MANULIFE FINANCIAL CORP (MFC.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MFC - CA56501R1064 - Common Stock
52 CAD
+0.52 (+1.01%)
Taking everything into account, MFC scores 4 out of 10 in our fundamental rating. MFC was compared to 81 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
MFC had positive earnings in the past year.
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
MFC has a Return On Assets of 0.53%. This is comparable to the rest of the industry: MFC outperforms 48.15% of its industry peers.
MFC has a worse Return On Equity (10.48%) than 77.78% of its industry peers.
MFC's Return On Invested Capital of 0.75% is in line compared to the rest of the industry. MFC outperforms 58.02% 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
Looking at the Profit Margin, with a value of 13.87%, MFC belongs to the top of the industry, outperforming 81.48% of the companies in the same industry.
MFC's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 22.75%, MFC is doing good in the industry, outperforming 79.01% 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
MFC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for MFC has been reduced compared to 1 year ago.
MFC has less shares outstanding than it did 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's Debt to FCF ratio of 0.44 is amongst the best of the industry. MFC outperforms 82.72% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that MFC is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.26, MFC is doing good in the industry, outperforming 76.54% 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
WACC8.1%
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.
The Earnings Per Share has been growing slightly by 5.49% on average over the past years.
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
MFC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.15% yearly.
Based on estimates for the next years, MFC will show a quite strong growth in Revenue. The Revenue will grow by 12.43% 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 5Y12.43%
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 12.59, which indicates a correct valuation of MFC.
MFC's Price/Earnings ratio is a bit more expensive when compared to the industry. MFC is more expensive than 70.37% of the companies in the same industry.
When comparing the Price/Earnings ratio of MFC to the average of the S&P500 Index (27.19), we can say MFC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.41, the valuation of MFC can be described as reasonable.
Based on the Price/Forward Earnings ratio, MFC is valued a bit more expensive than 62.96% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MFC to the average of the S&P500 Index (23.88), we can say MFC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.59 | ||
| Fwd PE | 11.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MFC is valued a bit cheaper than 67.90% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MFC is valued a bit cheaper than the industry average as 61.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.86 | ||
| EV/EBITDA | 7.49 |
4.3 Compensation for Growth
MFC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.53
PEG (5Y)2.29
EPS Next 2Y8.36%
EPS Next 3Y8.8%
5. Dividend
5.1 Amount
MFC has a Yearly Dividend Yield of 3.42%. Purely for dividend investing, there may be better candidates out there.
MFC's Dividend Yield is slightly below the industry average, which is at 4.57.
Compared to an average S&P500 Dividend Yield of 1.94, MFC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
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 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 60.48% 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.
DP60.48%
EPS Next 2Y8.36%
EPS Next 3Y8.8%
TSX:MFC (1/9/2026, 7:00:00 PM)
52
+0.52 (+1.01%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners56.4%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap87.62B
Revenue(TTM)38.88B
Net Income(TTM)5.39B
Analysts74.74
Price Target53.77 (3.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
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)0.54%
PT rev (3m)10.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.05%
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 | 12.59 | ||
| Fwd PE | 11.41 | ||
| P/S | 2.25 | ||
| P/FCF | 2.86 | ||
| P/OCF | 2.86 | ||
| P/B | 1.7 | ||
| P/tB | 2.17 | ||
| EV/EBITDA | 7.49 |
EPS(TTM)4.13
EY7.94%
EPS(NY)4.56
Fwd EY8.76%
FCF(TTM)18.18
FCFY34.95%
OCF(TTM)18.18
OCFY34.95%
SpS23.08
BVpS30.53
TBVpS24.01
PEG (NY)1.53
PEG (5Y)2.29
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
WACC8.1%
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 5Y12.43%
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.