TSX:ELF

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Undervalued with proven track record.


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

Stable Share Price: ELF is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ELF's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0.5%

ELF

0.6%

CA Insurance

-0.2%

CA Market


1 Year Return

-1.2%

ELF

-8.6%

CA Insurance

1.5%

CA Market

Return vs Industry: ELF exceeded the Canadian Insurance industry which returned -8.6% over the past year.

Return vs Market: ELF underperformed the Canadian Market which returned 2.1% over the past year.


Shareholder returns

ELFIndustryMarket
7 Day0.5%0.6%-0.2%
30 Day6.3%7.3%4.0%
90 Day22.8%14.9%12.9%
1 Year3.7%-1.2%-3.9%-8.6%5.2%1.5%
3 Year5.8%-0.5%11.3%-2.3%14.2%3.4%
5 Year31.9%22.4%42.6%16.7%63.2%38.1%

Long-Term 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 compared to its fair value and its price relative to the market?

32.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ELF (CA$807.99) is trading below our estimate of fair value (CA$1192.59)

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


Price To Earnings Ratio

PE vs Industry: ELF is good value based on its PE Ratio (10.9x) compared to the CA Insurance industry average (11.5x).

PE vs Market: ELF is good value based on its PE Ratio (10.9x) compared to the Canadian market (16.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ELF is good value based on its PB Ratio (0.5x) compared to the CA Insurance industry average (1x).


Next Steps

Future Growth

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

15.0%

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 E-L 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.


Next Steps

Past Performance

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

-14.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ELF has high quality earnings.

Growing Profit Margin: ELF's current net profit margins (13.2%) are higher than last year (8.2%).


Past Earnings Growth Analysis

Earnings Trend: ELF's earnings have declined by 14.7% per year over the past 5 years.

Accelerating Growth: ELF's earnings growth over the past year (38.2%) exceeds its 5-year average (-14.7% per year).

Earnings vs Industry: ELF earnings growth over the past year (38.2%) exceeded the Insurance industry 29.7%.


Return on Equity

High ROE: ELF's Return on Equity (5.1%) is considered low.


Next Steps

Financial Health

How is E-L Financial's financial position?


Financial Position Analysis

Short Term Liabilities: ELF's short term assets (CA$588.6M) exceed its short term liabilities (CA$8.7M).

Long Term Liabilities: ELF's short term assets (CA$588.6M) do not cover its long term liabilities (CA$16.6B).


Debt to Equity History and Analysis

Debt Level: ELF's debt to equity ratio (8.4%) is considered satisfactory.

Reducing Debt: ELF's debt to equity ratio has increased from 5.5% to 8.4% over the past 5 years.

Debt Coverage: ELF's debt is well covered by operating cash flow (62%).

Interest Coverage: ELF's interest payments on its debt are well covered by EBIT (25.1x coverage).


Balance Sheet


Next Steps

Dividend

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

0.62%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ELF's dividend (0.62%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.53%).

High Dividend: ELF's dividend (0.62%) is low compared to the top 25% of dividend payers in the Canadian market (4.96%).


Stability and Growth of Payments

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 the Canadian market.


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

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

12.6yrs

Average management tenure


CEO

Duncan Newton Jackman (53 yo)

16.33yrs

Tenure

CA$1,556,464

Compensation

Mr. Duncan Newton Rowell Jackman, LLB. 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...


CEO Compensation Analysis

Compensation vs Market: Duncan Newton's total compensation ($USD1.23M) is below average for companies of similar size in the Canadian market ($USD2.08M).

Compensation vs Earnings: Duncan Newton's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Duncan Newton Jackman
Chairman16.33yrsCA$1.56m0.13%
CA$ 3.8m
Scott Ewert
VP & CFO5.83yrsCA$709.36kno data
Richard Carty
VP, General Counsel & Corporate Secretaryno dataCA$995.30kno data
Mark Sylvia
CEO & President of The Empire Life Insurance Company6.58yrsCA$1.70mno data
Fahad Khan
Vice-President of Investmentsno datano datano data
Susan Clifford
Treasurerno datano datano data
Nora Hohman
Senior Vice-President of Claims for The Dominionno datano datano data
J. Gibson
CFO, Senior VP & Chief Actuary of Empire Life Insurance Company12.58yrsCA$610.80kno data
Steven Whitelaw
Senior Vice-President of Personal Lines and Business Solutions- The Dominion27yrsno datano data

12.6yrs

Average Tenure

Experienced Management: ELF's management team is seasoned and experienced (12.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Duncan Newton Jackman
Chairman16.33yrsCA$1.56m0.13%
CA$ 3.8m
William Corcoran
Independent Director23.5yrsCA$91.31k0.0055%
CA$ 161.6k
Henry N. Jackman
Director24yrsCA$104.65k0.16%
CA$ 4.6m
Clive Rowe
Director6.67yrsCA$109.15k0.0046%
CA$ 135.9k
Mark Taylor
Independent Director17.67yrsCA$96.25k0.012%
CA$ 337.8k
Michael Cooper
Independent Director6.67yrsCA$37.20k0.0083%
CA$ 242.5k
Robert Matthews
Independent Director10.67yrsCA$42.30k0.0055%
CA$ 161.6k
James Billett
Independent Director13.67yrsCA$60.00kno data
Stephen J. Smith
Independent Director2.67yrsCA$40.60kno data
Maria Victoria Jackman
Director2.67yrsCA$37.20k0.010%
CA$ 291.0k

12.2yrs

Average Tenure

59yo

Average Age

Experienced Board: ELF's board of directors are seasoned and experienced ( 12.2 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: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$2.922b
  • Shares outstanding: 3.62m
  • 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
74NDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 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 Analysis2021/01/21 23:11
End of Day Share Price2021/01/20 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.