DFY Stock Analysis: Definity Financial | TO
Insurance - Property & Casualty | TO, Canada | Market Cap: 8.696m CAD | 12M Return: 14.2% | CA24477T1003 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 11.2M
EPS Trend: 95.8%
Qual. Beats: 0
Rev. Trend: 93.5%
Qual. Beats: 4
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 4.9 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Definity Financial Corporation is a Canadian property and casualty insurer offering personal auto, property, and pet coverage, as well as commercial insurance for small and mid-market businesses. It sells through brokers and other intermediaries, and directly to customers, under brands including Economical, Sonnet, Family, and Petline. Like other P&C insurers, it collects premiums and pays claims for covered losses. Founded in 1871, the company is headquartered in Waterloo, Ontario.
- Commercial premium growth supports underwriting earnings
- Catastrophe losses and claims inflation pressure margins
- Investment yields and capital returns shape earnings growth
| Net Income: 467.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA -1.29 > 1.0 |
| NWC/Revenue: 3.88% < 20% (prev -62.28%; Δ 66.16% < -1%) |
| CFO/TA 0.04 > 3% & CFO 480.8m > Net Income 467.4m |
| Net Debt (1.37b) to EBITDA (850.4m): 1.61 < 3 |
| Current Ratio: 1.35 > 1.5 & < 3 |
| Outstanding Shares: last quarter (121.9m) vs 12m ago 4.01% < -2% |
| Gross Margin: 20.23% > 18% (prev 17.91%; Δ 2.32% > 0.5%) |
| Asset Turnover: 59.47% > 50% (prev 57.52%; Δ 1.95% > 0%) |
| Interest Coverage Ratio: 13.47 > 6 (EBIT TTM 692.4m / Interest Expense TTM 51.4m) |
| A: 0.02 (Total Current Assets 958.6m - Total Current Liabilities 707.5m) / Total Assets 13.5b |
| B: 0.11 (Retained Earnings 1.53b / Total Assets 13.5b) |
| C: 0.06 (EBIT TTM 692.4m / Avg Total Assets 10.9b) |
| D: 0.47 (Book Value of Equity 4.20b / Total Liabilities 9.02b) |
| Altman-Z'' = 1.41 = BB |
| DSRI: 1.33 (Receivables 720.4m/401.0m, Revenue 6.47b/4.78b) |
| GMI: 0.89 (GM 17.91% / 20.23%) |
| AQI: 1.08 (AQ_t 0.92 / AQ_t-1 0.86) |
| SGI: 1.36 (Revenue 6.47b / 4.78b) |
| TATA: -0.00 (NI 467.4m - CFO 480.8m) / TA 13.5b) |
| Beneish M = -2.56 (Cap -4..+1) = A |
As of October 31, 2026, the stock is trading at CAD 73.27 with a total of 229,355 shares traded. Over the past week, the price has changed by +1.20%, over one month by +5.11%, over three months by -6.39% and over the past year by +14.21%.
Current recommended Stop Loss: 71.20 (which is 2.8% or 1.4 ATR below the current price).
Definity Financial has no consensus analysts rating.
P/E Trailing = 18.9529
P/E Forward = 15.6006
P/S = 1.4514
P/B = 2.0944
Revenue TTM = 6.47b CAD
EBIT TTM = 692.4m CAD
EBITDA TTM = 850.4m CAD
Long Term Debt = 1.38b CAD (from longTermDebt, last quarter)
Short Term Debt = 129.4m CAD (from shortTermDebt, last quarter)
Debt = 1.61b CAD (from shortLongTermDebtTotal, last quarter) + Leases 47.8m
Net Debt = 1.37b CAD (calculated: Debt 1.61b - CCE 238.2m)
Enterprise Value = 10.1b CAD (8.70b + Debt 1.61b - CCE 238.2m)
Interest Coverage Ratio = 13.47 (Ebit TTM 692.4m / Interest Expense TTM 51.4m)
EV/FCF = 26.82x (Enterprise Value 10.1b / FCF TTM 375.4m)
FCF Yield = 3.73% (FCF TTM 375.4m / Enterprise Value 10.1b)
FCF Margin = 5.80% (FCF TTM 375.4m / Revenue TTM 6.47b)
Net Margin = 7.22% (Net Income TTM 467.4m / Revenue TTM 6.47b)
Gross Margin = 20.23% ((Revenue TTM 6.47b - Cost of Revenue TTM 5.16b) / Revenue TTM)
Gross Margin QoQ = 23.64% (prev 17.41%)
Tobins Q-Ratio = 0.75 (Enterprise Value 10.1b / Total Assets 13.5b)
Interest Expense / Debt = 3.20% (Interest Expense 51.4m / Debt 1.61b)
Taxrate = 25.55% (163.8m / 641.0m)
NOPAT = 515.5m (EBIT 692.4m * (1 - 25.55%))
Current Ratio = 1.35 (Total Current Assets 958.6m / Total Current Liabilities 707.5m)
Debt / Equity = 0.38 (Debt 1.61b / totalStockholderEquity, last quarter 4.20b)
Debt / EBITDA = 1.61 (Net Debt 1.37b / EBITDA 850.4m)
Debt / FCF = 3.65 (Net Debt 1.37b / FCF TTM 375.4m)
Total Stockholder Equity = 4.08b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.29% (Net Income 467.4m / Total Assets 13.5b)
RoE = 11.45% (Net Income TTM 467.4m / Total Stockholder Equity 4.08b)
RoCE = 12.67% (EBIT 692.4m / Capital Employed (Equity 4.08b + L.T.Debt 1.38b))
RoIC = 4.07% (NOPAT 515.5m / Invested Capital 12.7b)
WACC = 4.24% (E(8.70b)/V(10.3b) * Re(4.59%) + D(1.61b)/V(10.3b) * Rd(3.20%) * (1-Tc(0.26)))
Discount Rate = 4.59% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 86.47 | Cagr: 2.03%
[DCF] Terminal Value 76.75% ; FCFF base≈360.8m ; Y1≈394.6m ; Y5≈495.9m
[DCF] Fair Price = 51.71 (EV 7.58b - Net Debt 1.37b = Equity 6.21b / Shares 120.1m; r=8.35% [WACC [floored]]; 5y FCF grow 10.80% → 2.50% )
EPS Correlation: 95.85 | EPS CAGR: 28.57% | SUE: 0.35 | # QB: 0
Revenue Correlation: 93.47 | Revenue CAGR: 16.84% | SUE: 2.60 | # QB: 4
EPS current Quarter (2026-09-30): EPS=0.40 | Chg30d=-54.18% | Revisions=-50% | Analysts=11
EPS current Year (2026-12-31): EPS=3.50 | Chg30d=-10.64% | Revisions=-50% | GrowthEPS=-0.8% | GrowthRev=+33.1%
EPS next Year (2027-12-31): EPS=4.66 | Chg30d=+0.31% | Revisions=+17% | GrowthEPS=+33.0% | GrowthRev=+7.7%
[Analyst] Revisions Ratio: -42% (up=2, down=7)