DB:LIE

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.

Rewards

Trading at 53.4% below its fair value

Earnings are forecast to grow 14.19% per year

Earnings grew by 15.4% over the past year

Pays a high and reliable dividend of 3.52%

Risk Analysis

No risks detected for LIE from our risk checks.


Snowflake Analysis

Established dividend payer with proven 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

Stable Share Price: LIE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.9%

LIE

1.1%

DE Insurance

0.5%

DE Market


1 Year Return

36.7%

LIE

27.9%

DE Insurance

15.9%

DE Market

Return vs Industry: LIE exceeded the German Insurance industry which returned 29.2% over the past year.

Return vs Market: LIE exceeded the German Market which returned 17.1% over the past year.


Shareholder returns

LIEIndustryMarket
7 Day1.9%1.1%0.5%
30 Day5.9%0.7%1.7%
90 Day8.5%3.9%6.1%
1 Year42.2%36.7%33.5%27.9%19.6%15.9%
3 Year35.4%21.0%66.9%46.7%17.7%7.3%
5 Year91.5%59.0%96.4%57.3%28.7%11.1%

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

No news available

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: LIE (€42.6) is trading below our estimate of fair value (€91.5)

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


Price To Earnings Ratio

PE vs Industry: LIE is poor value based on its PE Ratio (15x) compared to the Insurance industry average (11.9x).

PE vs Market: LIE is good value based on its PE Ratio (15x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: LIE is overvalued based on its PB Ratio (1.7x) compared to the DE 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 12 analysts?

14.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LIE's forecast earnings growth (14.2% per year) is above the savings rate (-0.4%).

Earnings vs Market: LIE's earnings (14.2% per year) are forecast to grow faster than the German market (13.2% per year).

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

Revenue vs Market: LIE's revenue is expected to decline over the next 3 years (-0.2% per year).

High Growth Revenue: LIE's revenue is forecast to decline over the next 3 years (-0.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LIE's Return on Equity is forecast to be low in 3 years time (14.4%).


Next Steps

Past Performance

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

5.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LIE has high quality earnings.

Growing Profit Margin: LIE's current net profit margins (6.3%) are lower than last year (7.8%).


Past Earnings Growth Analysis

Earnings Trend: LIE's earnings have grown by 5.1% per year over the past 5 years.

Accelerating Growth: LIE's earnings growth over the past year (15.4%) exceeds its 5-year average (5.1% per year).

Earnings vs Industry: LIE earnings growth over the past year (15.4%) exceeded the Insurance industry 7.8%.


Return on Equity

High ROE: LIE's Return on Equity (10.3%) 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: LIE has a low level of unsold assets or inventory.

Debt Coverage by Assets: LIE's debt is covered by short term assets (assets are 19.6x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

3.45%

Current Dividend Yield


Dividend Yield vs Market

company3.4%marketbottom25%1.4%markettop25%3.5%industryaverage3.7%forecastin3Years3.6%

Current dividend yield vs market & industry

Notable Dividend: LIE's dividend (3.52%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: LIE's dividend (3.52%) is low compared to the top 25% of dividend payers in the German market (3.53%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.2%), LIE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LIE's dividends in 3 years are forecast to be well covered by earnings (41.3% 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?

5.3yrs

Average management tenure


CEO

Dean Connor (62yo)

8.1yrs

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 ($USD7.43M) is above average for companies of similar size in the German market ($USD4.52M).

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


Management Age and Tenure

5.3yrs

Average Tenure

55yo

Average Age

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


Board Age and Tenure

6.9yrs

Average Tenure

62yo

Average Age

Experienced Board: LIE's board of directors are considered experienced (6.9 years average tenure).


Insider Trading

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


Recent Insider Transactions

Buy€5,32012 Aug 19
Ashok Gupta
EntityIndividual
Shares152
Max Price€35.00
Buy€17,47206 Aug 19
Stephanie Coyles
EntityIndividual
Shares500
Max Price€34.94
Buy€4,28414 May 19
Ashok Gupta
EntityIndividual
Shares123
Max Price€34.83
Buy€13,98114 May 19
Stephanie Coyles
EntityIndividual
Shares400
Max Price€34.95
Buy€6,70413 Mar 19
Kevin Strain
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares200
Max Price€33.52
Buy€13,03419 Feb 19
Stephanie Coyles
EntityIndividual
Shares400
Max Price€32.59

Ownership Breakdown

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


Management Team

  • Dean Connor (62yo)

    President

    • Tenure: 8.1yrs
    • Compensation: CA$9.71m
  • Steve Peacher (55yo)

    President of SLC Management

    • Tenure: 5.8yrs
    • Compensation: CA$6.05m
  • Dan Fishbein

    President of Sun Life Financial - United States

    • Tenure: 5.8yrs
    • Compensation: CA$3.81m
  • Kevin Strain (53yo)

    Executive VP & CFO

    • Tenure: 2.7yrs
    • Compensation: CA$3.51m
  • Helena Pagano

    Executive VP and Chief Human Resources & Communications Officer

    • Tenure: 1.6yrs
  • Paul Petrelli

    Chief Compliance Officer & Senior VP

    • Tenure: 5.3yrs
  • Melissa Kennedy

    Executive VP and Chief Legal Officer & Public Affairs

    • Tenure: 4.7yrs
  • Mark Saunders

    Executive VP & Chief Information Officer

    • Tenure: 11yrs
  • Jacques Goulet

    President of Sun Life Financial Canada

    • Tenure: 2yrs
    • Compensation: CA$7.96m
  • Leigh Chalmers

    Senior VP


    Board Members

    • Bill Anderson (70yo)

      Independent Chairman of the Board

      • Tenure: 2.7yrs
      • Compensation: CA$405.00k
    • Scott Powers (59yo)

      Independent Director

      • Tenure: 4.3yrs
      • Compensation: CA$272.00k
    • Marianne Harris (61yo)

      Independent Director

      • Tenure: 6.1yrs
      • Compensation: CA$263.00k
    • Sara Lewis (52yo)

      Independent Director

      • Tenure: 5.1yrs
      • Compensation: CA$278.00k
    • Dean Connor (62yo)

      President

      • Tenure: 8.1yrs
      • Compensation: CA$9.71m
    • Martin John Glynn (67yo)

      Corporate Director

      • Tenure: 9.1yrs
      • Compensation: CA$245.00k
    • Hugh Segal (68yo)

      Corporate Director

      • Tenure: 10.7yrs
      • Compensation: CA$234.50k
    • Barbara Stymiest (62yo)

      Independent Director

      • Tenure: 7.7yrs
      • Compensation: CA$263.00k
    • Rob Manning (55yo)

      Chairman & Co-CEO of MFS Investment Management

      • Mike Roberge

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

        Company Information

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


        Key Information

        • Name: Sun Life Financial Inc.
        • Ticker: LIE
        • Exchange: DB
        • Founded: 1871
        • Industry: Life and Health Insurance
        • Sector: Insurance
        • Market Cap: CA$37.487b
        • Listing Market Cap: CA$25.841b
        • Shares outstanding: 587.84m
        • 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 StockGBCADMar 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)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 worldwide. The company operates through five segments: Sun Life Financial Canada, Sun Life Financial United States, Sun Life Financial Asset Management, Sun Life Financial Asia, and Corporate. 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 1871 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 Analysis2020/01/21 21:03
        End of Day Share Price2020/01/21 00:00
        Earnings2019/09/30
        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.