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E-L Financial

TSX:ELF
Snowflake Description

Fair value with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ELF
TSX
CA$3B
Market Cap
  1. Home
  2. CA
  3. Insurance
Company description

E-L Financial Corporation Limited operates as an investment and insurance holding company in Canada. The last earnings update was 66 days ago. More info.


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ELF Share Price and Events
7 Day Returns
0.1%
TSX:ELF
1.1%
CA Insurance
-0.5%
CA Market
1 Year Returns
-8.1%
TSX:ELF
9.4%
CA Insurance
1.1%
CA Market
ELF Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
E-L Financial (ELF) 0.1% 0.3% -1.1% -8.1% 5.9% 12.6%
CA Insurance 1.1% 0% 1.7% 9.4% 11.2% 19.9%
CA Market -0.5% -1.9% -1.6% 1.1% 5.5% 8.6%
1 Year Return vs Industry and Market
  • ELF underperformed the Insurance industry which returned 9.4% over the past year.
  • ELF underperformed the Market in Canada which returned 1.1% over the past year.
Price Volatility
ELF
Industry
5yr Volatility vs Market

ELF Value

 Is E-L Financial undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of E-L Financial to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for E-L Financial.

TSX:ELF Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= CA$1,339.34 * 8.1%
CA$107.98
Book Value of Equity per Share Median Book Value from the past 5 years. CA$1,339.34
Discount Rate (Cost of Equity) See below 6.9%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:ELF
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.67
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.671 (1 + (1- 26.5%) (16.56%))
0.834
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.83
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (0.834 * 5.96%)
6.92%

Discounted Cash Flow Calculation for TSX:ELF using Excess Returns Model Model

The calculations below outline how an intrinsic value for E-L Financial is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

TSX:ELF Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (8.1% – 6.92%) * CA$1,339.34)
CA$15.33
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= CA$15.33 / (6.92% - 1.95%)
CA$308.31
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= CA$1,339.34 + CA$308.31
CA$1647.65
TSX:ELF Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$1,647.65
Current discount Discount to share price of CA$752.00
= -1 x (CA$752.00 - CA$1,647.65) / CA$1,647.65
54.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price E-L Financial is available for.
Intrinsic value
>50%
Share price is CA$752 vs Future cash flow value of CA$1647.65
Current Discount Checks
For E-L Financial to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • E-L Financial's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • E-L Financial's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for E-L Financial's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are E-L Financial's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:ELF PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in CAD CA$49.06
TSX:ELF Share Price ** TSX (2019-10-11) in CAD CA$752
Canada Insurance Industry PE Ratio Median Figure of 12 Publicly-Listed Insurance Companies 12.79x
Canada Market PE Ratio Median Figure of 535 Publicly-Listed Companies 13.7x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of E-L Financial.

TSX:ELF PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:ELF Share Price ÷ EPS (both in CAD)

= 752 ÷ 49.06

15.33x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • E-L Financial is overvalued based on earnings compared to the CA Insurance industry average.
  • E-L Financial is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does E-L Financial's expected growth come at a high price?
Raw Data
TSX:ELF PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.33x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
19.7%per year
Canada Insurance Industry PEG Ratio Median Figure of 10 Publicly-Listed Insurance Companies 1.05x
Canada Market PEG Ratio Median Figure of 249 Publicly-Listed Companies 0.87x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for E-L Financial, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on E-L Financial's assets?
Raw Data
TSX:ELF PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in CAD CA$1,513.94
TSX:ELF Share Price * TSX (2019-10-11) in CAD CA$752
Canada Insurance Industry PB Ratio Median Figure of 14 Publicly-Listed Insurance Companies 1.11x
Canada Market PB Ratio Median Figure of 2,465 Publicly-Listed Companies 1.35x
TSX:ELF PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:ELF Share Price ÷ Book Value per Share (both in CAD)

