In 1886, Macaulay again tried to recoup those losses by proposing to reduce shareholder profits for that year and the previous four years. Macaulay attempted, unsuccessfully, to get the directors of Sun Life (those involved in the losing investments) to reimburse the company. The losses that Sun Life had taken on meant that the company barely escaped insolvency (where debts exceed a company’s assets). As a result, Gault was asked to resign and Macaulay was made managing director and elected to the board. This conflict of interest created particular distress for the company. Sun Life faced its first crisis in 1882–83, when investments it had made into companies controlled by Mathew Gault (particularly the Exchange Bank of Canada, and the Montreal Loan and Mortgage Company) incurred considerable losses. Due to this international growth, as well as growth across Canada, the name of the company was changed, in May 1882, to The Sun Life Assurance Company of Canada. Sun Insurance Company’s first international growth occurred in 1879–80 when it expanded into much of the West Indies. This distinguished Sun Insurance from its competitors, and sales by agents began to increase more quickly. In 1880, the company introduced the first unconditional insurance policy in Canada, in which all restrictions, prohibitions and limitations in the insurance contracts were removed. The company’s first secretary, Robertson Macaulay (appointed in 1874), presented a plan for growth that included expanding the number of selling agents and introducing innovative insurance products. However, death claims under its issued life insurance policies were low, so the company survived. Poor trade and economic conditions for Canada also slowed the company’s growth ( see Economic History). Sun Life issued its first insurance policy on. Gault was appointed as the first managing director, and the company engaged its first agents to sell Sun Life insurance in Toronto. Due to the uncertainty of government at the time, and with Confederation occupying the businessmen’s attention, it was not until six years later that the company actually began operations. It was approved for operations by the Legislative Assembly of the Province of Canada on 18 March 1865.
#Sun life financial stock full
The PE and PEG for SLF are worse than the average of the market resulting in a valuation score of 83.Ĭlick Here to get the full Report on Sun Life Financial Inc ( SLF) stock.The company was formed by a group of Montréal’s leading businessmen as the Sun Insurance Company of Montreal. Due to their incorporation of more fundamentals of a company's overall health and focusing on the future rather than the past, PEG ratios are one of the most used valuation metrics by analysts today.Īll together these valuation metrics paint a pretty poor picture for SLF at its current price due to a overvalued PEG ratio due to strong growth. A PEG ratio of 1 represents a perfect correlation between earnings growth and share price. SLF's PEG comes from its forward price to earnings ratio being divided by its growth rate.
SLF's 12-month-forward PE to Growth ( PEG) ratio of 1.31 is considered a poor value as the market is overvaluing SLF in relation to the company's projected earnings growth due.
However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings. Its trailing 12-month earnings per share (EPS) of 2.61 justifies the stock's current price. SLF's average trailing PE ratio shows that the firm has been trading around its fair market value recently. The historical average of roughly 15 shows a average value for SLF stock as investors are paying fair share prices relative to the company's earnings. SLF has a trailing twelve month Price to Earnings ( PE) ratio of 11.2.