Sun Life Financial (SLF) AI Stock Analysis

• Market Cap: $48.43B
• Dividend Yield: 3.99%
• Average Volume (3M): 1.39M
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.75
• Revenue Growth: -0.61%
• EPS Growth: 6.69%
• Country: CA
• Employees: 31,768
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Diversified
• EPS (TTM): 1.79
• Shares Outstanding: 562,314,500
• 10 Day Avg. Volume: 1,315,828
• 30 Day Avg. Volume: 1,392,241
• 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: 1.26
• Enterprise Value/Revenue: 1.30
• Enterprise Value/Gross Profit: 2.10
• Enterprise Value/Ebitda: 11.96
• 1Y Price Target: $94.21
• Price Target Upside: 9.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 75 Outperform
• Price Target: C$92.00 ▲(6.83% Upside)

Sun Life Financial's overall score reflects strong financial performance and valuation, supported by strategic growth in key areas like Asia and digital advancements. However, challenges in cash flow management and specific U.S. segments temper the outlook. The technical indicators suggest a stable market position, while the earnings call provides a balanced view of opportunities and risks.

Positive Factors

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: Positive
• Last Price: 86.12
• 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:SLF, the sentiment is Positive. The current price of 86.12 is above the 20-day moving average (MA) of 85.77, above the 50-day MA of 83.03, and above the 200-day MA of 82.21, indicating a bullish trend. The MACD of 0.94 indicates Positive momentum. The RSI at 56.33 is Neutral, neither overbought nor oversold. The STOCH value of 74.20 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
GWO	―	C$54.74B	14.79	14.19%	4.05%	15.27%	4.72%
IAG	―	C$15.08B	15.12	13.43%	2.26%	-4.55%	42.41%
POW	―	C$39.03B	14.13	12.07%	4.41%	11.56%	1.15%
SLF	―	$48.43B	15.43	13.38%	3.99%	-0.61%	6.69%
MFC	―	$77.76B	14.67	11.57%	3.79%	9.37%	32.06%
IFC	―	C$46.12B	19.82	13.23%	2.01%	5.25%	15.06%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Sun Life Financial Corporate Events

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.

The most recent analyst rating on (TSE:SLF) stock is a Buy with a C$84.00 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 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.

The most recent analyst rating on (TSE:SLF) stock is a Buy with a C$65.00 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’s Q2 2025 Earnings Call: Key Highlights and Challenges

Sun Life Financial’s Q2 2025 earnings call presented a balanced sentiment, with strong performance in several segments, notably U.S. Employee Benefits and Asia, countered by challenges in the U.S. Dental business and outflows at MFS. While the company celebrated significant achievements in earnings growth and digital advancements, these were tempered by ongoing concerns in specific areas.

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.