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Sagicor Financial Co. Ltd. (TSE:SFC)
:SFC

Sagicor Financial (SFC) AI Stock Analysis

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Sagicor Financial

(OTC:SFC)

Rating:70Outperform
Price Target:
C$8.50
â–Ľ(-0.47%Downside)
Sagicor Financial's overall stock score of 70 reflects a balanced view of its strengths and challenges. While the company faces declining revenues and profit margins, its improved cash flow and stable leverage are promising signs for recovery. Positive technical indicators and attractive valuation metrics enhance its investment appeal, despite cautionary notes from recent corporate events regarding mini-tender offers.

Sagicor Financial (SFC) vs. iShares MSCI Canada ETF (EWC)

Sagicor Financial Business Overview & Revenue Model

Company DescriptionSagicor Financial Company Ltd. (SFC) is a leading financial services provider in the Caribbean, with operations extending into the United States and Latin America. The company is engaged in providing a wide range of financial services including life and health insurance, annuities, pension administration, and investment management. Sagicor aims to deliver long-term value to its clients through innovative and comprehensive solutions tailored to meet the diverse needs of individuals and businesses.
How the Company Makes MoneySagicor Financial generates revenue primarily through the sale of insurance products, which include life insurance, health insurance, and annuities. The company collects premiums from policyholders and invests these funds to generate returns, which are used to pay out claims and benefits. Additionally, Sagicor earns income from its investment management services by charging fees for managing assets on behalf of individual and institutional clients. The company's earnings are further supported by strategic partnerships and acquisitions that expand its market presence and product offerings in key regions. By maintaining a diverse portfolio of financial products and services, Sagicor is able to sustain its revenue streams and adapt to changing market conditions.

Sagicor Financial Earnings Call Summary

Earnings Call Date:May 13, 2025
(Q3-2024)
|
% Change Since: 10.79%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of strong revenue growth and net income, driven by positive market experience and strategic actions like share buybacks. However, there were notable challenges, including volatility due to IFRS 17, issues in Sagicor Jamaica, and market losses in the U.S. segment. While the highlights provide a positive outlook, the presence of significant lowlights suggests a balanced view.
Q3-2024 Updates
Positive Updates
Significant Revenue Growth
Revenues reached $1.1 billion for Q3 2024, compared to $291 million for Q3 2023, largely driven by the acquisition of ivari in the Sagicor Canada segment.
Strong Net Income
Reported net income attributable to common shareholders was $59 million for the quarter, with market experience as a significant contributor.
Core Earnings Consistency
Core earnings to shareholders were $24 million, consistent with expectations and a material increase over the same period in 2023.
Positive Market Experience
Market experience gains were significant, particularly from equities and interest rate movements, positively impacting net income.
Improved Capital Ratios
The group LICAT ratio improved by 2 percentage points quarter-over-quarter to 140%, and the MCCSR ratio was at 304%.
Continued Share Buybacks
Sagicor repurchased about $10 million worth of shares at a significant discount to book value in Q3, enhancing book value per share.
Dividend Consistency
Announced the 20th consecutive quarterly dividend to shareholders of USD 0.06 per share.
Negative Updates
Volatility in Net Income
Fluctuations in reported net income due to accounting mismatches under IFRS 17, with expectations of continued volatility in the near term.
Challenges in Sagicor Jamaica
Experiencing weaker long-term insurance business due to unfavorable insurance experience and softer trading gains and fee income in Investment Banking.
U.S. Segment Market Losses
Net loss to shareholders was less than $1 million, primarily due to $7 million of market experience losses and $6 million from assumption changes.
Decreased Net CSM in Sagicor Life USA
Net CSM decreased by $47 million to $166 million quarter-over-quarter due to changes in assumptions and model refinements.
Company Guidance
During the Sagicor Financial Company's Third Quarter 2024 Earnings Call, the company reported core earnings to shareholders of $24 million, aligning with their expectations and marking a significant increase from the previous year, largely due to the acquisition of ivari in the Sagicor Canada segment. Total revenues reached $1.1 billion, a considerable rise from $291 million in Q3 2023. The company also highlighted a net income attributable to common shareholders of $59 million, driven mainly by positive market experience. The LICAT ratio improved to 140%, and the MCCSR ratio stood at 304%, with a stable financial leverage ratio of 26.8%. Book value per share ended the quarter at USD 6.86, equivalent to CAD 9.26, with deployable capital at $2.1 billion. Sagicor has maintained a consistent quarterly dividend of USD 0.06 per share, reinforcing their commitment to shareholder returns.

