Solution Financial, Inc. (SFI) 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

Firm Capital Mortgage Investment Corp.

Enterprise Group, Inc.

Dominion Lending Centres, Inc.

Solution Financial, Inc.

Zedcor, Inc.

Mogo, Inc.

Chesswood Group Ltd.

Red White & Bloom Brands, Inc.

Accord Financial Corp.

Terra Firma Capital Corp.

IOU Financial, Inc.

Why is Solution Financial, Inc. ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 4.64%

With ROE of 2.64%, it has a very expensive valuation with a 1.92 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -3.51%, its profits have risen by 5% ; the PEG ratio of the company is 1.2

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -3.51% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How 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 Finance)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Solution Financial, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Solution Financial, Inc.

-3.51%

0.00

19.47%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-12.07%

EBIT Growth (5y)

0.14%

EBIT to Interest (avg)

1.39

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

125.00%

Pledged Shares

Institutional Holding

ROCE (avg)

14.14%

ROE (avg)

4.64%

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

1.92

EV to EBIT

14.21

EV to EBITDA

11.57

EV to Capital Employed

2.30

EV to Sales

1.46

PEG Ratio

1.15

Dividend Yield

ROCE (Latest)

16.20%

ROE (Latest)

2.64%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

Bullish

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

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

19What is working for the Company

NET PROFIT(HY)

At CAD 0.08 MM has Grown at 229.97%

OPERATING CASH FLOW(Y)

Highest at CAD -1.33 MM

ROCE(HY)

Highest at 3.35%

CASH AND EQV(HY)

Highest at CAD 6.58 MM

NET SALES(Q)

Highest at CAD 4.19 MM

PRE-TAX PROFIT(Q)

Highest at CAD 0.13 MM

-3What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 150.71 %

RAW MATERIAL COST(Y)

Grown by 9.14% (YoY

Here's what is working for Solution Financial, Inc.

Net Profit

At CAD 0.08 MM has Grown at 229.97%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (CAD MM)

Operating Cash Flow

Highest at CAD -1.33 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)

Pre-Tax Profit

At CAD 0.13 MM has Grown at 136.39%

over average net sales of the previous four periods of CAD 0.05 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Net Sales

Highest at CAD 4.19 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Net Sales

At CAD 4.19 MM has Grown at 24.38%

over average net sales of the previous four periods of CAD 3.37 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Pre-Tax Profit

Highest at CAD 0.13 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Cash and Eqv

Highest at CAD 6.58 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Solution Financial, Inc.

Debt-Equity Ratio

Highest at 150.71 % and Grown

In each half year 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

Raw Material Cost

Grown by 9.14% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales