Canadian Life Companies Split Corp. Class A (LFE) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 16.43%
• Average Volume (3M): 83.56K
• Price to Earnings (P/E): 2.5
• Beta (1Y): 1.85
• Revenue Growth: -0.82%
• EPS Growth: 149.20%
• Country: CA
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): -0.08
• Shares Outstanding: 17,177,479
• 10 Day Avg. Volume: 96,848
• 30 Day Avg. Volume: 83,557
• PEG Ratio: <0.01
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 1.35
• P/FCF Ratio: 2.38
• 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$8.00 ▲(5.12% Upside)

The score is driven primarily by strong 2024 financial performance (profitability and cash generation) and very attractive valuation (low P/E and high yield). Technicals support an uptrend but are tempered by overbought signals (high RSI/Stoch), while recent dividend announcements modestly reinforce the income profile.

Positive Factors

Revenue Growth

Significant revenue growth indicates effective portfolio management and increased income from investments, enhancing long-term financial stability.

Dividend Consistency

Consistent dividend payments highlight the company's commitment to shareholder returns, reinforcing investor confidence and long-term appeal.

Debt-Free Balance Sheet

A debt-free balance sheet provides financial resilience, allowing the company to navigate economic fluctuations without the burden of interest obligations.

Negative Factors

Reliance on Non-Operating Income

Dependence on non-operating income can mask underlying operational weaknesses, potentially impacting sustainable profitability.

Fluctuating Equity Levels

Instability in equity levels can indicate volatility in asset management, affecting the company's ability to maintain consistent financial health.

Decreasing Operating Cash Flow Ratio

A decrease in operating cash flow ratio may signal challenges in converting income into cash, potentially impacting liquidity and financial flexibility.

Canadian Life Companies Split Corp. Class A Business Overview & Revenue Model

Company Description

Canadian Life Companies Split Corp. is a closed-ended equity mutual fund launched and managed by Quadravest Capital Management Inc. It invests in the public equity markets of Canada. The fund seeks to invest in stocks of companies operating in the life insurance sector. It primarily invests in stocks of four publicly traded life insurance companies namely Great-West Lifeco Inc., Industrial Alliance Insurance and Financial Services Inc., Manulife Financial Corporation, and Sun Life Financial Inc. The fund employs fundamental analysis with a focus on such factors as a firm's earning history, relative price-earnings multiple, cash flow, dividend yield, market position, and growth prospects to create its portfolio. It benchmarks the performance of its portfolio against the S&P TSX Financial Index. Canadian Life Companies Split Corp. was formed on April 18, 2005 and is domiciled in Canada.

How the Company Makes Money

Canadian Life Companies Split Corp. Class A (LFE) generates revenue primarily through the management of its investment portfolio, which consists of shares from major Canadian life insurance companies. The company earns income in the form of dividends from these investments. Additionally, LFE aims to provide capital appreciation to its shareholders through the strategic selection and management of its assets. The company's revenue model is significantly influenced by the performance of the underlying life insurance companies, as well as broader market conditions, which can affect the value and yield of its investment portfolio. LFE may also engage in options trading and other financial strategies to enhance returns and manage risk.

Canadian Life Companies Split Corp. Class A Financial Statement Overview

Summary

Canadian Life Companies Split Corp. Class A demonstrates strong financial performance with substantial revenue growth and high profitability margins. The absence of debt in 2024 significantly enhances the company's financial resilience. Despite the lack of EBIT and EBITDA data, the robust cash flow ensures liquidity.

Income Statement

The company demonstrates strong revenue growth, with a notable increase from $23.1M in 2023 to $54.7M in 2024, indicating a significant upward trajectory. The net profit margin is exceptionally high at approximately 98.95% in 2024, showcasing outstanding profitability. However, EBIT and EBITDA margins are not available for 2024, which could indicate a reliance on non-operating income for profits.

Balance Sheet

The balance sheet shows a solid equity base with stockholders' equity increasing to $84.6M in 2024. The company has no debt as of 2024, enhancing financial stability. However, fluctuating equity levels over recent years suggest some instability. The equity ratio is strong at approximately 43.64%, reflecting a conservative financial structure.

