Sagicor Financial Company Ltd.

TSX:SFC Stock Report

Market Cap: CA$867.3m

Sagicor Financial Valuation

Is SFC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SFC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SFC (CA$6.3) is trading below our estimate of fair value (CA$9.72)

Significantly Below Fair Value: SFC is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SFC?

Key metric: As SFC is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SFC. This is calculated by dividing SFC's market cap by their current earnings.
What is SFC's PE Ratio?
PE Ratio1.2x
EarningsUS$530.40m
Market CapUS$620.32m

Price to Earnings Ratio vs Peers

How does SFC's PE Ratio compare to its peers?

The above table shows the PE ratio for SFC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10.6x
ELF E-L Financial
2.8xn/aCA$5.0b
IAG iA Financial
12.9x7.5%CA$12.5b
SLF Sun Life Financial
13.7x6.8%CA$48.5b
POW Power Corporation of Canada
13.1x9.1%CA$29.6b
SFC Sagicor Financial
1.2x-74.5%CA$867.3m

Price-To-Earnings vs Peers: SFC is good value based on its Price-To-Earnings Ratio (1.2x) compared to the peer average (10.6x).

Price to Earnings Ratio vs Industry

How does SFC's PE Ratio compare vs other companies in the North American Insurance Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.13.1x5.2%
SFC Sagicor Financial
 1.2x-74.5%US$620.32m
SFC 1.2xIndustry Avg. 13.1xNo. of Companies15PE0816243240+
3 CompaniesEstimated GrowthMarket Cap
Industry Avg.13.1x5.2%
SFC Sagicor Financial
 1.2x-74.5%US$620.32m
No more companies

Price-To-Earnings vs Industry: SFC is good value based on its Price-To-Earnings Ratio (1.2x) compared to the North American Insurance industry average (13x).

Price to Earnings Ratio vs Fair Ratio

What is SFC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SFC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio1.2x
Fair PE Ratio2.5x

Price-To-Earnings vs Fair Ratio: SFC is good value based on its Price-To-Earnings Ratio (1.2x) compared to the estimated Fair Price-To-Earnings Ratio (2.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SFC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$6.30
CA$9.17
+45.5%
6.8%CA$10.00CA$8.50n/a3
Nov ’25CA$6.21
CA$8.67
+39.6%
5.4%CA$9.00CA$8.00n/a3
Oct ’25CA$5.63
CA$8.67
+53.9%
5.4%CA$9.00CA$8.00n/a3
Sep ’25CA$6.00
CA$8.67
+44.4%
5.4%CA$9.00CA$8.00n/a3
Aug ’25CA$6.02
CA$9.17
+52.3%
6.8%CA$10.00CA$8.50n/a3
Jul ’25CA$6.43
CA$9.17
+42.6%
6.8%CA$10.00CA$8.50n/a3
Jun ’25CA$6.60
CA$9.17
+38.9%
6.8%CA$10.00CA$8.50n/a3
May ’25CA$6.77
CA$9.17
+35.4%
6.8%CA$10.00CA$8.50n/a3
Apr ’25CA$7.34
CA$8.83
+20.3%
9.6%CA$10.00CA$8.00n/a3
Mar ’25CA$6.60
CA$8.83
+33.8%
9.6%CA$10.00CA$8.00n/a3
Feb ’25CA$6.24
CA$8.83
+41.6%
9.6%CA$10.00CA$8.00n/a3
Jan ’25CA$5.95
CA$8.50
+42.9%
14.4%CA$10.00CA$7.00n/a3
Dec ’24CA$5.94
CA$8.33
+40.3%
15.0%CA$10.00CA$7.00n/a3
Nov ’24CA$5.42
CA$8.33
+53.8%
15.0%CA$10.00CA$7.00CA$6.213
Oct ’24CA$5.00
CA$9.00
+80.0%
11.1%CA$10.00CA$8.00CA$5.632
Sep ’24CA$4.35
CA$9.00
+106.9%
11.1%CA$10.00CA$8.00CA$6.002
Aug ’24CA$4.30
CA$8.00
+86.0%
25.0%CA$10.00CA$6.00CA$6.022
Jul ’24CA$4.50
CA$8.00
+77.8%
25.0%CA$10.00CA$6.00CA$6.432
Jun ’24CA$4.90
CA$8.00
+63.3%
25.0%CA$10.00CA$6.00CA$6.602
May ’24CA$5.02
CA$9.00
+79.3%
11.1%CA$10.00CA$8.00CA$6.772
Apr ’24CA$4.85
CA$9.00
+85.6%
11.1%CA$10.00CA$8.00CA$7.342
Mar ’24CA$4.85
CA$8.50
+75.3%
17.6%CA$10.00CA$7.00CA$6.602
Feb ’24CA$4.95
CA$8.50
+71.7%
17.6%CA$10.00CA$7.00CA$6.242
Jan ’24CA$5.48
CA$8.50
+55.1%
17.6%CA$10.00CA$7.00CA$5.952
Dec ’23CA$5.65
CA$8.50
+50.4%
17.6%CA$10.00CA$7.00CA$5.942
Nov ’23CA$6.10
CA$9.00
+47.5%
11.1%CA$10.00CA$8.00CA$5.422

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

Discover undervalued companies

E-L Financial

CA$5.0b

Operates as an investment and insurance holding company in Canada.

ELF

CA$1,475.00

7D

-1.7%

1Y

48.3%

Definity Financial

CA$6.6b

Offers property and casualty insurance products in Canada.

DFY

CA$59.19

7D

5.1%

1Y

58.9%

iA Financial

CA$12.5b

Provides insurance and wealth management services in Canada and the United States.

IAG

CA$133.32

7D

2.6%

1Y

50.4%