SUN LIFE FINANCIAL INC (SLF) Stock Fundamental Analysis
NYSE:SLF - CA8667961053 - Common Stock
58.43 USD
+0.2 (+0.34%)
58.43 USD
0 (0%)
SLF gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. There are concerns on the financial health of SLF while its profitability can be described as average. 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.
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
The Return On Assets of SLF (0.86%) is comparable to the rest of the industry.
With a decent Return On Equity value of 12.85%, SLF is doing good in the industry, outperforming 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.86% | ||
| ROE | 12.85% | ||
| 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's Profit Margin of 9.34% is fine compared to the rest of the industry. SLF outperforms 66.43% of its industry peers.
SLF's Profit Margin has improved in the last couple of years.
SLF has a Operating Margin of 14.71%. This is in the better half of the industry: SLF outperforms 69.23% of its industry peers.
In the last couple of years the Operating Margin of SLF has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.71% | ||
| PM (TTM) | 9.34% | ||
| 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 1.54, which is an excellent value as it means it would take SLF, only 1.54 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.54, SLF is in line with its industry, outperforming 55.24% of the companies in the same 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 62.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.54 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC5.77%
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 8.63% 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 7.10% in the last year.
SLF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.65% yearly.
EPS 1Y (TTM)8.63%
EPS 3Y3.43%
EPS 5Y5.28%
EPS Q2Q%4.07%
Revenue 1Y (TTM)7.1%
Revenue growth 3Y-3.54%
Revenue growth 5Y0.65%
Sales Q2Q%1.96%
3.2 Future
SLF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.06% yearly.
SLF is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 31.81% yearly.
EPS Next Y10.78%
EPS Next 2Y9.25%
EPS Next 3Y8.91%
EPS Next 5Y6.06%
Revenue Next Year-7.14%
Revenue Next 2Y-2.16%
Revenue Next 3Y0%
Revenue Next 5Y31.81%
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
The Price/Earnings ratio is 11.41, which indicates a very decent valuation of SLF.
The rest of the industry has a similar Price/Earnings ratio as SLF.
Compared to an average S&P500 Price/Earnings ratio of 27.08, SLF is valued rather cheaply.
A Price/Forward Earnings ratio of 10.11 indicates a reasonable valuation of SLF.
SLF's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of SLF to the average of the S&P500 Index (22.72), we can say SLF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.41 | ||
| Fwd PE | 10.11 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as SLF.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.96 | ||
| 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)1.06
PEG (5Y)2.16
EPS Next 2Y9.25%
EPS Next 3Y8.91%
5. Dividend
5.1 Amount
SLF has a Yearly Dividend Yield of 6.68%, which is a nice return.
Compared to an average industry Dividend Yield of 3.52, SLF pays a better dividend. On top of this SLF pays more dividend than 90.91% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, SLF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.68% |
5.2 History
On average, the dividend of SLF grows each year by 8.81%, which is quite nice.
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
62.09% 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.
DP62.09%
EPS Next 2Y9.25%
EPS Next 3Y8.91%
58.43
+0.2 (+0.34%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners56.36%
Inst Owner Change1.43%
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap32.93B
Analysts75.56
Price Target64.96 (11.18%)
Short Float %0.64%
Short Ratio5.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.68% |
Yearly Dividend2.43
Dividend Growth(5Y)8.81%
DP62.09%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.67%
Min EPS beat(2)-0.3%
Max EPS beat(2)5.64%
EPS beat(4)2
Avg EPS beat(4)0.35%
Min EPS beat(4)-6.68%
Max EPS beat(4)5.64%
EPS beat(8)5
Avg EPS beat(8)0.65%
EPS beat(12)8
Avg EPS beat(12)1.91%
EPS beat(16)11
Avg EPS beat(16)2%
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)-3.74%
PT rev (3m)1.16%
EPS NQ rev (1m)-2.01%
EPS NQ rev (3m)-4.6%
EPS NY rev (1m)0.94%
EPS NY rev (3m)0.94%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-5.86%
Revenue NY rev (3m)-5.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.41 | ||
| Fwd PE | 10.11 | ||
| P/S | 1.31 | ||
| P/FCF | 10.96 | ||
| P/OCF | 10.61 | ||
| P/B | 1.8 | ||
| P/tB | 4.18 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.12
EY8.76%
EPS(NY)5.78
Fwd EY9.89%
FCF(TTM)5.33
FCFY9.13%
OCF(TTM)5.51
OCFY9.43%
SpS44.6
BVpS32.4
TBVpS13.96
PEG (NY)1.06
PEG (5Y)2.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.86% | ||
| ROE | 12.85% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 14.71% | ||
| PM (TTM) | 9.34% | ||
| GM | N/A | ||
| FCFM | 11.95% |
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 | 1.54 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.39% | ||
| Interest Coverage | 13.42 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 128.03% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC5.77%
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)8.63%
EPS 3Y3.43%
EPS 5Y5.28%
EPS Q2Q%4.07%
EPS Next Y10.78%
EPS Next 2Y9.25%
EPS Next 3Y8.91%
EPS Next 5Y6.06%
Revenue 1Y (TTM)7.1%
Revenue growth 3Y-3.54%
Revenue growth 5Y0.65%
Sales Q2Q%1.96%
Revenue Next Year-7.14%
Revenue Next 2Y-2.16%
Revenue Next 3Y0%
Revenue Next 5Y31.81%
EBIT growth 1Y9.45%
EBIT growth 3Y-11.46%
EBIT growth 5YN/A
EBIT Next Year-2%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y37.89%
FCF growth 3YN/A
FCF growth 5Y0.24%
OCF growth 1Y37.39%
OCF growth 3YN/A
OCF growth 5Y0.46%