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SLF

Sun Life FinancialTSX:SLF Stock Report

Market Cap

CA$37.3b

7D

-2.5%

1Y

20.3%

Updated

23 Sep, 2021

Data

Company Financials +
SLF fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance4/6
Financial Health5/6
Dividends5/6

SLF Overview

Sun Life Financial Inc., a financial services company, provides insurance, wealth, and asset management solutions to individuals and corporate clients worldwide.

Sun Life Financial Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Sun Life Financial
Historical stock prices
Current Share PriceCA$63.86
52 Week HighCA$51.59
52 Week LowCA$67.26
Beta0.99
1 Month Change-2.50%
3 Month Change0.20%
1 Year Change20.33%
3 Year Change22.88%
5 Year Change50.79%
Change since IPO356.14%

Recent News & Updates

Aug 22
Sun Life Financial (TSE:SLF) Has Re-Affirmed Its Dividend Of CA$0.55

Sun Life Financial (TSE:SLF) Has Re-Affirmed Its Dividend Of CA$0.55

Sun Life Financial Inc.'s ( TSE:SLF ) investors are due to receive a payment of CA$0.55 per share on 29th of September...

Aug 08
Sun Life Financial (TSE:SLF) Will Pay A Dividend Of CA$0.55

Sun Life Financial (TSE:SLF) Will Pay A Dividend Of CA$0.55

Sun Life Financial Inc.'s ( TSE:SLF ) investors are due to receive a payment of CA$0.55 per share on 29th of September...

Shareholder Returns

SLFCA InsuranceCA Market
7D-2.5%-2.0%-1.0%
1Y20.3%36.2%31.4%

Return vs Industry: SLF underperformed the Canadian Insurance industry which returned 35.6% over the past year.

Return vs Market: SLF underperformed the Canadian Market which returned 32.3% over the past year.

Price Volatility

Is SLF's price volatile compared to industry and market?
SLF volatility
SLF Beta0.99
Industry Beta1.03
Market Beta1

Stable Share Price: SLF is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: SLF's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
187123,816Kevin Strainhttps://www.sunlife.com

Sun Life Financial Inc., a financial services company, provides insurance, wealth, and asset management solutions to individuals and corporate clients worldwide. It offers term and permanent life, as well as health, dental, critical illness, long-term care, and disability insurance products. The company also provides reinsurance products; investment counselling and portfolio management services; mutual funds and segregated funds; trust and banking services; real estate property brokerage and appraisal services; and merchant banking services.

Sun Life Financial Fundamentals Summary

How do Sun Life Financial's earnings and revenue compare to its market cap?
SLF fundamental statistics
Market CapCA$37.27b
Earnings (TTM)CA$3.33b
Revenue (TTM)CA$35.86b

11.2x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SLF income statement (TTM)
RevenueCA$35.86b
Cost of RevenueCA$25.45b
Gross ProfitCA$10.41b
ExpensesCA$7.08b
EarningsCA$3.33b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 03, 2021

Earnings per share (EPS)5.70
Gross Margin29.03%
Net Profit Margin9.29%
Debt/Equity Ratio20.5%

How did SLF perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

39%

Payout Ratio

Valuation

Is Sun Life Financial undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SLF (CA$63.86) is trading below our estimate of fair value (CA$138.73)

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


Price To Earnings Ratio

PE vs Industry: SLF is poor value based on its PE Ratio (11.2x) compared to the Canadian Insurance industry average (10.8x).

PE vs Market: SLF is good value based on its PE Ratio (11.2x) compared to the Canadian market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: SLF is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: SLF is overvalued based on its PB Ratio (1.6x) compared to the CA Insurance industry average (1.3x).


Future Growth

How is Sun Life Financial forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

9.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SLF's forecast earnings growth (9.3% per year) is above the savings rate (1.5%).

Earnings vs Market: SLF's earnings (9.3% per year) are forecast to grow slower than the Canadian market (12.1% per year).

High Growth Earnings: SLF's earnings are forecast to grow, but not significantly.

Revenue vs Market: SLF's revenue (8.8% per year) is forecast to grow faster than the Canadian market (6.1% per year).

High Growth Revenue: SLF's revenue (8.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SLF's Return on Equity is forecast to be low in 3 years time (15%).


Past Performance

How has Sun Life Financial performed over the past 5 years?

3.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SLF has high quality earnings.

Growing Profit Margin: SLF's current net profit margins (9.3%) are higher than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: SLF's earnings have grown by 3.6% per year over the past 5 years.

Accelerating Growth: SLF's earnings growth over the past year (44.2%) exceeds its 5-year average (3.6% per year).

Earnings vs Industry: SLF earnings growth over the past year (44.2%) underperformed the Insurance industry 111.7%.


Return on Equity

High ROE: SLF's Return on Equity (12.5%) is considered low.


Financial Health

How is Sun Life Financial's financial position?


Financial Position Analysis

Short Term Liabilities: SLF's short term assets (CA$102.0B) exceed its short term liabilities (CA$179.0M).

Long Term Liabilities: SLF's short term assets (CA$102.0B) do not cover its long term liabilities (CA$301.6B).


Debt to Equity History and Analysis

Debt Level: SLF's debt to equity ratio (20.5%) is considered satisfactory.

Reducing Debt: SLF's debt to equity ratio has reduced from 23.8% to 20.5% over the past 5 years.

Debt Coverage: SLF's debt is well covered by operating cash flow (63.9%).

Interest Coverage: SLF's interest payments on its debt are well covered by EBIT (13.1x coverage).


Balance Sheet


Dividend

What is Sun Life Financial current dividend yield, its reliability and sustainability?

3.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SLF's dividend (3.45%) is higher than the bottom 25% of dividend payers in the Canadian market (1.65%).

High Dividend: SLF's dividend (3.45%) is low compared to the top 25% of dividend payers in the Canadian market (4.54%).


Stability and Growth of Payments

Stable Dividend: SLF's dividends per share have been stable in the past 10 years.

Growing Dividend: SLF's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.6%), SLF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SLF's dividends in 3 years are forecast to be well covered by earnings (49.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Kevin Strain (55 yo)

0.083

Tenure

CA$4,535,752

Compensation

Mr. Kevin David Strain, CPA, CA, has been President and Director at Sun Life Financial Inc. since February 15, 2021 and serves as Chief Executive Officer since August 6, 2021. Mr. Strain serves as a Direct...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD3.58M) is below average for companies of similar size in the Canadian market ($USD6.00M).

Compensation vs Earnings: Kevin's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: SLF's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: SLF's board of directors are considered experienced (4.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sun Life Financial Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Sun Life Financial Inc.
  • Ticker: SLF
  • Exchange: TSX
  • Founded: 1871
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: CA$37.265b
  • Shares outstanding: 585.75m
  • Website: https://www.sunlife.com

Number of Employees


Location

  • Sun Life Financial Inc.
  • 1 York Street
  • Toronto
  • Ontario
  • M5J 0B6
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 22:58
End of Day Share Price2021/09/23 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.