MANULIFE FINANCIAL CORP - MFCCN 6.35 PERP (MFC-PR-K.CA) Stock Fundamental Analysis
TSX:MFC-PR-K - Toronto Stock Exchange - CA56501R7426 - Currency: CAD
MFC-PR-K gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 85 industry peers in the Insurance industry. MFC-PR-K has an average financial health and profitability rating. MFC-PR-K has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
MFC-PR-K had positive earnings in the past year.
MFC-PR-K had a positive operating cash flow in the past year.
Of the past 5 years MFC-PR-K 4 years were profitable.
MFC-PR-K had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.52%, MFC-PR-K is in line with its industry, outperforming 50.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.84%, MFC-PR-K is doing worse than 80.23% of the companies in the same industry.
The Return On Invested Capital of MFC-PR-K (0.78%) is comparable to the rest of the 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
The Profit Margin of MFC-PR-K (13.55%) is better than 86.05% of its industry peers.
In the last couple of years the Profit Margin of MFC-PR-K has grown nicely.
The Operating Margin of MFC-PR-K (23.43%) is better than 84.88% of its industry peers.
MFC-PR-K's Operating Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MFC-PR-K is destroying value.
MFC-PR-K has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MFC-PR-K has less shares outstanding
The debt/assets ratio for MFC-PR-K has been reduced compared to a year ago.
2.2 Solvency
MFC-PR-K has a debt to FCF ratio of 0.53. This is a very positive value and a sign of high solvency as it would only need 0.53 years to pay back of all of its debts.
MFC-PR-K has a Debt to FCF ratio of 0.53. This is amongst the best in the industry. MFC-PR-K outperforms 90.70% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that MFC-PR-K is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.27, MFC-PR-K is in the better half of the industry, outperforming 73.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.53 | ||
| Altman-Z | N/A |
ROIC/WACC0.09
WACC8.42%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
MFC-PR-K shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.82%, which is quite good.
The Earnings Per Share has been growing slightly by 5.62% on average over the past years.
MFC-PR-K shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.76%.
The Revenue for MFC-PR-K have been decreasing by -13.62% on average. This is quite bad
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-K is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.04% yearly.
The Revenue is expected to grow by 23.38% on average over the next years. This is a very strong growth
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
A Price/Earnings ratio of 6.08 indicates a rather cheap valuation of MFC-PR-K.
MFC-PR-K's Price/Earnings ratio is a bit more expensive when compared to the industry. MFC-PR-K is more expensive than 62.79% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, MFC-PR-K is valued rather cheaply.
MFC-PR-K is valuated cheaply with a Price/Forward Earnings ratio of 5.73.
MFC-PR-K's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, MFC-PR-K is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.08 | ||
| Fwd PE | 5.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MFC-PR-K is valued cheaply inside the industry as 81.40% of the companies are valued more expensively.
MFC-PR-K's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MFC-PR-K is cheaper than 61.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.54 | ||
| EV/EBITDA | 3.03 |
4.3 Compensation for Growth
MFC-PR-K's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)1
PEG (5Y)1.08
EPS Next 2Y7.83%
EPS Next 3Y2.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.19%, MFC-PR-K is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.24, MFC-PR-K is paying slightly less dividend.
MFC-PR-K'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-K is nicely growing with an annual growth rate of 20.17%!
MFC-PR-K has paid a dividend for at least 10 years, which is a reliable track record.
MFC-PR-K 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-K pays out 62.26% of its income as dividend. This is not a sustainable payout ratio.
The dividend of MFC-PR-K is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP62.26%
EPS Next 2Y7.83%
EPS Next 3Y2.96%
MANULIFE FINANCIAL CORP - MFCCN 6.35 PERP
TSX:MFC-PR-K (3/7/2025, 7:00:00 PM)
23.72
-0.03 (-0.13%)
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 Cap40.88B
Analysts76.67
Price Target27.51 (15.98%)
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)2.54%
PT rev (3m)8.86%
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 | 6.08 | ||
| Fwd PE | 5.73 | ||
| P/S | 1.09 | ||
| P/FCF | 1.54 | ||
| P/OCF | 1.54 | ||
| P/B | 0.79 | ||
| P/tB | 1.01 | ||
| EV/EBITDA | 3.03 |
EPS(TTM)3.9
EY16.44%
EPS(NY)4.14
Fwd EY17.46%
FCF(TTM)15.37
FCFY64.82%
OCF(TTM)15.37
OCFY64.82%
SpS21.72
BVpS29.91
TBVpS23.49
PEG (NY)1
PEG (5Y)1.08
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
WACC8.42%
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%