SLF Intrinsic Value Calculation – SUN LIFE FINANCIAL Reports Earnings Results for Q1 FY2023

🌥️Earnings Overview

SUN LIFE FINANCIAL ($TSX:SLF) reported their first quarter of FY2023 earnings results for the period ending March 31 2023 on May 12 2023. Total revenue was CAD 8394.0 million, a rise from the CAD 373.0 million reported in the same quarter of the previous year. Net income for the quarter, however, was CAD 859.0 million, a drop of 2.7% compared with the same quarter in the prior year.

Stock Price

The financial services company saw its stock open at CA$65.5 and close at CA$65.0, up by 0.7% from last closing price of 64.5. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for SLF. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for SLF. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for SLF. More…

Key Ratios Snapshot

Some of the financial key ratios for SLF are shown below. More…

Analysis – SLF Intrinsic Value Calculation

At GoodWhale, we have conducted an analysis of SUN LIFE FINANCIAL’s wellbeing, and our proprietary Valuation Line has given the stock an intrinsic value of around CA$73.5. Right now, SUN LIFE FINANCIAL shares are being traded at CA$65.0, making it a fair price that is currently undervalued by 11.6%. This provides an attractive entry point for potential investors looking to purchase the stock. More…

Peers

In the insurance industry, Sun Life Financial Inc competes with Assicurazioni Generali, Swiss Life Holding AG, Sanlam Ltd. All four companies are large, international insurers with a long history. All four companies offer a variety of insurance products, including life, health, and property and casualty insurance.

– Assicurazioni Generali ($LTS:0K78)

Assicurazioni Generali is one of the largest insurance companies in the world with a market cap of over 27 billion euros. The company offers a wide range of insurance products including life, health, property and casualty, and reinsurance. Generali has a strong presence in Europe, Asia, and Latin America and is one of the leading insurers in the Italian market.

– Swiss Life Holding AG ($OTCPK:SWSDF)

Swiss Life Holding AG, together with its subsidiaries, operates as a life insurance company in Switzerland, Europe, and internationally. The company operates through five segments: Swiss Life Switzerland, Swiss Life Germany, Swiss Life France, Group Investments, and Group Reinsurance. It offers a range of products and services for individuals, families, and companies, including life and disability insurance, pensions, investments, and real estate financing products. The company was founded in 1857 and is headquartered in Zurich, Switzerland.

– Sanlam Ltd ($BER:LA6S)

Sanlam Ltd is a financial services company with a market cap of 6.73B as of 2022. The company has a Return on Equity of 16.63%. Sanlam Ltd provides financial services including insurance, investment, and retirement planning. The company has a strong focus on providing services to clients in South Africa.

Summary

Despite this, net income decreased by 2.7% year over year, to CAD 859 million. This indicates that SUN LIFE FINANCIAL is experiencing higher revenues than before, but is not converting those funds into higher profits. Investors should take caution with SUN LIFE FINANCIAL, as it could be an indication of declining margins or other inefficiencies. Further analysis will be needed to determine whether this is a cause for concern or a short-term anomaly.