MANULIFE FINANCIAL CORP (MFC.CA) Stock Fundamental Analysis
TSX:MFC - Toronto Stock Exchange - CA56501R1064 - Common Stock - Currency: CAD
Taking everything into account, MFC scores 5 out of 10 in our fundamental rating. MFC was compared to 85 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.
MFC had a positive operating cash flow in the past year.
MFC had positive earnings in 4 of the past 5 years.
Each year in the past 5 years MFC had a positive operating cash flow.
1.2 Ratios
MFC has a Return On Assets (0.52%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 9.84%, MFC is doing worse than 84.88% of the companies in the same industry.
MFC has a Return On Invested Capital of 0.78%. This is comparable to the rest of the industry: MFC outperforms 54.65% 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's Profit Margin of 13.55% is amongst the best of the industry. MFC outperforms 81.40% of its industry peers.
MFC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 23.43%, MFC belongs to the top of the industry, outperforming 80.23% of the companies in the same industry.
MFC's Operating Margin has improved in the last couple of years.
| 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
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 0.53. 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.
The Debt to FCF ratio of MFC (0.53) is better than 86.05% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that MFC is not too dependend on debt financing.
MFC has a Debt to Equity ratio of 0.27. This is in the better half of the industry: MFC outperforms 68.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.53 | ||
| Altman-Z | N/A |
ROIC/WACC0.09
WACC8.24%
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 12.82%, which is quite good.
MFC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.62% yearly.
Looking at the last year, MFC shows a quite strong growth in Revenue. The Revenue has grown by 11.76% in the last year.
The Revenue for MFC have been decreasing by -13.62% on average. This is quite bad
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 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.04% yearly.
Based on estimates for the next years, MFC will show a very strong growth in Revenue. The Revenue will grow by 23.38% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 10.79, which indicates a very decent valuation of MFC.
Compared to the rest of the industry, the Price/Earnings ratio of MFC indicates a rather expensive valuation: MFC more expensive than 84.88% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MFC to the average of the S&P500 Index (29.35), we can say MFC is valued rather cheaply.
MFC is valuated reasonably with a Price/Forward Earnings ratio of 10.16.
Based on the Price/Forward Earnings ratio, MFC is valued a bit more expensive than 63.95% of the companies 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 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.79 | ||
| Fwd PE | 10.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MFC is valued a bit cheaper than the industry average as 76.74% of the companies are valued more expensively.
MFC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.74 | ||
| EV/EBITDA | 6.32 |
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)1.77
PEG (5Y)1.92
EPS Next 2Y7.83%
EPS Next 3Y2.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.19%, MFC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.24, MFC is paying slightly less dividend.
MFC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
5.2 History
On average, the dividend of MFC grows each year by 20.17%, which is quite nice.
MFC has paid a dividend for at least 10 years, which is 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
MFC pays out 62.26% of its income as dividend. This is not a sustainable payout ratio.
MFC'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%
TSX:MFC (3/7/2025, 7:00:00 PM)
42.08
+0.05 (+0.12%)
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 Cap72.52B
Analysts76.67
Price Target51.24 (21.77%)
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 Years11
Div Non Decr Years14
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)6.3%
PT rev (3m)8.43%
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 | 10.79 | ||
| Fwd PE | 10.16 | ||
| P/S | 1.94 | ||
| P/FCF | 2.74 | ||
| P/OCF | 2.74 | ||
| P/B | 1.41 | ||
| P/tB | 1.79 | ||
| EV/EBITDA | 6.32 |
EPS(TTM)3.9
EY9.27%
EPS(NY)4.14
Fwd EY9.84%
FCF(TTM)15.37
FCFY36.54%
OCF(TTM)15.37
OCFY36.54%
SpS21.72
BVpS29.91
TBVpS23.49
PEG (NY)1.77
PEG (5Y)1.92
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
WACC8.24%
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%