SUN LIFE FINANCIAL INC (SLF.CA) Stock Fundamental Analysis
TSX:SLF - Toronto Stock Exchange - CA8667961053 - Common Stock - Currency: CAD
SLF gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 82 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.
1. Profitability
1.1 Basic Checks
SLF had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 0.85%, SLF is in the better half of the industry, outperforming 63.41% of the companies in the same industry.
SLF's Return On Equity of 12.17% is fine compared to the rest of the industry. SLF outperforms 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.85% | ||
| ROE | 12.17% | ||
| 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
The Profit Margin of SLF (9.26%) is comparable to the rest of the industry.
SLF's Profit Margin has improved in the last couple of years.
SLF's Operating Margin of 14.74% is on the low side compared to the rest of the industry. SLF is outperformed by 92.68% of its industry peers.
SLF's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.74% | ||
| PM (TTM) | 9.26% | ||
| 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
SLF has a debt to FCF ratio of 1.42. This is a very positive value and a sign of high solvency as it would only need 1.42 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.42, SLF is doing good in the industry, outperforming 70.73% 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 Debt to Equity ratio of 0.25. This is amongst the best in the industry. SLF outperforms 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.42 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.54%
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 10.09% over the past year.
The Earnings Per Share has been growing slightly by 5.28% on average over the past years.
SLF shows a small growth in Revenue. In the last year, the Revenue has grown by 7.43%.
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)10.09%
EPS 3Y3.43%
EPS 5Y5.28%
EPS Q2Q%21.33%
Revenue 1Y (TTM)7.43%
Revenue growth 3Y-3.54%
Revenue growth 5Y0.65%
Sales Q2Q%57.84%
3.2 Future
SLF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.25% yearly.
SLF is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 32.68% yearly.
EPS Next Y9.75%
EPS Next 2Y9.67%
EPS Next 3Y7.75%
EPS Next 5Y5.25%
Revenue Next Year-1.37%
Revenue Next 2Y1.37%
Revenue Next 3Y2.69%
Revenue Next 5Y32.68%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
SLF is valuated correctly with a Price/Earnings ratio of 12.51.
Based on the Price/Earnings ratio, SLF is valued expensively inside the industry as 90.24% of the companies are valued cheaper.
SLF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.31.
Based on the Price/Forward Earnings ratio of 10.90, the valuation of SLF can be described as reasonable.
65.85% of the companies in the same industry are cheaper than SLF, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, SLF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.51 | ||
| Fwd PE | 10.9 |
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 89.02% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.95 | ||
| 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)1.28
PEG (5Y)2.37
EPS Next 2Y9.67%
EPS Next 3Y7.75%
5. Dividend
5.1 Amount
SLF has a Yearly Dividend Yield of 3.98%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 3.98, SLF pays less dividend than the industry average, which is at 5.16. 80.49% of the companies listed in the same industry pay a better dividend than SLF!
Compared to an average S&P500 Dividend Yield of 2.40, SLF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.81%
Div Incr Years10
Div Non Decr Years24
5.3 Sustainability
62.71% 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.
DP62.71%
EPS Next 2Y9.67%
EPS Next 3Y7.75%
TSX:SLF (6/13/2025, 7:00:00 PM)
87.29
-1.12 (-1.27%)
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 Cap49.35B
Analysts77.65
Price Target92.26 (5.69%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
Yearly Dividend3.39
Dividend Growth(5Y)8.81%
DP62.71%
Div Incr Years10
Div Non Decr Years24
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.52%
Min EPS beat(2)-6.68%
Max EPS beat(2)5.64%
EPS beat(4)3
Avg EPS beat(4)2.44%
Min EPS beat(4)-6.68%
Max EPS beat(4)8.08%
EPS beat(8)6
Avg EPS beat(8)0.71%
EPS beat(12)9
Avg EPS beat(12)2.6%
EPS beat(16)12
Avg EPS beat(16)2.08%
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)3.97%
PT rev (3m)1.26%
EPS NQ rev (1m)0.6%
EPS NQ rev (3m)0.6%
EPS NY rev (1m)0%
EPS NY rev (3m)-1%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.51 | ||
| Fwd PE | 10.9 | ||
| P/S | 1.45 | ||
| P/FCF | 10.95 | ||
| P/OCF | 10.64 | ||
| P/B | 1.9 | ||
| P/tB | 4.49 | ||
| EV/EBITDA | N/A |
EPS(TTM)6.98
EY8%
EPS(NY)8.01
Fwd EY9.18%
FCF(TTM)7.97
FCFY9.13%
OCF(TTM)8.2
OCFY9.4%
SpS60.35
BVpS45.92
TBVpS19.44
PEG (NY)1.28
PEG (5Y)2.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.85% | ||
| ROE | 12.17% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 14.74% | ||
| PM (TTM) | 9.26% | ||
| GM | N/A | ||
| FCFM | 13.21% |
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 | 1.42 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.38% | ||
| Interest Coverage | 13.63 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 142.67% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC7.54%
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)10.09%
EPS 3Y3.43%
EPS 5Y5.28%
EPS Q2Q%21.33%
EPS Next Y9.75%
EPS Next 2Y9.67%
EPS Next 3Y7.75%
EPS Next 5Y5.25%
Revenue 1Y (TTM)7.43%
Revenue growth 3Y-3.54%
Revenue growth 5Y0.65%
Sales Q2Q%57.84%
Revenue Next Year-1.37%
Revenue Next 2Y1.37%
Revenue Next 3Y2.69%
Revenue Next 5Y32.68%
EBIT growth 1Y9.14%
EBIT growth 3Y-11.46%
EBIT growth 5YN/A
EBIT Next Year-2%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-5.18%
FCF growth 3YN/A
FCF growth 5Y0.24%
OCF growth 1Y-3.44%
OCF growth 3YN/A
OCF growth 5Y0.46%