TSX:SLF

Stock Analysis Report

Sun Life Financial

Executive Summary

Sun Life Financial Inc., a financial services company, provides insurance, wealth, and asset management solutions to individuals and corporate clients in the United States, the United Kingdom, Canada, and internationally.


Snowflake Analysis

Established dividend payer and fair value.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.8%

SLF

-0.6%

CA Insurance

0.1%

CA Market


1 Year Return

31.2%

SLF

19.0%

CA Insurance

4.7%

CA Market

Return vs Industry: SLF exceeded the Canadian Insurance industry which returned 19% over the past year.

Return vs Market: SLF exceeded the Canadian Market which returned 4.7% over the past year.


Shareholder returns

SLFIndustryMarket
7 Day-1.8%-0.6%0.1%
30 Day2.7%0.6%0.8%
90 Day6.2%4.5%3.7%
1 Year36.4%31.2%24.2%19.0%7.9%4.7%
3 Year51.3%35.3%26.5%12.3%17.9%7.3%
5 Year101.9%69.4%41.9%17.7%33.8%14.4%

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?

44.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SLF (CA$65.23) is trading below our estimate of fair value (CA$117.83)

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 (14.8x) compared to the Insurance industry average (13.7x).

PE vs Market: SLF is good value based on its PE Ratio (14.8x) compared to the Canadian market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: SLF is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: SLF is overvalued based on its PB Ratio (1.7x) compared to the CA Insurance industry average (1.3x).


Next Steps

Future Growth

How is Sun Life Financial forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

11.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SLF's forecast earnings growth (11.7% per year) is above the savings rate (1.4%).

Earnings vs Market: SLF's earnings (11.7% per year) are forecast to grow faster than the Canadian market (10.9% per year).

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

Revenue vs Market: SLF's revenue is expected to decline over the next 3 years (-1.4% per year).

High Growth Revenue: SLF's revenue is forecast to decline over the next 3 years (-1.4% 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 (15.2%).


Next Steps

Past Performance

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

4.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SLF has high quality earnings.

Growing Profit Margin: SLF's current net profit margins (6.6%) are lower than last year (9.3%).


Past Earnings Growth Analysis

Earnings Trend: SLF's earnings have grown by 4.8% per year over the past 5 years.

Accelerating Growth: SLF's earnings growth over the past year (3.8%) is below its 5-year average (4.8% per year).

Earnings vs Industry: SLF earnings growth over the past year (3.8%) exceeded the Insurance industry 3.1%.


Return on Equity

High ROE: SLF's Return on Equity (11.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sun Life Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: SLF has a low level of unsold assets or inventory.

Debt Coverage by Assets: SLF's debt is covered by short term assets (assets are 9x debt).


Financial Institutions Analysis

Asset Level: SLF's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if SLF has a sufficient allowance for bad loans.

Low Risk Liabilities: SLF reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if SLF has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SLF has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if SLF has an appropriate level of bad loans.


Next Steps

Dividend

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

3.37%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Sun Life Financial before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.4%marketbottom25%2.0%markettop25%5.4%industryaverage3.9%forecastin3Years3.7%

Current dividend yield vs market & industry

Notable Dividend: SLF's dividend (3.37%) is higher than the bottom 25% of dividend payers in the Canadian market (2.01%).

High Dividend: SLF's dividend (3.37%) is low compared to the top 25% of dividend payers in the Canadian market (5.38%).


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 (47.5%), 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 (41.3% payout ratio).


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Dean Connor (62yo)

8.2yrs

Tenure

CA$9,712,859

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Dean's total compensation ($USD7.35M) is about average for companies of similar size in the Canadian market ($USD6.87M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Dean Connor
President8.2yrsCA$9.71m0.016% CA$6.2m
Kevin Strain
Executive VP & CFO2.8yrsCA$3.51m0.0019% CA$724.8k
Stephen Peacher
President of SLC Management5.9yrsCA$6.05mno data
Daniel Fishbein
President of Sun Life Financial - United States5.8yrsCA$3.81m0.00050% CA$191.7k
Jacques Goulet
President of Sun Life Financial Canada2.1yrsCA$7.96mno data
Mark Saunders
Executive VP & Chief Information Officer11.1yrsno data0.000050% CA$19.2k
Leigh Chalmers
Senior VP0yrsno datano data
Paul Petrelli
Chief Compliance Officer & Senior VP5.3yrsno datano data
Melissa Kennedy
Executive VP and Chief Legal Officer & Public Affairs4.8yrsno data0.00069% CA$264.6k
Helena Pagano
Executive VP and Chief Human Resources & Communications Officer1.7yrsno data0.00028% CA$107.4k

