Sun Life Financial (SLF) AI Stock Analysis

• Market Cap: $45.56B
• Dividend Yield: 4.29%
• Average Volume (3M): 1.81M
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.82
• Revenue Growth: -0.61%
• EPS Growth: 6.69%
• Country: CA
• Employees: 31,768
• Sector: Financial
• Sector Strength: 73
• Industry: Insurance - Diversified
• EPS (TTM): 1.79
• Shares Outstanding: 562,314,500
• 10 Day Avg. Volume: 2,100,574
• 30 Day Avg. Volume: 1,809,011
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 1.30
• Enterprise Value/Gross Profit: 2.10
• Enterprise Value/Ebitda: 11.96
• 1Y Price Target: $88.25
• Price Target Upside: 10.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 71 Outperform
• Price Target: C$89.00 ▲(11.08% Upside)

Sun Life Financial's strong financial performance and attractive valuation are offset by technical weaknesses and challenges highlighted in the earnings call. The company's strategic initiatives in Asia and digital advancements are promising, but issues in the U.S. Dental business and MFS outflows require attention.

Positive Factors

Dividend

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., a financial services company, provides insurance, wealth, and asset management solutions to individuals and corporate clients worldwide. It offers term and permanent life, as well as personal health, dental, critical illness, long-term care, and disability insurance products. The company also provides reinsurance products; investment counselling and portfolio management services; mutual funds and segregated funds; trust and banking services; real estate property brokerage and appraisal services; and merchant banking services. It distributes its products through direct sales agents, managing and independent general agents, financial intermediaries, broker-dealers, banks, pension and benefits consultants, and other third-party marketing organizations. The company was founded in 1871 and is headquartered in Toronto, Canada.

How the Company Makes Money

Sun Life Financial generates revenue through multiple streams, primarily from premiums collected on life and health insurance policies, as well as from fees charged for asset management services. The company earns significant income from its insurance operations, where it underwrites policies and invests the collected premiums until claims are made. Additionally, Sun Life earns management fees from the investment products it offers, such as mutual funds and retirement plans, which are charged as a percentage of assets under management. The firm also benefits from strategic partnerships with financial advisors and brokers, which help distribute its products to a wider audience. Furthermore, investment income derived from its large portfolio of assets plays a crucial role in its overall profitability, contributing to both its insurance and asset management segments.

Sun Life Financial Financial Statement Overview

Summary

Sun Life Financial shows strong revenue growth and stable net income, but faces challenges with declining cash flows and a rising debt-to-equity ratio. The balance sheet remains robust, supporting financial health, though 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	46.63B	36.80B	30.85B	23.21B	35.69B	43.34B
Gross Profit	29.04B	36.80B	32.66B	23.21B	35.69B	43.34B
EBITDA	5.09B	5.00B	5.08B	4.79B	6.93B	4.07B
Net Income	3.29B	3.17B	3.17B	3.02B	4.37B	2.78B
Balance Sheet
Total Assets	376.29B	370.72B	333.24B	330.91B	345.37B	323.01B
Cash, Cash Equivalents and Short-Term Investments	25.40B	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	351.10B	344.59B	309.04B	301.53B	317.30B	297.15B
Stockholders Equity	25.12B	26.05B	23.58B	27.45B	26.31B	24.47B
Cash Flow
Free Cash Flow	5.37B	2.39B	5.44B	8.00B	-1.94B	7.09B
Operating Cash Flow	5.51B	2.53B	5.61B	4.31B	-1.86B	7.25B
Investing Cash Flow	-1.72B	-337.00M	-559.00M	-2.86B	-803.00M	-886.00M
Financing Cash Flow	-5.08B	-3.88B	-3.09B	-71.00M	-260.00M	-2.31B

Sun Life Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 80.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SLF, the sentiment is Negative. The current price of 80.12 is below the 20-day moving average (MA) of 80.60, below the 50-day MA of 83.68, and below the 200-day MA of 81.98, indicating a bearish trend. The MACD of -1.05 indicates Negative momentum. The RSI at 40.91 is Neutral, neither overbought nor oversold. The STOCH value of 10.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SLF.

Sun Life Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SLF	71 Outperform	$45.56B	14.38	13.38%	4.29%	-0.61%	6.69%
Sector *	68 Neutral	$17.89B	12.03	10.28%	3.73%	9.80%	1.66%
MFC	―	$51.12B	13.35	11.57%	4.05%	―	―
IFC	77 Outperform	C$48.57B	20.87	13.23%	1.84%	5.25%	15.06%
GWO	76 Outperform	C$50.50B	13.64	14.19%	4.34%	15.27%	4.72%
IAG	75 Outperform	C$13.71B	13.84	13.43%	2.47%	-4.55%	42.41%
POW	73 Outperform	C$36.90B	13.50	12.07%	5.15%	11.56%	1.15%

Sun Life Financial Corporate Events

Sun Life Appoints David Healy as New President of U.S. Operations

Sun Life has announced the appointment of David Healy as the new President of Sun Life U.S., effective September 1, 2025, succeeding Dan Fishbein, who will retire in March 2026. Healy’s extensive experience in technology, operations, and employee benefits aligns with Sun Life’s strategic goals for its U.S. business, and his leadership is expected to drive the next phase of growth and innovation in health-related benefits and services.

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 Declares Q3 2025 Dividends on Shares

Sun Life Financial Inc. announced the declaration of dividends on its common and preferred shares, maintaining the same dividend amount for common shares as the previous quarter. The dividends, payable on September 29, 2025, reflect the company’s stable financial performance and commitment to shareholder returns, reinforcing its strong position in the financial services industry.

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 Reports Q2 2025 Growth and Strategic Focus

Sun Life Financial Inc. reported a 2% increase in underlying net income for Q2 2025, driven by strong performance in Asia, particularly in the protection business and bancassurance sales. The company also highlighted its strategic focus on digital initiatives and maintaining a strong capital position, with a LICAT ratio of 151%, which supports its growth and value creation for stakeholders.

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 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.