SUN LIFE FINANCIAL INC (SLF) Stock Fundamental Analysis
NYSE:SLF - New York Stock Exchange, Inc. - CA8667961053 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to SLF. SLF was compared to 143 industry peers in the Insurance industry. While SLF is still in line with the averages on profitability rating, there are concerns on its financial health. SLF has a correct valuation and a medium 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.
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's Return On Assets of 0.85% is on the low side compared to the rest of the industry. SLF is outperformed by 60.14% of its industry peers.
SLF's Return On Equity of 12.17% is fine compared to the rest of the industry. SLF outperforms 61.54% 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's Profit Margin of 9.26% is in line compared to the rest of the industry. SLF outperforms 59.44% of its industry peers.
In the last couple of years the Profit Margin of SLF has grown nicely.
With a decent Operating Margin value of 14.74%, SLF is doing good in the industry, outperforming 69.93% 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.
SLF has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SLF has less shares outstanding
Compared to 1 year ago, SLF has an improved debt to assets ratio.
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.
SLF's Debt to FCF ratio of 1.42 is in line compared to the rest of the industry. SLF outperforms 51.75% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that SLF is not too dependend on debt financing.
The Debt to Equity ratio of SLF (0.25) is better than 66.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.42 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.49%
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.
The Earnings Per Share has been growing slightly by 5.28% on average over the past years.
Looking at the last year, SLF shows a small growth in Revenue. The Revenue has grown by 7.43% in the last year.
The Revenue has been growing slightly by 0.65% on average over the past years.
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
Based on estimates for the next years, SLF will show a small growth in Earnings Per Share. The EPS will grow by 5.25% on average per year.
SLF is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 32.68% yearly.
EPS Next Y9.75%
EPS Next 2Y9.67%
EPS Next 3Y7.75%
EPS Next 5Y5.25%
Revenue Next Year-1.37%
Revenue Next 2Y1.37%
Revenue Next 3Y2.69%
Revenue Next 5Y32.68%
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.
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
SLF is valuated correctly with a Price/Earnings ratio of 12.64.
SLF's Price/Earnings ratio is in line with the industry average.
SLF is valuated cheaply when we compare the Price/Earnings ratio to 26.32, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.01 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.
When comparing the Price/Forward Earnings ratio of SLF to the average of the S&P500 Index (22.13), we can say SLF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.64 | ||
| Fwd PE | 11.01 |
4.2 Price Multiples
SLF's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.06 | ||
| 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)1.3
PEG (5Y)2.39
EPS Next 2Y9.67%
EPS Next 3Y7.75%
5. Dividend
5.1 Amount
SLF has a Yearly Dividend Yield of 3.98%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.46, SLF pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, SLF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
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.
The dividend of SLF is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP62.71%
EPS Next 2Y9.67%
EPS Next 3Y7.75%
64.7
+0.39 (+0.61%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners56.36%
Inst Owner Change-1.12%
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap36.58B
Analysts77.65
Price Target67.48 (4.3%)
Short Float %2.15%
Short Ratio18.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
Yearly Dividend2.49
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)5.08%
PT rev (3m)7.26%
EPS NQ rev (1m)0.6%
EPS NQ rev (3m)0.6%
EPS NY rev (1m)0%
EPS NY rev (3m)-1%
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 | 12.64 | ||
| Fwd PE | 11.01 | ||
| P/S | 1.46 | ||
| P/FCF | 11.06 | ||
| P/OCF | 10.75 | ||
| P/B | 1.92 | ||
| P/tB | 4.54 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.12
EY7.91%
EPS(NY)5.88
Fwd EY9.08%
FCF(TTM)5.85
FCFY9.04%
OCF(TTM)6.02
OCFY9.3%
SpS44.28
BVpS33.69
TBVpS14.26
PEG (NY)1.3
PEG (5Y)2.39
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
WACC7.49%
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 5Y5.25%
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 5Y32.68%
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%