E-L Financial Corporation Limited
E-L Financial Corporation Limited Fundamental Analysis
E-L Financial Corporation Limited (ELF.TO) shows strong financial fundamentals with a PE ratio of 4.34, profit margin of 48.88%, and ROE of 14.46%. The company generates $2.6B in annual revenue with strong year-over-year growth of 21.62%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ELF.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakELF.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentELF.TO trades at attractive valuation levels.
Growth Score
ModerateELF.TO shows steady but slowing expansion.
Financial Health Score
ModerateELF.TO shows balanced financial health with some risks.
Profitability Score
ModerateELF.TO maintains healthy but balanced margins.
Key Financial Metrics
Is ELF.TO Expensive or Cheap?
P/E Ratio
ELF.TO trades at 4.34 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ELF.TO's PEG of -0.75 indicates potential undervaluation.
Price to Book
The market values E-L Financial Corporation Limited at 0.59 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.24 times EBITDA. This is generally considered low.
How Well Does ELF.TO Make Money?
Net Profit Margin
For every $100 in sales, E-L Financial Corporation Limited keeps $48.88 as profit after all expenses.
Operating Margin
Core operations generate 64.64 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.46 in profit for every $100 of shareholder equity.
ROA
E-L Financial Corporation Limited generates $4.15 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
E-L Financial Corporation Limited produces operating cash flow of $360.20M, showing steady but balanced cash generation.
Free Cash Flow
E-L Financial Corporation Limited generates strong free cash flow of $360.20M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.04 in free cash annually.
FCF Yield
ELF.TO converts 6.57% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
4.34
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.75
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.59
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.14
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How ELF.TO Stacks Against Its Sector Peers
| Metric | ELF.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 4.34 | 18.62 | Better (Cheaper) |
| ROE | 14.46% | 816.00% | Weak |
| Net Margin | 48.88% | 2239.00% | Weak |
| Debt/Equity | 0.07 | 0.97 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 692.23 | Weak Liquidity |
| ROA | 4.15% | -24827.00% (disorted) | Weak |
ELF.TO outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews E-L Financial Corporation Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
34.38%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
144.92%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
28.71%
Industry Style: Value, Dividend, Cyclical
High Growth