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Sun Life Financial

Market Cap

CA$38.3b

Last Updated

2021/04/19 22:12 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Established dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

How has Sun Life Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

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.


Market Performance


7 Day Return

0.9%

SLF

1.0%

CA Insurance

0.6%

CA Market


1 Year Return

45.1%

SLF

45.0%

CA Insurance

38.5%

CA Market

Return vs Industry: SLF underperformed the Canadian Insurance industry which returned 45% over the past year.

Return vs Market: SLF exceeded the Canadian Market which returned 38.5% over the past year.


Shareholder returns

SLFIndustryMarket
7 Day0.9%1.0%0.6%
30 Day1.5%3.0%2.0%
90 Day7.1%11.0%8.5%
1 Year51.0%45.1%51.6%45.0%43.2%38.5%
3 Year41.4%26.0%32.4%16.5%32.0%19.2%
5 Year84.0%52.6%51.5%24.4%57.6%33.4%

Long-Term Price Volatility Vs. Market

How volatile is Sun Life Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

44.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SLF (CA$65.36) is trading below our estimate of fair value (CA$118.85)

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 (15.9x) compared to the CA Insurance industry average (11.6x).

PE vs Market: SLF is good value based on its PE Ratio (15.9x) compared to the Canadian market (17.2x).


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 (1.1x).


Future Growth

How is Sun Life Financial forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

12.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SLF's forecast earnings growth (12.7% per year) is above the savings rate (1.5%).

Earnings vs Market: SLF's earnings (12.7% per year) are forecast to grow slower than the Canadian market (19.8% per year).

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

Revenue vs Market: SLF's revenue (3% per year) is forecast to grow slower than the Canadian market (6.7% per year).

High Growth Revenue: SLF's revenue (3% 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 (13.9%).


Past Performance

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

1.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SLF has high quality earnings.

Growing Profit Margin: SLF's current net profit margins (5.5%) are lower than last year (6.6%).


Past Earnings Growth Analysis

Earnings Trend: SLF's earnings have grown by 1.3% per year over the past 5 years.

Accelerating Growth: SLF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SLF had negative earnings growth (-8.1%) over the past year, making it difficult to compare to the Insurance industry average (5.2%).


Return on Equity

High ROE: SLF's Return on Equity (9.7%) 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$110.3B) exceed its short term liabilities (CA$8.4B).

Long Term Liabilities: SLF's short term assets (CA$110.3B) do not cover its long term liabilities (CA$288.8B).


Debt to Equity History and Analysis

Debt Level: SLF's debt to equity ratio (40.5%) is considered high.

Reducing Debt: SLF's debt to equity ratio has reduced from 48.9% to 40.5% over the past 5 years.

Debt Coverage: SLF's debt is well covered by operating cash flow (69.2%).

Interest Coverage: SLF's interest payments on its debt are well covered by EBIT (9.5x coverage).


Balance Sheet


Dividend

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

3.35%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SLF's dividend (3.37%) is higher than the bottom 25% of dividend payers in the Canadian market (1.48%).

High Dividend: SLF's dividend (3.37%) is low compared to the top 25% of dividend payers in the Canadian market (4.68%).


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 reasonable payout ratio (53.5%), SLF's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SLF's dividends in 3 years are forecast to be well covered by earnings (37.3% payout ratio).


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

Dean Connor (63 yo)

9.33yrs

Tenure

CA$10,090,374

Compensation

Mr. Dean Arthur Connor serves as Director at Sun Life Assurance Company of Canada. Mr. Connor has been the Chief Executive Officer at Sun Life Financial Inc. since December 1, 2011. He served as President ...


CEO Compensation Analysis

Compensation vs Market: Dean's total compensation ($USD8.07M) is about average for companies of similar size in the Canadian market ($USD7.34M).

Compensation vs Earnings: Dean's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: SLF's management team is considered experienced (4.6 years average tenure).


Board Members

Experienced Board: SLF's board of directors are considered experienced (6.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SLF 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 company bio, 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$38.258b
  • Shares outstanding: 585.34m
  • Website: https://www.sunlife.com

Number of Employees


Location

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

Listings


Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/19 22:12
End of Day Share Price2021/04/19 00:00
Earnings2020/12/31
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.