# Definity Financial (DFY.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Financial Services / Insurance. Price C$71.86, market value C$8.6 billion.

## Valuation
- **P/E (trailing): 18.7×** (5-yr avg 16.0×, 3-yr avg 16.4×). Definity Financial trades at 18.7× trailing earnings, close to its own five-year average of 16.0×. The Financial Services median in the September 2026 study was 13.1×. Forward P/E is 15.5×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 1.4×**. Each dollar of revenue is priced at 1.4×.
- **Price / book: 2.1×**. The shares trade at 2.1× book value; book value is a meaningful part of the valuation.
- **Free-cash-flow yield: 4.3%** (5-yr avg 7.8%). Free cash flow equals 4.3% of the market value, below its five-year average of 7.8%, so the shares are pricier on cash than usual.
- **Earnings yield: 5.4%**. The inverse of the P/E: 5.4% of the price is earned each year.

## Profitability
- **Net margin: 8.6%**. 8.6% of each dollar of sales reaches the bottom line.
- **Return on equity: 10.3%**. 10.3% on shareholders' equity is solid.
- **Return on assets: 4.9%**. Each dollar of assets produces 4.9% of profit; low single digits are normal for banks and insurers.

## Growth
- **Revenue growth (1 yr): 8.1%** (3-yr 17.6%/yr, 5-yr 12.6%/yr). Revenue grew 8.1% over the last year, against 12.6% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -4.9%** (3-yr 17.6%/yr, 5-yr 21.2%/yr). Earnings per share fell 4.9%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 35.5%/yr**. Free cash flow has compounded at 35.5% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Piotroski F-score: 3/9**. 3 of 9 checks pass: weak or deteriorating financials.
- **Cash and short-term investments: C$608 million**. Leverage ratios are shown differently for banks and insurers, whose balance sheets are built on deposits and reserves; use return on equity and the regulatory capital in the filings instead.

## Dividends
- **Dividend yield: 1.20%** (C$0.81 per share, trailing). Definity Financial yields 1.20%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 21%** (26% of free cash flow). 21% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 4**. 4 straight years of increases.
- **Shareholder yield: 1.3%**. Dividends plus net buybacks return 1.3% of the market value a year.

## Price and momentum
- **Total return (1 yr): -1.0%** (YTD -4.8%, 3-mo 5.2%). The shares are down 1.0% over twelve months including dividends.
- **From 52-week high: -13.0%** (16.1% above the low). Trading 13% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 34**. An RSI of 34 is neutral.
- **Beta (1 yr): 0.11** (volatility 23%). Beta of 0.11 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=DFY.TO · Page: https://foliofundamentals.com/stocks/dfy.to

Not investment advice.