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Solution Financial Inc (SFI) Fair Value & Analysis

Consumer Cyclical · CA · Market cap C$22.4M

SF Solution Financial Inc SFI · TO
PriceC$0.2750
Fair ValueC$0.0600
Upside-78.2%
Quality42/100
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Mixed Growth
Thin margins · 3.3% net margin
Moderate debt · negative free cash flow
1.45% dividend yield
Trails peers (4/12)
Narrow moat 33/100
Evidence: High Range C$0.0400 – C$0.0700 Share as image

Fair value as of: Jul 13, 2026

From 11 valuation models · updated 28 days ago

Fair value updated Jul 13, 2026, revised from C$0.0700 to C$0.0600 (−14.3%) since Jun 24, 2026.

Below-average quality, and screening another 78% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (C$0.0700). The favourable scenario is already priced in.
  • Weak quality (42/100) and above fair value at the same time, the margin of safety is missing on both counts.
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Price vs Fair Value (5 years)

C$0.5638 C$0.2027 Fair Value C$0.0600 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 13, 2026.

How to read this chart

60‑month range C$0.2027 – C$0.5638 · fair‑value band C$0.0400 – C$0.0700 · the C$0.2750 price screens above the C$0.0600 fair value. Dashed = 300-day average. As of Jul 13, 2026.

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Analysis

Solution Financial Inc (SFI) currently trades at C$0.2750, while our model-based Fair Value estimate is C$0.0600, implying the stock looks roughly 78.2% overvalued today. The Quality Score stands at 42/100 (below-average quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Solution Financial Inc generated revenue of C$11.3M at a net margin of 2.8%. Revenue grew 28.7% year over year. It earns a return on equity of 2.6%. Net debt stands at C$6.8M. Fundamentals as of Jul 13, 2026

Our scenario range runs from C$0.0400 (bear case) to C$0.0700 (bull case); at C$0.2750, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 7% below its 52-week high and 6% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -14% fair-value upside, at -78%, SFI screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income C$0.1000 C$0.0900 C$0.0600 76
Gordon GGM C$0.0300 C$0.0300 C$0.0300 70
Growth-Adj P/E C$0.0400 C$0.0500 C$0.0700 68
All 11 models by family
DCF Models
Owner Earnings C$0.0200 31
Earnings-Based
Graham-Dodd C$0.0200 C$0.0300 C$0.0300 54
Dividend Discount
Gordon GGM C$0.0300 C$0.0300 C$0.0300 70
DDM Multi-Stage C$0.0300 C$0.0300 C$0.0400 61
Multiples
P/E Multiple C$0.0500 C$0.0700 C$0.0900 63
P/S Multiple C$0.0400 C$0.0600 C$0.0700 58
P/B Multiple C$0.0400 C$0.0600 C$0.0700 55
EV/EBITDA C$0.0200 54
Asset-Based
NCAV (Graham) C$0.0700 C$0.1000 C$0.1500 50
Economic Profit
Residual Income C$0.1000 C$0.0900 C$0.0600 76
Growth Earnings
Growth-Adj P/E C$0.0400 C$0.0500 C$0.0700 68

Widest divergence: Asset-Based (C$0.1000) versus Earnings-Based (C$0.0300). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) C$12.3M
Revenue growth (YoY) +35.9%
Net margin 3.3%
Return on equity 3.4%
Free cash flow −C$4.9M FY2025
Operating margin 11.8%
More key figures
Dividend yield 1.5%
EPS growth (YoY) +1,597%
Net debt C$6.8M FY2025

Figures from reported company fundamentals · as of Jul 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 42/100

Of which business quality 36 · Market factors (momentum, volatility) 56

Profitability 19
Margins and returns on capital today
Quality Growth 42
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 18
Balance sheet, leverage, solvency risk
Investment 87
Disciplined investing over empire-building
Low Volatility 97
Calm price path (market factor)
Momentum 40
Price trend over the last 3–12 months (market factor)
52W Momentum 38
Distance to the 52-week high (market factor)
Net Issuance 96
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Solution Financial Inc., together with its subsidiary, engages in leasing, financing, and retail sale of luxury and exotic vehicles, yachts, and other assets in Canada. It serves new immigrants, business owners, and international students. Solution Financial Inc. is headquartered in Richmond, Canada.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Solution Financial Inc reported revenue of C$10.6M in FY2025 versus C$20.5M in FY2021, a compound −15.1%/yr. Reported net income was C$274K in FY2025, compounding −25.9%/yr from FY2021.

