Sun Life Financial (SLF) AI Stock Analysis

• Market Cap: C$51.08B
• Dividend Yield: 5.42%
• Average Volume (3M): 2.35M
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.91
• Revenue Growth: 0.94%
• EPS Growth: 3.50%
• Country: CA
• Employees: 31,768
• Sector: Financial
• Sector Strength: 79
• Industry: Insurance - Diversified
• EPS (TTM): 1.82
• Shares Outstanding: 565,400,600
• 10 Day Avg. Volume: 1,589,281
• 30 Day Avg. Volume: 2,347,267
• PEG Ratio: 3.73
• Price to Book (P/B): 1.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.21
• 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$92.16
• Price Target Upside: 3.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 75 Outperform
• Price Target: C$101.00 ▲(13.17%Upside)

Sun Life Financial's strong corporate events and technical analysis drive the stock's positive outlook, balanced by prudent financial performance. The robust governance and strategic initiatives in capital management enhance the company's market position, while positive technical indicators support short-term bullish momentum. Cash flow challenges and a fair valuation keep the score moderated.

Positive Factors

Dividends

A larger-than-expected dividend increase highlights the company's strong financial performance.

Earnings

The target price for Sun Life Financial has been increased to $95, reflecting improving earnings quality and visibility.

Sales Performance

Better sales performance, especially in Asia and the U.S. Dental segment, contributed to a good quality beat in earnings.

Negative Factors

Sun Life Financial Business Overview & Revenue Model

Company Description

Sun Life Financial Inc. (SLF) is a leading international financial services organization providing a diverse range of wealth management, insurance, and financial planning solutions. Headquartered in Toronto, Canada, Sun Life operates in numerous markets worldwide, including North America, Asia, and the United Kingdom. The company offers individual and group life insurance, health insurance, investment products, pension plans, and retirement planning services, catering to both individuals and corporate clients.

How the Company Makes Money

Sun Life Financial generates revenue through several key streams. The primary sources include premiums from life and health insurance policies, fees from wealth and asset management services, and investment income from managing assets and portfolios. The company's insurance segment earns money through the sale of individual and group insurance products, where clients pay regular premiums for coverage. In the wealth and asset management sector, Sun Life collects fees based on the assets under management (AUM) and performance of the investment products they offer. Additionally, investment income is earned from the company's own investment portfolio, which includes bonds, equities, and real estate. Strategic partnerships, especially in Asia, and a focus on digital transformation and innovation, further support Sun Life's growth and profitability.

Sun Life Financial Financial Statement Overview

Summary

Sun Life Financial demonstrates strong revenue growth and stable net income, but faces challenges in cash flow management with declining operating cash flow and an increasing debt-to-equity ratio. Strong asset base supports financial stability, yet cash flow management is a concern.

Income Statement

Sun Life Financial has demonstrated consistent revenue growth over the years, with a significant increase from $30.85 billion in 2023 to $36.80 billion in 2024. The net profit margin is stable, with net income remaining robust at approximately $3.17 billion. However, the absence of EBIT and EBITDA figures for 2024 limits the analysis of profitability efficiency.

Balance Sheet

The company's balance sheet reflects a solid equity position with a debt-to-equity ratio that remains manageable, although it increased slightly to 0.58 in 2024. Equity ratio stands at 7.03%, indicating a relatively low proportion of equity financing compared to total assets. Despite this, Sun Life Financial maintains a strong asset base, which supports its financial stability.

Cash Flow

The cash flow analysis shows a decline in operating cash flow from $5.61 billion in 2023 to $2.53 billion in 2024. The free cash flow decreased similarly, reflecting potential challenges in cash generation. The operating cash flow to net income ratio decreased, indicating less cash being generated from operations relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	46.35B	36.80B	30.85B	23.21B	35.69B	43.34B
Gross Profit	46.35B	36.80B	32.66B	23.21B	35.69B	43.34B
EBITDA	3.65B	5.00B	5.08B	4.79B	6.93B	4.07B
Net Income	3.23B	3.17B	3.17B	3.02B	4.37B	2.78B
Balance Sheet
Total Assets	372.96B	370.72B	333.24B	330.91B	345.37B	323.01B
Cash, Cash Equivalents and Short-Term Investments	26.21B	27.72B	27.49B	11.22B	12.28B	13.53B
Total Debt	6.38B	15.02B	13.28B	13.39B	10.21B	6.89B
Total Liabilities	346.92B	344.59B	309.04B	301.53B	317.30B	297.15B
Stockholders Equity	25.96B	26.05B	23.58B	27.45B	26.31B	24.47B
Cash Flow
Free Cash Flow	6.90B	2.39B	5.44B	8.00B	-1.94B	7.09B
Operating Cash Flow	7.03B	2.53B	5.61B	4.31B	-1.86B	7.25B
Investing Cash Flow	-6.19B	-9.46B	-559.00M	-2.86B	-803.00M	-886.00M
Financing Cash Flow	-4.51B	-3.27B	-3.09B	-71.00M	-260.00M	-2.31B

Sun Life Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 89.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SLF, the sentiment is Positive. The current price of 89.25 is above the 20-day moving average (MA) of 88.66, above the 50-day MA of 85.76, and above the 200-day MA of 81.31, indicating a bullish trend. The MACD of 0.89 indicates Positive momentum. The RSI at 69.55 is Neutral, neither overbought nor oversold. The STOCH value of 81.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SLF.

