SUN LIFE FINANCIAL INC (SLF.CA) Stock Fundamental Analysis
TSX:SLF - Toronto Stock Exchange - CA8667961053 - Common Stock - Currency: CAD
Taking everything into account, SLF scores 4 out of 10 in our fundamental rating. SLF was compared to 85 industry peers in the Insurance industry. Both the profitability and financial health of SLF have multiple concerns. While showing a medium growth rate, SLF is valued expensive at the moment. Finally SLF also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year SLF was profitable.
In the past year SLF had a positive cash flow from operations.
SLF had positive earnings in each of the past 5 years.
Of the past 5 years SLF 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 0.82%, SLF is doing good in the industry, outperforming 61.63% of the companies in the same industry.
SLF's Return On Equity of 11.70% is in line compared to the rest of the industry. SLF outperforms 46.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.82% | ||
| ROE | 11.7% | ||
| ROIC | N/A |
ROA(3y)0.9%
ROA(5y)0.92%
ROE(3y)12.65%
ROE(5y)12.26%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 9.07%, SLF perfoms like the industry average, outperforming 41.86% of the companies in the same industry.
In the last couple of years the Profit Margin of SLF has grown nicely.
SLF has a Operating Margin of 14.88%. This is amonst the worse of the industry: SLF underperforms 93.02% of its industry peers.
SLF's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.88% | ||
| PM (TTM) | 9.07% | ||
| GM | N/A |
OM growth 3Y-8.21%
OM growth 5YN/A
PM growth 3Y-4.77%
PM growth 5Y1.93%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
SLF does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, SLF has less shares outstanding
Compared to 5 years ago, SLF has less shares outstanding
SLF has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of SLF is 2.67, which is a good value as it means it would take SLF, 2.67 years of fcf income to pay off all of its debts.
SLF has a worse Debt to FCF ratio (2.67) than 65.12% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that SLF is not too dependend on debt financing.
SLF has a Debt to Equity ratio of 0.24. This is amongst the best in the industry. SLF outperforms 83.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC6.1%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.29% over the past year.
The Earnings Per Share has been growing slightly by 5.39% on average over the past years.
The Revenue has grown by 8.17% in the past year. This is quite good.
SLF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.65% yearly.
EPS 1Y (TTM)5.29%
EPS 3Y3.61%
EPS 5Y5.39%
EPS Q2Q%2.16%
Revenue 1Y (TTM)8.17%
Revenue growth 3Y-3.54%
Revenue growth 5Y0.65%
Sales Q2Q%-2.68%
3.2 Future
Based on estimates for the next years, SLF will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.34% on average per year.
The Revenue is expected to grow by 42.17% on average over the next years. This is a very strong growth
EPS Next Y10.26%
EPS Next 2Y10.14%
EPS Next 3Y8.34%
EPS Next 5YN/A
Revenue Next Year5.67%
Revenue Next 2Y4.05%
Revenue Next 3Y56.69%
Revenue Next 5Y42.17%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.92, the valuation of SLF can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of SLF indicates a rather expensive valuation: SLF more expensive than 87.21% of the companies listed in the same industry.
SLF is valuated cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.82 indicates a reasonable valuation of SLF.
67.44% of the companies in the same industry are cheaper than SLF, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.10. SLF is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.92 | ||
| Fwd PE | 10.82 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, SLF is valued more expensive than 81.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.19 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
SLF's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.16
PEG (5Y)2.21
EPS Next 2Y10.14%
EPS Next 3Y8.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.25%, SLF is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.24, SLF has a dividend in line with its industry peers.
SLF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.25% |
5.2 History
On average, the dividend of SLF grows each year by 8.81%, which is quite nice.
SLF has paid a dividend for at least 10 years, which is a reliable track record.
SLF has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.81%
Div Incr Years10
Div Non Decr Years24
5.3 Sustainability
64.35% of the earnings are spent on dividend by SLF. This is not a sustainable payout ratio.
The dividend of SLF is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP64.35%
EPS Next 2Y10.14%
EPS Next 3Y8.34%
TSX:SLF (3/7/2025, 7:00:00 PM)
79.89
+0.91 (+1.15%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners56.34%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap45.85B
Analysts77.78
Price Target91.12 (14.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.25% |
Yearly Dividend3.39
Dividend Growth(5Y)8.81%
DP64.35%
Div Incr Years10
Div Non Decr Years24
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.97%
Min EPS beat(2)-4.67%
Max EPS beat(2)2.73%
EPS beat(4)2
Avg EPS beat(4)-1%
Min EPS beat(4)-10.16%
Max EPS beat(4)8.08%
EPS beat(8)5
Avg EPS beat(8)0.2%
EPS beat(12)9
Avg EPS beat(12)2.36%
EPS beat(16)11
Avg EPS beat(16)1.74%
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.83%
PT rev (3m)1.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.24%
EPS NY rev (1m)-2.97%
EPS NY rev (3m)-2.79%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.92 | ||
| Fwd PE | 10.82 | ||
| P/S | 1.36 | ||
| P/FCF | 19.19 | ||
| P/OCF | 18.11 | ||
| P/B | 1.76 | ||
| P/tB | 3.97 | ||
| EV/EBITDA | N/A |
EPS(TTM)6.7
EY8.39%
EPS(NY)7.38
Fwd EY9.24%
FCF(TTM)4.16
FCFY5.21%
OCF(TTM)4.41
OCFY5.52%
SpS58.6
BVpS45.4
TBVpS20.11
PEG (NY)1.16
PEG (5Y)2.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.82% | ||
| ROE | 11.7% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 14.88% | ||
| PM (TTM) | 9.07% | ||
| GM | N/A | ||
| FCFM | 7.1% |
ROA(3y)0.9%
ROA(5y)0.92%
ROE(3y)12.65%
ROE(5y)12.26%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)3.32%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-8.21%
OM growth 5YN/A
PM growth 3Y-4.77%
PM growth 5Y1.93%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.67 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.43% | ||
| Interest Coverage | 12.86 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 78.35% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score4
WACC6.1%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)131.84%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.29%
EPS 3Y3.61%
EPS 5Y5.39%
EPS Q2Q%2.16%
EPS Next Y10.26%
EPS Next 2Y10.14%
EPS Next 3Y8.34%
EPS Next 5YN/A
Revenue 1Y (TTM)8.17%
Revenue growth 3Y-3.54%
Revenue growth 5Y0.65%
Sales Q2Q%-2.68%
Revenue Next Year5.67%
Revenue Next 2Y4.05%
Revenue Next 3Y56.69%
Revenue Next 5Y42.17%
EBIT growth 1Y11.6%
EBIT growth 3Y-11.46%
EBIT growth 5YN/A
EBIT Next Year-2%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-56.08%
FCF growth 3YN/A
FCF growth 5Y0.24%
OCF growth 1Y-54.88%
OCF growth 3YN/A
OCF growth 5Y0.46%