Sagicor Financial (SFC) AI Stock Analysis

• Market Cap: C$1.24B
• Dividend Yield: 4.03%
• Average Volume (3M): 21.24K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.04
• Revenue Growth: -10.94%
• EPS Growth: -73.26%
• Country: CA
• Employees: 5,300
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 0.36
• Shares Outstanding: 135,413,020
• 10 Day Avg. Volume: 17,397
• 30 Day Avg. Volume: 21,241
• PEG Ratio: -0.08
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.40
• P/FCF Ratio: 3.06
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$11.19
• Price Target Upside: 21.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: C$9.50 ▲(3.60% Upside)

Sagicor Financial's overall stock score is driven by its solid financial performance and attractive valuation. The company's strong revenue growth and operational efficiency are key strengths, though there is room for improvement in profitability and cash flow growth. The stock's technical indicators suggest strong bullish momentum, but overbought conditions could lead to a short-term pullback. The low P/E ratio and high dividend yield enhance the stock's attractiveness, making it a potentially undervalued investment opportunity.

Positive Factors

Operational Efficiency

High gross profit margins indicate strong operational efficiency, allowing Sagicor to effectively manage costs and maintain profitability.

Revenue Growth

Consistent revenue growth demonstrates Sagicor's ability to expand its market presence and product adoption, supporting long-term business stability.

Cash Generation

Strong cash generation relative to net income ensures Sagicor can fund operations and investments, enhancing financial flexibility and stability.

Negative Factors

Profitability Concerns

Low net profit margins indicate challenges in converting revenue into profit, which may affect long-term profitability and shareholder returns.

Negative Free Cash Flow Growth

Negative free cash flow growth suggests potential issues in cash management, which could impact Sagicor's ability to invest in growth opportunities.

Debt Levels

Moderate leverage is typical in the industry but requires careful monitoring to prevent financial strain and maintain balance sheet health.

Sagicor Financial Business Overview & Revenue Model

Company Description

Sagicor Financial Company Ltd., together with its subsidiaries, provides insurance products and related financial services in the Caribbean and the United States. It operates through three segments: Sagicor Jamaica, Sagicor Life, and Sagicor USA. The company offers life and health insurance, employee benefits, including group health and group life benefits; and annuities, asset management, and property and casualty insurance. It also provides banking products and services, such as deposits, secured loans, and debit and credit cards. In addition, the company offers pension administration services; commercial banking services, including lending, accepting deposits, trading foreign exchange, and corporate secretarial services. Sagicor Financial Company Ltd. was founded in 1840 and is headquartered in St. Michael, Barbados.

How the Company Makes Money

Sagicor Financial makes money primarily through its various insurance and investment products. The company generates revenue from premiums collected on life and health insurance policies, which provide a steady income stream. Additionally, Sagicor earns money through fees and commissions from investment management services, as well as from the sale of annuities and pension products. Another significant revenue source is the investment income derived from its portfolio of investments, which includes stocks, bonds, and real estate. The company's partnerships with financial advisors and distribution networks also play a crucial role in driving sales and expanding its customer base, contributing to overall earnings.

Sagicor Financial Financial Statement Overview

Summary

Sagicor Financial demonstrates solid revenue growth and operational efficiency, with strong gross profit margins. The balance sheet reflects moderate leverage and effective equity utilization, though debt levels should be monitored. Cash flow performance is mixed, with a negative free cash flow growth rate but strong cash generation relative to net income. Overall, the company is on a stable financial footing but should focus on improving profitability and cash flow growth.

Income Statement

Sagicor Financial shows a strong revenue growth rate of 13.66% in the TTM, indicating a positive trajectory. The gross profit margin is robust at 75.38%, reflecting efficient cost management. However, the net profit margin is relatively low at 7.55%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are healthy, indicating good operational efficiency.

Balance Sheet

The debt-to-equity ratio of 1.06 in the TTM suggests moderate leverage, which is typical for the insurance industry. Return on equity is decent at 11.57%, indicating effective use of equity to generate profits. The equity ratio is stable, reflecting a balanced capital structure. However, the company should monitor its debt levels to avoid potential risks.

Cash Flow

The free cash flow growth rate is negative at -10.97% in the TTM, which is a concern. However, the free cash flow to net income ratio is strong at 0.96, indicating good cash generation relative to net income. The operating cash flow to net income ratio is unavailable, which limits a comprehensive cash flow analysis.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.68B	1.50B	1.78B	80.70M	2.36B	1.91B
Gross Profit	1.12B	742.59M	1.76B	277.50M	868.64M	1.91B
EBITDA	406.79M	361.61M	834.01M	-20.17M	383.44M	-17.07M
Net Income	133.74M	97.47M	532.06M	-164.39M	132.56M	-2.25M
Balance Sheet
Total Assets	24.57B	22.77B	22.38B	10.62B	10.31B	9.27B
Cash, Cash Equivalents and Short-Term Investments	506.54M	994.07M	486.64M	368.14M	359.98M	359.97M
Total Debt	1.03B	990.09M	985.81M	667.57M	725.25M	860.77M
Total Liabilities	23.14B	21.45B	21.06B	9.88B	9.22B	7.61B
Stockholders Equity	1.05B	959.69M	970.93M	1.08B	1.13B	1.11B
Cash Flow
Free Cash Flow	367.89M	196.80M	-67.04M	-176.30M	109.93M	-117.94M
Operating Cash Flow	382.63M	214.23M	-39.61M	-154.50M	124.88M	-99.11M
Investing Cash Flow	-11.05M	-14.04M	6.52M	-26.62M	36.16M	-24.40M
Financing Cash Flow	-39.48M	-64.25M	239.53M	-65.27M	140.47M	-98.85M

