ScoreWhy is Definity Financial Corp. ?
1
Negative results in Mar 26
- ROCE(HY) Lowest at 10.49%
- INTEREST COVERAGE RATIO(Q) Lowest at 245.56
- NET PROFIT(Q) At CAD 63.9 MM has Fallen at -38.88%
2
With ROE of 9.59%, it has a expensive valuation with a 2.10 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 -5.29%, its profits have fallen by -6.5%
3
Underperformed the market in the last 1 year
- Even though the market (S&P/TSX 60) has generated returns of 29.60% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -5.29% returns
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Insurance)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Definity Financial Corp. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Definity Financial Corp.
-5.29%
2.92
22.45%
S&P/TSX 60
29.6%
2.31
12.81%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
16.74%
EBIT Growth (5y)
14.87%
EBIT to Interest (avg)
14.55
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0
Tax Ratio
24.96%
Dividend Payout Ratio
21.81%
Pledged Shares
0
Institutional Holding
1.53%
ROCE (avg)
2.09%
ROE (avg)
4,957.02%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
22
Industry P/E
Price to Book Value
2.10
EV to EBIT
NA
EV to EBITDA
66.83
EV to Capital Employed
1.82
EV to Sales
1.67
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
ROE (Latest)
9.59%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CAD 455.2 MM
DIVIDEND PER SHARE(HY)
Highest at CAD 0
DIVIDEND PAYOUT RATIO(Y)
Highest at 40.38%
RAW MATERIAL COST(Y)
Fallen by 0% (YoY
NET SALES(Q)
Highest at CAD 1,922.7 MM
-25What is not working for the Company
ROCE(HY)
Lowest at 10.49%
INTEREST COVERAGE RATIO(Q)
Lowest at 245.56
NET PROFIT(Q)
At CAD 63.9 MM has Fallen at -38.88%
DIVIDEND PAYOUT RATIO(Y)
Lowest at 0%
DEBT-EQUITY RATIO
(HY)
Highest at 36.47 %
DIVIDEND PER SHARE(HY)
Lowest at CAD 0
INTEREST(Q)
Highest at CAD 18 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 5.73 %
PRE-TAX PROFIT(Q)
At CAD 92.2 MM has Fallen at -36.17%
Here's what is working for Definity Financial Corp.
Operating Cash Flow
Highest at CAD 455.2 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CAD MM)
Net Sales
At CAD 1,922.7 MM has Grown at 45.75%
over average net sales of the previous four periods of CAD 1,319.15 MMMOJO Watch
Near term sales trend is very positive
Net Sales (CAD MM)
Dividend per share
Highest at CAD 0 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (CAD)
Net Sales
Highest at CAD 1,922.7 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CAD MM)
Dividend Payout Ratio
Highest at 40.38%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
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
Depreciation
Highest at CAD 44.2 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (CAD MM)
Here's what is not working for Definity Financial Corp.
Interest
At CAD 18 MM has Grown at 40.62%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CAD MM)
Interest Coverage Ratio
Lowest at 245.56
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Profit
At CAD 63.9 MM has Fallen at -38.88%
over average net sales of the previous four periods of CAD 104.55 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (CAD MM)
Interest
Highest at CAD 18 MM
in the last five periods and Increased by 40.62% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CAD MM)
Operating Profit Margin
Lowest at 5.73 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
At CAD 92.2 MM has Fallen at -36.17%
over average net sales of the previous four periods of CAD 144.45 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CAD MM)
Debt-Equity Ratio
Highest at 36.47 %
in the last five Semi-Annual periodsMOJO 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 yearsMOJO Watch
Company is distributing lower dividend than previous years
DPS (CAD)
Dividend Payout Ratio
Lowest at 0%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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