Sun Life Financial (SLF) AI Stock Analysis

• Market Cap: $45.65B
• Dividend Yield: 4.28%
• Average Volume (3M): 2.42M
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.64
• Revenue Growth: -19.88%
• EPS Growth: -13.92%
• Country: CA
• Employees: 31,768
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Diversified
• EPS (TTM): 1.86
• Shares Outstanding: 557,419,070
• 10 Day Avg. Volume: 2,388,087
• 30 Day Avg. Volume: 2,423,228
• PEG Ratio: 82.28
• Price to Book (P/B): 1.90
• Price to Sales (P/S): 1.34
• P/FCF Ratio: 20.69
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 1.59
• Enterprise Value/Gross Profit: 11.65
• Enterprise Value/Ebitda: 11.93
• 1Y Price Target: $94.48
• Price Target Upside: 14.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: C$88.00 ▲(7.02% Upside)

Sun Life Financial's overall score reflects a stable financial foundation with strong profitability and a solid balance sheet. The company's valuation is attractive, and recent corporate events support strategic growth. However, technical indicators show bearish trends, and challenges in the U.S. segment pose risks. The earnings call provides confidence in addressing these issues, but caution is advised due to the current market momentum.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Asset Management Growth

The substantial growth in asset management underscores Sun Life's ability to attract and manage large-scale investments, boosting profitability.

Strong Capital Position

A robust capital position with a high LICAT ratio ensures financial resilience and supports future growth initiatives.

Negative Factors

Declining Cash Flows

Decreasing cash flows may limit Sun Life's ability to invest in growth opportunities and meet financial obligations, affecting long-term operations.

Challenges in U.S. Segment

Structural challenges in the U.S. healthcare market could lead to sustained pressure on margins and profitability in this key segment.

Rising Debt Levels

An increase in debt levels can strain financial flexibility, potentially impacting Sun Life's ability to fund future growth initiatives.

Sun Life Financial Business Overview & Revenue Model

Company Description

Sun Life Financial Inc. (SLF) is a leading international financial services organization headquartered in Toronto, Canada. The company operates through several segments, including Life Insurance, Health Insurance, Wealth Management, and Asset Management. Sun Life offers a range of products and services, such as life and health insurance, annuities, mutual funds, and retirement solutions, catering to individual and institutional clients across various markets, including Canada, the United States, and Asia.

How the Company Makes Money

Sun Life Financial generates revenue through multiple streams, primarily from premiums collected on its insurance policies, fees from asset management, and investment income. The company charges premiums for life, health, and other insurance products, which contribute to its core revenue. Additionally, Sun Life earns fees from managing assets in its wealth management division, which includes mutual funds, retirement savings plans, and institutional investment products. Investment income is derived from the company's portfolio of bonds, stocks, real estate, and alternative investments. Significant partnerships with financial advisors, brokers, and institutions enhance its distribution capabilities and contribute to its earnings. Furthermore, strategic acquisitions and expansions into new markets serve to bolster its revenue potential and diversify its income sources.

Sun Life Financial Financial Statement Overview

Summary

Sun Life Financial demonstrates strong revenue growth and stable net income, but faces challenges with declining cash flows and an increasing debt-to-equity ratio. The balance sheet remains robust, supporting financial health, yet cash flow management needs improvement.

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	36.21B	34.48B	36.35B	3.43B	35.69B	43.34B
Gross Profit	4.95B	4.84B	4.31B	4.07B	14.71B	12.35B
EBITDA	4.84B	5.00B	4.48B	4.60B	5.86B	4.05B
Net Income	3.09B	3.17B	3.34B	3.02B	4.37B	2.78B
Balance Sheet
Total Assets	394.93B	370.72B	333.24B	330.91B	345.37B	323.01B
Cash, Cash Equivalents and Short-Term Investments	26.48B	27.72B	27.49B	11.22B	12.28B	13.53B
Total Debt	7.38B	15.02B	13.28B	13.39B	10.21B	6.89B
Total Liabilities	368.94B	344.59B	309.04B	301.53B	317.30B	297.15B
Stockholders Equity	25.70B	26.05B	23.58B	27.45B	26.31B	24.47B
Cash Flow
Free Cash Flow	2.07B	2.39B	5.44B	8.00B	-1.94B	7.09B
Operating Cash Flow	2.21B	2.53B	5.61B	4.31B	-1.86B	7.25B
Investing Cash Flow	-357.00M	-337.00M	-559.00M	-2.86B	-803.00M	-886.00M
Financing Cash Flow	-3.54B	-3.88B	-3.09B	-71.00M	-260.00M	-2.31B

