MANULIFE FINANCIAL CORP (MFC.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MFC - CA56501R1064 - Common Stock
50.63 CAD
-1.52 (-2.91%)
We assign a fundamental rating of 4 out of 10 to MFC. MFC was compared to 80 industry peers in the Insurance industry. MFC has only an average score on both its financial health and profitability. MFC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year MFC was profitable.
- In the past year MFC had a positive cash flow from operations.
- Of the past 5 years MFC 4 years were profitable.
- MFC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 0.53%, MFC perfoms like the industry average, outperforming 48.75% of the companies in the same industry.
- MFC's Return On Equity of 10.48% is on the low side compared to the rest of the industry. MFC is outperformed by 77.50% of its industry peers.
- MFC has a Return On Invested Capital (0.75%) which is comparable to the rest of the 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 has a Profit Margin of 13.87%. This is amongst the best in the industry. MFC outperforms 81.25% of its industry peers.
- In the last couple of years the Profit Margin of MFC has grown nicely.
- Looking at the Operating Margin, with a value of 22.75%, MFC is in the better half of the industry, outperforming 78.75% of the companies in the same industry.
- In the last couple of years the Operating Margin of MFC 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 is destroying value.
- Compared to 1 year ago, MFC has less shares outstanding
- The number of shares outstanding for MFC has been reduced compared to 5 years ago.
- Compared to 1 year ago, MFC has an improved debt to assets ratio.
2.2 Solvency
- MFC 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.
- MFC has a better Debt to FCF ratio (0.44) than 82.50% of its industry peers.
- MFC has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
- MFC's Debt to Equity ratio of 0.26 is fine compared to the rest of the industry. MFC outperforms 76.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.44 | ||
| Altman-Z | N/A |
ROIC/WACC0.09
WACC8.29%
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.
- MFC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.49% yearly.
- The Revenue has been growing slightly by 7.70% in the past year.
- MFC shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -13.62% yearly.
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 will show a quite strong growth in Revenue. The Revenue will grow by 11.90% on average per year.
EPS Next Y8.22%
EPS Next 2Y8.36%
EPS Next 3Y8.8%
EPS Next 5Y5.15%
Revenue Next Year8.86%
Revenue Next 2Y8.68%
Revenue Next 3Y6.97%
Revenue Next 5Y11.9%
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 stable.
- 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 12.26, the valuation of MFC can be described as correct.
- Based on the Price/Earnings ratio, MFC is valued a bit more expensive than 70.00% of the companies in the same industry.
- When comparing the Price/Earnings ratio of MFC to the average of the S&P500 Index (26.94), we can say MFC is valued rather cheaply.
- MFC is valuated reasonably with a Price/Forward Earnings ratio of 11.11.
- Based on the Price/Forward Earnings ratio, MFC is valued a bit more expensive than 62.50% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of MFC to the average of the S&P500 Index (23.94), we can say MFC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.26 | ||
| Fwd PE | 11.11 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MFC is valued a bit cheaper than 70.00% of the companies in the same industry.
- 63.75% of the companies in the same industry are more expensive than MFC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.79 | ||
| EV/EBITDA | 7.35 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.49
PEG (5Y)2.23
EPS Next 2Y8.36%
EPS Next 3Y8.8%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.37%, MFC has a reasonable but not impressive dividend return.
- With a Dividend Yield of 3.37, MFC pays less dividend than the industry average, which is at 4.15. 83.75% of the companies listed in the same industry pay a better dividend than MFC!
- Compared to an average S&P500 Dividend Yield of 1.83, MFC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
5.2 History
- On average, the dividend of MFC grows each year by 20.17%, which is quite nice.
- MFC has been paying a dividend for at least 10 years, so it has a reliable track record.
- MFC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)20.17%
Div Incr Years11
Div Non Decr Years14
5.3 Sustainability
- 60.48% of the earnings are spent on dividend by MFC. This is not a sustainable payout ratio.
