E-L Financial (ELF) AI Stock Analysis

• Market Cap: C$5.65B
• Dividend Yield: 892.19%
• Average Volume (3M): 29.60K
• Price to Earnings (P/E): 4.5
• Beta (1Y): 1.15
• Revenue Growth: -31.32%
• EPS Growth: -26.23%
• Country: CA
• Employees: 1,236
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 0.61
• Shares Outstanding: 346,101,600
• 10 Day Avg. Volume: 21,106
• 30 Day Avg. Volume: 29,601
• PEG Ratio: <0.01
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 3.14
• P/FCF Ratio: 14.32
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: C$18.00 ▲(8.70% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is supported primarily by strong financial strength (low leverage, solid ROE) and very attractive valuation (low P/E and high dividend yield). This is tempered by meaningful earnings/cash-flow volatility and currently weaker technical momentum (negative MACD, sub-neutral RSI, and price below short-term moving averages).

Positive Factors

Conservative balance sheet and low leverage

A very low debt-to-equity ratio and a large equity base provide durable financial flexibility, reducing solvency risk and supporting underwriting capacity and capital returns. Healthy ROE in profitable years shows the company can generate attractive equity returns when results are favorable.

Insurance franchise with investment float

Owning a property & casualty insurer and earning investment returns on premium float creates a durable earnings engine: low-cost float funds investments that compound returns over time, supporting underwriting economics and smoothing long-term profitability versus pure investment firms.

Recurring positive operating cash generation

Consistent positive operating cash flow across recent years supports dividend payments, reinvestment and opportunistic capital deployment. Even with variability, the ability to generate recurring cash provides a durable buffer for capital allocation and liquidity management.

Negative Factors

Revenue and earnings volatility

Significant swings in revenue and net income highlight dependence on market-driven investment gains and insurance cycle timing. This volatility makes earnings less predictable, complicates capital planning and raises the risk that future capital returns or underwriting capacity will be episodic.

Inconsistent cash conversion recently

Periods of weak cash conversion reduce the reliability of reported earnings to fund dividends or buybacks. Inconsistent operating cash flow creates uncertainty in sustaining payouts and in timing of investment sales, pressuring conservative capital allocation in weaker years.

High sensitivity to market and portfolio swings

As a holding/insurer whose earnings depend heavily on invested assets and occasional realized gains, adverse market moves can materially depress book value, underwriting capacity and distributable cash. This structural sensitivity raises long-term variability in returns and capital.

E-L Financial Business Overview & Revenue Model

Company Description

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 equities and fixed income securities directly and indirectly through pooled funds, closed-end investment companies, and other investment companies. It also underwrites life and health insurance policies, wealth management products, group plans, and financial services, as well as segregated funds, mutual funds, and annuity products to individuals, professionals, and businesses through a network of independent financial advisors, managing general agents, national account firms, mutual fund dealers, and employee benefit brokers and representatives. E-L Financial Corporation Limited was incorporated in 1968 and is headquartered in Toronto, Canada.

How the Company Makes Money

ELF makes money primarily through (1) investment income and changes in the value of its investment portfolio and (2) earnings generated by its insurance-related operating businesses. 1) Investment and holding-company income - Dividend and interest income: ELF holds a portfolio of equities and fixed-income securities; it earns recurring cash flow from dividends on shares it owns and interest on bonds and other interest-bearing instruments. - Realized gains/losses: When ELF sells investments for more than their carrying value/cost, it records realized gains that contribute to earnings. - Unrealized gains/losses: Changes in market value of publicly traded securities (and periodic revaluations/impairments of private holdings, depending on accounting treatment) can increase or decrease reported earnings and book value. - Fees/other income: null 2) Insurance operating earnings (through controlled/affiliated entities) - Underwriting profit: Insurance subsidiaries earn premiums from policyholders and pay claims and operating expenses. If premiums (net of claims and expenses, and after reinsurance costs) exceed losses and expenses, the insurer generates underwriting profit. - Investment income on insurance float: Insurers invest the premium dollars held before claims are paid (the “float”). Returns on the invested assets (interest, dividends, realized/unrealized gains) are a major driver of insurance profitability and can be significant even when underwriting margins are thin. - Reinsurance impacts: Use of reinsurance can affect profitability through ceded premiums, recoveries on claims, and potential commissions/other reinsurance-related economics. 3) Other contributors and factors - Capital allocation: As a holding company, ELF’s results depend heavily on portfolio composition, market conditions (equity and interest-rate movements), credit conditions, and management’s buy/sell decisions. - Consolidation and equity-method impacts: Depending on ownership levels and accounting, ELF may consolidate subsidiaries (recording their revenues/expenses) or record its share of investee earnings via equity accounting; both mechanisms can materially affect reported earnings. - Significant partnerships: null

E-L Financial Financial Statement Overview

Summary

Strong overall fundamentals driven by a conservative, low-leverage balance sheet (debt-to-equity ~0.07) and healthy ROE in profitable years. Offsetting this, results are volatile with a sharp 2025 revenue decline (-46.3% YoY), a prior 2022 loss/negative revenue, and weaker/variable cash conversion in 2025 despite strong reported profitability.

