SUN LIFE FINANCIAL INC (SLF) Stock Fundamental Analysis
NYSE:SLF - New York Stock Exchange, Inc. - CA8667961053 - Common Stock - Currency: USD
SLF gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. SLF has a medium profitability rating, but doesn't score so well on its financial health evaluation. SLF has a correct valuation and a medium growth rate. Finally SLF also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
SLF had positive earnings in the past year.
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 (0.85%) which is in line with its industry peers.
SLF has a Return On Equity of 12.17%. This is in the better half of the industry: SLF outperforms 60.84% 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
SLF has a Profit Margin of 9.26%. This is in the better half of the industry: SLF outperforms 60.84% of its industry peers.
SLF's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 14.74%, SLF is doing good in the industry, outperforming 71.33% of the companies in the same industry.
SLF's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.74% | ||
| 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
SLF has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SLF has an improved debt to assets ratio.
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.
The Debt to FCF ratio of SLF (1.42) is comparable to the rest of the 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 in the better half of the industry: SLF outperforms 65.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.42 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC5.72%
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.
SLF shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.28% yearly.
Looking at the last year, SLF shows a small growth in Revenue. The Revenue has grown by 7.43% in the last year.
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 5.24% yearly.
Based on estimates for the next years, SLF will show a very strong growth in Revenue. The Revenue will grow by 32.67% on average per year.
EPS Next Y9.75%
EPS Next 2Y9.67%
EPS Next 3Y7.75%
EPS Next 5Y5.24%
Revenue Next Year-2.41%
Revenue Next 2Y0.32%
Revenue Next 3Y1.78%
Revenue Next 5Y32.67%
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.
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
With a Price/Earnings ratio of 11.98, the valuation of SLF can be described as very reasonable.
SLF's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.03, SLF is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.44, the valuation of SLF can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as SLF.
When comparing the Price/Forward Earnings ratio of SLF to the average of the S&P500 Index (36.28), we can say SLF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.98 | ||
| Fwd PE | 10.44 |
4.2 Price Multiples
SLF's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.46 | ||
| 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)1.23
PEG (5Y)2.27
EPS Next 2Y9.67%
EPS Next 3Y7.75%
5. Dividend
5.1 Amount
SLF has a Yearly Dividend Yield of 7.39%, which is a nice return.
SLF's Dividend Yield is rather good when compared to the industry average which is at 3.38. SLF pays more dividend than 93.71% of the companies in the same industry.
SLF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.39% |
5.2 History
The dividend of SLF is nicely growing with an annual growth rate of 8.81%!
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
62.71% 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.
DP62.71%
EPS Next 2Y9.67%
EPS Next 3Y7.75%
60.72
-0.41 (-0.67%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners56.36%
Inst Owner Change-0.24%
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap34.22B
Analysts77.65
Price Target67.48 (11.13%)
Short Float %0.66%
Short Ratio4.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.39% |
Yearly Dividend2.44
Dividend Growth(5Y)8.81%
DP62.71%
Div Incr Years6
Div Non Decr Years6
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)0.24%
PT rev (3m)4.27%
EPS NQ rev (1m)-2.34%
EPS NQ rev (3m)-1.76%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.05%
Revenue NY rev (3m)-1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.98 | ||
| Fwd PE | 10.44 | ||
| P/S | 1.38 | ||
| P/FCF | 10.46 | ||
| P/OCF | 10.17 | ||
| P/B | 1.82 | ||
| P/tB | 4.29 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.07
EY8.35%
EPS(NY)5.81
Fwd EY9.58%
FCF(TTM)5.8
FCFY9.56%
OCF(TTM)5.97
OCFY9.83%
SpS43.94
BVpS33.44
TBVpS14.15
PEG (NY)1.23
PEG (5Y)2.27
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
WACC5.72%
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 5Y5.24%
Revenue 1Y (TTM)7.43%
Revenue growth 3Y-3.54%
Revenue growth 5Y0.65%
Sales Q2Q%57.84%
Revenue Next Year-2.41%
Revenue Next 2Y0.32%
Revenue Next 3Y1.78%
Revenue Next 5Y32.67%
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%