- MFC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP60.48%
EPS Next 2Y8.36%
EPS Next 3Y8.8%
TSX:MFC (1/20/2026, 7:00:00 PM)
50.63
-1.52 (-2.91%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)11-12 2025-11-12/amc
Earnings (Next)02-11 2026-02-11/amc
Inst Owners56.4%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap85.31B
Revenue(TTM)38.88B
Net Income(TTM)5.39B
Analysts74.74
Price Target54.79 (8.22%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
Yearly Dividend1.79
Dividend Growth(5Y)20.17%
DP60.48%
Div Incr Years11
Div Non Decr Years14
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.09%
Min EPS beat(2)-2.89%
Max EPS beat(2)11.07%
EPS beat(4)2
Avg EPS beat(4)3.88%
Min EPS beat(4)-2.89%
Max EPS beat(4)11.07%
EPS beat(8)6
Avg EPS beat(8)4.13%
EPS beat(12)9
Avg EPS beat(12)4.52%
EPS beat(16)11
Avg EPS beat(16)2.93%
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)2.04%
PT rev (3m)12.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.14%
EPS NY rev (1m)0%
EPS NY rev (3m)3.83%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.26 | ||
| Fwd PE | 11.11 | ||
| P/S | 2.19 | ||
| P/FCF | 2.79 | ||
| P/OCF | 2.79 | ||
| P/B | 1.66 | ||
| P/tB | 2.11 | ||
| EV/EBITDA | 7.35 |
EPS(TTM)4.13
EY8.16%
EPS(NY)4.56
Fwd EY9%
FCF(TTM)18.18
FCFY35.9%
OCF(TTM)18.18
OCFY35.9%
SpS23.08
BVpS30.53
TBVpS24.01
PEG (NY)1.49
PEG (5Y)2.23
Graham Number53.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.53% | ||
| ROE | 10.48% | ||
| ROCE | 0.88% | ||
| ROIC | 0.75% | ||
| ROICexc | 0.77% | ||
| ROICexgc | 1.81% | ||
| OM | 22.75% | ||
| PM (TTM) | 13.87% | ||
| GM | N/A | ||
| FCFM | 78.76% |
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
ROICexgc growth 3Y-2.15%
ROICexgc 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 | 0.26 | ||
| Debt/FCF | 0.44 | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 5.76 | ||
| Cash Conversion | 308.74% | ||
| Profit Quality | 568.01% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC8.29%
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)9.55%
EPS 3Y6.08%
EPS 5Y5.49%
EPS Q2Q%16%
EPS Next Y8.22%
EPS Next 2Y8.36%
EPS Next 3Y8.8%
EPS Next 5Y5.15%
Revenue 1Y (TTM)7.7%
Revenue growth 3Y-12.52%
Revenue growth 5Y-13.62%
Sales Q2Q%21.19%
Revenue Next Year8.86%
Revenue Next 2Y8.68%
Revenue Next 3Y6.97%
Revenue Next 5Y11.9%
EBIT growth 1Y1.1%
EBIT growth 3Y-1.3%
EBIT growth 5Y3.07%
EBIT Next Year-72.75%
EBIT Next 3Y-28.58%
EBIT Next 5YN/A
FCF growth 1Y60.02%
FCF growth 3Y4.59%
FCF growth 5Y5.22%
OCF growth 1Y60.02%
OCF growth 3Y4.59%
OCF growth 5Y5.22%
MANULIFE FINANCIAL CORP / MFC.CA FAQ
What is the fundamental rating for MFC stock?
ChartMill assigns a fundamental rating of 4 / 10 to MFC.CA.
Can you provide the valuation status for MANULIFE FINANCIAL CORP?
ChartMill assigns a valuation rating of 4 / 10 to MANULIFE FINANCIAL CORP (MFC.CA). This can be considered as Fairly Valued.
How profitable is MANULIFE FINANCIAL CORP (MFC.CA) stock?
MANULIFE FINANCIAL CORP (MFC.CA) has a profitability rating of 5 / 10.
How financially healthy is MANULIFE FINANCIAL CORP?
The financial health rating of MANULIFE FINANCIAL CORP (MFC.CA) is 4 / 10.
What is the earnings growth outlook for MANULIFE FINANCIAL CORP?
The Earnings per Share (EPS) of MANULIFE FINANCIAL CORP (MFC.CA) is expected to grow by 8.22% in the next year.