= 752 ÷ 1,513.94

0.5x

* Primary Listing of E-L Financial.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • E-L Financial is good value based on assets compared to the CA Insurance industry average.
X
Value checks
We assess E-L Financial's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. E-L Financial has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ELF Future Performance

 How is E-L Financial expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover E-L Financial, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
19.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is E-L Financial expected to grow at an attractive rate?
  • E-L Financial's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • E-L Financial's earnings growth is expected to exceed the Canada market average.
  • Unable to compare E-L Financial's revenue growth to the Canada market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
TSX:ELF Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:ELF Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 19.7%
Canada Insurance Industry Earnings Growth Rate Market Cap Weighted Average 11.4%
Canada Insurance Industry Revenue Growth Rate Market Cap Weighted Average 3.1%
Canada Market Earnings Growth Rate Market Cap Weighted Average 13.3%
Canada Market Revenue Growth Rate Market Cap Weighted Average 5.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:ELF Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:ELF Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-06-30 2,085 416 193
2019-03-31 1,930 433 259
2018-12-31 1,077 388 16
2018-09-30 2,013 346 503
2018-06-30 1,864 341 457
2018-03-31 1,977 316 450
2017-12-31 2,373 347 653
2017-09-30 1,481 367 496
2017-06-30 2,006 309 637
2017-03-31 2,083 341 643
2016-12-31 1,660 334 318
2016-09-30 2,321 306 425

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • E-L Financial's earnings are expected to grow by 19.7% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if E-L Financial is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:ELF Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from E-L Financial Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:ELF Past Financials Data
Date (Data in CAD Millions) EPS *
2019-06-30 49.06
2019-03-31 65.93
2018-12-31 3.96
2018-09-30 129.58
2018-06-30 117.67
2018-03-31 115.06
2017-12-31 166.17
2017-09-30 128.46
2017-06-30 180.94
2017-03-31 160.76
2016-12-31 80.88
2016-09-30 107.02

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if E-L Financial will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess E-L Financial's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
E-L Financial has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ELF Past Performance

  How has E-L Financial performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare E-L Financial's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • E-L Financial's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • E-L Financial's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • E-L Financial's 1-year earnings growth is negative, it can't be compared to the CA Insurance industry average.
Earnings and Revenue History
E-L Financial's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from E-L Financial Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:ELF Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 2,084.72 192.74 209.11
2019-03-31 1,930.24 258.97 203.84
2018-12-31 1,076.69 15.55 200.10
2018-09-30 2,013.20 502.72 193.90
2018-06-30 1,863.65 456.68 190.01
2018-03-31 1,976.74 449.97 189.73
2017-12-31 2,372.58 652.55 187.30
2017-09-30 1,481.31 495.55 185.53
2017-06-30 2,006.20 637.37 181.75
2017-03-31 2,083.04 643.06 178.88
2016-12-31 1,659.80 317.59 174.30
2016-09-30 2,321.22 425.22 173.18
2016-06-30 1,891.54 262.17 175.40
2016-03-31 1,257.54 195.59 173.79
2015-12-31 1,989.76 519.06 175.32
2015-09-30 2,023.67 453.34 175.26
2015-06-30 2,239.70 495.75 172.61
2015-03-31 2,744.84 536.32 171.68
2014-12-31 2,391.24 378.98 172.05
2014-09-30 2,311.05 501.68 166.72
2014-06-30 2,193.05 523.74 159.50
2014-03-31 1,817.05 553.47 159.43
2013-12-31 1,644.90 581.00 157.59
2013-09-30 1,423.10 588.45 157.56
2013-06-30 1,503.83 546.93 157.84
2013-03-31 1,673.87 427.02 153.77
2012-12-31 1,522.30 417.93 150.76

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • E-L Financial has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • E-L Financial used its assets less efficiently than the CA Insurance industry average last year based on Return on Assets.
  • E-L Financial's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess E-L Financial's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
E-L Financial has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ELF Health

 How is E-L Financial's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up E-L Financial's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • E-L Financial's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • E-L Financial's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of E-L Financial's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from E-L Financial Company Filings, last reported 3 months ago.

