SUN LIFE FINANCIAL INC (SLF.CA) Stock Fundamental Analysis
Canada - TSX:SLF - CA8667961053 - Common Stock
82.25 CAD
+0.25 (+0.3%)
We assign a fundamental rating of 5 out of 10 to SLF. SLF was compared to 80 industry peers in the Insurance industry. SLF has only an average score on both its financial health and profitability. SLF is valied quite expensively at the moment, while it does show a decent growth rate. SLF also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year SLF was profitable.
SLF had a positive operating cash flow in the past year.
Each year in the past 5 years SLF has been profitable.
Of the past 5 years SLF 4 years had a positive operating cash flow.
1.2 Ratios
SLF has a better Return On Assets (0.86%) than 62.50% of its industry peers.
SLF has a Return On Equity of 12.85%. This is in the better half of the industry: SLF outperforms 77.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.86% | ||
| ROE | 12.85% | ||
| 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
SLF has a Profit Margin (9.34%) which is comparable to the rest of the industry.
SLF's Profit Margin has improved in the last couple of years.
SLF has a Operating Margin of 14.71%. This is amonst the worse of the industry: SLF underperforms 93.75% of its industry peers.
SLF's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.71% | ||
| PM (TTM) | 9.34% | ||
| 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
The number of shares outstanding for SLF has been reduced compared to 5 years ago.
SLF has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of SLF is 1.54, which is an excellent value as it means it would take SLF, only 1.54 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.54, SLF is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
A Debt/Equity ratio of 0.25 indicates that SLF is not too dependend on debt financing.
SLF has a better Debt to Equity ratio (0.25) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.54 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC6.22%
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 grown by an nice 8.63% over the past year.
The Earnings Per Share has been growing slightly by 5.28% on average over the past years.
Looking at the last year, SLF shows a small growth in Revenue. The Revenue has grown by 7.10% in the last year.
SLF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.65% yearly.
EPS 1Y (TTM)8.63%
EPS 3Y3.43%
EPS 5Y5.28%
EPS Q2Q%4.07%
Revenue 1Y (TTM)7.1%
Revenue growth 3Y-3.54%
Revenue growth 5Y0.65%
Sales Q2Q%1.96%
3.2 Future
The Earnings Per Share is expected to grow by 5.97% on average over the next years.
The Revenue is expected to grow by 31.70% on average over the next years. This is a very strong growth
EPS Next Y10.78%
EPS Next 2Y9.25%
EPS Next 3Y8.91%
EPS Next 5Y5.97%
Revenue Next Year-7.14%
Revenue Next 2Y-2.16%
Revenue Next 3Y0%
Revenue Next 5Y31.7%
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 stable.
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
The Price/Earnings ratio is 11.67, which indicates a very decent valuation of SLF.
Compared to the rest of the industry, the Price/Earnings ratio of SLF indicates a rather expensive valuation: SLF more expensive than 90.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SLF to the average of the S&P500 Index (27.06), we can say SLF is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.35, the valuation of SLF can be described as reasonable.
SLF's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. SLF is more expensive than 65.00% of the companies in the same industry.
SLF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.67 | ||
| Fwd PE | 10.35 |
4.2 Price Multiples
86.25% of the companies in the same industry are cheaper than SLF, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.21 | ||
| 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)1.08
PEG (5Y)2.21
EPS Next 2Y9.25%
EPS Next 3Y8.91%
5. Dividend
5.1 Amount
SLF has a Yearly Dividend Yield of 5.72%, which is a nice return.
Compared to an average industry Dividend Yield of 5.16, SLF pays a bit more dividend than its industry peers.
SLF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.72% |
5.2 History
On average, the dividend of SLF grows each year by 8.81%, which is quite nice.
SLF has been paying a dividend for at least 10 years, so it has 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
62.09% 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.
DP62.09%
EPS Next 2Y9.25%
EPS Next 3Y8.91%
TSX:SLF (9/25/2025, 7:00:00 PM)
82.25
+0.25 (+0.3%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners56.36%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap46.36B
Analysts74.12
Price Target90.13 (9.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.72% |
Yearly Dividend3.39
Dividend Growth(5Y)8.81%
DP62.09%
Div Incr Years10
Div Non Decr Years24
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.67%
Min EPS beat(2)-0.3%
Max EPS beat(2)5.64%
EPS beat(4)2
Avg EPS beat(4)0.35%
Min EPS beat(4)-6.68%
Max EPS beat(4)5.64%
EPS beat(8)5
Avg EPS beat(8)0.65%
EPS beat(12)8
Avg EPS beat(12)1.91%
EPS beat(16)11
Avg EPS beat(16)2%
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)-2.36%
PT rev (3m)-2.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.6%
EPS NY rev (1m)0%
EPS NY rev (3m)0.94%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.67 | ||
| Fwd PE | 10.35 | ||
| P/S | 1.34 | ||
| P/FCF | 11.21 | ||
| P/OCF | 10.86 | ||
| P/B | 1.85 | ||
| P/tB | 4.28 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.05
EY8.57%
EPS(NY)7.95
Fwd EY9.66%
FCF(TTM)7.33
FCFY8.92%
OCF(TTM)7.58
OCFY9.21%
SpS61.36
BVpS44.58
TBVpS19.21
PEG (NY)1.08
PEG (5Y)2.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.86% | ||
| ROE | 12.85% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 14.71% | ||
| PM (TTM) | 9.34% | ||
| GM | N/A | ||
| FCFM | 11.95% |
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-Score5
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.54 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.39% | ||
| Interest Coverage | 13.42 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 128.03% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC6.22%
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)8.63%
EPS 3Y3.43%
EPS 5Y5.28%
EPS Q2Q%4.07%
EPS Next Y10.78%
EPS Next 2Y9.25%
EPS Next 3Y8.91%
EPS Next 5Y5.97%
Revenue 1Y (TTM)7.1%
Revenue growth 3Y-3.54%
Revenue growth 5Y0.65%
Sales Q2Q%1.96%
Revenue Next Year-7.14%
Revenue Next 2Y-2.16%
Revenue Next 3Y0%
Revenue Next 5Y31.7%
EBIT growth 1Y9.45%
EBIT growth 3Y-11.46%
EBIT growth 5YN/A
EBIT Next Year-2%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y37.89%
FCF growth 3YN/A
FCF growth 5Y0.24%
OCF growth 1Y37.39%
OCF growth 3YN/A
OCF growth 5Y0.46%