Sun Life Financial Inc. Fundamental Analysis (NYSE: SLF)
Sun Life Financial Inc. Fundamental Analysis (NYSE: SLF)
Sun Life Financial Inc. (NYSE: SLF) shows moderate financial fundamentals with a PE ratio of 19.49, profit margin of 8.14%, and ROE of 13.89%. The company generates $44.1B in annual revenue with strong year-over-year growth of 11.50%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.1/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze SLF's fundamental strength across five key dimensions:
Efficiency Score
WeakSLF struggles to generate sufficient returns from assets.
Valuation Score
ModerateSLF shows balanced valuation metrics.
Growth Score
ExcellentSLF delivers strong and consistent growth momentum.
Financial Health Score
ExcellentSLF maintains a strong and stable balance sheet.
Profitability Score
WeakSLF struggles to sustain strong margins.
Key Financial Metrics
Is SLF Expensive or Cheap?
P/E Ratio
SLF trades at 19.49 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SLF's PEG of 2.92 indicates potential overvaluation.
Price to Book
The market values Sun Life Financial Inc. at 2.40 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.23 times EBITDA. This signals the market has high growth expectations.
How Well Does SLF Make Money?
Net Profit Margin
For every $100 in sales, Sun Life Financial Inc. keeps $8.14 as profit after all expenses.
Operating Margin
Core operations generate 10.82 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.89 in profit for every $100 of shareholder equity.
ROA
Sun Life Financial Inc. generates $0.84 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sun Life Financial Inc. produces operating cash flow of $10.76B, showing steady but balanced cash generation.
Free Cash Flow
Sun Life Financial Inc. generates strong free cash flow of $10.63B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $19.18 in free cash annually.
FCF Yield
SLF converts 16.65% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.49
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.92
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.40
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.34
vs 25 benchmark
Current Ratio
Current assets to current liabilities
27.38
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How SLF Stacks Against Its Sector Peers
| Metric | SLF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.49 | 21.18 | Neutral |
| ROE | 13.89% | 664.00% | Weak |
| Net Margin | 8.14% | 1007.00% | Weak |
| Debt/Equity | 0.34 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 27.38 | 906.73 | Strong Liquidity |
| ROA | 0.84% | 4475633.00% | Weak |
SLF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sun Life Financial Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-7.82%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
39.93%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-59.90%
Industry Style: Value, Dividend, Cyclical
Declining