Sagicor Financial Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 9.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SFC, the sentiment is Neutral. The current price of 9.17 is below the 20-day moving average (MA) of 9.36, above the 50-day MA of 8.70, and above the 200-day MA of 8.12, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 51.14 is Neutral, neither overbought nor oversold. The STOCH value of 35.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:SFC.

Sagicor Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MFC	79 Outperform	$87.69B	16.57	11.23%	3.49%	5.46%	10.52%
GWO	78 Outperform	C$60.50B	15.39	15.09%	3.62%	-20.64%	14.88%
TSU	77 Outperform	C$2.16B	17.46	15.79%	―	0.67%	11.59%
POW	76 Outperform	C$45.67B	14.99	13.24%	3.28%	-9.03%	44.14%
GCG	69 Neutral	C$1.65B	8.75	13.82%	2.29%	58.88%	82.03%
SFC	69 Neutral	C$1.24B	6.70	13.36%	4.03%	-10.94%	-73.26%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Sagicor Financial Corporate Events

Sagicor Financial to Simplify Structure with Caribbean Merger

Sagicor Financial has announced a strategic move to streamline its organizational structure by merging its subsidiaries, Sagicor Group Jamaica Limited and Sagicor Life Inc., into a new entity called Sagicor Group Caribbean Limited. This merger aims to create operational synergies and simplify investor reporting, potentially enhancing financial performance and shareholder value. The new entity will be publicly listed on the Jamaica Stock Exchange, allowing investors to gain direct exposure to the Caribbean market. The transaction is expected to close in 2026, pending regulatory and shareholder approvals.

The most recent analyst rating on (TSE:SFC) stock is a Hold with a C$9.50 price target. To see the full list of analyst forecasts on Sagicor Financial stock, see the TSE:SFC Stock Forecast page.

Sagicor Financial Reports Strong Q3 2025 Results

Sagicor Financial reported strong financial results for the third quarter of 2025, with core earnings to shareholders reaching $35.0 million, reflecting robust performance across its operating segments. The company’s net income to shareholders was $81.0 million, driven by favorable market conditions and strategic initiatives. Sagicor’s financial stability is underscored by a Group LICAT ratio of 141% and a financial leverage ratio of 26.6%, indicating solid capitalization and effective risk management.

The most recent analyst rating on (TSE:SFC) stock is a Hold with a C$8.50 price target. To see the full list of analyst forecasts on Sagicor Financial stock, see the TSE:SFC Stock Forecast page.

Sagicor Financial to Release Q3 2025 Results and Host Earnings Call

Sagicor Financial is set to release its third quarter 2025 financial results on November 13, 2025, followed by an earnings call on November 14, 2025. This announcement is part of the company’s ongoing efforts to keep analysts and investors informed about its financial performance, which is crucial for maintaining transparency and stakeholder confidence.

The most recent analyst rating on (TSE:SFC) stock is a Hold with a C$8.50 price target. To see the full list of analyst forecasts on Sagicor Financial stock, see the TSE:SFC Stock Forecast page.

Sagicor Financial Achieves Investment Grade Rating Upgrade from Fitch

Sagicor Financial has received an upgrade in its credit ratings from Fitch Ratings, with its Long-Term Issuer Default Rating improved to ‘BBB’ and its senior unsecured debt upgraded to ‘BBB-‘. This upgrade reflects Sagicor’s enhanced core profitability, contributions from ivari, reduced debt financing costs, and robust capitalization. The improved ratings are expected to provide Sagicor with better access to capital, supporting its strategy for stable and profitable growth.

The most recent analyst rating on (TSE:SFC) stock is a Buy with a C$11.00 price target. To see the full list of analyst forecasts on Sagicor Financial stock, see the TSE:SFC Stock Forecast page.

Sagicor Financial Warns Investors About Unsolicited Mini-Tender Offer

Sagicor Financial has issued a cautionary statement to its investors regarding an unsolicited mini-tender offer from Barbados Stock Trading Company LLC (BSTC) to purchase a small portion of Sagicor’s common shares at a significant discount. The company does not endorse this offer and advises shareholders to carefully evaluate the offer documents and consult with investment advisors. Mini-tender offers often avoid regulatory scrutiny and can pose risks to investors, prompting Sagicor to request that this cautionary news release be included in any related materials.

The most recent analyst rating on (TSE:SFC) stock is a Buy with a C$11.00 price target. To see the full list of analyst forecasts on Sagicor Financial stock, see the TSE:SFC Stock Forecast page.