TSX:ELF Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 6,966.02 488.93 370.50
2019-03-31 6,927.03 488.85 368.97
2018-12-31 6,538.60 488.77 360.72
2018-09-30 6,822.63 488.69 256.05
2018-06-30 6,736.84 488.60 338.35
2018-03-31 6,618.57 798.46 341.48
2017-12-31 6,571.08 798.29 488.13
2017-09-30 6,263.12 698.30 586.53
2017-06-30 6,253.96 498.87 509.88
2017-03-31 6,171.86 498.73 585.79
2016-12-31 5,917.46 498.60 588.34
2016-09-30 5,844.78 299.38 419.50
2016-06-30 5,620.00 299.29 421.49
2016-03-31 5,514.64 299.20 438.04
2015-12-31 5,495.73 299.11 358.43
2015-09-30 5,428.26 299.02 472.02
2015-06-30 5,409.14 298.94 593.31
2015-03-31 5,416.67 298.85 621.46
2014-12-31 5,054.98 298.76 555.22
2014-09-30 4,853.22 298.68 513.17
2014-06-30 4,781.46 298.61 510.39
2014-03-31 4,702.73 498.49 495.57
2013-12-31 4,562.88 498.34 471.55
2013-09-30 4,336.06 498.20 315.79
2013-06-30 4,249.05 498.06 227.52
2013-03-31 4,166.97 223.80 6,652.61
2012-12-31 3,925.42 199.64 364.89
  • E-L Financial's level of debt (7%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (6.2% vs 7% today).
  • Debt is well covered by operating cash flow (85%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 20.8x coverage).
X
Financial health checks
We assess E-L Financial's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. E-L Financial has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ELF Dividends

 What is E-L Financial's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.66%
Current annual income from E-L Financial dividends.
If you bought CA$2,000 of E-L Financial shares you are expected to receive CA$13 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • E-L Financial's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (2.03%).
  • E-L Financial's dividend is below the markets top 25% of dividend payers in Canada (5.98%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:ELF Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Canada Insurance Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 4.1%
Canada Market Average Dividend Yield Market Cap Weighted Average of 335 Stocks 3.6%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2%
Canada Top 25% Dividend Yield 75th Percentile 6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:ELF Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-08-08 5.000 0.669
2019-05-09 5.000 0.654
2019-03-05 5.000 0.621
2018-11-08 5.000 0.636
2018-08-13 5.000 0.612
2018-05-10 5.000 0.613
2018-03-06 5.000 0.621
2017-11-08 5.000 0.619
2017-08-04 5.000 0.594
2017-05-10 5.000 0.590
2017-03-09 5.000 0.610
2016-11-09 5.000 0.682
2016-05-11 5.000 0.727
2016-03-02 5.000 0.735
2015-11-10 0.500 0.074
2015-08-07 0.500 0.073
2015-05-12 0.500 0.074
2015-03-06 0.500 0.077
2014-11-10 0.500 0.073
2014-08-12 0.500 0.072
2014-05-13 0.500 0.071
2014-03-05 0.500 0.070
2013-11-07 0.500 0.069
2013-08-13 0.500 0.075
2013-08-12 0.500 0.076
2013-03-05 0.500 0.087
2012-11-07 0.500 0.111
2012-08-15 0.500 0.121
2012-05-14 0.500 0.121
2012-03-08 0.500 0.128
2011-08-05 0.500 0.128
2011-05-20 0.500 0.106
2011-03-10 0.500 0.103
2010-11-04 0.500 0.105
2010-08-11 0.500 0.121
2010-05-05 0.500 0.108
2010-03-08 0.500 0.109
2009-11-04 0.500 0.111
2009-08-05 0.500 0.114
2009-05-08 0.500 0.131
2009-03-03 0.500 0.135
2008-11-03 0.500 0.129

