MANULIFE FINANCIAL CORP - MFCCN 5.775 PERP (MFC-PR-L.CA) Stock Fundamental Analysis
TSX:MFC-PR-L - Toronto Stock Exchange - CA56501R7269 - Currency: CAD
Taking everything into account, MFC-PR-L scores 5 out of 10 in our fundamental rating. MFC-PR-L was compared to 85 industry peers in the Insurance industry. MFC-PR-L has only an average score on both its financial health and profitability. MFC-PR-L is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
MFC-PR-L had positive earnings in the past year.
MFC-PR-L had a positive operating cash flow in the past year.
MFC-PR-L had positive earnings in 4 of the past 5 years.
MFC-PR-L had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MFC-PR-L has a Return On Assets of 0.52%. This is comparable to the rest of the industry: MFC-PR-L outperforms 51.16% of its industry peers.
MFC-PR-L has a worse Return On Equity (9.84%) than 79.07% of its industry peers.
MFC-PR-L has a better Return On Invested Capital (0.78%) than 60.47% of its industry peers.
| 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-L's Profit Margin of 13.55% is amongst the best of the industry. MFC-PR-L outperforms 87.21% of its industry peers.
In the last couple of years the Profit Margin of MFC-PR-L has grown nicely.
With an excellent Operating Margin value of 23.43%, MFC-PR-L belongs to the best of the industry, outperforming 86.05% of the companies in the same industry.
In the last couple of years the Operating Margin of MFC-PR-L 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-L is destroying value.
MFC-PR-L has less shares outstanding than it did 1 year ago.
The number of shares outstanding for MFC-PR-L has been reduced compared to 5 years ago.
Compared to 1 year ago, MFC-PR-L has an improved debt to assets ratio.
2.2 Solvency
MFC-PR-L 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.
Looking at the Debt to FCF ratio, with a value of 0.53, MFC-PR-L belongs to the top of the industry, outperforming 91.86% of the companies in the same industry.
MFC-PR-L has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of MFC-PR-L (0.27) is better than 74.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.53 | ||
| Altman-Z | N/A |
ROIC/WACC0.09
WACC8.43%
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 12.82% over the past year.
Measured over the past 5 years, MFC-PR-L shows a small growth in Earnings Per Share. The EPS has been growing by 5.62% on average per year.
MFC-PR-L shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.76%.
MFC-PR-L 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-L is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.04% yearly.
MFC-PR-L is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 23.38% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 5.93, the valuation of MFC-PR-L can be described as very cheap.
The rest of the industry has a similar Price/Earnings ratio as MFC-PR-L.
When comparing the Price/Earnings ratio of MFC-PR-L to the average of the S&P500 Index (29.35), we can say MFC-PR-L is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 5.58, the valuation of MFC-PR-L can be described as very cheap.
The rest of the industry has a similar Price/Forward Earnings ratio as MFC-PR-L.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, MFC-PR-L is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.93 | ||
| Fwd PE | 5.58 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MFC-PR-L indicates a rather cheap valuation: MFC-PR-L is cheaper than 82.56% of the companies listed in the same industry.
62.79% of the companies in the same industry are more expensive than MFC-PR-L, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.5 | ||
| EV/EBITDA | 2.93 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.97
PEG (5Y)1.06
EPS Next 2Y7.83%
EPS Next 3Y2.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.19%, MFC-PR-L is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.24, MFC-PR-L has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, MFC-PR-L pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
5.2 History
On average, the dividend of MFC-PR-L grows each year by 20.17%, which is quite nice.
MFC-PR-L has paid a dividend for at least 10 years, which is a reliable track record.
MFC-PR-L has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)20.17%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
62.26% of the earnings are spent on dividend by MFC-PR-L. This is not a sustainable payout ratio.
MFC-PR-L'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 5.775 PERP
TSX:MFC-PR-L (3/5/2025, 7:00:00 PM)
23.12
-0.17 (-0.73%)
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 Cap39.84B
Analysts76.67
Price Target26.54 (14.79%)
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 Years1
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)3.5%
PT rev (3m)10.78%
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 | 5.93 | ||
| Fwd PE | 5.58 | ||
| P/S | 1.06 | ||
| P/FCF | 1.5 | ||
| P/OCF | 1.5 | ||
| P/B | 0.77 | ||
| P/tB | 0.98 | ||
| EV/EBITDA | 2.93 |
EPS(TTM)3.9
EY16.87%
EPS(NY)4.14
Fwd EY17.91%
FCF(TTM)15.37
FCFY66.5%
OCF(TTM)15.37
OCFY66.5%
SpS21.72
BVpS29.91
TBVpS23.49
PEG (NY)0.97
PEG (5Y)1.06
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
WACC8.43%
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%