Sagicor Financial (SFC) AI Stock Analysis

• Market Cap: $1.10B
• Dividend Yield: 4.64%
• Average Volume (3M): 20.60K
• Price to Earnings (P/E): 10.2
• Beta (1Y): -0.07
• Revenue Growth: 25.85%
• EPS Growth: -85.22%
• Country: CA
• Employees: 5,300
• Sector: Financial
• Sector Strength: 75
• Industry: Insurance - Life
• EPS (TTM): 0.30
• Shares Outstanding: 135,883,740
• 10 Day Avg. Volume: 14,044
• 30 Day Avg. Volume: 20,600
• PEG Ratio: -0.54
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.08
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 0.28
• Enterprise Value/Gross Profit: 2.08
• Enterprise Value/Ebitda: 0.52
• 1Y Price Target: $10.76
• Price Target Upside: 37.55% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 66 Neutral
• Price Target: C$8.50 ▲(8.70%Upside)

Sagicor Financial's overall stock score of 66 reflects mixed financial performance, bearish technical indicators, attractive valuation, and positive corporate events. While financial metrics point to potential operational challenges, strong cash flow improvements, shareholder-friendly activities, and strategic growth initiatives provide a positive outlook. The technical analysis suggests weak momentum, but the valuation and corporate actions indicate potential upside.

Sagicor Financial Business Overview & Revenue Model

Company Description

Sagicor 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 Money

Sagicor 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 Financial Statement Overview

Summary

Sagicor Financial demonstrates a mixed financial performance. The income statement shows declining revenues and profit margins, indicating potential operational challenges. However, the balance sheet maintains moderate leverage and stable equity. Notably, the cash flow statement shows significant improvements in free cash flow, suggesting enhanced liquidity and operational cash management.

Income Statement

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.52B	1.50B	1.78B	80.70M	2.36B	1.91B
Gross Profit	732.39M	742.59M	1.76B	277.50M	868.64M	1.91B
EBITDA	478.88M	361.61M	834.01M	-20.17M	383.44M	-17.07M
Net Income	77.92M	97.47M	532.06M	-164.39M	132.56M	-2.25M
Balance Sheet
Total Assets	23.21B	22.77B	22.38B	10.62B	10.31B	9.27B
Cash, Cash Equivalents and Short-Term Investments	878.63M	994.07M	486.64M	368.14M	359.98M	359.97M
Total Debt	1.00B	990.09M	985.81M	667.57M	725.25M	860.77M
Total Liabilities	21.89B	21.45B	21.06B	9.88B	9.22B	7.61B
Stockholders Equity	958.21M	959.69M	970.93M	1.08B	1.13B	1.11B
Cash Flow
Free Cash Flow	166.15M	196.80M	-67.04M	-176.30M	109.93M	-117.94M
Operating Cash Flow	183.01M	214.23M	-39.61M	-154.50M	124.88M	-99.11M
Investing Cash Flow	-13.16M	-14.04M	6.52M	-26.62M	36.16M	-24.40M
Financing Cash Flow	-58.94M	-64.25M	239.53M	-65.27M	140.47M	-98.85M

Sagicor Financial Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.82
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 7.82 is below the 20-day moving average (MA) of 8.39, below the 50-day MA of 8.21, and above the 200-day MA of 7.12, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 42.62 is Neutral, neither overbought nor oversold. The STOCH value of 14.05 is Positive, 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
IAG	81 Outperform	C$13.34B	15.17	12.54%	2.49%	-7.31%	28.65%
NA	78 Outperform	$55.45B	13.46	13.42%	3.33%	17.13%	14.73%
GWO	76 Outperform	C$48.10B	12.58	14.65%	4.72%	17.48%	25.54%
MFC	75 Outperform	C$71.40B	15.97	10.17%	4.22%	5.24%	13.68%
SLF	75 Outperform	$48.12B	15.53	13.18%	4.12%	0.94%	3.50%
SFC	66 Neutral	$1.10B	10.24	8.11%	4.64%	25.85%	-85.22%
Sector *	64 Neutral	$6.54B	11.13	7.19%	5.10%	23.85%	5.18%

Sagicor Financial Corporate Events

Sagicor Financial Renews Share Buyback Program to Enhance Shareholder Value

Sagicor Financial Company Ltd. announced the renewal of its normal course issuer bid (NCIB) approved by the Toronto Stock Exchange, allowing the company to repurchase up to 9,296,291 common shares over a 12-month period. This move is intended to reflect the company’s belief that its market price may not accurately represent its underlying value, providing an opportunity to enhance shareholder value and liquidity.

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.

Sagicor Financial Reports Successful Annual Shareholders’ Meeting

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.

Sagicor Financial Reports Strong Q1 2025 Results Amid Robust Growth

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.

Sagicor Financial to Release Q1 2025 Results and Host Earnings Call

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.

Sagicor Financial Warns Investors About Unsolicited Mini-Tender Offer

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.