TSX:ELF

Stock Analysis Report

Executive Summary

E-L Financial Corporation Limited operates as an investment and insurance holding company in Canada.

Snowflake

Fundamentals

Fair value with limited growth.


Similar Companies

Share Price & News

How has E-L Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.1%

ELF

1.1%

CA Insurance

-0.3%

CA Market


1 Year Return

-8.1%

ELF

10.9%

CA Insurance

0.9%

CA Market

Return vs Industry: ELF underperformed the Canadian Insurance industry which returned 10.9% over the past year.

Return vs Market: ELF underperformed the Canadian Market which returned 0.9% over the past year.


Share holder returns

ELFIndustryMarket
7 Day0.1%1.1%-0.3%
30 Day0.3%-0.5%-2.1%
90 Day-1.1%1.4%-1.5%
1 Year-7.5%-8.1%15.7%10.9%4.4%0.9%
3 Year7.9%5.9%24.6%11.1%15.7%5.4%
5 Year15.5%12.6%44.5%20.1%26.1%7.9%

Price Volatility Vs. Market

How volatile is E-L Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is E-L Financial undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: ELF (CA$752) is trading below our estimate of fair value (CA$1647.65)

Significantly Undervalued: ELF is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: ELF is poor value based on its PE Ratio (15.3x) compared to the Insurance industry average (12.8x).

PE vs Market: ELF is poor value based on its PE Ratio (15.3x) compared to the Canadian market (13.7x).


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: ELF is good value based on its PB Ratio (0.5x) compared to the CA Insurance industry average (1.1x).


Next Steps

Future Growth

How is E-L Financial expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: ELF's forecast earnings growth (19.7% per year) is above the savings rate (1.9%).

Earnings vs Market: ELF's earnings (19.7% per year) are forecast to grow faster than the Canadian market (13.3% per year).

High Growth Earnings: ELF's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if ELF's revenue is forecast to grow faster than the Canadian market.

High Growth Revenue: Insufficient data to determine if ELF's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if ELF's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has E-L Financial performed over the past 5 years?

-7.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ELF's earnings have declined by -7.9% per year over the past 5 years.

Accelerating Growth: ELF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ELF had negative earnings growth (-57.8%) over the past year, making it difficult to compare to the Insurance industry average (-0.8%).


Return on Equity

High ROE: ELF's Return on Equity (3.7%) is considered low.


Return on Assets

ROA vs Industry: ELF's Return on Assets is below or equal to the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: ELF's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is E-L Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: ELF has a low level of unsold assets or inventory.

Debt Coverage by Assets: ELF's debt is not covered by short term assets (assets are 0.9x debt).


Financial Institutions Analysis

Asset Level: ELF's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if ELF has a sufficient allowance for bad loans.

Low Risk Liabilities: ELF reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if ELF has an acceptable proportion of non-loan assets held.

Low Risk Deposits: ELF has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if ELF has an appropriate level of bad loans.


Next Steps

Dividend

What is E-L Financial's current dividend yield, its reliability and sustainability?

0.66%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%2.0%markettop25%6.0%industryaverage3.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: ELF's dividend (0.66%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.03%).

High Dividend: ELF's dividend (0.66%) is low compared to the top 25% of dividend payers in the Canadian market (5.98%).

Stable Dividend: ELF is not paying a notable dividend for the Canadian market, therefore no need to check if payments are stable.

Growing Dividend: ELF is not paying a notable dividend for the Canadian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: ELF is not paying a notable dividend for .


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of E-L Financial's salary, the management and board of directors tenure and is there insider trading?

8.3yrs

Average management tenure


CEO

Duncan Newton Jackman (52yo)

15.1yrs

Tenure

CA$1,273,618

Compensation

Mr. Duncan Newton Rowell Jackman has been the Chairman of The Empire Life Insurance Company since February 2003 and has been its Director since April 2, 1997. Mr. Jackman has been the Chairman of the Board ...


CEO Compensation Analysis

Compensation vs. Market: Duncan Newton's total compensation ($USD966.90K) is about average for companies of similar size in the Canadian market ($USD2.19M).

Compensation vs Earnings: Duncan Newton's compensation has been consistent with company performance over the past year.


Management Age and Tenure

8.3yrs

Average Tenure

Experienced Management: ELF's management team is seasoned and experienced (8.3 years average tenure).


