Sun Life Financial (SLF) On Growth Track: Time To Invest?
Zacks Investment Research | Jul 11, 2017 10:10PM ET
Sun Life Financial Inc. (TO:SLF) has made a name for itself in the life insurance industry in the United States and across the world. The life insurer has successfully managed to meet the ever-changing demands and expectations of its clients and has built a solid product and service portfolio over the years.
Sun Life Financial has been making significant efforts to diversify its international business. To that end, the company remains focused on the emerging economies of Asia, which is expected to generate higher returns and growth in comparison to the North American markets.
The company has been witnessing improved earnings at its Asia segment and expects the momentum to continue in the near term, owing to its strong foothold in China, Philippines, India, Hong Kong and Indonesia. The company also intends to make strategic investments in the region to retain such momentum.
This Zacks Rank #2 (Buy) stock has been making effective changes in its business mix to drive profitability. To that end, the company deploys capital in businesses with potential to generate a higher return on equity. Plus, the company engages in shareholder-friendly moves, boosting investor confidence in the stock.
Additionally, Sun Life Financial has been undertaking prudent acquisitions over the past few years, which in turn have not only helped expanding its geographical footprint but also accelerated the company’s overall growth.
Sun Life Financial also remains committed toward its Global Asset Management Business growth, which has been witnessing an increase in asset base over a considerable period of time. The life insurer targets Sun Life Investment Management asset under management of approximately $100 billion over the next five years.
Notably, the company has projected a medium-term EPS growth between 8-10%, on the back of its sustained operational performance. Plus, the life insurer anticipates a return on equity to range of 12-14%, while the dividend payout ratio is likely to be 40–50% of the underlying net income.
Shares of Sun Life Financial have gained 11.88% in the last one year, underperforming the Zacks categorized Original post
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