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E-L Financial (ELF) AI Stock Analysis

53 Followers
TSE:ELF

E-L Financial

(TSX:ELF)

Select Model
Rating:83Outperform
Price Target:CAD 23.50â–²(16.63% Upside)
Action:reiterated
Date:08/17/26

The score is driven primarily by attractive valuation (low P/E and high dividend yield) and strong financial strength (high profitability and low leverage). Technicals add support with an established uptrend and positive momentum. The key constraint is cash flow quality, where cash conversion versus earnings has been inconsistent.

Positive Factors
Conservative balance sheetLow leverage gives E-L Financial substantial financial flexibility and reduces the burden of interest and refinancing costs. A steadily expanding equity base also supports resilience across insurance and investment cycles, allowing the company to absorb volatility while continuing to allocate capital over the next several quarters.
Negative Factors
Earnings volatilityThe prior negative-return year shows that E-L Financial’s earnings power can vary materially across business and investment cycles. Such volatility makes recent profitability less certain as a steady baseline and can complicate capital planning, distribution decisions, and expectations for the next several quarters.

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

-5%0%5%10%15%20%25%30%TSE:ELF+26.99%EWC+21.06%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
CAD 6.96B
Dividend Yield
6.00%
Average Volume (3M)
32.48K
Price to Earnings (P/E)
3.7
Beta (1Y)
1.16
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

Strong overall fundamentals supported by very high recent profitability (Income Statement Score 86) and a conservatively levered balance sheet (Balance Sheet Score 88). The main offsets are weaker and inconsistent cash conversion versus earnings (Cash Flow Score 63) and historically volatile results, which reduce confidence in sustainability.

Income Statement

86Very Positive

Balance Sheet

88Very Positive

Cash Flow

63Positive
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 Price20.15

Price Trends

50DMA18.49Positive
100DMA17.80Positive
200DMA17.14Positive

Market Momentum

MACD0.37Positive
RSI63.46Neutral
STOCH66.61Neutral

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 20.15 is above the 20-day moving average (MA) of 19.66, above the 50-day MA of 18.49, and above the 200-day MA of 17.14, indicating a bullish trend. The MACD of 0.37 indicates Positive momentum. The RSI at 63.46 is Neutral, neither overbought nor oversold. The STOCH value of 66.61 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:ELF83OutperformCAD 6.94B3.7519.97%6.00%31.77%48.87%
TSE:MFCTSE:MFC76OutperformCAD 103.83B18.1112.24%2.99%2.37%11.61%
TSE:IGMTSE:IGM72OutperformCAD 19.65B14.9514.65%2.78%22.52%33.51%
TSE:GWOTSE:GWO70OutperformCAD 84.25B19.5015.08%2.74%-3.67%13.04%
TSE:POWTSE:POW70OutperformCAD 59.15B23.3310.91%2.73%9.74%-3.94%
TSE:SLFTSE:SLF70OutperformCAD 58.07B19.5812.66%3.58%-1.84%1.81%
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 '26Nov '26
TSE:ELF and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
TSE:ELFE-L Financial20.154.3927.90%
TSE:MFCManulife Financial63.3816.8036.08%
TSE:SLFSun Life Financial105.1325.6832.33%
TSE:IGMIGM Financial87.1732.6659.91%
TSE:GWOGreat-West Lifeco95.5635.1458.15%
TSE:POWPower Corp Of Canada95.8727.6940.61%

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 quarter...

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