SUN LIFE FINANCIAL INC (SLF.CA) Stock Fundamental Analysis
Canada - TSX:SLF - CA8667961053 - Common Stock
87.19 CAD
+1.21 (+1.41%)
Taking everything into account, SLF scores 5 out of 10 in our fundamental rating. SLF was compared to 80 industry peers in the Insurance industry. SLF has an average financial health and profitability rating. SLF is valied quite expensively at the moment, while it does show a decent growth rate. Finally 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.
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
SLF has a Return On Assets of 0.86%. This is in the better half of the industry: SLF outperforms 65.00% of its industry peers.
Looking at the Return On Equity, with a value of 12.85%, SLF is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
| 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
Looking at the Profit Margin, with a value of 9.34%, SLF is in line with its industry, outperforming 47.50% of the companies in the same industry.
SLF's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 14.71%, SLF is doing worse than 92.50% of the companies in the same industry.
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.
The number of shares outstanding for SLF has been reduced compared to 1 year ago.
SLF has less shares outstanding than it did 5 years ago.
SLF has a better debt/assets ratio than last year.
2.2 Solvency
SLF has a debt to FCF ratio of 1.54. This is a very positive value and a sign of high solvency as it would only need 1.54 years to pay back of all of its debts.
SLF's Debt to FCF ratio of 1.54 is fine compared to the rest of the industry. SLF outperforms 70.00% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that SLF is not too dependend on debt financing.
SLF's Debt to Equity ratio of 0.25 is fine compared to the rest of the industry. SLF outperforms 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
WACC6.15%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
SLF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.63%, which is quite good.
SLF shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.28% yearly.
The Revenue has been growing slightly by 7.10% in the past 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
SLF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.03% yearly.
The Revenue is expected to grow by 31.77% on average over the next years. This is a very strong growth
EPS Next Y10.83%
EPS Next 2Y9.27%
EPS Next 3Y8.83%
EPS Next 5Y6.03%
Revenue Next Year-7.14%
Revenue Next 2Y-2.16%
Revenue Next 3Y0%
Revenue Next 5Y31.77%
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.
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 12.37, the valuation of SLF can be described as correct.
Based on the Price/Earnings ratio, SLF is valued expensively inside the industry as 88.75% of the companies are valued cheaper.
When comparing the Price/Earnings ratio of SLF to the average of the S&P500 Index (27.08), we can say SLF is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.97, the valuation of SLF can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SLF indicates a slightly more expensive valuation: SLF is more expensive than 62.50% of the companies listed 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 23.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.37 | ||
| Fwd PE | 10.97 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SLF indicates a rather expensive valuation: SLF more expensive than 85.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.89 | ||
| 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)1.14
PEG (5Y)2.34
EPS Next 2Y9.27%
EPS Next 3Y8.83%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.10%, SLF is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.56, SLF pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, SLF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
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
62.09% of the earnings are spent on dividend by SLF. This is not a sustainable payout ratio.
SLF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP62.09%
EPS Next 2Y9.27%
EPS Next 3Y8.83%
TSX:SLF (10/27/2025, 7:00:00 PM)
87.19
+1.21 (+1.41%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners55.83%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap49.14B
Revenue(TTM)34.58B
Net Income(TTM)3.23B
Analysts75.56
Price Target90.95 (4.31%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
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)0.91%
PT rev (3m)-1.82%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)-1.74%
EPS NY rev (1m)0%
EPS NY rev (3m)0.99%
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 | 12.37 | ||
| Fwd PE | 10.97 | ||
| P/S | 1.42 | ||
| P/FCF | 11.89 | ||
| P/OCF | 11.51 | ||
| P/B | 1.96 | ||
| P/tB | 4.54 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.05
EY8.09%
EPS(NY)7.95
Fwd EY9.12%
FCF(TTM)7.33
FCFY8.41%
OCF(TTM)7.58
OCFY8.69%
SpS61.36
BVpS44.58
TBVpS19.21
PEG (NY)1.14
PEG (5Y)2.34
Graham Number84.09
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
ROICexgc growth 3YN/A
ROICexgc 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
WACC6.15%
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 Y10.83%
EPS Next 2Y9.27%
EPS Next 3Y8.83%
EPS Next 5Y6.03%
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 5Y31.77%
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%
SUN LIFE FINANCIAL INC / SLF.CA FAQ
What is the ChartMill fundamental rating of SUN LIFE FINANCIAL INC (SLF.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to SLF.CA.
What is the valuation status for SLF stock?
ChartMill assigns a valuation rating of 3 / 10 to SUN LIFE FINANCIAL INC (SLF.CA). This can be considered as Overvalued.
How profitable is SUN LIFE FINANCIAL INC (SLF.CA) stock?
SUN LIFE FINANCIAL INC (SLF.CA) has a profitability rating of 4 / 10.
What is the financial health of SUN LIFE FINANCIAL INC (SLF.CA) stock?
The financial health rating of SUN LIFE FINANCIAL INC (SLF.CA) is 4 / 10.
Is the dividend of SUN LIFE FINANCIAL INC sustainable?
The dividend rating of SUN LIFE FINANCIAL INC (SLF.CA) is 7 / 10 and the dividend payout ratio is 62.09%.