Sun Life Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 82.23
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 82.23 is above the 20-day moving average (MA) of 81.81, below the 50-day MA of 83.26, and above the 200-day MA of 81.80, indicating a neutral trend. The MACD of -0.42 indicates Negative momentum. The RSI at 51.09 is Neutral, neither overbought nor oversold. The STOCH value of 61.61 is Neutral, 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
MFC	79 Outperform	$82.53B	15.59	11.23%	3.59%	5.46%	10.52%
GWO	76 Outperform	C$54.79B	14.86	15.09%	3.69%	-20.64%	14.88%
POW	76 Outperform	C$44.69B	14.64	13.24%	3.29%	-9.03%	44.14%
IFC	73 Outperform	C$47.29B	20.32	16.27%	1.85%	2.51%	44.44%
IAG	71 Outperform	C$15.47B	15.51	14.34%	2.18%	-25.13%	16.40%
SLF	68 Neutral	$45.65B	15.53	11.96%	4.28%	-19.88%	-13.92%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Sun Life Financial Corporate Events

Sun Life Financial to Issue $1 Billion in Subordinated Debentures

Sun Life Financial Inc. has announced its intention to issue $1 billion in Series 2025-2 Subordinated Unsecured Debentures in Canada, with the offering expected to close on December 3, 2025. The proceeds from this issuance will be used for general corporate purposes, including potential acquisitions, investments in subsidiaries, and debt repayment, which may enhance the company’s strategic positioning and financial flexibility. The debentures are expected to qualify for Tier 2 capital, indicating a strengthening of the company’s capital base.

Sun Life Financial Boosts Dividend Payout for Q4 2025

Sun Life Financial Inc. has announced an increase in its common share dividend to $0.92 per share, a 4 cent rise from the previous quarter, payable on December 31, 2025. This decision reflects the company’s robust financial health and commitment to providing value to its shareholders, potentially enhancing its market position and stakeholder confidence.

Sun Life Financial Reports Strong Q3 2025 Results with Increased Dividend

Sun Life Financial Inc. reported a 3% increase in underlying net income to $1,047 million for Q3 2025, driven by strong performance in Canada and Asia, while the U.S. segment faced challenges. The company also announced a 4.5% increase in its dividend, reflecting a robust capital position with a LICAT ratio of 154%. The extension of its asset management pillar under new leadership aims to accelerate growth and enhance strategic partnerships.

Sun Life Appoints Tom Murphy as President of Asset Management, Unifying Global Operations

Sun Life has appointed Tom Murphy as President of Sun Life Asset Management, consolidating its global asset management businesses under one pillar to enhance synergies with its insurance operations. This restructuring aims to accelerate growth and unlock new opportunities by leveraging Sun Life’s extensive range of asset classes and proprietary wealth channels, while maintaining the existing brand identities and governance of its asset management companies.

Sun Life Financial to Issue $1 Billion in Debentures for Strategic Growth

Sun Life Financial Inc. announced its intention to issue $1 billion in Series 2025-1 Subordinated Unsecured 4.14% Fixed/Floating Debentures due 2037 in Canada. The proceeds from this offering will be used for general corporate purposes, including potential acquisitions and strategic investments, and are expected to qualify for Tier 2 capital. This move is part of Sun Life’s strategy to strengthen its financial position and support its growth initiatives, potentially impacting its market positioning and stakeholder interests.