Sun Life Financial (SLF) AI Stock Analysis

• Market Cap: $47.21B
• Dividend Yield: 3.92%
• Average Volume (3M): 1.48M
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.87
• Revenue Growth: -12.72%
• EPS Growth: -0.16%
• Country: CA
• Employees: 31,768
• Sector: Financial
• Sector Strength: 86
• Industry: Insurance - Diversified
• EPS (TTM): 1.82
• Shares Outstanding: 572,857,540
• 10 Day Avg. Volume: 1,501,146
• 30 Day Avg. Volume: 1,481,356
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: $85.87
• Price Target Upside: 2.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

Sun Life Financial demonstrates strong financial performance with robust revenue growth and stable net income. The stock benefits from positive technical indicators and a moderate valuation with an attractive dividend yield. However, declining cash flows and some operational challenges, particularly in the U.S., present areas for improvement. Overall, Sun Life is well-positioned, showing resilience and strategic growth in key areas.

Positive Factors

Business Model

SLF's Investor Day showcased a winning track record and increased confidence in its ability to accelerate growth due to its capital light/high growth business model.

Regional Growth

In Asia, realizing the potential to build scale in countries like Indonesia, Vietnam, Malaysia, and China will help drive continued accelerated growth.

Negative Factors

Earnings Growth

In Canada, recent double-digit growth, strong digital capabilities, and a 20%+ ROE suggest the potential for higher growth than the expected 6% underlying earnings growth.

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 shows resilience with strong revenue growth and stable net income. However, the decrease in cash flows and the increasing debt-to-equity ratio highlight areas for potential improvement. The balance sheet remains robust, supporting the company's financial health, but cash flow management needs attention to ensure sustained growth.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
36.80B	30.85B	23.21B	35.69B	43.34B
	Gross Profit
36.80B	32.66B	23.21B	35.69B	43.34B
	EBIT
0.00	20.85B	4.31B	4.55B	3.28B
	EBITDA
0.00	5.08B	4.79B	6.93B	4.07B
	Net Income Common Stockholders
3.17B	3.17B	3.02B	4.37B	2.78B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
27.72B	27.49B	11.22B	12.28B	13.53B
	Total Assets
370.72B	333.24B	330.91B	345.37B	323.01B
	Total Debt
15.02B	13.28B	13.39B	10.21B	6.89B
	Net Debt
4.89B	2.11B	2.17B	-2.07B	-6.64B
	Total Liabilities
344.59B	309.04B	301.53B	317.30B	297.15B
	Stockholders Equity
26.05B	23.58B	27.45B	26.31B	24.47B
Cash Flow		Free Cash Flow
2.39B	5.44B	8.00B	-1.94B	7.09B
	Operating Cash Flow
2.53B	5.61B	4.31B	-1.86B	7.25B
	Investing Cash Flow
-337.00M	-559.00M	-2.86B	-803.00M	-886.00M
	Financing Cash Flow
-3.88B	-3.09B	-71.00M	-260.00M	-2.31B

Sun Life Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 83.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 83.5 is above the 20-day moving average (MA) of 80.44, above the 50-day MA of 80.30, and above the 200-day MA of 78.59, indicating a bullish trend. The MACD of 0.96 indicates Negative momentum. The RSI at 62.91 is Neutral, neither overbought nor oversold. The STOCH value of 82.30 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
IFC	78 Outperform	C$55.15B	24.79	12.95%	1.60%	4.73%	44.14%
MFC	73 Outperform	$75.08B	15.28	10.17%	3.76%	5.24%	13.68%
IAG	73 Outperform	C$12.38B	13.71	12.54%	2.56%	-7.31%	28.65%
POW	72 Outperform	C$32.88B	12.33	12.45%	4.54%	-7.62%	25.47%
SLF	71 Outperform	$47.21B	15.76	12.87%	3.92%	-12.72%	-0.16%
GWO	66 Neutral	C$48.88B	12.53	14.65%	4.45%	17.48%	25.54%
Sector *	64 Neutral	$12.54B	9.79	7.92%	16985.69%	12.58%	-6.07%

Sun Life Financial Corporate Events

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.

Spark’s Take on TSE:SLF Stock

According to Spark, TipRanks’ AI Analyst, TSE:SLF is a Outperform.

Sun Life Financial’s overall score of 70 reflects its solid financial performance with strong revenue growth and stable net income. However, declining cash flows and a slightly increasing debt-to-equity ratio are areas of concern. Technical indicators are neutral, and the valuation is moderate, with an attractive dividend yield. The recent earnings call underscores both growth in certain areas and challenges in others, while the declaration of consistent dividends supports investor confidence.

To see Spark’s full report on TSE:SLF stock, click here.

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.

Spark’s Take on TSE:SLF Stock

According to Spark, TipRanks’ AI Analyst, TSE:SLF is a Outperform.

Sun Life Financial’s overall score of 70 reflects its solid financial performance with strong revenue growth and stable net income. However, declining cash flows and a slightly increasing debt-to-equity ratio are areas of concern. Technical indicators are neutral, and the valuation is moderate, with an attractive dividend yield. The recent earnings call underscores both growth in certain areas and challenges in others, while the declaration of consistent dividends supports investor confidence.

To see Spark’s full report on TSE:SLF stock, click here.

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.

Spark’s Take on TSE:SLF Stock

According to Spark, TipRanks’ AI Analyst, TSE:SLF is a Outperform.

Sun Life Financial’s overall score of 70 reflects its solid financial performance with strong revenue growth and stable net income. However, declining cash flows and a slightly increasing debt-to-equity ratio are areas of concern. Technical indicators are neutral, and the valuation is moderate, with an attractive dividend yield. The recent earnings call underscores both growth in certain areas and challenges in others, while the declaration of consistent dividends supports investor confidence.

To see Spark’s full report on TSE:SLF stock, click here.

Sun Life Financial Reports Mixed 2024 Results, Strong Growth in Key Segments

Sun Life Financial Inc. reported a decline in underlying net income by 2% for the fourth quarter of 2024, although it saw a 3% increase for the full year, driven by strong performance in wealth and asset management. Despite a decrease in reported net income due to market conditions and impairment in their Vietnam operations, Sun Life experienced growth in assets under management and maintained a strong capital position, indicating a positive outlook for long-term growth.

Sun Life Declares Q1 2025 Dividends

Sun Life Financial Inc. announced the declaration of dividends for Q1 2025 on both its common and preferred shares, maintaining the dividend amount consistent with the previous quarter. This announcement reflects Sun Life’s steady financial performance and its commitment to providing returns to its shareholders, indicating stable operations and potentially reinforcing investor confidence.