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 has a bad profitability rating. Also its financial health evaluation is rather negative. SLF has a decent growth rate and is not valued too expensively. SLF also has an excellent dividend rating.
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.
In the past 5 years SLF has always been profitable.
Of the past 5 years SLF 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SLF (0.82%) is worse than 64.34% of its industry peers.
SLF has a Return On Equity of 11.70%. This is comparable to the rest of the industry: SLF outperforms 55.94% 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
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.
SLF's Operating Margin of 14.88% is fine compared to the rest of the industry. SLF outperforms 65.03% 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.
Compared to 1 year ago, SLF has less shares outstanding
SLF has less shares outstanding than it did 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.
With a Debt to FCF ratio value of 2.67, SLF perfoms like the industry average, outperforming 44.06% of the companies in the same 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 67.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC5.89%
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 4.72% 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)4.72%
EPS 3Y3.43%
EPS 5Y5.28%
EPS Q2Q%0%
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 5.14% on average over the next years.
Based on estimates for the next years, SLF will show a very strong growth in Revenue. The Revenue will grow by 32.54% on average per year.
EPS Next Y9.75%
EPS Next 2Y9.67%
EPS Next 3Y7.75%
EPS Next 5Y5.14%
Revenue Next Year5.67%
Revenue Next 2Y4.05%
Revenue Next 3Y56.69%
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.
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 11.78, 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.
When comparing the Price/Earnings ratio of SLF to the average of the S&P500 Index (28.29), we can say SLF is valued rather cheaply.
A Price/Forward Earnings ratio of 10.74 indicates a reasonable 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.
The average S&P500 Price/Forward Earnings ratio is at 21.32. SLF is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.78 | ||
| Fwd PE | 10.74 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, SLF is valued a bit more expensive than the industry average as 60.84% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.86 | ||
| 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)1.21
PEG (5Y)2.23
EPS Next 2Y9.67%
EPS Next 3Y7.75%
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 3.28, SLF pays a better dividend. On top of this SLF pays more dividend than 81.82% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, SLF pays a better dividend.
| 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 been paying a dividend for at least 10 years, so it has 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
SLF pays out 64.35% of its income as dividend. 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 2Y9.67%
EPS Next 3Y7.75%
56.55
+0.12 (+0.21%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners56.34%
Inst Owner Change0.07%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap32.45B
Analysts77.78
Price Target63.35 (12.02%)
Short Float %2.86%
Short Ratio20.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
Yearly Dividend2.44
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)-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)0.7%
PT rev (3m)0.45%
EPS NQ rev (1m)-0.57%
EPS NQ rev (3m)-4.85%
EPS NY rev (1m)-1%
EPS NY rev (3m)-3.77%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.78 | ||
| Fwd PE | 10.74 | ||
| P/S | 1.34 | ||
| P/FCF | 18.86 | ||
| P/OCF | 17.8 | ||
| P/B | 1.73 | ||
| P/tB | 3.91 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.8
EY8.49%
EPS(NY)5.26
Fwd EY9.31%
FCF(TTM)3
FCFY5.3%
OCF(TTM)3.18
OCFY5.62%
SpS42.2
BVpS32.7
TBVpS14.48
PEG (NY)1.21
PEG (5Y)2.23
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
WACC5.89%
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)4.72%
EPS 3Y3.43%
EPS 5Y5.28%
EPS Q2Q%0%
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%-2.68%
Revenue Next Year5.67%
Revenue Next 2Y4.05%
Revenue Next 3Y56.69%
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%