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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Mogo, Inc.

Firm Capital Mortgage Investment Corp.

Enterprise Group, Inc.

Dominion Lending Centres, Inc.

Zedcor, Inc.

Chesswood Group Ltd.

Solution Financial, Inc.

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%

Negative results in Apr 25

PRE-TAX PROFIT(Q) At CAD -0 MM has Fallen at -104.87%
NET PROFIT(Q) At CAD 0.01 MM has Fallen at -91.61%
INTEREST(HY) At CAD 0.6 MM has Grown at 16.45%

With ROE of 1.78%, it has a very expensive valuation with a 1.98 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 -5.17%, its profits have fallen by -16%

Below par performance in long term as well as near term

Along with generating -5.17% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Solution Financial, Inc.

-1.75%

0.00

27.83%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-8.61%

EBIT Growth (5y)

-0.32%

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

97.56%

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

1.91

EV to EBIT

16.97

EV to EBITDA

12.17

EV to Capital Employed

2.26

EV to Sales

1.46

PEG Ratio

Dividend Yield

ROCE (Latest)

13.33%

ROE (Latest)

1.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD -4.81 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 1,000%

-22What is not working for the Company

PRE-TAX PROFIT(Q)

At CAD -0 MM has Fallen at -104.87%

NET PROFIT(Q)

At CAD 0.01 MM has Fallen at -91.61%

INTEREST(HY)

At CAD 0.6 MM has Grown at 16.45%

DEBT-EQUITY RATIO (HY)

Highest at 128.11 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.54%

RAW MATERIAL COST(Y)

Grown by 22.24% (YoY

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

Operating Cash Flow

Highest at CAD -4.81 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)

Dividend Payout Ratio

Highest at 1,000%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

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

Pre-Tax Profit

At CAD -0 MM has Fallen at -104.87%

over average net sales of the previous four periods of CAD 0.03 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 0.01 MM has Fallen at -91.61%

over average net sales of the previous four periods of CAD 0.07 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Interest

At CAD 0.6 MM has Grown at 16.45%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Debt-Equity Ratio

Highest at 128.11 % 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

Debtors Turnover Ratio

Lowest at 0.54% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 22.24% (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