Definity FinancialTSX:DFY +0.94%77 Interest Coverage is 6.12 as of Mar. 2026, which is 92% below its 10-year median of 75.22. GuruFocus rates TSX:DFY with a GF Score™ of 77/100 and a GF Value™ of C$71.19 (Fairly Valued). The stock has 4 warning signs investors should review. Among 351 Insurance companies, Definity Financial ranks worse than 51.85% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
EBIT
by its Interest Expense. Definity Financial's
EBIT
for the
three
months ended in Mar. 2026 was C$110 Mil. Definity Financial's Interest Expense for the
three
months ended in Mar. 2026 was C$-18 Mil.
Definity Financial's interest coverage for the quarter that ended in Mar. 2026 was 6.12.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Definity Financial's Interest Coverage or its related term are showing as below:
TSX:DFY'
s Interest Coverage Range Over the Past 10 Years
Min: 15.27 Med: 75.22 Max: 190.67
Current: 15.27
TSX:DFY's Interest Coverage is ranked worse than 51.85% of 351
companies
in the Insurance industry
Industry Median: 16.23
vs TSX:DFY: 15.27
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Definity Financial Interest Coverage Related Terms
Definity Financial Interest Coverage Historical Data
* Premium members only.
The historical data trend for Definity Financial's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
TSX:DFY vs CB, PGR, TRV: Interest Coverage Comparison
For the Insurance - Property & Casualty subindustry, Definity Financial's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Definity Financial Interest Coverage vs Insurance Industry
For the Insurance industry and Financial Services sector, Definity Financial's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Definity Financial's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Definity Financial (TSX:DFY) has a Interest Coverage of 6.12 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Definity Financial and its competitors. This is 92% below median its historical median of 75.22. Over the past decade, Definity Financial's Interest Coverage has ranged from 15.27 to 190.67. According to the industry distribution chart, Definity Financial ranks #182 out of 351 companies in the Insurance industry, placing it in the top 51.9%.
Is Definity Financial's Interest Coverage too high?
Definity Financial's current Interest Coverage of 6.12 is 92% below median its 10-year median of 75.22. Over the past 10 years, this metric has ranged from a low of 15.27 to a high of 190.67. The Insurance industry median Interest Coverage is 16.23. Definity Financial's value of 6.12 is 62.3% below this industry median. Based on the distribution chart, Definity Financial ranks #182 out of 351 companies in the Insurance industry, which is below the industry midpoint. Overall, Definity Financial has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Definity Financial's Interest Coverage compare to CB and PGR?
According to the Insurance industry distribution chart, Definity Financial ranks #182 out of 351 companies for Interest Coverage. This places Definity Financial in the lower half of its industry. The industry median Interest Coverage is 16.23. Definity Financial's value of 6.12 is 62.3% below this benchmark. Historically, Definity Financial's own Interest Coverage has ranged from 15.27 to 190.67 over the past decade. While the company's 10-year median is 75.22 vs. the industry median of 16.23, Definity Financial has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Insurance company?
The median Interest Coverage among Insurance companies is 16.23, based on 351 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Definity Financial's current Interest Coverage of 6.12 is 62.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Definity Financial and its competitors. For the Insurance industry, the median Interest Coverage is 16.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Definity Financial's current Interest Coverage is 6.12, which is 92% below median its own 10-year median of 75.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Definity Financial stock overvalued right now?
Based on GuruFocus' analysis, Definity Financial (TSX:DFY) is currently considered Fairly Valued. The stock's GF Value™ is C$71.19, compared to a current price of C$74.90 — trading 5.2% above its estimated fair value. The current Interest Coverage is 6.12, which is 92% below median its 10-year median of 75.22 and 62.3% below the Insurance industry median of 16.23. Definity Financial's overall GF Score™ is 77/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Definity Financial (TSX:DFY), the current Interest Coverage is 6.12 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Definity Financial (TSX:DFY) Overvalued in 2026?
Based on GuruFocus' analysis, Definity Financial stock appears to be overvalued.
The current stock price of C$74.90 is trading 5.2% above its estimated GF Value™ of C$71.19.
GuruFocus considers Definity Financial to be Fairly Valued.
Key valuation signals for TSX:DFY:
Interest Coverage: 6.12 (92% below median its 10-year median of 75.22)
GF Value™: C$71.19 vs. price of C$74.90 (5.2% above fair value)
Industry Position: 62.3% below the Insurance median (#182 of 351)
No single metric tells the full story. See the TSX:DFY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Definity Financial Corp is a property and casualty insurance services provider. It serves the insurance needs of individual, commercial, and farm customers. Its product portfolio includes Personal auto insurance, Personal home insurance, Group auto insurance, Group home insurance, Business property insurance, Business liability insurance, Commercial vehicle insurance, Surety bonds, Oilfield services insurance, General farm insurance, Premier cash crop insurance, and Winery insurance.
77GF Score
Get the complete analysis for TSX:DFY
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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