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 82 industry peers in the Insurance industry. SLF has a bad profitability rating. Also its financial health evaluation is rather negative. SLF is valied quite expensively at the moment, while it does show a decent growth rate.
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.
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's Return On Assets of 0.82% is fine compared to the rest of the industry. SLF outperforms 64.63% of its industry peers.
The Return On Equity of SLF (11.70%) is comparable to the rest of the industry.
| 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
The Profit Margin of SLF (9.07%) is comparable to the rest of the industry.
SLF's Profit Margin has improved in the last couple of years.
The Operating Margin of SLF (14.88%) is worse than 85.37% 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.
Compared to 1 year ago, SLF has an improved debt to assets ratio.
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 in line with its industry peers.
SLF has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
SLF has a Debt to Equity ratio of 0.24. This is amongst the best in the industry. SLF outperforms 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC5.96%
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 9.27% over the past year.
The Earnings Per Share has been growing slightly by 5.28% on average over the past years.
The Revenue has grown by 8.17% in the past year. This is quite good.
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)9.27%
EPS 3Y3.43%
EPS 5Y5.28%
EPS Q2Q%17.86%
Revenue 1Y (TTM)8.17%
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 5.14% yearly.
The Revenue is expected to grow by 32.54% on average over the next years. This is a very strong growth
EPS Next Y9.75%
EPS Next 2Y9.67%
EPS Next 3Y7.75%
EPS Next 5Y5.14%
Revenue Next Year-1.37%
Revenue Next 2Y1.37%
Revenue Next 3Y2.69%
Revenue Next 5Y32.54%
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
With a Price/Earnings ratio of 12.05, SLF is valued correctly.
SLF's Price/Earnings ratio is rather expensive when compared to the industry. SLF is more expensive than 90.24% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.12, SLF is valued rather cheaply.
A Price/Forward Earnings ratio of 10.42 indicates a reasonable valuation of SLF.
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 63.41% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.42, SLF is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.05 | ||
| Fwd PE | 10.42 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, SLF is valued more expensive than 93.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.06 | ||
| 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)1.24
PEG (5Y)2.28
EPS Next 2Y9.67%
EPS Next 3Y7.75%
5. Dividend
5.1 Amount
SLF has a Yearly Dividend Yield of 4.10%, which is a nice return.
Compared to an average industry Dividend Yield of 4.35, SLF is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.44, 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 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
SLF pays out 64.35% of its income as dividend. This is not a sustainable payout ratio.
SLF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP64.35%
EPS Next 2Y9.67%
EPS Next 3Y7.75%
TSX:SLF (5/8/2025, 7:00:00 PM)
83.5
-0.12 (-0.14%)
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 Cap47.92B
Analysts77.78
Price Target89.42 (7.09%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
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)-1.97%
Min EPS beat(2)-6.68%
Max EPS beat(2)2.73%
EPS beat(4)2
Avg EPS beat(4)-1.51%
Min EPS beat(4)-10.16%
Max EPS beat(4)8.08%
EPS beat(8)5
Avg EPS beat(8)-0.05%
EPS beat(12)9
Avg EPS beat(12)2.19%
EPS beat(16)11
Avg EPS beat(16)1.62%
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)-1.87%
PT rev (3m)-3.66%
EPS NQ rev (1m)-1.04%
EPS NQ rev (3m)-5.79%
EPS NY rev (1m)-1.21%
EPS NY rev (3m)-3.94%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-6.66%
Revenue NY rev (3m)-6.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.05 | ||
| Fwd PE | 10.42 | ||
| P/S | 1.42 | ||
| P/FCF | 20.06 | ||
| P/OCF | 18.93 | ||
| P/B | 1.84 | ||
| P/tB | 4.15 | ||
| EV/EBITDA | N/A |
EPS(TTM)6.93
EY8.3%
EPS(NY)8.01
Fwd EY9.59%
FCF(TTM)4.16
FCFY4.99%
OCF(TTM)4.41
OCFY5.28%
SpS58.6
BVpS45.4
TBVpS20.11
PEG (NY)1.24
PEG (5Y)2.28
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
WACC5.96%
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)9.27%
EPS 3Y3.43%
EPS 5Y5.28%
EPS Q2Q%17.86%
EPS Next Y9.75%
EPS Next 2Y9.67%
EPS Next 3Y7.75%
EPS Next 5Y5.14%
Revenue 1Y (TTM)8.17%
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 5Y32.54%
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%