E-L Financial (ELF) AI Stock Analysis

• Market Cap: C$5.16B
• Dividend Yield: 1.02%
• Average Volume (3M): 38.68K
• Price to Earnings (P/E): 4.7
• Beta (1Y): 0.86
• Revenue Growth: -25.60%
• EPS Growth: -5.43%
• Country: CA
• Employees: 1,236
• Sector: Financial
• Sector Strength: 74
• Industry: Insurance - Life
• EPS (TTM): 0.25
• Shares Outstanding: 346,172,200
• 10 Day Avg. Volume: 49,766
• 30 Day Avg. Volume: 38,678
• PEG Ratio: -0.17
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.45
• 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

• Rating: 74 Outperform
• Price Target: C$17.50 ▲(17.45%Upside)

E-L Financial shows a strong valuation with a low P/E ratio and substantial dividend yield, making it attractive for income-focused investors. The financial performance is solid with high profitability and effective leverage management. Corporate events are mixed, enhancing shareholder value but also highlighting recent income declines.

E-L Financial Business Overview & Revenue Model

Company Description

E-L Financial Corporation Limited (ELF) is a Canadian investment and insurance holding company. It operates through its subsidiaries in two primary segments: E-L Corporate and Empire Life. The E-L Corporate segment focuses on investment management, holding a diversified portfolio of investments, including publicly traded and private equities, fixed income securities, and investment funds. The Empire Life segment offers a range of financial products and services, including individual and group life and health insurance, investment products, and retirement solutions to individuals and businesses across Canada.

How the Company Makes Money

E-L Financial makes money primarily through its two business segments: E-L Corporate and Empire Life. The E-L Corporate segment generates revenue from its investment portfolio, which includes dividends, interest income, and capital gains from its holdings in equities, fixed income securities, and other investments. The Empire Life segment earns revenue through premiums paid by policyholders for its life and health insurance products, as well as fees and commissions from its investment products and services. Additionally, the company's profitability is influenced by its investment performance, underwriting results, and effective management of its insurance liabilities. Significant partnerships with financial advisors, brokers, and employers help expand its distribution network, further contributing to its revenue streams.

E-L Financial Financial Statement Overview

Summary

E-L Financial demonstrates solid financial performance with high profitability and prudent leverage. The net profit margin and EBIT margin are strong, indicating efficient operations. The balance sheet shows low leverage with a conservative debt-to-equity ratio. Cash flow management is adequate, though cash flow growth has been volatile.

Income Statement

E-L Financial shows a strong profit profile with a healthy net profit margin of 104.72% in TTM, indicative of high profitability. Revenue growth is volatile, with a significant increase post-2022, though it has faced fluctuations over the years. The gross profit margin is strong at 40.75% for TTM, and the EBIT margin is exceptionally high at 169.98%, suggesting efficient core operations.

Balance Sheet

The company maintains a conservative debt-to-equity ratio of 0.07, indicating low leverage. Return on Equity (ROE) is robust at 13.79%, showing effective use of shareholder funds. However, the equity ratio is moderate at 29.29%, suggesting a reliance on liabilities alongside equity for asset financing.

