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 worldwide.

Snowflake

Fundamentals

Established dividend payer with questionable track record.


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


Market Performance


7 Day Return

1.0%

SLF

1.2%

CA Insurance

-0.1%

CA Market


1 Year Return

21.9%

SLF

10.9%

CA Insurance

0.9%

CA Market

Return vs Industry: SLF exceeded the Canadian Insurance industry which returned 10.9% over the past year.

Return vs Market: SLF exceeded the Canadian Market which returned 0.9% over the past year.


Shareholder returns

SLFIndustryMarket
7 Day1.0%1.2%-0.1%
30 Day-0.7%-0.5%-2.1%
90 Day4.9%1.4%-1.6%
1 Year26.8%21.9%15.7%10.9%4.4%0.9%
3 Year49.4%33.7%24.5%11.1%15.5%5.2%
5 Year83.6%52.8%44.4%20.0%25.7%7.5%

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?

38.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: SLF (CA$58.13) is trading below our estimate of fair value (CA$95.01)

Significantly Undervalued: SLF is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SLF is poor value based on its PE Ratio (14.7x) compared to the Insurance industry average (12.8x).

PE vs Market: SLF is poor value based on its PE Ratio (14.7x) compared to the Canadian market (13.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: SLF is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: SLF is overvalued based on its PB Ratio (1.5x) compared to the CA Insurance industry average (1.1x).


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?

13.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SLF's forecast earnings growth (13.5% per year) is above the savings rate (1.9%).

Earnings vs Market: SLF's earnings (13.5% per year) are forecast to grow faster than the Canadian market (13.2% per year).

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

Revenue vs Market: SLF's revenue (3.5% per year) is forecast to grow slower than the Canadian market (5.7% per year).

High Growth Revenue: SLF's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SLF's Return on Equity is forecast to be low in 3 years time (14.2%).


Next Steps

Past Performance

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

5.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SLF's earnings have grown by 5.9% 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 (-1.4%) over the past year, making it difficult to compare to the Insurance industry average (-0.8%).


Return on Equity

High ROE: SLF's Return on Equity (10%) is considered low.


Return on Assets

ROA vs Industry: SLF has a higher Return on Assets than the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: SLF's Return on Capital Employed has declined over the past 3 years.


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 21.171500x 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?

3.61%

Current Dividend Yield


Dividend Yield vs Market

company3.6%marketbottom25%2.0%markettop25%6.0%industryaverage4.1%forecastin3Years3.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SLF's dividend (3.61%) is higher than the bottom 25% of dividend payers in the Canadian market (2.03%).

High Dividend: SLF's dividend (3.61%) is low compared to the top 25% of dividend payers in the Canadian market (5.98%).

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 (50.7%), 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 (41.7% payout ratio).


Next Steps

Management

What is the CEO of Sun Life Financial's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average management tenure


CEO

Dean Connor (62yo)

7.8yrs

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 ($USD7.34M) is about average for companies of similar size in the Canadian market ($USD6.86M).

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


Management Age and Tenure

5.0yrs

Average Tenure

55yo

Average Age

Experienced Management: SLF's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

6.6yrs

Average Tenure

62yo

Average Age

Experienced Board: SLF's board of directors are considered experienced (6.6 years average tenure).


Insider Trading

Insider Buying: SLF insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$7,88312 Aug 19
Ashok Gupta
EntityIndividual
Shares152
Max PriceCA$51.86
BuyCA$25,89006 Aug 19
Stephanie Coyles
EntityIndividual
Shares500
Max PriceCA$51.78
BuyCA$21,15614 May 19
Stephanie Coyles
EntityIndividual
Shares400
Max PriceCA$52.89
BuyCA$6,48214 May 19
Ashok Gupta
EntityIndividual
Shares123
Max PriceCA$52.70
BuyCA$10,12613 Mar 19
Kevin Strain
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares200
Max PriceCA$50.63
BuyCA$19,58019 Feb 19
Stephanie Coyles
EntityIndividual
Shares400
Max PriceCA$48.95
BuyCA$133,57111 Dec 18
Daniel Fishbein
EntityIndividual
Role
Unit President
President of Sun Life Financial - United States
Shares2,943
Max PriceCA$45.39
BuyCA$24,22512 Nov 18
Stephanie Coyles
EntityIndividual
Shares500
Max PriceCA$48.45

Ownership Breakdown


Management Team

  • Dean Connor (62yo)

    President

    • Tenure: 7.8yrs
    • Compensation: CA$9.71m
  • Steve Peacher (55yo)

    President of SLC Management

    • Tenure: 5.6yrs
    • Compensation: CA$6.05m
  • Dan Fishbein

    President of Sun Life Financial - United States

    • Tenure: 5.5yrs
    • Compensation: CA$3.81m
  • Kevin Strain (53yo)

    Executive VP & CFO

    • Tenure: 2.4yrs
    • Compensation: CA$3.51m
  • Helena Pagano

    Executive VP and Chief Human Resources & Communications Officer

    • Tenure: 1.3yrs
  • Paul Petrelli

    Chief Compliance Officer & Senior VP

    • Tenure: 5yrs
  • Melissa Kennedy

    Executive VP and Chief Legal Officer & Public Affairs

    • Tenure: 4.4yrs
  • Mark Saunders

    Executive VP & Chief Information Officer

    • Tenure: 10.8yrs
  • Jacques Goulet

    President of Sun Life Financial Canada

    • Tenure: 1.8yrs
    • Compensation: CA$7.96m
  • Leigh Chalmers

    Senior VP

    • Tenure: 0yrs

Board Members

  • Bill Anderson (70yo)

    Independent Chairman of the Board

    • Tenure: 2.4yrs
    • Compensation: CA$405.00k
  • Scott Powers (59yo)

    • Tenure: 4yrs
    • Compensation: CA$272.00k
  • Marianne Harris (61yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: CA$263.00k
  • Sara Lewis (52yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: CA$278.00k
  • Dean Connor (62yo)

    President

    • Tenure: 7.8yrs
    • Compensation: CA$9.71m
  • Martin John Glynn (67yo)

    Corporate Director

    • Tenure: 8.8yrs
    • Compensation: CA$245.00k
  • Hugh Segal (68yo)

    Corporate Director

    • Tenure: 10.4yrs
    • Compensation: CA$234.50k
  • Barbara Stymiest (62yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: CA$263.00k
  • Rob Manning (55yo)

    Chairman & Co-CEO of MFS Investment Management

    • Tenure: 0yrs
  • Mike Roberge

    Chairman of MFS Mclean Budden Limited & Co-CEO of MFS Investment Management

    • Tenure: 0yrs

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$34.158b
  • Shares outstanding: 587.62m
  • 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
LIEDB (Deutsche Boerse AG)YesCommon StockDEEURMar 2000
SLFPSE (Philippines Stock Exchange)YesCommon StockPHPHPMar 2000
SLFNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 2000
0VJALSE (London Stock Exchange)YesCommon StockGBGBPMar 2000
SLFY.FOTCPK (Pink Sheets LLC)PFD A SER 1USUSDFeb 2005
SLF.PRATSX (The Toronto Stock Exchange)PFD A SER 1CACADFeb 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)PFD CL A SR 8RCACADMay 2010
SUNF.FOTCPK (Pink Sheets LLC)PFD 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 worldwide. The company operates through five segments: ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:42
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.