Definity FinancialTSX:DFY +1.83%77 3-Year ROIIC % is 12.37 as of Dec. 2025, which is at its 10-year median of 12.37. GuruFocus rates TSX:DFY with a GF Score™ of 77/100 and a GF Value™ of C$71.67 (Fairly Valued). The stock has 5 warning signs investors should review. Among 335 Insurance companies, Definity Financial ranks better than 69.25% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Definity Financial's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 12.37%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Definity Financial's 3-Year ROIIC % or its related term are showing as below:
TSX:DFY's 3-Year ROIIC % is ranked better than 69.25% of 335
companies
in the Insurance industry
Industry Median: 5.2
vs TSX:DFY: 12.37
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Definity Financial 3-Year ROIIC % Related Terms
Definity Financial 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Definity Financial's 3-Year ROIIC % 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.
TSX:DFY vs CB, PGR, TRV: 3-Year ROIIC % Comparison
For the Insurance - Property & Casualty subindustry, Definity Financial's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Insurance Industry
For the Insurance industry and Financial Services sector, Definity Financial's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Definity Financial's 3-Year ROIIC % falls into.
Definity Financial's 3-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 442.89611 (Dec. 2025) - 112.08912 (Dec. 2022) )
/
( 9443.89 (Dec. 2025) - 6768.91 (Dec. 2022) )
=
330.80699
/
2674.98
=
12.37%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Definity Financial (TSX:DFY) has a 3-Year ROIIC % of 12.37 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Definity Financial and its competitors. This is near median its historical median of 12.37. Over the past decade, Definity Financial's 3-Year ROIIC % has ranged from 12.37 to 12.37. According to the industry distribution chart, Definity Financial ranks #103 out of 335 companies in the Insurance industry, placing it in the top 30.7%.
Is Definity Financial's 3-Year ROIIC % too high?
Definity Financial's current 3-Year ROIIC % of 12.37 is near median its 10-year median of 12.37. Over the past 10 years, this metric has ranged from a low of 12.37 to a high of 12.37. The Insurance industry median 3-Year ROIIC % is 5.20. Definity Financial's value of 12.37 is 137.9% above this industry median. Based on the distribution chart, Definity Financial ranks #103 out of 335 companies in the Insurance industry, which is above 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 3-Year ROIIC % compare to CB and PGR?
According to the Insurance industry distribution chart, Definity Financial ranks #103 out of 335 companies for 3-Year ROIIC %. This puts Definity Financial in the upper half of its industry. The industry median 3-Year ROIIC % is 5.20. Definity Financial's value of 12.37 is 137.9% above this benchmark. Historically, Definity Financial's own 3-Year ROIIC % has ranged from 12.37 to 12.37 over the past decade. While the company's 10-year median is 12.37 vs. the industry median of 5.20, Definity Financial has consistently been above 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 3-Year ROIIC % for an Insurance company?
The median 3-Year ROIIC % among Insurance companies is 5.20, based on 335 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Definity Financial's current 3-Year ROIIC % of 12.37 is 137.9% above 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Definity Financial and its competitors. For the Insurance industry, the median 3-Year ROIIC % is 5.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Definity Financial's current 3-Year ROIIC % is 12.37, which is near median its own 10-year median of 12.37. 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$71.67, compared to a current price of C$77.48 — trading 8.1% above its estimated fair value. The current 3-Year ROIIC % is 12.37, which is near median its 10-year median of 12.37 and 137.9% above the Insurance industry median of 5.20. Definity Financial's overall GF Score™ is 77/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Definity Financial (TSX:DFY), the current 3-Year ROIIC % is 12.37 as of Dec. 2025. 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$77.48 is trading 8.1% above its estimated GF Value™ of C$71.67.
GuruFocus considers Definity Financial to be Fairly Valued.
Key valuation signals for TSX:DFY:
3-Year ROIIC %: 12.37 (near median its 10-year median of 12.37)
GF Value™: C$71.67 vs. price of C$77.48 (8.1% above fair value)
Industry Position: 137.9% above the Insurance median (#103 of 335)
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
3-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSX:DFY has been successfully added to your 