Sun Life Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IAG	81 Outperform	C$13.53B	15.36	12.54%	3.34%	-7.31%	28.65%
MFC	79 Outperform	$75.07B	16.48	10.17%	5.52%	5.24%	13.68%
IFC	76 Outperform	C$55.70B	25.20	12.95%	1.71%	4.73%	44.14%
SLF	75 Outperform	C$51.08B	16.49	13.18%	5.42%	0.94%	3.50%
POW	74 Outperform	C$34.18B	12.80	11.92%	6.22%	7.63%	8.84%
GWO	73 Outperform	C$48.07B	12.57	14.65%	6.53%	17.48%	25.54%
Sector *	62 Neutral	AU$9.98B	8.06	10.79%	5.20%	31.01%	38.31%

Sun Life Financial Corporate Events

Sun Life Announces Preferred Shares Conversion Results

Sun Life Financial Inc. announced the conversion results of its Class A Non-cumulative Rate Reset Preferred Shares Series 8R and Class A Non-cumulative Floating Rate Preferred Shares Series 9QR. Following the conversion, Sun Life will have 8,880,847 Series 8R Shares and 2,319,153 Series 9QR Shares outstanding. The shares are listed on the Toronto Stock Exchange and may be redeemed by Sun Life under certain conditions. This conversion and redemption option provides flexibility in managing its capital structure, potentially impacting its financial strategy and shareholder value.

The most recent analyst rating on (TSE:SLF) stock is a Buy with a C$88.00 price target. To see the full list of analyst forecasts on Sun Life Financial stock, see the TSE:SLF Stock Forecast page.

Sun Life Announces Dividend Rates for Preferred Shares Series 8R and 9QR

Sun Life Financial Inc. announced the dividend rates for its Class A Non-Cumulative Rate Reset Preferred Shares Series 8R and Class A Non-Cumulative Floating Rate Preferred Shares Series 9QR. The Series 8R Shares will have a fixed dividend rate of 4.230% per annum for the next five years, while the Series 9QR Shares will have a floating rate starting at 4.054% per annum for the period ending September 30, 2025. This announcement impacts shareholders who need to decide on conversion options by June 16, 2025, and highlights Sun Life’s ongoing commitment to providing returns to its investors.

The most recent analyst rating on (TSE:SLF) stock is a Buy with a C$88.00 price target. To see the full list of analyst forecasts on Sun Life Financial stock, see the TSE:SLF Stock Forecast page.

Sun Life Announces Conversion Privilege for Preferred Shares Series 8R and 9QR

Sun Life Financial Inc. announced that it will not redeem its outstanding Class A Non-Cumulative Rate Reset Preferred Shares Series 8R and Class A Non-Cumulative Floating Rate Preferred Shares Series 9QR on June 30, 2025. Shareholders have the option to convert these shares on a one-for-one basis, subject to certain conditions. This decision allows flexibility for shareholders and reflects Sun Life’s strategic management of its financial offerings, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (TSE:SLF) stock is a Buy with a C$88.00 price target. To see the full list of analyst forecasts on Sun Life Financial stock, see the TSE:SLF Stock Forecast page.

Sun Life Financial Elects New Board of Directors

Sun Life Financial Inc. announced the election of 12 directors at its annual meeting of common shareholders. The nominees, listed in the management information circular, received overwhelming support, with most securing over 99% of votes in favor. This election reinforces Sun Life’s governance structure as it continues to strengthen its position in the financial services industry.

Sun Life Financial to Renew Share Repurchase Program

Sun Life Financial Inc. has announced its intention to renew its normal course issuer bid (NCIB), subject to regulatory approvals. The new 2025 NCIB will allow the company to repurchase up to 10 million additional common shares, providing flexibility in capital management and returning value to shareholders. This move reflects Sun Life’s strategic approach to managing its capital and enhancing shareholder value.

Sun Life Financial Increases Dividends for Q2 2025

Sun Life Financial Inc. announced an increase in its common share dividend to $0.88 per share, payable on June 30, 2025, marking a 4 cent rise from the previous quarter. The company also declared dividends on its Class A Non-Cumulative Preferred Shares, with various series receiving specific amounts. These dividends are part of Sun Life’s broader strategy to provide consistent returns to its shareholders and reinforce its strong market position.

Sun Life Financial Reports Robust Q1 2025 Results with Increased Income and Dividend

Sun Life Financial Inc. reported a strong first quarter in 2025, with an underlying net income of $1,045 million, marking a 19% increase from the previous year. The reported net income rose by 13% to $928 million, and assets under management increased by 6% to $1,551 billion. The company also announced a dividend increase and plans for continued share buybacks, highlighting its robust financial position and strategic advancements in digital tools and capital raising.