MANULIFE FINANCIAL CORP - MFCCN 6.159 PERP (MFC-PR-J.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MFC-PR-J - CA56501R7673
25.5 CAD
0 (0%)
MFC-PR-J gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 80 industry peers in the Insurance industry. Both the profitability and the financial health of MFC-PR-J get a neutral evaluation. Nothing too spectacular is happening here. MFC-PR-J has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- MFC-PR-J had positive earnings in the past year.
- MFC-PR-J had a positive operating cash flow in the past year.
- Of the past 5 years MFC-PR-J 4 years were profitable.
- Each year in the past 5 years MFC-PR-J had a positive operating cash flow.
1.2 Ratios
- MFC-PR-J has a Return On Assets (0.53%) which is comparable to the rest of the industry.
- Looking at the Return On Equity, with a value of 10.48%, MFC-PR-J is doing worse than 76.25% of the companies in the same industry.
- With a decent Return On Invested Capital value of 0.75%, MFC-PR-J is doing good in the industry, outperforming 61.25% 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
- MFC-PR-J has a better Profit Margin (13.87%) than 83.75% of its industry peers.
- MFC-PR-J's Profit Margin has improved in the last couple of years.
- MFC-PR-J has a Operating Margin of 22.75%. This is amongst the best in the industry. MFC-PR-J outperforms 81.25% of its industry peers.
- In the last couple of years the Operating Margin of MFC-PR-J 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
- MFC-PR-J has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- MFC-PR-J has less shares outstanding than it did 1 year ago.
- MFC-PR-J has less shares outstanding than it did 5 years ago.
- MFC-PR-J has a better debt/assets ratio than last year.
2.2 Solvency
- MFC-PR-J 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.
- Looking at the Debt to FCF ratio, with a value of 0.44, MFC-PR-J belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.26 indicates that MFC-PR-J is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.26, MFC-PR-J is in the better half of the industry, outperforming 78.75% 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
WACC8.48%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- MFC-PR-J shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.55%, which is quite good.
- Measured over the past 5 years, MFC-PR-J shows a small growth in Earnings Per Share. The EPS has been growing by 5.49% on average per year.
- The Revenue has been growing slightly by 7.70% in the past year.
- Measured over the past years, MFC-PR-J shows a very negative growth in Revenue. The Revenue has been decreasing by -13.62% on average per year.
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-J 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
- Based on the Price/Earnings ratio of 6.17, the valuation of MFC-PR-J can be described as very cheap.
- Compared to the rest of the industry, the Price/Earnings ratio of MFC-PR-J indicates a slightly more expensive valuation: MFC-PR-J is more expensive than 61.25% of the companies listed in the same industry.
- MFC-PR-J is valuated cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 5.59, which indicates a rather cheap valuation of MFC-PR-J.
- MFC-PR-J's Price/Forward Earnings is on the same level as the industry average.
- MFC-PR-J's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.17 | ||
| Fwd PE | 5.59 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MFC-PR-J indicates a somewhat cheap valuation: MFC-PR-J is cheaper than 73.75% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, MFC-PR-J is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.4 | ||
| EV/EBITDA | 3.08 |
4.3 Compensation for Growth
- MFC-PR-J's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.76
PEG (5Y)1.12
EPS Next 2Y8.45%
EPS Next 3Y8.81%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.48%, MFC-PR-J has a reasonable but not impressive dividend return.
- With a Dividend Yield of 3.48, MFC-PR-J pays less dividend than the industry average, which is at 4.42. 81.25% of the companies listed in the same industry pay a better dividend than MFC-PR-J!
- MFC-PR-J's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
5.2 History
- On average, the dividend of MFC-PR-J grows each year by 20.17%, which is quite nice.
- MFC-PR-J has paid a dividend for at least 10 years, which is a reliable track record.
- MFC-PR-J 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
- MFC-PR-J pays out 60.48% of its income as dividend. This is not a sustainable payout ratio.
- MFC-PR-J'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 CORP - MFCCN 6.159 PERP / MFC-PR-J.CA FAQ
What is the fundamental rating for MFC-PR-J stock?
ChartMill assigns a fundamental rating of 5 / 10 to MFC-PR-J.CA.
What is the valuation status of MANULIFE FINANCIAL CORP - MFCCN 6.159 PERP (MFC-PR-J.CA) stock?
ChartMill assigns a valuation rating of 6 / 10 to MANULIFE FINANCIAL CORP - MFCCN 6.159 PERP (MFC-PR-J.CA). This can be considered as Fairly Valued.
What is the profitability of MFC-PR-J stock?
MANULIFE FINANCIAL CORP - MFCCN 6.159 PERP (MFC-PR-J.CA) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for MFC-PR-J stock?
The Price/Earnings (PE) ratio for MANULIFE FINANCIAL CORP - MFCCN 6.159 PERP (MFC-PR-J.CA) is 6.17 and the Price/Book (PB) ratio is 0.84.
Is the dividend of MANULIFE FINANCIAL CORP - MFCCN 6.159 PERP sustainable?
The dividend rating of MANULIFE FINANCIAL CORP - MFCCN 6.159 PERP (MFC-PR-J.CA) is 5 / 10 and the dividend payout ratio is 60.48%.