E-L Financial (ELF) AI Stock Analysis

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E-L Financial

(TSX:ELF)

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Rating:84Outperform

Price Target:CAD 23.50▲(17.85% Upside)

Action:reiterated

Date:08/17/26

The stock scores 84, driven by strong financial performance, bullish technical indicators, and compelling valuation. The company's robust profitability, low debt, and high margins provide a solid foundation, while the stock's price momentum and undervalued metrics signal further upside potential.

Positive Factors

Conservative balance sheetVery low leverage gives E-L Financial meaningful financial flexibility across its insurance and investment activities. A rising equity base can support resilience, absorb business volatility, and allow continued capital allocation without relying heavily on additional borrowing.

Negative Factors

Weak and inconsistent cash conversionOperating cash flow converting less than fully against reported earnings raises concerns about the quality and repeatability of current profitability. Even with positive free cash flow, inconsistent conversion could constrain internally funded investment and make results less dependable over the next several quarters.

E-L Financial (ELF) vs. iShares MSCI Canada ETF (EWC)

Market Cap: CAD 6.89B
Dividend Yield: 6.07%
Average Volume (3M): 32.41K
Price to Earnings (P/E): 3.7
Beta (1Y): 1.17
Revenue Growth: 31.77%
EPS Growth: 48.87%
Country: Canada
Employees: 1,250
Sector: Financial
Sector Strength: 68
Industry: Insurance - Life

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 in two segments, E-L Corporate and Empire Life. The company owns investments in equities and fixed income securities directly and indirec...

E-L Financial Financial Statement Overview

Summary

Income statement (85) shows robust revenue growth and high margins; balance sheet (90) is strong with low debt; cash flow (75) is positive but coverage ratio declined. Overall financial health is solid.

Income Statement

85Very Positive

Balance Sheet

90Very Positive

Cash Flow

75Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.91B	2.87B	3.35B	3.00B	-1.18B	2.32B
Gross Profit	2.46B	1.74B	2.14B	1.42B	-758.24M	1.61B
EBITDA	2.43B	1.70B	2.12B	1.31B	-525.74M	1.54B
Net Income	1.83B	1.23B	1.57B	955.28M	-331.44M	1.17B
Balance Sheet
Total Assets	31.98B	29.96B	28.12B	25.76B	23.49B	26.79B
Cash, Cash Equivalents and Short-Term Investments	607.50M	580.12M	374.25M	445.82M	2.04B	2.60B
Total Debt	848.86M	599.57M	598.87M	733.37M	702.91M	602.16M
Total Liabilities	20.65B	19.31B	18.38B	17.50B	15.75B	18.20B
Stockholders Equity	9.77B	9.07B	8.47B	7.11B	6.71B	7.32B
Cash Flow
Free Cash Flow	523.68M	387.31M	459.55M	736.01M	380.95M	344.42M
Operating Cash Flow	523.68M	387.31M	459.55M	736.01M	397.83M	348.10M
Investing Cash Flow	-203.33M	295.19M	-76.82M	-386.56M	-437.24M	202.91M
Financing Cash Flow	-102.14M	-491.51M	-450.18M	-211.54M	-293.75M	-319.12M

E-L Financial Technical Analysis

Technical Analysis SentimentPositive

Last Price19.94

Price Trends

50DMA18.60Positive

100DMA17.86Positive

200DMA17.17Positive

Market Momentum

MACD0.37Positive

RSI59.56Neutral

STOCH73.54Neutral

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 19.94 is above the 20-day moving average (MA) of 19.69, above the 50-day MA of 18.60, and above the 200-day MA of 17.17, indicating a bullish trend. The MACD of 0.37 indicates Positive momentum. The RSI at 59.56 is Neutral, neither overbought nor oversold. The STOCH value of 73.54 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

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

TSE:ELF against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSE:ELF	84Outperform	CAD 6.93B	3.71	19.97%	6.07%	31.77%	48.87%
TSE:IGM	83Outperform	CAD 20.14B	15.32	14.65%	2.71%	22.52%	33.51%
TSE:MFC	76Outperform	CAD 103.50B	17.97	12.24%	3.01%	2.37%	11.61%
TSE:GWO	70Outperform	CAD 83.79B	19.18	15.08%	2.79%	-3.67%	13.04%
TSE:POW	70Outperform	CAD 58.30B	20.37	12.08%	2.78%	-0.34%	-3.83%
TSE:SLF	70Outperform	CAD 57.72B	19.36	12.66%	3.62%	-1.84%	1.81%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

* Financial Sector Average

Performance Comparison

TSE:ELF and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TSE:ELF	E-L Financial	19.94	4.20	26.72%
TSE:MFC	Manulife Financial	62.89	17.11	37.36%
TSE:SLF	Sun Life Financial	103.95	24.16	30.27%
TSE:IGM	IGM Financial	89.34	35.65	66.40%
TSE:GWO	Great-West Lifeco	93.99	33.49	55.35%
TSE:POW	Power Corp Of Canada	93.90	26.59	39.50%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 17, 2026

E-L Financial AI Stock Analysis