E-L Financial (ELF) AI Stock Analysis

• Market Cap: C$5.79B
• Dividend Yield: 896.98%
• Average Volume (3M): 29.60K
• Price to Earnings (P/E): 4.4
• 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): 1.65
• Shares Outstanding: 346,165,600
• 10 Day Avg. Volume: 21,106
• 30 Day Avg. Volume: 29,601
• PEG Ratio: -0.03
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 1.33
• P/FCF Ratio: 9.71
• 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$18.50 ▲(10.98% Upside)

E-L Financial's overall stock score is driven primarily by its strong financial performance and attractive valuation. The company's robust revenue growth and profitability, combined with a low P/E ratio and high dividend yield, suggest a well-positioned stock in the insurance industry. Technical indicators are neutral, indicating stability but not significant momentum.

Positive Factors

Strong Balance Sheet

A low debt-to-equity ratio indicates conservative financial management, providing flexibility and stability to navigate market fluctuations.

Profitability

High net profit margins reflect efficient cost management and pricing power, supporting sustainable earnings and competitive positioning.

Cash Flow Generation

Strong free cash flow growth enhances the company's ability to reinvest in growth opportunities, pay dividends, and reduce debt.

Negative Factors

Revenue Decline

A significant decline in revenue growth could indicate challenges in maintaining market share or demand, impacting long-term growth prospects.

Volatile Operating Cash Flow

Volatility in operating cash flow can hinder financial planning and stability, affecting the company's ability to fund operations consistently.

Decreasing Gross Profit Margin

A declining gross profit margin may signal rising costs or pricing pressures, potentially eroding profitability if not managed effectively.

E-L Financial Business Overview & Revenue Model

Company Description

E-L Financial Corporation Limited (ELF) is a Canadian-based financial services company primarily engaged in the life insurance and investment sectors. The company operates through its subsidiaries, offering a range of products including life insurance, investment management, and other financial services tailored to meet the needs of its clients. ELF focuses on providing long-term financial security solutions and asset management services, catering to both individual and institutional clients.

How the Company Makes Money

E-L Financial generates revenue through multiple streams, primarily from premiums collected on life insurance policies and investment income derived from its investment portfolio. The company earns premiums from its life insurance products, which contribute significantly to its overall revenue. Additionally, ELF invests in a diverse range of assets, including equities, fixed income, and alternative investments, generating investment income. The firm may also realize capital gains from the sale of investments. Strategic partnerships with other financial institutions and investment managers can further enhance its revenue through collaborative investment strategies or distribution of its products. The stability of its earnings is supported by a strong balance sheet and prudent risk management practices.

E-L Financial Financial Statement Overview

Summary

E-L Financial demonstrates strong profitability and a solid balance sheet with low leverage. However, declining revenue growth and cash flow challenges present potential risks. The company needs to address revenue generation and cash conversion to maintain its financial health.

Income Statement

E-L Financial's income statement shows mixed performance. The TTM data indicates a decline in revenue growth at -1.4%, which is concerning. However, the company maintains strong profitability with a high net profit margin of 104.7% and EBIT margin of 136.8% in the TTM period. The gross profit margin has decreased significantly from previous periods, indicating potential cost management issues.

Balance Sheet

The balance sheet reflects a strong financial position with a low debt-to-equity ratio of 0.075, indicating low leverage. The return on equity is healthy at 13.7% in the TTM period, although it has decreased from previous years. The equity ratio remains stable, suggesting a solid capital structure.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth at -28.2% in the TTM period. The operating cash flow to net income ratio is zero, indicating potential issues in converting income to cash. However, the free cash flow to net income ratio remains strong at 1.0, suggesting efficient cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.29B	3.35B	3.00B	-1.18B	2.32B	2.56B
Gross Profit	1.85B	2.14B	1.42B	-758.24M	1.61B	989.91M
EBITDA	1.74B	2.12B	1.32B	-525.74M	1.56B	764.89M
Net Income	1.31B	1.57B	955.28M	-331.44M	1.17B	503.74M
Balance Sheet
Total Assets	29.37B	28.12B	25.76B	23.49B	26.79B	24.95B
Cash, Cash Equivalents and Short-Term Investments	400.02M	374.25M	445.82M	2.04B	2.60B	427.76M
Total Debt	599.49M	598.87M	733.37M	702.91M	602.16M	602.27M
Total Liabilities	19.14B	18.38B	17.50B	15.75B	18.20B	17.29B
Stockholders Equity	8.94B	8.47B	7.11B	6.71B	7.32B	6.52B
Cash Flow
Free Cash Flow	359.30M	459.55M	736.01M	380.95M	344.42M	321.21M
Operating Cash Flow	359.30M	459.55M	736.01M	397.83M	348.10M	329.07M
Investing Cash Flow	423.02M	-76.82M	-386.56M	-437.24M	202.91M	40.12M
Financing Cash Flow	-712.00M	-450.18M	-211.54M	-293.75M	-319.12M	-244.52M

E-L Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.67
• 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 16.67 is above the 20-day moving average (MA) of 16.66, above the 50-day MA of 16.57, and above the 200-day MA of 15.29, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 54.20 is Neutral, neither overbought nor oversold. The STOCH value of 59.71 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
MFC	79 Outperform	$84.11B	15.89	11.23%	3.53%	5.46%	10.52%
IGM	76 Outperform	C$14.55B	14.16	12.37%	3.64%	-1.02%	-5.65%
GWO	76 Outperform	C$60.88B	15.42	15.09%	3.65%	-20.64%	14.88%
POW	76 Outperform	C$45.98B	15.03	13.24%	3.31%	-9.03%	44.14%
ELF	73 Outperform	C$5.79B	4.45	15.37%	896.98%	-31.32%	-26.23%
SLF	68 Neutral	$47.30B	16.09	11.96%	4.15%	-19.88%	-13.92%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

E-L Financial Corporate Events

E-L Financial Reports Increased Net Equity Value and Third Quarter Earnings

E-L Financial Corporation Limited reported an increase in net equity value per common share to $24.86 as of September 30, 2025, marking a 6% rise since the end of 2024. The company achieved a consolidated net income of $570 million for the third quarter of 2025, up from $497 million in the same period of the previous year. E-L Corporate’s earnings were bolstered by a significant net gain on investments, while Empire Life experienced a decline in net income due to less favorable investment and insurance finance results compared to the previous year. Despite this, Empire Life maintained a strong capital adequacy ratio, exceeding regulatory requirements.

E-L Financial Declares Dividends for Shareholders

E-L Financial Corporation Limited has announced the declaration of cash dividends for its various classes of shares, including First Preference Shares Series 1, 2, and 3, Series A Preference Shares, and Common Shares. These dividends, payable on January 16, 2026, are eligible for tax purposes under the Income Tax Act of Canada, which may impact shareholders’ tax considerations and reflect the company’s ongoing commitment to returning value to its investors.