Sagicor Financial Financial Statement Overview

Summary
Sagicor Financial shows mixed financial performance. The income statement reveals declining revenues and profit margins, indicating potential operational challenges. However, the balance sheet maintains moderate leverage and stable equity ratios, despite a drop in ROE. Cash flow analysis highlights a positive turnaround with improved free cash flow and operational cash flow ratios, suggesting enhanced liquidity management.
Income Statement
57
Neutral
Sagicor Financial's income statement reveals mixed performance. The company experienced a significant decline in revenue from 2023 to 2024, with total revenue dropping by about 11.3%. Gross profit margins remained stable at 100%, as gross profit equaled total revenue. However, the net profit margin fell sharply to 6.17% in 2024, compared to 29.87% in 2023, reflecting a substantial decrease in net income. The absence of EBIT in 2024 indicates operational challenges. Despite a healthy EBITDA margin of 22.89%, profitability metrics suggest volatility.
Balance Sheet
64
Positive
The balance sheet shows a strong equity position with a debt-to-equity ratio of 1.03, indicating moderate leverage. Although the equity ratio decreased slightly to 4.21% in 2024, it remains relatively stable, demonstrating adequate capitalization. Despite a decrease in stockholders' equity, the company maintains a reasonable return on equity (ROE) of 10.15% in 2024, though lower than the previous year's 54.81%, suggesting reduced profitability on shareholder equity.
Cash Flow
69
Positive
Sagicor Financial's cash flow statement highlights a positive shift in free cash flow, which improved from negative in 2023 to a robust $196.8 million in 2024, marking a strong recovery. The operating cash flow to net income ratio increased to 2.20 in 2024, indicating efficient cash generation relative to net income. However, the free cash flow to net income ratio is 2.02, reflecting substantial free cash flow generation. This improvement in cash flow metrics signifies enhanced liquidity and operational cash management.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.58B1.78B84.82M2.36B1.91B
Gross Profit
1.58B1.76B84.82M2.36B1.91B
EBIT
190.12M1.53B0.0084.45M-56.63M
EBITDA
361.61M673.55M-20.17M117.15M-17.07M
Net Income Common Stockholders
97.47M532.06M-164.39M132.56M-2.25M
Balance SheetCash, Cash Equivalents and Short-Term Investments
994.07M486.64M368.14M359.98M359.97M
Total Assets
22.77B22.38B10.62B10.31B9.27B
Total Debt
990.09M985.81M667.57M725.25M860.77M
Net Debt
547.59M499.16M299.43M365.27M500.80M
Total Liabilities
21.45B21.06B9.88B9.22B7.61B
Stockholders Equity
959.69M970.93M1.08B1.13B1.11B
Cash FlowFree Cash Flow
196.80M-67.04M-176.30M109.93M-117.94M
Operating Cash Flow
214.23M-39.61M-154.50M124.88M-99.11M
Investing Cash Flow
-14.04M6.52M-26.62M36.16M-24.40M
Financing Cash Flow
-64.25M239.53M-65.27M140.47M-98.85M

Sagicor Financial Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.54
Price Trends
50DMA
7.93
Positive
100DMA
7.67
Positive
200DMA
6.81
Positive
Market Momentum
MACD
0.20
Negative
RSI
64.97
Neutral
STOCH
89.97
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SFC, the sentiment is Positive. The current price of 8.54 is above the 20-day moving average (MA) of 8.13, above the 50-day MA of 7.93, and above the 200-day MA of 6.81, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 64.97 is Neutral, neither overbought nor oversold. The STOCH value of 89.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SFC.

Sagicor Financial Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSMFC
78
Outperform
C$74.91B15.9210.17%3.96%5.24%13.68%
TSNA
78
Outperform
C$52.83B12.7713.42%3.38%17.13%14.73%
TSGWO
78
Outperform
C$46.84B12.2514.65%4.80%17.48%25.54%
TSIAG
77
Outperform
C$13.14B15.0112.54%2.55%-7.31%28.65%
TSSLF
75
Outperform
$49.99B15.9313.18%3.98%0.94%3.50%
TSSFC
70
Outperform
C$1.18B10.778.11%4.35%25.85%-85.22%
64
Neutral
$12.93B9.707.85%78.03%12.07%-7.83%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:SFC
Sagicor Financial
8.54
2.31
37.19%
TSE:NA
National Bank of Canada
135.42
33.10
32.35%
TSE:SLF
Sun Life Financial
87.29
24.31
38.59%
TSE:MFC
Manulife Financial
42.34
8.75
26.06%
TSE:IAG
iA Financial Corporation Inc
142.26
59.08
71.03%
TSE:GWO
Great-West Lifeco
51.19
13.75
36.73%

