It hasn't been a great morning session for Sun Life Financial investors, who have watched their shares sink by -6.7% to a price of $50.1. Some of you might be wondering if it's time to buy the dip. If you are considering this, make sure to check the company's fundamentals first to determine if the shares are fairly valued at today's prices.
Sun Life Financial's Earnings and Assets May Be Undervalued:
Sun Life Financial Inc., a financial services company, provides savings, retirement, and pension products worldwide. The company belongs to the Finance sector, which has an average price to earnings (P/E) ratio of 12.38 and an average price to book (P/B) ratio of 1.58. In contrast, Sun Life Financial has a trailing 12 month P/E ratio of 13.0 and a P/B ratio of 1.19.
Sun Life Financial's PEG ratio is 3.64, which shows that the stock is probably overvalued in terms of its estimated growth. For reference, a PEG ratio near or below 1 is a potential signal that a company is undervalued.
Generally Positive Cash Flows and a Positive EPS Growth Rate:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $26,997 | $39,679 | $43,337 | $35,688 | $5,769 | $40,943 |
| Interest Income (M) | $305 | $333 | $355 | $327 | $445 | $552 |
| Net Margins | 11% | 7% | 6% | 12% | 53% | 8% |
| Net Income (M) | $2,914 | $2,947 | $2,792 | $4,370 | $3,080 | $3,469 |
| Earnings Per Share | $4.14 | $4.4 | $4.1 | $6.69 | $4.89 | $5.26 |
| EPS Growth | n/a | 6.28% | -6.82% | 63.17% | -26.91% | 7.57% |
| Free Cash Flow (M) | $3,834 | $2,474 | $7,253 | -$1,857 | $4,311 | $5,612 |