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • E-L Financial is not paying a notable dividend for Canada, therefore no need to check if the payments are stable.
  • E-L Financial is not paying a notable dividend for Canada, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of E-L Financial's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of E-L Financial's dividends as it is not paying a notable one for Canada.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess E-L Financial's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can E-L Financial afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. E-L Financial has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ELF Management

 What is the CEO of E-L Financial's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Duncan Newton Jackman
COMPENSATION CA$1,273,618
AGE 52
TENURE AS CEO 15.1 years
CEO Bio

Mr. Duncan Newton Rowell Jackman has been the Chairman of The Empire Life Insurance Company since February 2003 and has been its Director since April 2, 1997. Mr. Jackman has been the Chairman of the Board and President of E-L Financial Corporation Limited (E-L) since February 2003 and has been its Chief Executive Officer since September 2004. He has been the Chief Executive Officer of Economic Investment Trust Ltd. since 2001 and has been its President since February 2006. He serves as the Chairman and President of United Corporations Limited since February 2001 and also serves as its Chief Executive Officer. He serves as the Managing Director of The Fulcrum Investment Company Limited. He held a variety of positions, including Portfolio Manager at Cassels Blaikie and Investment Analyst at RBC Dominion Securities. He has been the Chairman of Economic Investment Trust Ltd., since February 27, 2001. He has been the Chairman of Algoma Central Corp. since 2007 and has been its Independent Director since 1997. He has been Chairman of the Board at E-l Financial Corp. Ltd. since 2003. He served as the Chairman of The Dominion of Canada General Insurance Company. He has been a Director of Economic Investment Trust since February 1995. He has been an Independent Director of First National Financial Corporation since June 8, 2006. He has been an Independent Director of Dream Unlimited Corp. since May 9, 2017, United Corporations Limited since June 1998 and E-l Financial Corp. Ltd., since April 25, 1997. He was an Independent Trustee of Dream Global Real Estate Investment Trust (Dream Global REIT (formerly Dundee International REIT)) since August 3, 2011 until May 16, 2019. He was a Director of Labrador Iron Ore Royalty Corporation since 2010 until 2019. He served as an Independent Trustee of Dream Office Real Estate Investment Trust since June 30, 2003 until May 9, 2017. He served as a Director of First National Financial Income Fund. Mr. Jackman holds a Bachelor of Arts in Literature from McGill University.

CEO Compensation
  • Duncan Newton's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Duncan Newton's remuneration is lower than average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the E-L Financial management team in years:

8.3
Average Tenure
  • The average tenure for the E-L Financial management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Duncan Newton Jackman

TITLE
Chairman
COMPENSATION
CA$1M
AGE
52
TENURE
15.1 yrs

Scott Ewert

TITLE
VP & CFO
COMPENSATION
CA$632K
TENURE
4.6 yrs

Mark Sylvia

TITLE
CEO & President of The Empire Life Insurance Company
COMPENSATION
CA$2M
TENURE
5.3 yrs

Ian Hardacre

TITLE
Senior VP & Chief Investment Officer of Empire Life Insurance Company
COMPENSATION
CA$796K
TENURE
2.8 yrs

Fahad Khan

TITLE
Vice-President of Investments

Richard Carty

TITLE
VP, General Counsel & Corporate Secretary
AGE
51

Susan Clifford

TITLE
Treasurer

Nora Hohman

TITLE
Senior Vice-President of Claims for The Dominion

J. Gibson

TITLE
CFO, Senior VP & Chief Actuary of Empire Life Insurance Company
COMPENSATION
CA$611K
TENURE
11.3 yrs

Steven Whitelaw

TITLE
Senior Vice-President of Personal Lines and Business Solutions- The Dominion
TENURE
25.8 yrs
Board of Directors Tenure

