MANULIFE FINANCIAL - MFCCN 4.65 PERP (MFC-PR-B.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MFC-PR-B - CA56501R4035
21.74 CAD
-0.12 (-0.55%)
MFC-PR-B gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 80 industry peers in the Insurance industry. MFC-PR-B has only an average score on both its financial health and profitability. MFC-PR-B scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make MFC-PR-B suitable for value investing!
1. Profitability
1.1 Basic Checks
- MFC-PR-B had positive earnings in the past year.
- In the past year MFC-PR-B had a positive cash flow from operations.
- Of the past 5 years MFC-PR-B 4 years were profitable.
- Each year in the past 5 years MFC-PR-B had a positive operating cash flow.
1.2 Ratios
- MFC-PR-B has a Return On Assets of 0.53%. This is comparable to the rest of the industry: MFC-PR-B outperforms 57.50% of its industry peers.
- MFC-PR-B has a Return On Equity of 10.48%. This is in the lower half of the industry: MFC-PR-B underperforms 68.75% of its industry peers.
- With a decent Return On Invested Capital value of 0.75%, MFC-PR-B is doing good in the industry, outperforming 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.53% | ||
| ROE | 10.48% | ||
| ROIC | 0.75% |
ROA(3y)0.27%
ROA(5y)0.44%
ROE(3y)5.1%
ROE(5y)7.68%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- Looking at the Profit Margin, with a value of 13.87%, MFC-PR-B belongs to the top of the industry, outperforming 91.25% of the companies in the same industry.
- In the last couple of years the Profit Margin of MFC-PR-B has grown nicely.
- The Operating Margin of MFC-PR-B (22.75%) is better than 88.75% of its industry peers.
- In the last couple of years the Operating Margin of MFC-PR-B has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.75% | ||
| PM (TTM) | 13.87% | ||
| GM | N/A |
OM growth 3Y12.84%
OM growth 5Y19.32%
PM growth 3Y3.23%
PM growth 5Y14.2%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MFC-PR-B is destroying value.
- MFC-PR-B has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, MFC-PR-B has less shares outstanding
- MFC-PR-B has a better debt/assets ratio than last year.
2.2 Solvency
- MFC-PR-B has a debt to FCF ratio of 0.44. This is a very positive value and a sign of high solvency as it would only need 0.44 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 0.44, MFC-PR-B belongs to the best of the industry, outperforming 92.50% of the companies in the same industry.
- MFC-PR-B has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.26, MFC-PR-B belongs to the top of the industry, outperforming 86.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.44 | ||
| Altman-Z | N/A |
ROIC/WACC0.09
WACC8.54%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 9.55% over the past year.
- MFC-PR-B shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.49% yearly.
- Looking at the last year, MFC-PR-B shows a small growth in Revenue. The Revenue has grown by 7.70% in the last year.
- MFC-PR-B shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -13.62% yearly.
EPS 1Y (TTM)9.55%
EPS 3Y6.08%
EPS 5Y5.49%
EPS Q2Q%16%
Revenue 1Y (TTM)7.7%
Revenue growth 3Y-12.52%
Revenue growth 5Y-13.62%
Sales Q2Q%21.19%
3.2 Future
- MFC-PR-B is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.15% yearly.
- The Revenue is expected to grow by 11.90% on average over the next years. This is quite good.
EPS Next Y8.17%
EPS Next 2Y8.45%
EPS Next 3Y8.81%
EPS Next 5Y5.15%
Revenue Next Year8.86%
Revenue Next 2Y8.68%
Revenue Next 3Y6.97%
Revenue Next 5Y11.9%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 5.26, which indicates a rather cheap valuation of MFC-PR-B.
- MFC-PR-B's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 27.21. MFC-PR-B is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 4.76, the valuation of MFC-PR-B can be described as very cheap.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of MFC-PR-B is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of MFC-PR-B to the average of the S&P500 Index (25.98), we can say MFC-PR-B is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.26 | ||
| Fwd PE | 4.76 |
4.2 Price Multiples
- 82.50% of the companies in the same industry are more expensive than MFC-PR-B, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, MFC-PR-B is valued cheaper than 82.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.2 | ||
| EV/EBITDA | 2.44 |
4.3 Compensation for Growth
- MFC-PR-B's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.64
PEG (5Y)0.96
EPS Next 2Y8.45%
EPS Next 3Y8.81%
5. Dividend
5.1 Amount
- MFC-PR-B has a Yearly Dividend Yield of 3.48%.
- Compared to an average industry Dividend Yield of 4.42, MFC-PR-B is paying slightly less dividend.
- MFC-PR-B's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
5.2 History
- On average, the dividend of MFC-PR-B grows each year by 20.17%, which is quite nice.
- MFC-PR-B has been paying a dividend for at least 10 years, so it has a reliable track record.
- MFC-PR-B has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)20.17%
Div Incr Years0
Div Non Decr Years19
5.3 Sustainability
- MFC-PR-B pays out 60.48% of its income as dividend. This is not a sustainable payout ratio.
- MFC-PR-B's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP60.48%
EPS Next 2Y8.45%
EPS Next 3Y8.81%
MANULIFE FINANCIAL - MFCCN 4.65 PERP / MFC-PR-B.CA FAQ
What is the ChartMill fundamental rating of MANULIFE FINANCIAL - MFCCN 4.65 PERP (MFC-PR-B.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to MFC-PR-B.CA.
Can you provide the valuation status for MANULIFE FINANCIAL - MFCCN 4.65 PERP?
ChartMill assigns a valuation rating of 7 / 10 to MANULIFE FINANCIAL - MFCCN 4.65 PERP (MFC-PR-B.CA). This can be considered as Undervalued.
What is the profitability of MFC-PR-B stock?
MANULIFE FINANCIAL - MFCCN 4.65 PERP (MFC-PR-B.CA) has a profitability rating of 5 / 10.
What are the PE and PB ratios of MANULIFE FINANCIAL - MFCCN 4.65 PERP (MFC-PR-B.CA) stock?
The Price/Earnings (PE) ratio for MANULIFE FINANCIAL - MFCCN 4.65 PERP (MFC-PR-B.CA) is 5.26 and the Price/Book (PB) ratio is 0.71.
Can you provide the expected EPS growth for MFC-PR-B stock?
The Earnings per Share (EPS) of MANULIFE FINANCIAL - MFCCN 4.65 PERP (MFC-PR-B.CA) is expected to grow by 8.17% in the next year.