MANULIFE FINANCIAL CORP - MFCCN 5.978 PERP (MFC-PR-I.CA) Stock Fundamental Analysis
TSX:MFC-PR-I - Toronto Stock Exchange - CA56501R7830 - Currency: CAD
MFC-PR-I gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 85 industry peers in the Insurance industry. Both the profitability and the financial health of MFC-PR-I get a neutral evaluation. Nothing too spectacular is happening here. MFC-PR-I is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
MFC-PR-I had positive earnings in the past year.
MFC-PR-I had a positive operating cash flow in the past year.
Of the past 5 years MFC-PR-I 4 years were profitable.
In the past 5 years MFC-PR-I always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 0.52%, MFC-PR-I perfoms like the industry average, outperforming 46.51% of the companies in the same industry.
The Return On Equity of MFC-PR-I (9.84%) is worse than 83.72% of its industry peers.
With a Return On Invested Capital value of 0.78%, MFC-PR-I perfoms like the industry average, outperforming 55.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.52% | ||
| ROE | 9.84% | ||
| ROIC | 0.78% |
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
MFC-PR-I has a Profit Margin of 13.55%. This is amongst the best in the industry. MFC-PR-I outperforms 82.56% of its industry peers.
In the last couple of years the Profit Margin of MFC-PR-I has grown nicely.
With an excellent Operating Margin value of 23.43%, MFC-PR-I belongs to the best of the industry, outperforming 81.40% of the companies in the same industry.
In the last couple of years the Operating Margin of MFC-PR-I has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.43% | ||
| PM (TTM) | 13.55% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MFC-PR-I is destroying value.
MFC-PR-I has less shares outstanding than it did 1 year ago.
MFC-PR-I has less shares outstanding than it did 5 years ago.
MFC-PR-I has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of MFC-PR-I is 0.53, which is an excellent value as it means it would take MFC-PR-I, only 0.53 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.53, MFC-PR-I belongs to the best of the industry, outperforming 87.21% of the companies in the same industry.
MFC-PR-I has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
MFC-PR-I's Debt to Equity ratio of 0.27 is fine compared to the rest of the industry. MFC-PR-I outperforms 69.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.53 | ||
| Altman-Z | N/A |
ROIC/WACC0.09
WACC8.41%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
MFC-PR-I shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.82%, which is quite good.
MFC-PR-I shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.62% yearly.
Looking at the last year, MFC-PR-I shows a quite strong growth in Revenue. The Revenue has grown by 11.76% in the last year.
MFC-PR-I shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -13.62% yearly.
EPS 1Y (TTM)12.82%
EPS 3Y6.3%
EPS 5Y5.62%
EPS Q2Q%14.52%
Revenue 1Y (TTM)11.76%
Revenue growth 3Y-12.52%
Revenue growth 5Y-13.62%
Sales Q2Q%48.7%
3.2 Future
MFC-PR-I is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.04% yearly.
Based on estimates for the next years, MFC-PR-I will show a very strong growth in Revenue. The Revenue will grow by 23.38% on average per year.
EPS Next Y6.1%
EPS Next 2Y7.83%
EPS Next 3Y2.96%
EPS Next 5Y4.04%
Revenue Next Year14.67%
Revenue Next 2Y11.05%
Revenue Next 3Y9.02%
Revenue Next 5Y23.38%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 6.36, which indicates a rather cheap valuation of MFC-PR-I.
Compared to the rest of the industry, the Price/Earnings ratio of MFC-PR-I indicates a slightly more expensive valuation: MFC-PR-I is more expensive than 69.77% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. MFC-PR-I is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 5.99, the valuation of MFC-PR-I can be described as very cheap.
MFC-PR-I's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.10. MFC-PR-I is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.36 | ||
| Fwd PE | 5.99 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MFC-PR-I indicates a somewhat cheap valuation: MFC-PR-I is cheaper than 77.91% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MFC-PR-I is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.61 | ||
| EV/EBITDA | 3.23 |
4.3 Compensation for Growth
MFC-PR-I's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.04
PEG (5Y)1.13
EPS Next 2Y7.83%
EPS Next 3Y2.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.19%, MFC-PR-I is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.24, MFC-PR-I is paying slightly less dividend.
