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E-L Financial (ELF) AI Stock Analysis

TSE:ELF

E-L Financial

(TSX:ELF)

Select Model
Rating:84Outperform
Price Target:CAD 22.50â–²(14.33% 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 SheetLow leverage gives ELF substantial financial flexibility to absorb insurance volatility, support investment activity, and pursue opportunities without excessive reliance on debt. The steadily expanding equity base also strengthens loss-absorbing capacity and supports durable capital allocation over the coming quarters.
Negative Factors
Weak Cash ConversionOperating cash flow below reported earnings in recent periods raises a durable question about earnings quality and the timing of cash realization. Even with positive free cash flow, inconsistent conversion could constrain capital deployment, distributions, or the ability to absorb adverse insurance and investment outcomes.

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

-5%0%5%10%15%20%25%30%TSE:ELF+23.14%EWC+23.59%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
CAD 6.68B
Dividend Yield
6.26%
Average Volume (3M)
32.46K
Price to Earnings (P/E)
3.6
Beta (1Y)
1.19
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...

How the Company Makes Money

ELF makes money through a combination of (1) insurance underwriting income, (2) investment income and gains on invested assets, and (3) investment/holding-company returns from its controlled or significant holdings. 1) Insurance operations (property...

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
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue3.91B2.87B3.35B3.00B-1.18B2.32B
Gross Profit2.46B1.74B2.14B1.42B-758.24M1.61B
EBITDA2.43B1.70B2.12B1.31B-525.74M1.54B
Net Income1.83B1.23B1.57B955.28M-331.44M1.17B
Balance Sheet
Total Assets31.98B29.96B28.12B25.76B23.49B26.79B
Cash, Cash Equivalents and Short-Term Investments607.50M580.12M374.25M445.82M2.04B2.60B
Total Debt848.86M599.57M598.87M733.37M702.91M602.16M
Total Liabilities20.65B19.31B18.38B17.50B15.75B18.20B
Stockholders Equity9.77B9.07B8.47B7.11B6.71B7.32B
Cash Flow
Free Cash Flow523.68M387.31M459.55M736.01M380.95M344.42M
Operating Cash Flow523.68M387.31M459.55M736.01M397.83M348.10M
Investing Cash Flow-203.33M295.19M-76.82M-386.56M-437.24M202.91M
Financing Cash Flow-102.14M-491.51M-450.18M-211.54M-293.75M-319.12M

E-L Financial Technical Analysis

Technical Analysis SentimentPositive
Last Price19.68

Price Trends

50DMA18.14Positive
100DMA17.57Positive
200DMA17.02Positive

Market Momentum

MACD0.48Positive
RSI57.73Neutral
STOCH27.78Neutral

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 19.68 is above the 20-day moving average (MA) of 19.01, above the 50-day MA of 18.14, and above the 200-day MA of 17.02, indicating a bullish trend. The MACD of 0.48 indicates Positive momentum. The RSI at 57.73 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 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
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
TSE:ELFTSE:ELF84OutperformCAD 6.68B3.5919.97%6.26%31.77%48.87%
TSE:GWOTSE:GWO81OutperformCAD 82.51B18.9015.48%2.84%4.29%21.91%
TSE:IGMTSE:IGM81OutperformCAD 18.85B16.5312.91%2.95%19.92%20.90%
TSE:MFCTSE:MFC78OutperformCAD 103.49B16.8112.98%3.04%18.31%18.90%
TSE:POWTSE:POW76OutperformCAD 60.26B23.5010.91%2.71%9.74%-3.94%
TSE:SLFTSE:SLF76OutperformCAD 62.93B19.0813.89%3.32%-0.59%5.22%
Sector *68Neutral$18.00B11.429.92%3.81%9.73%1.22%

* Financial Sector Average

Performance Comparison

0%20%40%60%TSE:ELFTSE:MFCTSE:SLFTSE:IGMTSE:GWOTSE:POWDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
TSE:ELF and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
TSE:ELFE-L Financial19.324.1126.98%
TSE:MFCManulife Financial62.3717.7439.76%
TSE:SLFSun Life Financial113.1730.0336.12%
TSE:IGMIGM Financial82.1529.6856.56%
TSE:GWOGreat-West Lifeco92.2434.8160.63%
TSE:POWPower Corp Of Canada96.6032.4350.54%

E-L Financial Corporate Events

Business Operations and StrategyFinancial Disclosures

E-L Financial Delivers Surge in Investment-Driven Earnings and Higher Net Equity Value

Positive
Aug 6, 2026

E-L Financial reported strong results for the quarter ended June 30, 2026, with net equity value per common share rising 7.5% since year-end 2025 and 17.5% year-over-year. Consolidated shareholders’ net income surged to $1,011 million for the q...

Dividends

E-L Financial Declares Eligible Dividends Across Preferred and Common Shares

Positive
Aug 6, 2026

E-L Financial Corporation Limited has declared cash dividends on its First Preference Shares Series 1, 2 and 3, its Series A Preference Shares, and its common shares, all with a record date of September 29, 2026, and a payable date of October 16, 202...

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