Cash Flow

Cash flow is robust with operating cash flow rising to $31.8M in 2024. The free cash flow to net income ratio is high, indicating efficient cash generation relative to net profit. Free cash flow has increased significantly, demonstrating strong cash flow management. However, the operating cash flow to net income ratio slightly decreased from previous years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.84M	55.94M	8.22M	9.95M	8.51M	11.93M
Gross Profit	13.16M	54.77M	6.77M	8.52M	6.91M	10.31M
EBITDA	40.94M	54.10M	-77.81K	3.22M	26.95M	-15.22M
Net Income	36.04M	45.58M	11.74M	3.43M	18.67M	-30.69M
Balance Sheet
Total Assets	180.13M	193.96M	167.87M	170.81M	174.85M	170.71M
Cash, Cash Equivalents and Short-Term Investments	10.75M	12.64M	166.17M	20.41M	172.75M	6.32M
Total Debt	110.16M	107.13M	116.24M	124.73M	124.35M	133.52M
Total Liabilities	112.29M	109.33M	117.52M	128.75M	125.25M	135.89M
Stockholders Equity	67.84M	84.63M	50.35M	42.07M	49.60M	34.81M
Cash Flow
Free Cash Flow	17.69M	31.77M	10.05M	20.02M	25.65M	8.44M
Operating Cash Flow	17.69M	31.77M	10.05M	20.02M	25.65M	8.44M
Investing Cash Flow	0.00	0.00	0.00	0.00	0.00	0.00
Financing Cash Flow	-18.53M	-28.00M	-21.53M	-10.43M	-21.38M	-19.89M

Canadian Life Companies Split Corp. Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LFE, the sentiment is Positive. The current price of 7.61 is above the 20-day moving average (MA) of 7.41, above the 50-day MA of 6.93, and above the 200-day MA of 6.04, indicating a bullish trend. The MACD of 0.20 indicates Positive momentum. The RSI at 76.59 is Negative, neither overbought nor oversold. The STOCH value of 74.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:LFE.

Canadian Life Companies Split Corp. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LFE	73 Outperform	―	2.55	61.60%	16.43%	-0.82%	149.20%
ELC	70 Outperform	C$16.15M	2.00	49.20%	1.96%	―	―
PWI	70 Outperform	C$35.96M	4.29	32.64%	10.21%	818.69%	-12.12%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PDV	66 Neutral	C$6.78M	3.48	42.23%	7.52%	-54.61%	273.14%
RS	56 Neutral	C$119.64M	7.89	15.77%	17.81%	―	―
BNK	54 Neutral	C$22.96M	3.78	46.99%	8.54%	126.51%	10525.53%

Canadian Life Companies Split Corp. Class A Corporate Events

Canadian Life Companies Split Corp. Announces Monthly Dividends for Class A and Preferred Shares

Canadian Life Companies Split Corp. has declared a monthly cash distribution of $0.10 per Class A share (equivalent to $1.20 on an annualized basis) and $0.05833 per preferred share (or $0.70 annualized), payable on January 9, 2026 to shareholders of record as of December 31, 2025. With this latest payout, Class A shareholders have received a cumulative $9.75 per share and preferred shareholders $12.79 per share since inception, for a combined $22.54 per unit, underscoring the fund’s ongoing focus on steady income generation from its portfolio of major Canadian life insurers.

Canadian Life Companies Split Corp. Declares Monthly Dividends for December

Canadian Life Companies Split Corp. has announced its monthly dividend distribution for both Class A and Preferred shares, with payments scheduled for December 10, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders, with Class A shareholders having received a total of $9.65 per share and Preferred shareholders $12.73 per share since inception. This financial move underscores the company’s stable position within the life insurance investment sector, potentially enhancing its attractiveness to current and prospective investors.

Canadian Life Companies Split Corp. Announces November Dividend Distributions

Canadian Life Companies Split Corp. has announced its monthly dividend distributions for both Class A and Preferred shares, with payments scheduled for November 10, 2025. This announcement highlights the company’s ongoing commitment to providing returns to its shareholders, with Class A shareholders having received a total of $9.55 per share and Preferred shareholders $12.67 per share since inception, indicating a stable financial performance and consistent shareholder value.

Canadian Life Companies Split Corp. Renews Equity Program

Canadian Life Companies Split Corp. has renewed its at-the-market equity program, allowing the issuance of Class A and Preferred Shares through the Toronto Stock Exchange until June 1, 2026. This program aims to raise up to $140 million, with proceeds intended to align with the company’s investment strategies and objectives, potentially impacting its market positioning and offering flexibility in capital management.