Income Statement

Profitability is very strong in recent years, with 2025 showing exceptionally high margins (net margin ~70%, EBIT margin ~93%) and solid earnings power across 2023–2025 after a loss in 2022. However, revenue is volatile: 2025 revenue fell sharply (-46.3% YoY) after growth in 2024 (+11.7%) and 2023 (+3.5%), and 2022 posted negative revenue and net income—highlighting sensitivity to market/portfolio-driven swings common in insurers.

Balance Sheet

The balance sheet looks conservative with low leverage: debt-to-equity has been consistently modest (~0.07 in 2024 and ~0.07 in 2025) while equity has grown to ~9.1B in 2025. Returns on equity are healthy in the profitable years (mid-teens to high-teens, ~13.6% in 2025 and ~18.5% in 2024), though the 2022 loss drove negative ROE, underscoring that book value returns can fluctuate with earnings.

Cash Flow

Cash generation is positive and recurring, with operating cash flow of ~387M in 2025 and ~460M in 2024, and free cash flow generally tracking operating cash flow closely. That said, cash flow coverage of earnings is inconsistent (strong in 2023–2024, but reported as 0.0 in 2025) and operating cash flow has trended down from 2023 levels, suggesting higher variability and weaker cash conversion in the most recent year despite strong reported profits.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.77B	3.35B	3.00B	-1.18B	2.32B
Gross Profit	1.77B	2.14B	1.42B	-758.24M	1.61B
EBITDA	1.65B	2.12B	1.32B	-525.74M	1.56B
Net Income	1.23B	1.57B	955.28M	-331.44M	1.17B
Balance Sheet
Total Assets	29.96B	28.12B	25.76B	23.49B	26.79B
Cash, Cash Equivalents and Short-Term Investments	564.40M	374.25M	445.82M	2.04B	2.60B
Total Debt	599.57M	598.87M	733.37M	702.91M	602.16M
Total Liabilities	19.31B	18.38B	17.50B	15.75B	18.20B
Stockholders Equity	9.07B	8.47B	7.11B	6.71B	7.32B
Cash Flow
Free Cash Flow	387.31M	459.55M	736.01M	380.95M	344.42M
Operating Cash Flow	387.31M	459.55M	736.01M	397.83M	348.10M
Investing Cash Flow	295.19M	-76.82M	-386.56M	-437.24M	202.91M
Financing Cash Flow	-491.51M	-450.18M	-211.54M	-293.75M	-319.12M

E-L Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 16.56 is above the 20-day moving average (MA) of 16.13, above the 50-day MA of 16.25, and above the 200-day MA of 15.31, indicating a bullish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 55.45 is Neutral, neither overbought nor oversold. The STOCH value of 59.99 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
POW	76 Outperform	C$42.33B	13.48	12.83%	3.28%	-9.03%	44.14%
ELF	73 Outperform	C$5.65B	4.49	14.46%	892.19%	-31.32%	-26.23%
SLF	69 Neutral	C$48.58B	12.88	14.68%	4.11%	-19.88%	-13.92%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IGM	67 Neutral	C$15.17B	13.28	12.37%	3.59%	-1.02%	-5.65%
MFC	66 Neutral	C$79.33B	14.68	11.34%	3.49%	5.46%	10.52%
GWO	65 Neutral	C$58.02B	14.06	13.98%	3.62%	-20.64%	14.88%

E-L Financial Corporate Events

E-L Financial Declares $1.05 Special Dividend on Common Shares

E-L Financial Corporation Limited’s board has declared a special cash dividend of $1.05 per common share, payable on March 13, 2026 to shareholders of record as of March 3, 2026. The payout, designated as an eligible dividend for Canadian tax purposes, reflects the strong recent performance of the company’s global investment portfolio and underscores management’s confidence in its investment results and capital position, offering an immediate return to shareholders while signaling financial strength in a competitive investment management landscape.

The most recent analyst rating on (TSE:ELF) stock is a Buy with a C$18.50 price target. To see the full list of analyst forecasts on E-L Financial stock, see the TSE:ELF Stock Forecast page.