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Sun Life Financial Inc SLF

Morningstar Rating
$53.71 −0.59 (1.09%)
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Company Report

Sun Life Earnings: All Around Strong Performance Sets The Company Well for the Upcoming Year

No-moat-rated Sun Life Financial reported a strong set of numbers with underlying net income of CAD 983 million or CAD 1.68 per share in the fourth quarter, up 10% versus CAD 892 million or CAD 1.52 per share in the fourth quarter of the previous year. The fourth-quarter results equated to an annualized underlying return on equity of 18.4%, which is largely in line with management’s medium-term guidance of 18%. The company paid a quarterly dividend of CAD 0.78 per share in the fourth quarter of 2023, which represents a 4.4% dividend yield as per the current stock price. We are maintaining our CAD 63 fair value estimate for Sun Life after incorporating the fourth-quarter results.

Price vs Fair Value

SLF is trading at a 14% premium.
Price
$53.71
Fair Value
$37.00
Uncertainty
Medium
1-Star Price
$47.65
5-Star Price
$19.70
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Sun Life has a dominant market position in many segments in the Canadian market and generates decent returns.

Bears

Sun Life's asset-management operations may face dual headwinds of fee pressure and lower asset valuations.

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News

Trading Information

Previous Close Price
$54.30
Day Range
$53.4354.34
52-Week Range
$43.5354.39
Bid/Ask
$49.66 / $55.87
Market Cap
$31.40 Bil
Volume/Avg
583,304 / 736,478

Key Statistics

Price/Earnings (Normalized)
11.17
Price/Sales
1.28
Dividend Yield (Trailing)
4.18%
Dividend Yield (Forward)
4.31%
Total Yield
4.62%

Company Profile

Sun Life provides life insurance, retirement, and asset management products to individuals and corporate customers in Canada, the United States, and Asia. The company’s investment management business contributes approximately 38% of its adjusted earnings and has around CAD 1 trillion in assets under management as of the second quarter of 2023. The Canada business contributes about 32% of adjusted earnings and provides individual life and health insurance, group insurance, retirement services, and wealth management solutions. The U.S. business contributes approximately 14% of earnings and is mainly focused on providing group insurance products and managing the in-force life insurance policies. Finally, the Asia segment contributes around 16% of earnings.
Sector
Financial Services
Industry
Insurance - Diversified
Stock Style Box
Large Core
Total Number of Employees
58,245

Competitors

Valuation

Metric
SLF
MFC
MET
Price/Earnings (Normalized)
11.178.839.76
Price/Book Value
1.911.331.66
Price/Sales
1.281.330.78
Price/Cash Flow
33.524.78
Price/Earnings
SLF
MFC
MET

Financial Strength

Metric
SLF
MFC
MET
Quick Ratio
Current Ratio
Interest Coverage
8.125.153.07
Quick Ratio
No chart available

Profitability

Metric
SLF
MFC
MET
Return on Assets (Normalized)
1.15%0.78%0.82%
Return on Equity (Normalized)
16.86%16.60%18.66%
Return on Invested Capital (Normalized)
12.08%9.66%3.21%
Return on Assets
SLF
MFC
MET
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