DFY

Definity FinancialTSX:DFY Stock Report

Market Cap

CA$3.2b

7D

4.0%

1Y

n/a

Updated

01 Dec, 2021

Data

Company Financials
DFY fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance3/6
Financial Health5/6
Dividends0/6

DFY Stock Overview

Definity Financial Corporation, through its subsidiaries, provides property and casualty insurance products in Canada.

Definity Financial Competitors

Intact Financial

TSX:IFC

CA$28.4b

Royal Bank of Canada

TSX:RY

CA$184.8b

Toronto-Dominion Bank

TSX:TD

CA$170.5b

Bank of Nova Scotia

TSX:BNS

CA$99.0b

Price History & Performance

Summary of all time highs, changes and price drops for Definity Financial
Historical stock prices
Current Share PriceCA$27.69
52 Week HighCA$30.00
52 Week LowCA$26.00
Beta0
1 Month Changen/a
3 Month Changen/a
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO1.91%

Recent News & Updates

Shareholder Returns

DFYCA InsuranceCA Market
7D4.0%-2.2%-1.3%
1Yn/a19.9%23.7%

Return vs Industry: Insufficient data to determine how DFY performed against the Canadian Insurance industry.

Return vs Market: Insufficient data to determine how DFY performed against the Canadian Market.

Price Volatility

Is DFY's price volatile compared to industry and market?
DFY volatility
DFY Average Weekly Movementn/a
Insurance Industry Average Movement3.4%
Market Average Movement9.4%
10% most volatile stocks in CA Market17.1%
10% least volatile stocks in CA Market3.5%

Stable Share Price: Insufficient data to determine DFY's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine DFY's volatility change over the past year.

About the Company

FoundedEmployeesCEOWebsite
18712,700Rowan Saundershttps://www.definityfc.com

Definity Financial Corporation, through its subsidiaries, provides property and casualty insurance products in Canada. It offers personal insurance products, including auto, property, general and umbrella liability, and pet insurance products to individuals under the Economical, Sonnet, Family, Petsecure, and Peppermint brands; and commercial insurance products comprising fleet, commercial auto, property, liability, and specialty insurance products to businesses under the under the Economical brand name. The company distributes its products on a primarily intermediated basis, and through brokers, as well as directly to customers.

Definity Financial Fundamentals Summary

How do Definity Financial's earnings and revenue compare to its market cap?
DFY fundamental statistics
Market CapCA$3.23b
Earnings (TTM)CA$238.60m
Revenue (TTM)CA$2.79b

13.4x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DFY income statement (TTM)
RevenueCA$2.79b
Cost of RevenueCA$2.01b
Gross ProfitCA$789.00m
ExpensesCA$550.40m
EarningsCA$238.60m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.06
Gross Margin28.23%
Net Profit Margin8.54%
Debt/Equity Ratio0%

How did DFY perform over the long term?

See historical performance and comparison

Valuation

Is Definity Financial undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DFY (CA$27.85) is trading below our estimate of fair value (CA$357.6)

Significantly Below Fair Value: DFY is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DFY is poor value based on its PE Ratio (13.5x) compared to the Canadian Insurance industry average (9.7x).

PE vs Market: DFY is poor value based on its PE Ratio (13.5x) compared to the Canadian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DFY's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DFY is overvalued based on its PB Ratio (1.6x) compared to the CA Insurance industry average (1.3x).


Future Growth

How is Definity Financial forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-1.1%

Forecasted Insurance industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Definity Financial has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Definity Financial performed over the past 5 years?

179.8%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: DFY has high quality earnings.

Growing Profit Margin: DFY's current net profit margins (8.5%) are higher than last year (3.4%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if DFY's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare DFY's past year earnings growth to its 5-year average.

Earnings vs Industry: DFY earnings growth over the past year (179.8%) exceeded the Insurance industry 60.9%.


Return on Equity

High ROE: DFY's Return on Equity (12.2%) is considered low.


Financial Health

How is Definity Financial's financial position?


Financial Position Analysis

Short Term Liabilities: DFY's short term assets (CA$1.6B) do not cover its short term liabilities (CA$4.9B).

Long Term Liabilities: DFY's short term assets (CA$1.6B) exceed its long term liabilities (CA$70.2M).


Debt to Equity History and Analysis

Debt Level: DFY is debt free.

Reducing Debt: DFY had no debt 5 years ago.

Debt Coverage: DFY has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: DFY has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Definity Financial current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate DFY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate DFY's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DFY's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DFY's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DFY's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.5yrs

Average board tenure


CEO

Rowan Saunders (57 yo)

no data

Tenure

Mr. Rowan Saunders has been the Chief Executive Officer and President at Economical Insurance Group Ltd. since November 01, 2016. Mr. Saunders serves as Chief Executive Officer and President of Economical...


Board Members

Experienced Board: DFY's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: DFY only recently listed within the past 12 months.


Top Shareholders

Company Information

Definity Financial Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Definity Financial Corporation
  • Ticker: DFY
  • Exchange: TSX
  • Founded: 1871
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: CA$3.228b
  • Shares outstanding: 115.89m
  • Website: https://www.definityfc.com

Number of Employees


Location

  • Definity Financial Corporation
  • 111 Westmount Road South
  • Waterloo
  • Ontario
  • N2J 4S4
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/01 00:03
End of Day Share Price2021/11/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.