5.3yrs

Average Tenure

55yo

Average Age

Experienced Management: SLF's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dean Connor
President8.2yrsCA$9.71m0.016% CA$6.2m
Robert Manning
Chairman & Co-CEO of MFS Investment Management0yrsno datano data
Michael William Roberge
Chairman of MFS Mclean Budden Limited & Co-CEO of MFS Investment Management0yrsno datano data
William Anderson
Independent Chairman of the Board2.8yrsCA$405.00k0.0027% CA$1.0m
Scott Powers
Independent Corporate Director4.3yrsCA$272.00k0.000050% CA$19.2k
Margaret Harris
Independent Corporate Director6.2yrsCA$263.00k0.0010% CA$387.3k
Sara Lewis
Independent Corporate Director5.2yrsCA$278.00k0.00097% CA$372.0k
Martin John Glynn
Independent Corporate Director9.2yrsCA$245.00k0.0018% CA$671.1k
Hugh Segal
Independent Corporate Director10.8yrsCA$234.50k0.0015% CA$563.7k
Barbara Stymiest
Independent Corporate Director7.8yrsCA$263.00k0.00085% CA$326.0k

7.0yrs

Average Tenure

62yo

Average Age

Experienced Board: SLF's board of directors are considered experienced (7 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: 1999
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: CA$38.349b
  • Shares outstanding: 587.90m
  • Website: https://www.sunlife.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SLFTSX (The Toronto Stock Exchange)YesCommon StockCACADMar 2000
SLFNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 2000
LIEDB (Deutsche Boerse AG)YesCommon StockDEEURMar 2000
SLFPSE (Philippines Stock Exchange)YesCommon StockPHPHPMar 2000
0VJALSE (London Stock Exchange)YesCommon StockGBCADMar 2000
SLF.PRATSX (The Toronto Stock Exchange)PFD A SER 1CACADFeb 2005
SLFY.FOTCPK (Pink Sheets LLC)PFD A SER 1USUSDFeb 2005
SLF.PRBTSX (The Toronto Stock Exchange)PFD A SER 2CACADJul 2005
SLF.PRCTSX (The Toronto Stock Exchange)PFD CL A SER 3CACADJan 2006
SLF.PRETSX (The Toronto Stock Exchange)CAD250 mil 4.5% Class A Non-Cum ser 5CACADOct 2006
SLF.PRDTSX (The Toronto Stock Exchange)PFD CL A SER 4CACADOct 2006
SLF.PRGTSX (The Toronto Stock Exchange)4.35 CL A SR 8RCACADMay 2010
SUNF.FOTCPK (Pink Sheets LLC)4.35 CL A SR 8RUSCADMay 2010
SLF.PRHTSX (The Toronto Stock Exchange)PFD CL A-10RCACADAug 2011
SLF.PRITSX (The Toronto Stock Exchange)PFD SHS NON CUMCACADNov 2011
SLF.PRJTSX (The Toronto Stock Exchange)PFD SHS SER 9QCACADJul 2015
SLF.PRKTSX (The Toronto Stock Exchange)PFD SHS NON CUMCACADOct 2016

Biography

Sun Life Financial Inc., a financial services company, provides insurance, wealth, and asset management solutions to individuals and corporate clients in the United States, the United Kingdom, Canada, and internationally. It offers life, health, wellness, disability, critical illness, stop-loss, and long-term care insurance products. The company also provides mutual funds, segregated funds, annuities, and guaranteed investment products; and financial and retirement planning services, as well as pooled funds, institutional portfolios, and pension funds. It distributes its products through direct sales agents, managing general agents, independent general agents, financial intermediaries, broker-dealers, banks, pension and benefits consultants, and other third-party marketing organizations. The company was founded in 1999 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:50
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.