MANULIFE FINANCIAL CORP (MFC.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MFC - CA56501R1064 - Common Stock
48.66 CAD
+0.86 (+1.8%)
Overall MFC gets a fundamental rating of 5 out of 10. We evaluated MFC against 80 industry peers in the Insurance industry. Both the profitability and the financial health of MFC get a neutral evaluation. Nothing too spectacular is happening here. MFC has a correct valuation and a medium growth rate. Finally MFC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
MFC had positive earnings in the past year.
MFC had a positive operating cash flow in the past year.
MFC had positive earnings in 4 of the past 5 years.
MFC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MFC has a Return On Assets (0.53%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 10.48%, MFC is doing worse than 77.50% of the companies in the same industry.
MFC has a Return On Invested Capital of 0.75%. This is comparable to the rest of the industry: MFC outperforms 57.50% 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
MFC has a Profit Margin of 13.87%. This is amongst the best in the industry. MFC outperforms 81.25% of its industry peers.
MFC's Profit Margin has improved in the last couple of years.
MFC has a Operating Margin of 22.75%. This is in the better half of the industry: MFC outperforms 78.75% of its industry peers.
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
MFC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
MFC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MFC has less shares outstanding
MFC has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of MFC is 0.44, which is an excellent value as it means it would take MFC, only 0.44 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MFC (0.44) is better 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
WACC8.07%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
MFC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.55%, which is quite good.
MFC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.49% yearly.
Looking at the last year, MFC shows a small growth in Revenue. The Revenue has grown by 7.70% in the last year.
Measured over the past years, MFC 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.
The Revenue is expected to grow by 11.40% on average over the next years. This is quite good.
EPS Next Y4.26%
EPS Next 2Y6.8%
EPS Next 3Y7.72%
EPS Next 5Y5.15%
Revenue Next Year8.38%
Revenue Next 2Y8.22%
Revenue Next 3Y6.84%
Revenue Next 5Y11.4%
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
With a Price/Earnings ratio of 11.78, the valuation of MFC can be described as very reasonable.
Based on the Price/Earnings ratio, MFC is valued more expensive than 87.50% of the companies in the same industry.
MFC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.47.
With a Price/Forward Earnings ratio of 11.00, the valuation of MFC can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MFC indicates a slightly more expensive valuation: MFC is more expensive than 62.50% of the companies listed in the same industry.
MFC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.78 | ||
| Fwd PE | 11 |
4.2 Price Multiples
68.75% of the companies in the same industry are more expensive than MFC, based on the Enterprise Value to EBITDA ratio.
MFC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.69 | ||
| EV/EBITDA | 7.06 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.77
PEG (5Y)2.15
EPS Next 2Y6.8%
EPS Next 3Y7.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.16%, MFC is a good candidate for dividend investing.
MFC's Dividend Yield is rather good when compared to the industry average which is at 4.36. MFC pays more dividend than 86.25% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, MFC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.16% |
5.2 History
The dividend of MFC is nicely growing with an annual growth rate of 20.17%!
MFC has paid a dividend for at least 10 years, which is a reliable track record.
MFC has not decreased their dividend for at least 10 years, which is a reliable track record.
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.
The dividend of MFC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP60.48%
EPS Next 2Y6.8%
EPS Next 3Y7.72%
TSX:MFC (11/21/2025, 7:00:00 PM)
48.66
+0.86 (+1.8%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners55.61%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap82.45B
Revenue(TTM)38.88B
Net Income(TTM)5.39B
Analysts74.74
Price Target53.48 (9.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.16% |
Yearly Dividend1.79
Dividend Growth(5Y)20.17%
DP60.48%
Div Incr Years11
Div Non Decr Years14
Ex-Date
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)9.75%
PT rev (3m)9.04%
EPS NQ rev (1m)3.73%
EPS NQ rev (3m)3.68%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-0.03%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.78 | ||
| Fwd PE | 11 | ||
| P/S | 2.12 | ||
| P/FCF | 2.69 | ||
| P/OCF | 2.69 | ||
| P/B | 1.6 | ||
| P/tB | 2.04 | ||
| EV/EBITDA | 7.06 |
EPS(TTM)4.13
EY8.49%
EPS(NY)4.43
Fwd EY9.09%
FCF(TTM)18.07
FCFY37.14%
OCF(TTM)18.07
OCFY37.14%
SpS22.95
BVpS30.36
TBVpS23.88
PEG (NY)2.77
PEG (5Y)2.15
Graham Number53.11
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
WACC8.07%
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 Y4.26%
EPS Next 2Y6.8%
EPS Next 3Y7.72%
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 Year8.38%
Revenue Next 2Y8.22%
Revenue Next 3Y6.84%
Revenue Next 5Y11.4%
EBIT growth 1Y1.1%
EBIT growth 3Y-1.3%
EBIT growth 5Y3.07%
EBIT Next Year-69.94%
EBIT Next 3YN/A
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 5 / 10 to MFC.CA.
What is the valuation status for MFC stock?
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.
What are the PE and PB ratios of MANULIFE FINANCIAL CORP (MFC.CA) stock?
The Price/Earnings (PE) ratio for MANULIFE FINANCIAL CORP (MFC.CA) is 11.78 and the Price/Book (PB) ratio is 1.6.
What is the financial health of MANULIFE FINANCIAL CORP (MFC.CA) stock?
The financial health rating of MANULIFE FINANCIAL CORP (MFC.CA) is 4 / 10.