SUN LIFE FINANCIAL INC (SLF) Stock Fundamental Analysis
NYSE:SLF - New York Stock Exchange, Inc. - CA8667961053 - Common Stock - Currency: USD
Overall SLF gets a fundamental rating of 4 out of 10. We evaluated SLF against 145 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.
Each year in the past 5 years SLF has been profitable.
SLF had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.85%, SLF is in line with its industry, outperforming 40.69% of the companies in the same industry.
SLF has a better Return On Equity (12.17%) than 62.07% 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
With a Profit Margin value of 9.26%, SLF perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
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 69.66% of the companies in the same industry.
In the last couple of years the Operating Margin of SLF has declined.
| 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.
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.
SLF has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of SLF is 1.42, which is an excellent value as it means it would take SLF, only 1.42 years of fcf income to pay off 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.
Looking at the Debt to Equity ratio, with a value of 0.25, SLF is in the better half of the industry, outperforming 66.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.42 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC5.69%
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 10.09%, which is quite good.
Measured over the past 5 years, SLF shows a small growth in Earnings Per Share. The EPS has been growing by 5.28% on average per year.
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
The Earnings Per Share is expected to grow by 5.24% 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 32.67% on average per year.
EPS Next Y9.75%
EPS Next 2Y9.67%
EPS Next 3Y7.75%
EPS Next 5Y5.24%
Revenue Next Year-1.37%
Revenue Next 2Y1.37%
Revenue Next 3Y2.69%
Revenue Next 5Y32.67%
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
Based on the Price/Earnings ratio of 12.20, the valuation of SLF can be described as correct.
SLF's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.41, SLF is valued rather cheaply.
A Price/Forward Earnings ratio of 10.62 indicates a reasonable valuation of SLF.
SLF's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 35.19. SLF is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.2 | ||
| Fwd PE | 10.62 |
4.2 Price Multiples
SLF's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.64 | ||
| 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)1.25
PEG (5Y)2.31
EPS Next 2Y9.67%
EPS Next 3Y7.75%
5. Dividend
5.1 Amount
SLF has a Yearly Dividend Yield of 5.39%, which is a nice return.
SLF's Dividend Yield is rather good when compared to the industry average which is at 3.76. SLF pays more dividend than 81.38% of the companies in the same industry.
SLF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.39% |
5.2 History
The dividend of SLF is nicely growing with an annual growth rate of 8.81%!
SLF has paid a dividend for at least 10 years, which is 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%
62.1
+0.1 (+0.16%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners56.36%
Inst Owner Change0%
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap35.00B
Analysts77.65
Price Target67.32 (8.41%)
Short Float %0.22%
Short Ratio1.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.39% |
Yearly Dividend2.47
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)-0.23%
PT rev (3m)6.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.6%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.21%
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 | 12.2 | ||
| Fwd PE | 10.62 | ||
| P/S | 1.41 | ||
| P/FCF | 10.64 | ||
| P/OCF | 10.34 | ||
| P/B | 1.85 | ||
| P/tB | 4.36 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.09
EY8.2%
EPS(NY)5.85
Fwd EY9.42%
FCF(TTM)5.84
FCFY9.4%
OCF(TTM)6
OCFY9.67%
SpS44.19
BVpS33.62
TBVpS14.23
PEG (NY)1.25
PEG (5Y)2.31
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
WACC5.69%
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-1.37%
Revenue Next 2Y1.37%
Revenue Next 3Y2.69%
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%