SUN LIFE FINANCIAL INC (SLF) Stock Fundamental Analysis
NYSE:SLF - New York Stock Exchange, Inc. - CA8667961053 - Common Stock - Currency: USD
Taking everything into account, SLF scores 4 out of 10 in our fundamental rating. SLF was compared to 143 industry peers in the Insurance industry. SLF may be in some trouble as it scores bad on both profitability and health. SLF has a correct valuation and a medium growth rate. Finally SLF also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
SLF had positive earnings in the past year.
SLF had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 0.82%, SLF is doing worse than 61.70% 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 52.48% 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
Looking at the Profit Margin, with a value of 9.07%, SLF is in line with its industry, outperforming 58.16% of the companies in the same industry.
SLF's Profit Margin has improved in the last couple of years.
SLF has a Operating Margin of 14.88%. This is in the better half of the industry: SLF outperforms 66.67% 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.
The number of shares outstanding for SLF has been reduced compared to 1 year ago.
The number of shares outstanding for SLF has been reduced compared to 5 years ago.
The debt/assets ratio for SLF has been reduced compared to a year ago.
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 Debt to FCF ratio (2.67) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.24 indicates that SLF is not too dependend on debt financing.
The Debt to Equity ratio of SLF (0.24) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC5.98%
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.
Measured over the past 5 years, SLF shows a small growth in Earnings Per Share. The EPS has been growing by 5.39% on average per year.
Looking at the last year, SLF shows a quite strong growth in Revenue. The Revenue has grown by 8.17% in the last year.
Measured over the past years, SLF shows a small growth in Revenue. The Revenue has been growing by 0.65% on average per year.
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
The Earnings Per Share is expected to grow by 8.34% on average over the next years. This is quite good.
Based on estimates for the next years, SLF will show a very strong growth in Revenue. The Revenue will grow by 42.17% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.59, the valuation of SLF can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of SLF is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 29.63. SLF is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.51, which indicates a very decent valuation of SLF.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SLF is on the same level as its industry peers.
SLF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.59 | ||
| Fwd PE | 10.51 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, SLF is valued a bit more expensive than 60.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.64 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.13
PEG (5Y)2.15
EPS Next 2Y10.14%
EPS Next 3Y8.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.30%, SLF is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.09, SLF pays a better dividend. On top of this SLF pays more dividend than 82.27% of the companies listed in the same industry.
SLF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
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 its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)8.81%
Div Incr Years6
Div Non Decr Years6
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%
54.61
-0.56 (-1.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners56.34%
Inst Owner Change-2.97%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap31.34B
Analysts76.67
Price Target64.62 (18.33%)
Short Float %0.43%
Short Ratio4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
Yearly Dividend3.39
Dividend Growth(5Y)8.81%
DP64.35%
Div Incr Years6
Div Non Decr Years6
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)2.45%
PT rev (3m)11.83%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)3.9%
EPS NY rev (1m)0.1%
EPS NY rev (3m)1.62%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.59 | ||
| Fwd PE | 10.51 | ||
| P/S | 1.32 | ||
| P/FCF | 18.64 | ||
| P/OCF | 17.59 | ||
| P/B | 1.71 | ||
| P/tB | 3.86 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.71
EY8.62%
EPS(NY)5.2
Fwd EY9.51%
FCF(TTM)2.93
FCFY5.36%
OCF(TTM)3.1
OCFY5.68%
SpS41.23
BVpS31.94
TBVpS14.15
PEG (NY)1.13
PEG (5Y)2.15
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
WACC5.98%
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%