Board Age and Tenure

10.9yrs

Average Tenure

58yo

Average Age

Experienced Board: ELF's board of directors are seasoned and experienced ( 10.9 years average tenure).


Insider Trading

Insider Buying: ELF insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$74,50009 Oct 19
Duncan Newton Jackman
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares100
Max PriceCA$745.00
BuyCA$37,50006 Sep 19
M. Victoria Jackman
EntityIndividual
Role
Member of the Board of Directors
Director
Shares50
Max PriceCA$750.00
BuyCA$75,00025 Jun 19
Duncan Newton Jackman
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares100
Max PriceCA$750.00
BuyCA$99,37517 May 19
M. Victoria Jackman
EntityIndividual
Role
Member of the Board of Directors
Director
Shares125
Max PriceCA$795.00
BuyCA$79,27015 May 19
Duncan Newton Jackman
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares100
Max PriceCA$792.70
BuyCA$75,00021 Dec 18
Duncan Newton Jackman
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares100
Max PriceCA$750.00
SellCA$52,91022 Nov 18
John Barron
EntityIndividual
Shares65
Max PriceCA$814.00

Ownership Breakdown


Management Team

  • Mark Sylvia

    CEO & President of The Empire Life Insurance Company

    • Tenure: 5.3yrs
    • Compensation: CA$1.75m
  • Duncan Newton Jackman (52yo)

    Chairman

    • Tenure: 15.1yrs
    • Compensation: CA$1.27m
  • Steven Whitelaw

    Senior Vice-President of Personal Lines and Business Solutions- The Dominion

    • Tenure: 25.8yrs
  • Nora Hohman

    Senior Vice-President of Claims for The Dominion

    • Tenure: 0yrs
  • Richard Carty (51yo)

    VP, General Counsel & Corporate Secretary

    • Tenure: 0yrs
  • J. Gibson

    CFO, Senior VP & Chief Actuary of Empire Life Insurance Company

    • Tenure: 11.3yrs
    • Compensation: CA$610.80k
  • Ian Hardacre

    Senior VP & Chief Investment Officer of Empire Life Insurance Company

    • Tenure: 2.8yrs
    • Compensation: CA$796.20k
  • Susan Clifford

    Treasurer

    • Tenure: 0yrs
  • Scott Ewert

    VP & CFO

    • Tenure: 4.6yrs
    • Compensation: CA$632.47k
  • Fahad Khan

    Vice-President of Investments

    • Tenure: 0yrs

Board Members

  • Duncan Newton Jackman (52yo)

    Chairman

    • Tenure: 15.1yrs
    • Compensation: CA$1.27m
  • William Corcoran

    Director

    • Tenure: 22.3yrs
    • Compensation: CA$92.62k
  • Henry N. Jackman

    Director

    • Tenure: 22.8yrs
    • Compensation: CA$100.93k
  • Clive Rowe

    Director

    • Tenure: 5.4yrs
    • Compensation: CA$107.95k
  • Mark Taylor (62yo)

    Director

    • Tenure: 16.4yrs
    • Compensation: CA$131.48k
  • Michael Cooper (58yo)

    Director

    • Tenure: 5.4yrs
    • Compensation: CA$34.47k
  • Biff Matthews

    Director

    • Tenure: 9.4yrs
    • Compensation: CA$42.72k
  • James Billett

    Director

    • Tenure: 12.4yrs
    • Compensation: CA$58.27k
  • Stephen J. Smith

    Director

    • Tenure: 1.4yrs
    • Compensation: CA$41.83k
  • M. Victoria Jackman

    Director

    • Tenure: 1.4yrs
    • Compensation: CA$37.77k

Company Information

E-L Financial Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: E-L Financial Corporation Limited
  • Ticker: ELF
  • Exchange: TSX
  • Founded: 1968
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: CA$2.953b
  • Shares outstanding: 3.93m
  • Website: https://www.e-lfinancial.ca

Location

  • E-L Financial Corporation Limited
  • 165 University Avenue
  • 10th Floor
  • Toronto
  • Ontario
  • M5H 3B8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ELFTSX (The Toronto Stock Exchange)YesCommon SharesCACADJan 1975
ELFI.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1975
ELF.PRHTSX (The Toronto Stock Exchange)PFD 1ST SER 3CACADApr 2012

Biography

E-L Financial Corporation Limited operates as an investment and insurance holding company in Canada. It operates through two segments, E-L Corporate and Empire Life. The company owns investments in equitie ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:15
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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