Sun Life Financial (TSX:SLF) Beneish M-Score: -2.15 (As of Jun. 25, 2026)


TSX:SLF Sun Life Financial Inc TSX:SLF
78 GF Score
Price C$110.02
GF Value C$87.00
Valuation Modestly Overvalued
! 8 Warning Signs
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What is Sun Life Financial Beneish M-Score?

Sun Life Financial TSX:SLF -0.24% 78 Beneish M-Score is -2.15 as of Jun. 25, 2026. GuruFocus rates TSX:SLF with a GF Score™ of 78/100 and a GF Value™ of C$87.00 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 397 Insurance companies, Sun Life Financial ranks worse than 78.84% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.15 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Sun Life Financial's Beneish M-Score or its related term are showing as below:

TSX:SLF' s Beneish M-Score Range Over the Past 10 Years
Min: -5.02   Med: -2.44   Max: 5.41
Current: -2.15

During the past 13 years, the highest Beneish M-Score of Sun Life Financial was 5.41. The lowest was -5.02. And the median was -2.44.

TSX:SLF
78GF Score
Sun Life Financial Inc TSX:SLF
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Sun Life Financial Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Sun Life Financial for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.2596+0.528 * 1+0.404 * 1.0002+0.892 * 1.115+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * 0.002374-0.327 * 1.083
=-2.15

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec25) TTM:Last Year (Dec24) TTM:
Total Receivables was C$3,862 Mil.
Revenue was C$38,447 Mil.
Gross Profit was C$38,447 Mil.
Total Current Assets was C$0 Mil.
Total Assets was C$398,455 Mil.
Property, Plant and Equipment(Net PPE) was C$1,444 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0 Mil.
Selling, General, & Admin. Expense(SGA) was C$0 Mil.
Total Current Liabilities was C$0 Mil.
Long-Term Debt & Capital Lease Obligation was C$16,958 Mil.
Net Income was C$3,745 Mil.
Gross Profit was C$0 Mil.
Cash Flow from Operations was C$2,799 Mil.
 Total Receivables was C$2,750 Mil.
Revenue was C$34,483 Mil.
Gross Profit was C$34,483 Mil.
Total Current Assets was C$0 Mil.
Total Assets was C$370,721 Mil.
Property, Plant and Equipment(Net PPE) was C$1,401 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0 Mil.
Selling, General, & Admin. Expense(SGA) was C$0 Mil.
Total Current Liabilities was C$0 Mil.
Long-Term Debt & Capital Lease Obligation was C$14,568 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(3862 / 38447) / (2750 / 34483)
=0.10045 / 0.079749
=1.2596

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(34483 / 34483) / (38447 / 38447)
=1 / 1
=1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 1444) / 398455) / (1 - (0 + 1401) / 370721)
=0.996376 / 0.996221
=1.0002

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=38447 / 34483
=1.115

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(0 / (0 + 1401)) / (0 / (0 + 1444))
=0 / 0
=1

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(0 / 38447) / (0 / 34483)
=0 / 0
=1

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((16958 + 0) / 398455) / ((14568 + 0) / 370721)
=0.042559 / 0.039296
=1.083

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(3745 - 0 - 2799) / 398455
=0.002374

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Sun Life Financial has a M-score of -2.15 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.15 mean?
Sun Life Financial (TSX:SLF) has a Beneish M-Score of -2.15 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Sun Life Financial and its competitors. According to the industry distribution chart, Sun Life Financial ranks #313 out of 397 companies in the Insurance industry, placing it in the top 78.8%.
Is Sun Life Financial's Beneish M-Score too high?
Sun Life Financial's current Beneish M-Score is -2.15. Based on the distribution chart, Sun Life Financial ranks #313 out of 397 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, Sun Life Financial has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sun Life Financial's Beneish M-Score compare to BRK.A and AIG?
According to the Insurance industry distribution chart, Sun Life Financial ranks #313 out of 397 companies for Beneish M-Score. This places Sun Life Financial in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for an Insurance company?
A good Beneish M-Score depends on the Insurance industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Sun Life Financial and its competitors. Sun Life Financial's current Beneish M-Score is -2.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sun Life Financial stock overvalued right now?
Based on GuruFocus' analysis, Sun Life Financial (TSX:SLF) is currently considered Modestly Overvalued. The stock's GF Value™ is C$87.00, compared to a current price of C$110.02 — trading 26.5% above its estimated fair value. The current Beneish M-Score is -2.15. Sun Life Financial's overall GF Score™ is 78/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Sun Life Financial (TSX:SLF), the current Beneish M-Score is -2.15 as of Jun. 25, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Sun Life Financial (TSX:SLF) Overvalued in 2026?

Based on GuruFocus' analysis, Sun Life Financial stock appears to be overvalued. The current stock price of C$110.02 is trading 26.5% above its estimated GF Value™ of C$87.00. GuruFocus considers Sun Life Financial to be Modestly Overvalued.

Key valuation signals for TSX:SLF:

  • Beneish M-Score: -2.15
  • GF Value™: C$87.00 vs. price of C$110.02 (26.5% above fair value)
  • GF Score™: 78/100 with 8 warning signs

No single metric tells the full story. See the TSX:SLF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Sun Life Financial Business Description

Address 1 York Street, 31st Floor, Toronto, ON, CAN, M5J 0B6
Sun Life Financial is one of the Big Three Canadian life insurers. The Canadian business contributed around 35% of its 2025 adjusted earnings. In that segment, the firm provides health, life insurance, and annuity products to individual and group customers. Its US business is mostly group health and contributed about 17% of the firm's adjusted earnings in 2025. Sun Life also offers life insurance and wealth products in several Asian markets with a strong presence in Hong Kong and the Philippines. The Asia segment contributed around 18% of adjusted 2024 earnings. Its asset management business had around CAD 1.2 trillion total assets under management or administration at the end of 2025 and represents around 30% of the firm's earnings.
78GF Score

Get the complete analysis for TSX:SLF

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

C$110.02
Price
C$87.00
GF Value