Want To Invest In Sun Life Financial Inc. (TSE:SLF)? Here's How It Performed Lately
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Improvement in profitability and outperformance against the industry can be important characteristics in a stock for some investors. Below, I will assess Sun Life Financial Inc.'s (TSE:SLF) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers.
Check out our latest analysis for Sun Life Financial
How Well Did SLF Perform?
SLF's trailing twelve-month earnings (from 31 March 2019) of CA$2.5b has increased by 9.2% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 6.9%, indicating the rate at which SLF is growing has accelerated. What's the driver of this growth? Let's take a look at if it is solely due to industry tailwinds, or if Sun Life Financial has experienced some company-specific growth.
In terms of returns from investment, Sun Life Financial has fallen short of achieving a 20% return on equity (ROE), recording 10% instead. Furthermore, its return on assets (ROA) of 1.0% is below the CA Insurance industry of 1.0%, indicating Sun Life Financial's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Sun Life Financial’s debt level, has declined over the past 3 years from 1.4% to 1.2%.
What does this mean?
Sun Life Financial's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. While Sun Life Financial has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I recommend you continue to research Sun Life Financial to get a more holistic view of the stock by looking at:
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.
Financial Health: Are SLF’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2019. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
