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Sun Life Financial Inc SLF

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Stock XNYS Rating as of
$51.45 +0.39 (0.76%)
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Company Report

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Sun Life Earnings: Wealth and Asset Management Business Drives Decent Results

Suryansh Sharma

No-moat-rated Sun Life Financial reported a middling set of numbers as the company reported underlying net income of CAD 930 million or CAD 1.59 per share in the third quarter versus CAD 949 million or CAD 1.62 per share in the third quarter of the previous year. The third-quarter results equated to an annualized underlying return on equity of 17.7% that 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 third quarter, which represents a 4.7% dividend yield as per the current stock price. We are maintaining our CAD 63 fair value estimate for Sun Life after incorporating the third-quarter results.

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Price vs Fair Value

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SLF is trading at a 9% premium.
Price
$51.45
Fair Value
$17.00
Uncertainty
Medium
1-Star Price
$17.67
5-Star Price
$26.60
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

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Trading Information

Previous Close Price
$51.06
Day Range
$51.00–51.47
52-Week Range
$43.53–53.21
Bid/Ask
$50.77 / $52.87
Market Cap
$30.06 Bil
Volume/Avg
905,645 / 724,411

Key Statistics

Price/Earnings (Normalized)
10.90
Price/Sales
1.56
Dividend Yield
4.33%
Dividend Yield (Forward)
3.28%
Total Yield
4.33%

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
50,719
Website
https://www.sunlife.com

Competitors

Valuation

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Metric
SLF
MFC
MET
Price/Earnings (Normalized)
 10.907.879.21
Price/Book Value
 1.761.211.86
Price/Sales
 1.561.030.78
Price/Cash Flow
 11.3411.954.48
Price/Earnings
SLF
MFC
MET

Financial Strength

Metric
SLF
MFC
MET
Quick Ratio
 ———
Current Ratio
 ———
Interest Coverage
 9.1110.400.75
Quick Ratio
No chart available

Profitability

Metric
SLF
MFC
MET
Return on Assets (Normalized)
 1.15%0.76%0.82%
Return on Equity (Normalized)
 15.43%14.83%19.34%
Return on Invested Capital (Normalized)
 11.73%8.86%4.10%
Return on Assets
SLF
MFC
MET

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