Brief Commentary On Sun Life Financial Inc.’s (TSE:SLF) Fundamentals

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Sun Life Financial Inc. (TSE:SLF) due to its excellent fundamentals in more than one area. SLF is a dependable dividend-paying company that has been able to sustain great financial health over the past. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my broad commentary, take a look at the report on Sun Life Financial here.

Excellent balance sheet established dividend payer

SLF is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. SLF seems to have put its debt to good use, generating operating cash levels of 0.57x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

TSX:SLF Historical Debt January 15th 19

SLF is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.

TSX:SLF Historical Dividend Yield January 15th 19

Next Steps:

For Sun Life Financial, I’ve put together three relevant factors you should further examine:

1. Future Outlook: What are well-informed industry analysts predicting for SLF’s future growth? Take a look at our free research report of analyst consensus for SLF’s outlook.

2. Historical Performance: What has SLF’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SLF? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.