Want to see TSE:SLF full AI Analyst Report?
Top Page
Sun Life Financial
(TSX:SLF)
Select Model
Select Model
Rating:74Outperform
Price Target:
C$128.00
▲(16.74% Upside)
Action:Reiterated
Date:08/10/26
The score is driven primarily by solid financial performance (re-accelerating revenue, improved leverage, and strong cash conversion) and a positive earnings update with strong capital strength and reaffirmed growth/ROE targets. Technicals are supportive but mostly neutral, while valuation is reasonable with a solid dividend yield but a P/E that is not clearly discounted.
Positive Factors
Capital Strength & Capital Generation
A 145% LICAT, sizeable holding‑company cash and organic capital generation well above guidance provide durable loss‑absorbing capacity and flexibility. This underpins ongoing dividend policy, buybacks and M&A optionality, supporting long‑term solvency and strategic execution across cycles.
Negative Factors
Asset Management Fee Pressure & Outflows
Persistent outflows and industry margin compression for active U.S. equity managers are structural headwinds to AUM‑linked fee revenue. Lower net flows and downward fee pressure erode recurring revenue and operating leverage in the asset management business over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Capital Strength & Capital Generation
A 145% LICAT, sizeable holding‑company cash and organic capital generation well above guidance provide durable loss‑absorbing capacity and flexibility. This underpins ongoing dividend policy, buybacks and M&A optionality, supporting long‑term solvency and strategic execution across cycles.
Read all positive factors
Sun Life Financial (SLF) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$62.42B
Dividend Yield3.35%
Average Volume (3M)2.29M
Price to Earnings (P/E)18.9
Beta (1Y)0.47
Revenue Growth-0.59%
EPS Growth5.22%
CountryCA
Employees32,151
SectorFinancial
Sector Strength70
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)5.93
Shares Outstanding556,864,800
10 Day Avg. Volume2,891,453
30 Day Avg. Volume2,286,681
Financial Highlights & Ratios
PEG Ratio0.83
Price to Book (P/B)1.91
Price to Sales (P/S)1.25
P/FCF Ratio18.18
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$118.58Price Target Upside8.14% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)8.03
Revenue Forecast (FY)C$9.31B
Sun Life Financial Business Overview & Revenue Model
Company Description
Sun Life Financial Inc. is a venerable financial services enterprise that delivers a comprehensive suite of insurance, wealth management, and asset management solutions to a diverse global clientele, encompassing both individuals and corporate ent...
How the Company Makes Money
Sun Life primarily makes money through a combination of insurance earnings and asset/wealth management revenues. (1) Insurance and employee benefits: The company collects premiums for life, health, and group benefits coverage and earns profit when...
Sun Life Financial Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
Positive — The call presented broad, double‑digit underlying EPS growth, record results in Canada, strong Asia sales and advisor expansion, accelerating asset management momentum (large fundraising and mandate wins), solid capital metrics (LICAT 145%, organic capital generation 41%), and continued investment in digital/AI. Material headwinds include MFS outflows and industry fee pressure, dental/Medicaid contraction in the U.S., and some margin/mix pressure in Asia (Hong Kong) and seasonal reserve timing in stop‑loss. On balance the company’s diversified earnings growth, capital strength, and clear operational progress outweigh the identified challenges.Positive Updates
Double‑digit underlying EPS and strong earnings
Underlying net income of CAD 1.12 billion (up from CAD 1.02 billion prior year); underlying EPS CAD 2.02, up 13% YoY; underlying return on equity 19.1%; reported net income CAD 1.01 billion versus CAD 716 million a year ago.
Negative Updates
Continued MFS net outflows and fee pressure
MFS experienced elevated net outflows, reflecting industry pressure on active U.S. equity managers and fee rate pressure; although ETFs and some retail/fixed income products showed momentum (ETFs inflows $0.6 billion), net outflows remain a headwind to asset management growth.
Read all updates
Q2-2026 Updates
Positive
Negative
Double‑digit underlying EPS and strong earnings
Underlying net income of CAD 1.12 billion (up from CAD 1.02 billion prior year); underlying EPS CAD 2.02, up 13% YoY; underlying return on equity 19.1%; reported net income CAD 1.01 billion versus CAD 716 million a year ago.
