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 (0%)
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 an average financial health and profitability rating. MFC-PR-Q has a correct valuation and a medium 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.
- In the past 5 years MFC-PR-Q always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 0.53%, MFC-PR-Q perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- MFC-PR-Q has a Return On Equity of 10.48%. This is in the lower half of the industry: MFC-PR-Q underperforms 76.25% of its industry peers.
- MFC-PR-Q has a Return On Invested Capital of 0.75%. This is in the better half of the industry: MFC-PR-Q outperforms 61.25% 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 83.75% 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 Operating Margin of 22.75%. This is amongst the best in the industry. MFC-PR-Q outperforms 81.25% of its industry peers.
- In the last couple of years the Operating Margin of MFC-PR-Q 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MFC-PR-Q is destroying value.
- The number of shares outstanding for MFC-PR-Q has been reduced compared to 1 year ago.
- The number of shares outstanding for MFC-PR-Q has been reduced compared to 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.
- With an excellent Debt to FCF ratio value of 0.44, MFC-PR-Q belongs to the best of the industry, outperforming 85.00% 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.
- MFC-PR-Q has a Debt to Equity ratio of 0.26. This is in the better half of the industry: MFC-PR-Q outperforms 78.75% of its industry peers.
| 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-Q 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-Q 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-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.
- 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 6.19, the valuation of MFC-PR-Q can be described as very cheap.
- Based on the Price/Earnings ratio, MFC-PR-Q is valued a bit more expensive than 61.25% of the companies in the same industry.
- MFC-PR-Q's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- Based on the Price/Forward Earnings ratio of 5.60, the valuation of MFC-PR-Q can be described as very cheap.
- 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 (25.98), 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
- 73.75% of the companies in the same industry are more expensive than MFC-PR-Q, based on the Enterprise Value to EBITDA ratio.
- 75.00% of the companies in the same industry are more expensive than MFC-PR-Q, based on the Price/Free Cash Flow ratio.
| 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 3.48%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 4.42, MFC-PR-Q's dividend is way lower than its industry peers. On top of this 81.25% 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 1.81, MFC-PR-Q pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
5.2 History
- On average, the dividend of MFC-PR-Q grows each year by 20.17%, which is quite nice.
- 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.