E-L Financial (ELF) AI Stock Analysis

• Market Cap: C$4.85B
• Dividend Yield: 1.07%
• Average Volume (3M): 738.00
• Price to Earnings (P/E): 3.0
• Beta (1Y): 0.79
• Revenue Growth: -15.59%
• EPS Growth: 71.15%
• Country: CA
• Employees: 1,236
• Sector: Financial
• Sector Strength: 87
• Industry: Insurance - Life
• EPS (TTM): 448.18
• Shares Outstanding: 3,461,722
• 10 Day Avg. Volume: 613
• 30 Day Avg. Volume: 738
• PEG Ratio: 0.04
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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, characterized by robust revenue growth and profitability, is the primary driver of the stock's overall score. Despite some concerns over cash flow management, the company maintains a solid balance sheet with low leverage. The technical indicators reflect mixed signals, suggesting caution, while the low P/E ratio indicates attractive valuation potential. The absence of earnings call details and corporate events does not detract from the favorable elements influencing the stock score.

E-L Financial Business Overview & Revenue Model

Company Description

E-L Financial Corporation Limited (ELF) is a Canadian-based investment and insurance holding company that operates through its subsidiaries in the financial services sector. The company primarily focuses on life insurance and wealth management, offering a range of insurance products and investment solutions. E-L Financial's operations are divided into two main segments: E-L Corporate and The Empire Life Insurance Company. The Empire Life Insurance Company is a key subsidiary providing life and health insurance, investment, and retirement products to individuals and businesses across Canada.

How the Company Makes Money

E-L Financial makes money through its subsidiaries, primarily The Empire Life Insurance Company, which generates revenue from life and health insurance premiums, as well as fees from wealth management and investment products. The company earns investment income from its diversified portfolio, which includes equities, fixed-income securities, and other financial instruments. This investment portfolio is managed to support the insurance operations and enhance shareholder value. Additionally, E-L Financial benefits from strategic partnerships and investments in various sectors, contributing to its overall earnings. The company's financial performance is significantly influenced by factors such as market conditions, interest rates, and insurance underwriting results.

E-L Financial Financial Statement Overview

Summary

E-L Financial has shown a strong recovery in revenue and profitability, supported by healthy margins and a robust balance sheet. The company enjoys low leverage and strong equity returns, though cash flow management could be improved. Attention to cash reserves and cash flow conversion ratios will be crucial to sustain growth and financial health.

Income Statement

E-L Financial has demonstrated a strong recovery with a significant increase in total revenue from the previous year, leading to improved gross and net profit margins. Notably, the net profit margin improved from 34.7% in 2023 to 46.9% in 2024. The revenue growth rate was an impressive 21.6% year-over-year. However, the absence of EBIT in 2024 is a concern, although EBITDA margins remain strong at 63.2%.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.07, indicating low leverage. The equity ratio stands at 30.1%, showcasing a solid equity base. Return on equity increased to 18.5% in 2024, reflecting effective equity utilization. However, the decrease in cash and short-term investments is a potential risk.

Cash Flow

Cash flow analysis shows a decline in operating cash flow compared to the previous year, yet free cash flow remained stable. The free cash flow to net income ratio is 0.29, indicating a tighter cash conversion. The operating cash flow to net income ratio is also low at 0.29, suggesting room for improvement in cash generation relative to net income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.35B	2.75B	-706.98M	2.32B	2.56B
	Gross Profit
3.35B	4.00B	-706.98M	2.32B	2.56B
	EBIT
0.00	2.67B	-172.80M	1.38B	613.70M
	EBITDA
2.12B	581.12M	-537.11M	1.38B	775.40M
	Net Income Common Stockholders
1.57B	955.28M	-327.31M	1.17B	503.74M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
374.25M	445.82M	2.04B	2.60B	427.76M
	Total Assets
28.12B	25.76B	23.49B	26.79B	24.95B
	Total Debt
598.87M	733.37M	702.91M	602.16M	602.27M
	Net Debt
225.46M	292.51M	399.97M	-33.94M	174.51M
	Total Liabilities
18.38B	17.50B	15.75B	18.20B	17.29B
	Stockholders Equity
8.47B	7.11B	6.71B	7.32B	6.52B
Cash Flow		Free Cash Flow
459.55M	736.01M	380.95M	344.42M	321.21M
	Operating Cash Flow
459.55M	736.01M	397.83M	348.10M	329.07M
	Investing Cash Flow
-76.82M	-386.56M	-437.24M	202.91M	40.12M
	Financing Cash Flow
-450.18M	-211.54M	-293.75M	-319.12M	-244.52M

E-L Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1400.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1400 is above the 20-day moving average (MA) of 1282.98, above the 50-day MA of 1318.69, and above the 200-day MA of 1249.69, indicating a bullish trend. The MACD of 19.30 indicates Negative momentum. The RSI at 60.91 is Neutral, neither overbought nor oversold. The STOCH value of 99.52 is Negative, 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
FFH	76 Outperform	$53.19B	9.24	16.48%	0.97%	13.82%	-6.68%
MFC	75 Outperform	$75.08B	15.28	11.03%	3.73%	7.64%	9.22%
ELF	74 Outperform	C$4.85B	3.05	20.13%	1.07%	-15.59%	71.15%
POW	72 Outperform	C$32.88B	12.33	12.45%	4.48%	-7.62%	25.47%
SLF	70 Outperform	$47.52B	15.75	12.87%	3.95%	-12.72%	-0.16%
GWO	68 Neutral	C$48.27B	12.41	15.52%	4.39%	-2.40%	42.24%
Sector *	64 Neutral	$12.61B	9.78	8.01%	16985.69%	12.73%	-4.58%

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.