Average tenure and age of the E-L Financial board of directors in years:

10.9
Average Tenure
58
Average Age
  • The average tenure for the E-L Financial board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Duncan Newton Jackman

TITLE
Chairman
COMPENSATION
CA$1M
AGE
52
TENURE
16.6 yrs

James Billett

TITLE
Director
COMPENSATION
CA$58K
TENURE
12.4 yrs

Mark Taylor

TITLE
Director
COMPENSATION
CA$131K
AGE
62
TENURE
16.4 yrs

Henry N. Jackman

TITLE
Director
COMPENSATION
CA$101K
TENURE
22.8 yrs

Clive Rowe

TITLE
Director
COMPENSATION
CA$108K
TENURE
5.4 yrs

William Corcoran

TITLE
Director
COMPENSATION
CA$93K
TENURE
22.3 yrs

Biff Matthews

TITLE
Director
COMPENSATION
CA$43K
TENURE
9.4 yrs

Michael Cooper

TITLE
Director
COMPENSATION
CA$34K
AGE
58
TENURE
5.4 yrs

M. Victoria Jackman

TITLE
Director
COMPENSATION
CA$38K
TENURE
1.4 yrs

Stephen J. Smith

TITLE
Director
COMPENSATION
CA$42K
TENURE
1.4 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by E-L Financial individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
09. Oct 19 Buy Duncan Newton Jackman Individual 08. Oct 19 08. Oct 19 100 CA$745.00 CA$74,500
06. Sep 19 Buy M. Victoria Jackman Individual 05. Sep 19 05. Sep 19 50 CA$750.00 CA$37,500
25. Jun 19 Buy Duncan Newton Jackman Individual 24. Jun 19 24. Jun 19 100 CA$750.00 CA$75,000
17. May 19 Buy M. Victoria Jackman Individual 16. May 19 16. May 19 125 CA$795.00 CA$99,375
15. May 19 Buy Duncan Newton Jackman Individual 14. May 19 14. May 19 100 CA$792.70 CA$79,270
21. Dec 18 Buy Duncan Newton Jackman Individual 20. Dec 18 20. Dec 18 100 CA$750.00 CA$75,000
22. Nov 18 Sell John Barron Individual 21. Nov 18 21. Nov 18 -65 CA$814.00 CA$-52,910
X
Management checks
We assess E-L Financial's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. E-L Financial has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ELF News

Simply Wall St News

Should You Take Comfort From Insider Transactions At E-L Financial Corporation Limited (TSE:ELF)?

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' View our latest analysis for E-L Financial The Last 12 Months Of Insider Transactions At E-L Financial Director M. … TSX:ELF Recent Insider Trading, August 14th 2019 Insiders at E-L Financial Have Bought Stock Recently It's good to see that E-L Financial insiders have made notable investments in the company's shares. … E-L Financial insiders own 37% of the company, currently worth about CA$1.1b based on the recent share price.

Simply Wall St -

Despite Its High P/E Ratio, Is E-L Financial Corporation Limited (TSE:ELF) Still Undervalued?

View our latest analysis for E-L Financial How Do I Calculate A Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for E-L Financial: P/E of 11.5 = CA$758.05 ÷ CA$65.93 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings.

Simply Wall St -

Should You Worry About E-L Financial Corporation Limited's (TSE:ELF) CEO Pay?

Check out our latest analysis for E-L Financial How Does Duncan Newton Jackman's Compensation Compare With Similar Sized Companies? … A first glance this seems like a real positive for shareholders, since Duncan Newton Jackman is paid less than the average total compensation paid by similar sized companies. … It looks like E-L Financial Corporation Limited pays its CEO less than similar sized companies.

