroying value.
Compared to 1 year ago, SFI has less shares outstanding
The number of shares outstanding for SFI has been increased compared to 5 years ago.
Compared to 1 year ago, SFI has a worse debt to assets ratio.
SFI.CA Yearly Shares OutstandingSFI.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
SFI.CA Yearly Total Debt VS Total AssetsSFI.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M

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.
SFI has a Altman-Z score of 1.32. This is in the lower half of the industry: SFI underperforms 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.
SFI has a Debt to Equity ratio (1.17) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 1.17
Debt/FCF N/A
Altman-Z 1.32
ROIC/WACC0.54
WACC5.52%
SFI.CA Yearly LT Debt VS Equity VS FCFSFI.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5M -5M 10M

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 Current ratio of 1.20. This is in the better half of the industry: SFI outperforms 72.41% of its industry peers.
A Quick Ratio of 1.14 indicates that SFI should not have too much problems paying its short term obligations.
The Quick ratio of SFI (1.14) is better than 72.41% of its industry peers.
Industry RankSector Rank
Current Ratio 1.2
Quick Ratio 1.14
SFI.CA Yearly Current Assets VS Current LiabilitesSFI.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M

1

3. Growth

3.1 Past

The earnings per share for SFI have decreased strongly by -33.33% in the last year.
SFI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.26% yearly.
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.
SFI.CA Yearly Revenue VS EstimatesSFI.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M 20M

1

4. Valuation

4.1 Price/Earnings Ratio

Industry RankSector Rank
PE N/A
Fwd PE N/A
SFI.CA Price Earnings VS Forward Price EarningsSFI.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 0 0 0 0

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, SFI is valued cheaply inside the industry as 89.66% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 20.2
SFI.CA Per share dataSFI.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 0.05 -0.05 0.1

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A

3

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 RankSector 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.
SFI has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)31.95%
Div Incr Years0
Div Non Decr Years5
SFI.CA Yearly Dividends per shareSFI.CA Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 2025

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
SFI.CA Yearly Income VS Free CF VS DividendSFI.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -2M -4M -6M -8M
SFI.CA Dividend Payout.SFI.CA Dividend Payout, showing the Payout Ratio.SFI.CA Dividend Payout.PayoutRetained Earnings

SOLUTION FINANCIAL INC

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)03-14 2025-03-14
Earnings (Next)06-17 2025-06-17
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 RankSector Rank
Dividend Yield 1.4%
Yearly Dividend0
Dividend Growth(5Y)31.95%
DP127.76%
Div Incr Years0
Div Non Decr Years5
Ex-Date05-30 2025-05-30 (0.001)
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 RankSector 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 RankSector 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 RankSector 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