Read all positive updates
Company Guidance
Management reinforced its medium‑term targets and capital flexibility: underlying EPS growth target 10% (Q2 delivered 13%, underlying EPS CAD 2.02, underlying net income CAD 1.12B), underlying ROE target ~20% (Q2: 19.1%), dividend‑payout target 40–50% (Q2: 48%, CAD 0.5B returned, 3.8% yield), and a strong capital position (LICAT 145%, holding‑company cash CAD 2.3B, financial leverage 23.8%, book value/share CAD 42.49, organic capital generation 41% vs guidance 30–40%). They call out balance‑sheet and sales metrics (total CSM CAD 15.3B, +12% YoY; Asia CSM >CAD 7B, +90% since IFRS 17; insurance sales +20%; Asia sales CAD 875M, +20%; Hong Kong advisors +28% to ~4,000; Indonesia sales +69%; Canada AUMA CAD 286B, +18%) and asset‑management momentum (Sun Life AM underlying net income $262M, capital raising $4.7B, deployments $6.2B, Crescent $10.8B investable capital, $3.2B continuation vehicle, Aditya Birla AUM doubled to $113B, MFS active ETF AUM $3B), while setting SLC operating‑margin expectations >30% (mid‑30s over five years) and an SLC medium‑term earnings growth ambition of ~20%; they also renewed a NCIB to repurchase up to 10M shares (0.8M repurchased to date).Sun Life Financial Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
70
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 40.69B | 38.45B | 34.48B | 36.35B | 3.43B | 35.69B |
| Gross Profit | 14.88B | 5.32B | 4.84B | 4.31B | 4.07B | 14.71B |
| EBITDA | 5.16B | 5.32B | 5.00B | 5.08B | 4.60B | 5.86B |
| Net Income | 3.58B | 3.75B | 3.17B | 3.34B | 3.02B | 4.37B |
Balance Sheet | ||||||
| Total Assets | 425.33B | 398.45B | 370.72B | 333.24B | 330.91B | 345.37B |
| Cash, Cash Equivalents and Short-Term Investments | 29.66B | 29.46B | 27.72B | 27.49B | 11.22B | 12.28B |
| Total Debt | 9.12B | 18.79B | 15.02B | 13.28B | 13.39B | 10.21B |
| Total Liabilities | 398.57B | 372.96B | 344.59B | 309.04B | 301.53B | 317.30B |
| Stockholders Equity | 26.56B | 25.23B | 26.05B | 23.58B | 27.45B | 26.31B |
Cash Flow | ||||||
| Free Cash Flow | 6.49B | 2.65B | 2.39B | 5.44B | 8.00B | -1.94B |
| Operating Cash Flow | 6.62B | 2.80B | 2.53B | 5.61B | 4.31B | -1.86B |
| Investing Cash Flow | -4.76B | -320.00M | -337.00M | -559.00M | -2.86B | -803.00M |
| Financing Cash Flow | -652.00M | -2.64B | -3.88B | -3.09B | -71.00M | -260.00M |
Sun Life Financial Technical Analysis
Positive
109.65
Price Trends
111.83
Positive
105.56
Positive
94.98
Positive
Market Momentum
-0.39
Negative
56.13
Neutral
88.38
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 109.65 is below the 20-day moving average (MA) of 110.17, below the 50-day MA of 111.83, and above the 200-day MA of 94.98, indicating a bullish trend. The MACD of -0.39 indicates Negative momentum. The RSI at 56.13 is Neutral, neither overbought nor oversold. The STOCH value of 88.38 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | C$17.90B | 17.39 | 13.70% | 2.05% | 13.06% | 8.42% | |
78 Outperform | C$101.78B | 16.53 | 12.98% | 3.09% | 18.31% | 18.90% | |
74 Outperform | C$62.42B | 18.90 | 13.89% | 3.35% | -0.59% | 5.22% | |
74 Outperform | C$82.82B | 18.97 | 15.48% | 2.83% | 4.29% | 21.91% | |
73 Outperform | C$59.33B | 23.18 | 10.91% | 2.69% | 9.74% | -3.94% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | C$20.02B | 8.19 | 16.02% | 0.72% | -18.43% | ― |
* Financial Sector Average
TSE:SLF
Sun Life Financial
112.09
34.50
44.46%
TSE:MFC
Manulife Financial
61.34
20.39
49.78%
TSE:GWO
Great-West Lifeco
92.59
40.30
77.06%
TSE:IAG
iA Financial Corporation Inc
203.86
55.99
37.86%
TSE:POW
Power Corp of Canada
95.28
39.57
71.02%
TSE:BNT
Brookfield Wealth Solutions
55.99
-4.97
-8.15%
Sun Life Financial Corporate Events
Business Operations and StrategyFinancial Disclosures
Sun Life Posts Double-Digit Q2 Earnings Growth, Deepens AI and Alternatives Push
Positive
Aug 6, 2026
Sun Life Financial reported strong second-quarter 2026 results, underscoring the resilience of its diversified insurance and asset management franchise across Canada, Asia and the U.S. The firm continues to expand in group and individual protectio...
Business Operations and StrategyDividends
Sun Life holds Q3 2026 dividends steady on common and preferred shares
Positive
Aug 6, 2026
Sun Life Financial Inc., a global provider of asset management, wealth, insurance and health solutions, serves individual and institutional clients across markets in North America, Europe and Asia-Pacific. With $1.70 trillion in assets under manag...
Business Operations and StrategyExecutive/Board Changes
Sun Life sets 2027 board chair succession, tapping Joseph Natale to replace Scott Powers
Positive
Aug 6, 2026
Sun Life Financial has announced a planned succession in its board leadership, with Scott Powers set to retire as chair and from the Board of Directors following the annual general meeting on May 5, 2027. Subject to his re-election at that meeting...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.