Simply Wall St -

E-L Financial (TSE:ELF) Shareholders Booked A 14% Gain In The Last Three Years

Notably, the E-L Financial Corporation Limited (TSE:ELF) share price has gained 14% in three years, which is better than the average market return. … During three years of share price growth, E-L Financial achieved compound earnings per share growth of 9.1% per year. … The average annual share price increase of 4.3% is actually lower than the EPS growth.

Simply Wall St -

E-L Financial Corporation Limited (TSE:ELF) Insiders Increased Their Holdings

The Last 12 Months Of Insider Transactions At E-L Financial. … Chairman Duncan Newton Jackman made the biggest insider purchase in the last 12 months. … In this case we're pleased to report that the insider bought shares at close to current prices

Simply Wall St -

How Should Investors React To E-L Financial Corporation Limited's (TSE:ELF) CEO Pay?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Duncan Newton Jackman's Compensation Compare With Similar Sized Companies. … According to our data, E-L Financial Corporation Limited has a market capitalization of CA$3.2b, and pays its CEO total annual compensation worth CA$1.3m.

Simply Wall St -

Did E-L Financial Corporation Limited's (TSE:ELF) Recent Earnings Growth Beat The Trend?

After looking at E-L Financial Corporation Limited's (TSE:ELF) latest earnings announcement (30 September 2018), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. … As a long-term investor I tend to focus on earnings trend, rather than a single number at one point in time. … Did ELF beat its long-term earnings growth trend and its industry.

Simply Wall St -

How Much Did E-L Financial Corporation Limited's (TSE:ELF) CEO Pocket Last Year?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Duncan Newton Jackman's Compensation Compare With Similar Sized Companies. … A first glance this seems like a real positive for shareholders, since Duncan Newton Jackman is paid less than the average compensation paid by similar sized companies.

Simply Wall St -

Does E-L Financial Corporation Limited's (TSE:ELF) PE Ratio Signal A Buying Opportunity?

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to learn about the link between company’s fundamentals and stock market performance. … While this makes ELF appear like a good stock to buy, you might change your mind after I explain the assumptions behind the P/E ratio.

Simply Wall St -

Has E-L Financial Corporation Limited (TSE:ELF) Improved Earnings In Recent Times?

After looking at E-L Financial Corporation Limited's (TSE:ELF) latest earnings announcement (31 March 2018), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. … I also compare against an industry benchmark to check whether E-L Financial's performance has been impacted by industry movements. … ELF's trailing twelve-month earnings (from 31 March 2018) of CA$453.97m has

Simply Wall St -

ELF Company Info

Description

E-L Financial Corporation Limited operates as an investment and insurance holding company in Canada. It operates through two segments, E-L Corporate and Empire Life. The company owns investments in equities and fixed income securities directly and indirectly through common shares, investment funds, closed-end investment companies, and a limited partnership and other private companies. It also underwrites life and health insurance policies, wealth management products, employee benefit plans, and financial services, as well as segregated funds, mutual funds, and annuity products to individuals, professionals, and businesses through a network of independent financial advisors, managing general agents, national account firms, mutual fund dealers, and employee benefit brokers and representatives. The company was incorporated in 1968 and is headquartered in Toronto, Canada.

Details
Name: E-L Financial Corporation Limited
ELF
Exchange: TSX
Founded: 1968
CA$2,953,038,576
3,926,913
Website: http://www.e-lfinancial.ca
Address: E-L Financial Corporation Limited
165 University Avenue,
10th Floor,
Toronto,
Ontario, M5H 3B8,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX ELF Common Shares The Toronto Stock Exchange CA CAD 06. Jan 1975
OTCPK ELFI.F Common Shares Pink Sheets LLC US USD 06. Jan 1975
TSX ELF.PRH PFD 1ST SER 3 The Toronto Stock Exchange CA CAD 02. Apr 2012
Number of employees
Current staff
Staff numbers
0
E-L Financial employees.
Industry
Life and Health Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/10/14 01:15
End of day share price update: 2019/10/11 00:00
Last earnings filing: 2019/08/09
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.