Growth Quality 55/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
C$10.6M
Latest YoY
−15.2%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−19.5%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−5.8%
Avg. growth/yr (7Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+12.0%
Revenue −15.1%/yr
FY21 C$20.5M
FY22 C$20.3M
FY23 C$13.9M
FY24 C$12.5M
FY25 C$10.6M
Net income −25.9%/yr
FY21 C$907K
FY22 C$838K
FY23 C$38.7K
FY24 C$355K
FY25 C$274K

SFI screens 78% overvalued. Compare with Carvana Co →

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Cite: Fair Value Calculator (2026). "Solution Financial Inc Fair Value". https://www.fairvalue-calculator.com/stock/SFI

Peer Group

Auto & Truck Dealerships · 102 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 42 · Below median
Fair Value upside −78% · Bottom 25%
Return on equity (TTM) 3% · Below median
Return on assets 3% · Below median
Net margin (TTM) 3% · Above median
Operating margin (TTM) 12% · Top 25%
Revenue growth 36% · Top 25%
Dividend yield (TTM) 1.5% · Below median
Debt / equity 0.64× · Higher than median

Valuation Multiples vs Auto & Truck Dealerships median · lower = cheaper

P/B 1.31× · Cheaper than median
P/S (TTM) 1.31× · Pricier than 75% of peers
EV/EBITDA 14.3× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 21
FUTURE 100 · sector 9
PAST 13 · sector 20
HEALTH 68 · sector 89
DIVIDEND 29 · sector 49

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Auto & Truck Dealerships stocks, each showing price versus our Fair Value estimate (as of Jul 13, 2026).

Stock Price Fair Value vs Fair Value
Carvana Co CVNA $70.38 $24.58 -65%
Penske Automotive Group PAG $202.66 $241.86 +19%
Hotai Motor Co 2207 476.50 TWD 576.75 TWD +21%
CarMax, Inc KMX $58.47 $29.62 -49%
Lithia Motors, Inc LAD $339.16 $610.95 +80%
AutoNation, Inc AN $205.72 $329.77 +60%
Rush Enterprises, Inc RUSHA $76.89 $66.27 -14%
Valvoline Inc VVV $38.64 $24.57 -36%
OPENLANE, Inc OPLN $39.46 $33.81 -14%
Eagers Automotive Limited APE A$20.83 A$17.66 -15%

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Frequently asked questions

Is Solution Financial Inc (SFI) overvalued or undervalued?
As of Jul 13, 2026, our model estimates a fair value of C$0.0600 versus a price of C$0.2750, about −78% (overvalued).
What is the fair value of SFI?
Our model-based fair value for Solution Financial Inc is C$0.0600 (as of Jul 13, 2026), built from audited fundamentals. The current price is C$0.2750.
What is the quality score of SFI?
Solution Financial Inc has a Quality Score of 42/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Solution Financial Inc (SFI)?
Solution Financial Inc reported trailing-twelve-month revenue of about C$11.3M (latest available figure, as of Jul 13, 2026).
What is the net profit margin of SFI?
The net profit margin of Solution Financial Inc is about 2.8%, meaning it keeps roughly 2.8% of revenue as net income. Based on the latest reported figures.
Does Solution Financial Inc pay a dividend?
Solution Financial Inc currently shows a dividend yield of about 1.45% relative to its recent price (as of Jul 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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