Sagicor Financial Corporate Events

Executive/Board ChangesShareholder Meetings
Sagicor Financial Reports Successful Annual Shareholders’ Meeting
Positive
May 14, 2025

Sagicor Financial Company Ltd. announced the results of its annual shareholders’ meeting, highlighting the election of 14 directors and the reappointment of PricewaterhouseCoopers SRL as auditors. The meeting saw significant shareholder participation, with over 56% of common shares represented, underscoring strong investor engagement and confidence in the company’s leadership and strategic direction.

The most recent analyst rating on (TSE:SFC) stock is a Buy with a C$9.00 price target. To see the full list of analyst forecasts on Sagicor Financial stock, see the TSE:SFC Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Sagicor Financial Reports Strong Q1 2025 Results Amid Robust Growth
Positive
May 13, 2025

Sagicor Financial reported strong first-quarter results for 2025, with core earnings to shareholders reaching $29.7 million, marking a significant increase from the previous year. The company’s performance was bolstered by robust growth in its Caribbean segments, strong new annuity production in the U.S., and improved profitability in Canada. Sagicor’s strategic positioning and financial strength, evidenced by a Group LICAT ratio of 137% and a financial leverage ratio of 27.2%, position it well to navigate market volatility and achieve its 2025 targets.

The most recent analyst rating on (TSE:SFC) stock is a Buy with a C$9.00 price target. To see the full list of analyst forecasts on Sagicor Financial stock, see the TSE:SFC Stock Forecast page.

Financial Disclosures
Sagicor Financial to Release Q1 2025 Results and Host Earnings Call
Neutral
May 9, 2025

Sagicor Financial Company Ltd. is set to release its first quarter 2025 financial results on May 13, 2025, followed by an earnings call on May 14, 2025. This announcement is significant for analysts and investors as it provides insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder interests.

Regulatory Filings and Compliance
Sagicor Financial Warns Investors About Unsolicited Mini-Tender Offer
Negative
May 5, 2025

Sagicor Financial has issued a caution to its investors regarding an unsolicited mini-tender offer from Barbados Stock Trading Company LLC (BSTC) to purchase up to 500,000 of its common shares. The offer price represents a significant discount compared to recent trading prices of Sagicor’s shares on the TSX. Sagicor does not endorse this offer and advises shareholders to carefully evaluate the offer documents and consult with their investment advisors. Mini-tender offers often bypass regulatory disclosure requirements, raising concerns among securities regulators.

Shareholder MeetingsBusiness Operations and StrategyFinancial Disclosures
Sagicor Financial Releases 2024 Reports and Announces Hybrid Annual Meeting
Positive
Apr 11, 2025

Sagicor Financial has released its 2024 Annual Report, Annual Information Form, and its first Sustainability Report, highlighting its commitment to integrating environmental, social, and governance considerations into its operations. The company also announced details of its upcoming annual meeting of shareholders, which will be held as a hybrid event, allowing both in-person and virtual participation. This initiative reflects Sagicor’s dedication to responsible business practices aimed at generating shareholder value and sustainable growth.

Regulatory Filings and Compliance
Sagicor Financial Warns Against Ocehan LLC’s Mini-Tender Offer
Negative
Apr 7, 2025

Sagicor Financial has issued a caution to its investors regarding an unsolicited mini-tender offer from Ocehan LLC to purchase up to 100,000 Sagicor common shares at a significant discount. The company does not endorse this offer, highlighting that mini-tender offers often bypass standard regulatory disclosures and can pose risks to shareholders. Sagicor advises its shareholders to consult with their investment advisors and carefully evaluate the offer and their options.

DividendsBusiness Operations and StrategyFinancial Disclosures
Sagicor Financial Announces Robust 2024 Results and Dividend Increase
Positive
Mar 14, 2025

Sagicor Financial reported strong financial results for the fourth quarter and full year of 2024, with significant increases in core earnings and earnings per share. The company announced a 12.5% increase in its quarterly dividend, reflecting its robust capitalization and liquidity. Sagicor’s strategic initiatives, including technological advancements and improved capital access, are expected to drive further growth and enhance shareholder returns in 2025 and beyond.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.