MANULIFE FINANCIAL CORP - MFCCN 5.942 PERP (MFC-PR-Q.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MFC-PR-Q - CA56501R6196
25.55 CAD
-0.06 (-0.23%)
MFC-PR-Q gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 80 industry peers in the Insurance industry. MFC-PR-Q has only an average score on both its financial health and profitability. MFC-PR-Q is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year MFC-PR-Q was profitable.
- MFC-PR-Q had a positive operating cash flow in the past year.
- Of the past 5 years MFC-PR-Q 4 years were profitable.
- MFC-PR-Q 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 0.53%, MFC-PR-Q is in line with its industry, outperforming 52.50% of the companies in the same industry.
- The Return On Equity of MFC-PR-Q (10.48%) is worse than 73.75% of its industry peers.
- MFC-PR-Q has a better Return On Invested Capital (0.75%) than 63.75% of its industry peers.
| 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
- With an excellent Profit Margin value of 13.87%, MFC-PR-Q belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
- MFC-PR-Q's Profit Margin has improved in the last couple of years.
- MFC-PR-Q has a better Operating Margin (22.75%) than 82.50% of its industry peers.
- MFC-PR-Q's Operating Margin has improved in the last couple of years.
| 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-Q has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- MFC-PR-Q has less shares outstanding than it did 1 year ago.
- MFC-PR-Q has less shares outstanding than it did 5 years ago.
- MFC-PR-Q has a better debt/assets ratio than last year.
2.2 Solvency
- The Debt to FCF ratio of MFC-PR-Q is 0.44, which is an excellent value as it means it would take MFC-PR-Q, only 0.44 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.44, MFC-PR-Q belongs to the top of the industry, outperforming 86.25% of the companies in the same industry.
- MFC-PR-Q 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-Q is in the better half of the industry, outperforming 80.00% 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
- The Earnings Per Share has grown by an nice 9.55% over the past year.
- Measured over the past 5 years, MFC-PR-Q shows a small growth in Earnings Per Share. The EPS has been growing by 5.49% on average per year.
- Looking at the last year, MFC-PR-Q shows a small growth in Revenue. The Revenue has grown by 7.70% in the last year.
- Measured over the past years, MFC-PR-Q 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
- The Earnings Per Share is expected to grow by 5.15% on average over the next years.
- Based on estimates for the next years, MFC-PR-Q will show a quite strong growth in Revenue. The Revenue will grow by 11.90% on average per year.
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.
- 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
- The Price/Earnings ratio is 6.19, which indicates a rather cheap valuation of MFC-PR-Q.
- 60.00% of the companies in the same industry are cheaper than MFC-PR-Q, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.32, MFC-PR-Q is valued rather cheaply.
- MFC-PR-Q is valuated cheaply with a Price/Forward Earnings ratio of 5.60.
- The rest of the industry has a similar Price/Forward Earnings ratio as MFC-PR-Q.
- When comparing the Price/Forward Earnings ratio of MFC-PR-Q to the average of the S&P500 Index (24.32), we can say MFC-PR-Q is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.19 | ||
| Fwd PE | 5.6 |
4.2 Price Multiples
- MFC-PR-Q's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MFC-PR-Q is cheaper than 75.00% of the companies in the same industry.
- MFC-PR-Q's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MFC-PR-Q is cheaper than 76.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.41 | ||
| EV/EBITDA | 3.09 |
4.3 Compensation for Growth
- MFC-PR-Q'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)1.13
EPS Next 2Y8.45%
EPS Next 3Y8.81%
5. Dividend
5.1 Amount
- MFC-PR-Q has a Yearly Dividend Yield of 3.37%.
- Compared to an average industry Dividend Yield of 4.15, MFC-PR-Q's dividend is way lower than its industry peers. On top of this 80.00% of the companies listed in the same industry pay a better dividend than MFC-PR-Q!
- Compared to an average S&P500 Dividend Yield of 1.83, MFC-PR-Q pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
5.2 History
- The dividend of MFC-PR-Q is nicely growing with an annual growth rate of 20.17%!
- MFC-PR-Q has been paying a dividend for over 5 years, so it has already some track record.
- As MFC-PR-Q did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)20.17%
Div Incr Years2
Div Non Decr Years6
5.3 Sustainability
- 60.48% of the earnings are spent on dividend by MFC-PR-Q. This is not a sustainable payout ratio.
- The dividend of MFC-PR-Q is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP60.48%
EPS Next 2Y8.45%
EPS Next 3Y8.81%
MANULIFE FINANCIAL CORP - MFCCN 5.942 PERP / MFC-PR-Q.CA FAQ
Can you provide the ChartMill fundamental rating for MANULIFE FINANCIAL CORP - MFCCN 5.942 PERP?
ChartMill assigns a fundamental rating of 5 / 10 to MFC-PR-Q.CA.
What is the valuation status of MANULIFE FINANCIAL CORP - MFCCN 5.942 PERP (MFC-PR-Q.CA) stock?
ChartMill assigns a valuation rating of 6 / 10 to MANULIFE FINANCIAL CORP - MFCCN 5.942 PERP (MFC-PR-Q.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for MANULIFE FINANCIAL CORP - MFCCN 5.942 PERP?
MANULIFE FINANCIAL CORP - MFCCN 5.942 PERP (MFC-PR-Q.CA) has a profitability rating of 5 / 10.
Can you provide the financial health for MFC-PR-Q stock?
The financial health rating of MANULIFE FINANCIAL CORP - MFCCN 5.942 PERP (MFC-PR-Q.CA) is 4 / 10.
What is the earnings growth outlook for MANULIFE FINANCIAL CORP - MFCCN 5.942 PERP?
The Earnings per Share (EPS) of MANULIFE FINANCIAL CORP - MFCCN 5.942 PERP (MFC-PR-Q.CA) is expected to grow by 8.17% in the next year.