Cash Flow

E-L Financial exhibits strong cash flow management with a solid operating cash flow to net income ratio of 0.36. Free cash flow remains substantial, though the free cash flow growth rate has seen fluctuations. The free cash flow to net income ratio stands at 0.36, indicating adequate cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.06B	410.70M	2.75B	-706.98M	2.32B	2.56B
Gross Profit	430.57M	385.34M	4.00B	-706.98M	2.32B	2.56B
EBITDA	1.38B	2.09B	581.12M	-537.11M	1.38B	775.40M
Net Income	1.11B	1.57B	955.28M	-327.31M	1.17B	503.74M
Balance Sheet
Total Assets	22.35B	28.12B	25.76B	23.49B	26.79B	24.95B
Cash, Cash Equivalents and Short-Term Investments	272.97M	374.25M	445.82M	2.04B	2.60B	427.76M
Total Debt	798.46M	598.87M	733.37M	702.91M	602.16M	602.27M
Total Liabilities	15.73B	18.38B	17.50B	15.75B	18.20B	17.29B
Stockholders Equity	5.64B	8.47B	7.11B	6.71B	7.32B	6.52B
Cash Flow
Free Cash Flow	403.65M	459.55M	736.01M	380.95M	344.42M	321.21M
Operating Cash Flow	403.65M	459.55M	736.01M	397.83M	348.10M	329.07M
Investing Cash Flow	620.78M	-103.11M	-386.56M	-437.24M	202.91M	40.12M
Financing Cash Flow	-1.01B	-450.18M	-211.54M	-293.75M	-319.12M	-244.52M

E-L Financial Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 14.90
• 50DMA: Negative
• 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 Neutral. The current price of 14.9 is below the 20-day moving average (MA) of 15.46, below the 50-day MA of 15.78, and above the 200-day MA of 13.61, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 38.06 is Neutral, neither overbought nor oversold. The STOCH value of 29.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:ELF.

E-L Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DFY	80 Outperform	C$9.50B	21.44	13.25%	0.89%	18.15%	18.11%
GWO	77 Outperform	C$48.67B	12.73	14.65%	4.44%	17.48%	25.54%
SLF	75 Outperform	$48.40B	15.62	13.18%	3.94%	0.94%	3.50%
MFC	75 Outperform	$73.48B	16.13	10.17%	3.92%	5.24%	13.68%
POW	74 Outperform	C$35.44B	13.12	11.92%	5.40%	7.63%	8.84%
ELF	74 Outperform	C$5.16B	4.71	14.11%	1.02%	-25.60%	-5.43%
Sector *	68 Neutral	$17.19B	11.20	9.70%	3.58%	11.11%	-4.55%

E-L Financial Corporate Events

E-L Financial Initiates Automatic Share Purchase Plan to Enhance Shareholder Value

E-L Financial Corporation Limited has announced the implementation of an automatic share purchase plan (ASPP) as part of its normal course issuer bid, effective June 30, 2025. This plan allows the company to repurchase shares during trading blackout periods, with purchases financed from working capital. The ASPP will continue until the bid expires, the annual purchase limit is reached, or it is otherwise terminated. The company has approval to purchase up to 173,086 shares, adjusted for a recent share split, but has not yet repurchased any shares. The move is expected to enhance shareholder value by optimizing capital use.

E-L Financial Announces Shareholder Meeting Results and Share Split Details

E-L Financial Corporation Limited announced the results of its 2025 Annual General and Special Meeting of Shareholders. All director nominees were elected, and PricewaterhouseCoopers LLP was reappointed as auditors. Shareholders approved a hundred-for-one share split, which will not alter shareholders’ rights or ownership proportions. The share split will be effective from May 30, 2025, with shares trading on a post-split basis from June 2, 2025.

E-L Financial Announces Dividends and Share Split

E-L Financial Corporation Limited has announced cash dividends for its preference and common shares, with payments scheduled for July 17, 2025. Additionally, the company will implement a hundred-for-one share split for its common shares, which will begin trading on a post-split basis on June 2, 2025. This move is likely to impact the company’s stock liquidity and attractiveness to investors.

E-L Financial Reports Decline in Q1 2025 Net Income Amid Investment Losses

E-L Financial Corporation Limited reported a decrease in net equity value per common share to $2,216.91 as of March 31, 2025, marking a 5.1% decline from December 2024 but a 4.4% increase from March 2024. The company’s consolidated net income for the first quarter of 2025 was $86 million, a significant drop from $547 million in the same period in 2024, primarily due to a net loss on investments within E-L Corporate. However, Empire Life, the insurance subsidiary, saw improved performance with a net income of $70 million, driven by favorable interest rate changes and improved insurance service results.