MFC-PR-I's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
5.2 History
The dividend of MFC-PR-I is nicely growing with an annual growth rate of 20.17%!
MFC-PR-I has paid a dividend for at least 10 years, which is a reliable track record.
MFC-PR-I has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)20.17%
Div Incr Years2
Div Non Decr Years4
5.3 Sustainability
62.26% of the earnings are spent on dividend by MFC-PR-I. This is not a sustainable payout ratio.
MFC-PR-I's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP62.26%
EPS Next 2Y7.83%
EPS Next 3Y2.96%
MANULIFE FINANCIAL CORP - MFCCN 5.978 PERP
TSX:MFC-PR-I (3/7/2025, 7:00:00 PM)
24.8
+0.14 (+0.57%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners56.7%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap42.74B
Analysts76.67
Price Target28.21 (13.75%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
Yearly Dividend1.79
Dividend Growth(5Y)20.17%
DP62.26%
Div Incr Years2
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.03%
Min EPS beat(2)5.71%
Max EPS beat(2)10.34%
EPS beat(4)4
Avg EPS beat(4)5.2%
Min EPS beat(4)2.05%
Max EPS beat(4)10.34%
EPS beat(8)7
Avg EPS beat(8)5.14%
EPS beat(12)9
Avg EPS beat(12)3.34%
EPS beat(16)12
Avg EPS beat(16)2.96%
Revenue beat(2)2
Avg Revenue beat(2)571.15%
Min Revenue beat(2)527.89%
Max Revenue beat(2)614.4%
Revenue beat(4)4
Avg Revenue beat(4)552.78%
Min Revenue beat(4)527.89%
Max Revenue beat(4)614.4%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)6.17%
PT rev (3m)11.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.52%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)0.47%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)4.82%
Revenue NY rev (3m)4.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.36 | ||
| Fwd PE | 5.99 | ||
| P/S | 1.14 | ||
| P/FCF | 1.61 | ||
| P/OCF | 1.61 | ||
| P/B | 0.83 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | 3.23 |
EPS(TTM)3.9
EY15.73%
EPS(NY)4.14
Fwd EY16.7%
FCF(TTM)15.37
FCFY61.99%
OCF(TTM)15.37
OCFY61.99%
SpS21.72
BVpS29.91
TBVpS23.49
PEG (NY)1.04
PEG (5Y)1.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.52% | ||
| ROE | 9.84% | ||
| ROCE | 0.92% | ||
| ROIC | 0.78% | ||
| ROICexc | 0.8% | ||
| ROICexgc | 1.86% | ||
| OM | 23.43% | ||
| PM (TTM) | 13.55% | ||
| GM | N/A | ||
| FCFM | 70.77% |
ROA(3y)0.27%
ROA(5y)0.44%
ROE(3y)5.1%
ROE(5y)7.68%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-2.15%
ROICexcg growth 5Y-0.07%
ROICexc growth 3Y-3.34%
ROICexc growth 5Y-0.84%
OM growth 3Y12.84%
OM growth 5Y19.32%
PM growth 3Y3.23%
PM growth 5Y14.2%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.53 | ||
| Debt/EBITDA | 1.47 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 5.57 | ||
| Cash Conversion | 274.83% | ||
| Profit Quality | 522.15% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC8.41%
ROIC/WACC0.09
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.82%
EPS 3Y6.3%
EPS 5Y5.62%
EPS Q2Q%14.52%
EPS Next Y6.1%
EPS Next 2Y7.83%
EPS Next 3Y2.96%
EPS Next 5Y4.04%
Revenue 1Y (TTM)11.76%
Revenue growth 3Y-12.52%
Revenue growth 5Y-13.62%
Sales Q2Q%48.7%
Revenue Next Year14.67%
Revenue Next 2Y11.05%
Revenue Next 3Y9.02%
Revenue Next 5Y23.38%
EBIT growth 1Y9.56%
EBIT growth 3Y-1.3%
EBIT growth 5Y3.07%
EBIT Next Year-70.25%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y29.73%
FCF growth 3Y4.59%
FCF growth 5Y5.22%
OCF growth 1Y29.73%
OCF growth 3Y4.59%
OCF growth 5Y5.22%