Definity Financial Corp. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Fairfax Financial Holdings Ltd.

Armada Data Corp.

Definity Financial Corp.

Why is Definity Financial Corp. ?

Flat results in Jun 26

INTEREST(HY) At CAD 33.6 MM has Grown at 558.82%
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
DEBT-EQUITY RATIO (HY) Highest at 34.87 %

With ROE of 9.59%, it has a expensive valuation with a 2.24 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 8.49%, its profits have fallen by -6.5%

Underperformed the market in the last 1 year

The stock has generated a return of 8.49% in the last 1 year, much lower than market (S&P/TSX 60) returns of 28.13%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Definity Financial Corp. should be less than 10%
Overall Portfolio exposure to Insurance should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Insurance)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Definity Financial Corp. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Definity Financial Corp.

-100.0%

3.58

23.25%

S&P/TSX 60

29.63%

2.33

12.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.74%

EBIT Growth (5y)

14.87%

EBIT to Interest (avg)

14.81

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

27.07%

Dividend Payout Ratio

21.81%

Pledged Shares

Institutional Holding

1.53%

ROCE (avg)

2.09%

ROE (avg)

4,957.02%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.24

EV to EBIT

EV to EBITDA

70.52

EV to Capital Employed

1.92

EV to Sales

1.77

PEG Ratio

Dividend Yield

ROCE (Latest)

ROE (Latest)

9.59%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 480.8 MM

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

NET SALES(Q)

Highest at CAD 2,052.1 MM

PRE-TAX PROFIT(Q)

At CAD 210.4 MM has Grown at 53.94%

NET PROFIT(Q)

At CAD 152.4 MM has Grown at 56.27%

-11What is not working for the Company

INTEREST(HY)

At CAD 33.6 MM has Grown at 558.82%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DEBT-EQUITY RATIO (HY)

Highest at 34.87 %

DIVIDEND PER SHARE(HY)

Lowest at CAD 0

Here's what is working for Definity Financial Corp.

Operating Cash Flow

Highest at CAD 480.8 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Net Sales

Highest at CAD 2,052.1 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Net Sales

At CAD 2,052.1 MM has Grown at 38.27%

over average net sales of the previous four periods of CAD 1,484.1 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Pre-Tax Profit

At CAD 210.4 MM has Grown at 53.94%

over average net sales of the previous four periods of CAD 136.67 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 152.4 MM has Grown at 56.27%

over average net sales of the previous four periods of CAD 97.52 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Raw Material Cost

Fallen by 0% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Definity Financial Corp.

Interest

At CAD 33.6 MM has Grown at 558.82%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Debt-Equity Ratio

Highest at 34.87 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Dividend per share

Lowest at CAD 0

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (CAD)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)