E-L Financial (ELF) AI Stock Analysis

• Market Cap: C$4.79B
• Dividend Yield: 1.08%
• Average Volume (3M): 502.00
• Price to Earnings (P/E): 3.0
• Beta (1Y): 0.64
• Revenue Growth: 60.02%
• EPS Growth: 106.70%
• Country: CA
• Employees: N/A
• Sector: Financial
• Sector Strength: 77
• Industry: Insurance
• EPS (TTM): 448.18
• Shares Outstanding: 3,461,722
• 10 Day Avg. Volume: 731
• 30 Day Avg. Volume: 502
• PEG Ratio: 0.04
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.20
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 1.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

E-L Financial's strong financial performance and undervalued stock position it well for growth within the insurance sector. However, technical indicators suggest caution due to overbought conditions. The low dividend yield might be a drawback for income investors, but the low P/E ratio highlights attractive valuation.

E-L Financial Business Overview & Revenue Model

Company Description

E-L Financial Corporation Limited (ELF) is a Canadian investment and insurance holding company. It primarily operates through its two main sectors: E-L Corporate and Empire Life. E-L Corporate focuses on investment operations, while Empire Life provides a wide range of life insurance products, investment options, and retirement plans aimed at both individuals and groups.

How the Company Makes Money

E-L Financial makes money primarily through its investment operations and insurance activities. The E-L Corporate segment generates revenue by making private equity and equity investments, earning returns through dividends, interest, and capital appreciation. Empire Life, the insurance arm, generates revenue by collecting premiums from policyholders for life insurance products and investment management services. The company also earns through investment income from the assets it manages as part of its insurance business. Significant factors contributing to its earnings include investment performance, underwriting results, and the management of assets and liabilities to ensure long-term profitability.

E-L Financial Financial Statement Overview

Summary

E-L Financial exhibits a strong financial position characterized by high margins and effective cash flow management. The company has shown robust revenue growth and profitability, though attention is needed on EBITDA performance. Its low leverage and high ROE demonstrate financial stability, making it well-positioned within the insurance industry.

Income Statement

E-L Financial's income statement shows a robust TTM (Trailing-Twelve-Months) gross profit margin of 82.18% and a strong net profit margin of 33.27%. The company has demonstrated significant revenue growth with a 97.43% increase over the previous year. Although the EBIT margin at 23.97% is competitive, the negative EBITDA margin suggests issues with depreciation or amortization expenses that need addressing.

Balance Sheet

The balance sheet of E-L Financial reflects solid equity with a debt-to-equity ratio of 0.073, indicating low leverage. Return on Equity (ROE) is impressive at 22.06%, showing effective utilization of equity to generate profits. The equity ratio of 29.58% underscores a stable financial position, although there is room for improvement in strengthening equity further.

Cash Flow

Cash flow analysis indicates a strong free cash flow growth rate of -0.70% from the previous year, showing stability despite a minor decline. The operating cash flow to net income ratio of 0.41 and a free cash flow to net income ratio of 0.40 reflect efficient cash management and conversion of profits into cash.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
5.44B	2.75B	-706.98M	2.32B	2.56B	2.91B
	Gross Profit
4.47B	4.00B	-706.98M	2.32B	2.56B	2.91B
	EBIT
1.30B	2.67B	-172.80M	1.38B	613.70M	913.34M
	EBITDA
-50.38M	581.12M	-537.11M	1.38B	775.40M	1.03B
	Net Income Common Stockholders
1.81B	955.28M	-327.31M	1.17B	503.74M	747.86M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
332.56M	445.82M	2.04B	2.60B	427.76M	303.08M
	Total Assets
21.35B	25.76B	23.49B	26.79B	24.95B	23.75B
	Total Debt
488.77M	733.37M	702.91M	602.16M	602.27M	464.10M
	Net Debt
156.21M	292.51M	399.97M	-33.94M	174.51M	161.01M
	Total Liabilities
14.81B	17.50B	15.75B	18.20B	17.29B	16.37B
	Stockholders Equity
5.56B	7.11B	6.71B	7.32B	6.52B	6.31B
Cash Flow		Free Cash Flow
730.85M	736.01M	380.95M	344.42M	321.21M	403.85M
	Operating Cash Flow
737.34M	736.01M	397.83M	348.10M	329.07M	416.53M
	Investing Cash Flow
-339.68M	-386.56M	-437.24M	202.91M	40.12M	-345.45M
	Financing Cash Flow
-439.75M	-211.54M	-293.75M	-319.12M	-244.52M	-100.55M

E-L Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1384.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ELF, the sentiment is Positive. The current price of 1384.74 is above the 20-day moving average (MA) of 1361.26, above the 50-day MA of 1300.36, and above the 200-day MA of 1199.30, indicating a bullish trend. The MACD of 18.50 indicates Positive momentum. The RSI at 54.34 is Neutral, neither overbought nor oversold. The STOCH value of 20.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ELF.

E-L Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELF	75 Outperform	C$4.79B	2.96	20.13%	1.08%	60.02%	106.70%
MFC	75 Outperform	$71.01B	14.75	11.03%	4.08%	7.64%	9.22%
FFH	73 Outperform	$43.79B	8.27	16.48%	1.13%	13.82%	-6.68%
SLF	72 Outperform	$44.64B	14.90	12.87%	4.39%	-12.72%	-0.16%
POW	71 Outperform	C$30.88B	14.65	10.36%	4.67%	30.81%	-2.47%
GWO	69 Neutral	C$48.55B	12.68	15.52%	4.26%	-2.40%	42.24%
Sector *	64 Neutral	$13.80B	10.64	9.23%	4.22%	17.66%	-7.66%

E-L Financial Corporate Events

E-L Financial Reports Strong Q3 2024 Growth

E-L Financial has reported significant growth in its financial performance for the third quarter of 2024, with a net equity increase of 14.9% since the end of 2023 and a substantial rise in net income compared to the previous year. The company’s corporate division and Empire Life subsidiary both played crucial roles in driving this success, benefiting from favorable investment returns and strategic updates in insurance contract assumptions.