MANULIFE FINANCIAL CORP (MFC.CA) Stock Fundamental Analysis
Canada - TSX:MFC - CA56501R1064 - Common Stock
48.26 CAD
-0.04 (-0.08%)
MFC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 80 industry peers in the Insurance industry. MFC has an average financial health and profitability rating. MFC has a decent growth rate and is not valued too expensively. Finally MFC also has an excellent dividend rating.
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 of 0.56%. This is comparable to the rest of the industry: MFC outperforms 51.25% of its industry peers.
MFC's Return On Equity of 10.90% is on the low side compared to the rest of the industry. MFC is outperformed by 75.00% of its industry peers.
MFC has a Return On Invested Capital of 0.80%. This is comparable to the rest of the industry: MFC outperforms 58.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.56% | ||
| ROE | 10.9% | ||
| ROIC | 0.8% |
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 14.07%. 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.
MFC has a Operating Margin of 23.25%. This is in the better half of the industry: MFC outperforms 78.75% of its industry peers.
MFC's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.25% | ||
| PM (TTM) | 14.07% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MFC is destroying value.
Compared to 1 year ago, MFC has less shares outstanding
Compared to 5 years ago, MFC has less shares outstanding
Compared to 1 year ago, MFC has an improved debt to assets ratio.
2.2 Solvency
MFC has a debt to FCF ratio of 0.46. This is a very positive value and a sign of high solvency as it would only need 0.46 years to pay back of all of its debts.
The Debt to FCF ratio of MFC (0.46) is better than 83.75% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that MFC is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.27, MFC is doing good in the industry, outperforming 66.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.46 | ||
| Altman-Z | N/A |
ROIC/WACC0.1
WACC8.16%
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 9.99%, which is quite good.
Measured over the past 5 years, MFC shows a small growth in Earnings Per Share. The EPS has been growing by 5.49% on average per year.
The Revenue has grown by 11.76% in the past year. This is quite good.
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)9.99%
EPS 3Y6.08%
EPS 5Y5.49%
EPS Q2Q%17.66%
Revenue 1Y (TTM)11.76%
Revenue growth 3Y-12.52%
Revenue growth 5Y-13.62%
Sales Q2Q%21.19%
3.2 Future
Based on estimates for the next years, MFC will show a small growth in Earnings Per Share. The EPS will grow by 5.15% on average per year.
MFC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.40% yearly.
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
MFC is valuated reasonably with a Price/Earnings ratio of 11.63.
Compared to the rest of the industry, the Price/Earnings ratio of MFC indicates a rather expensive valuation: MFC more expensive than 87.50% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.89. MFC is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.91 indicates a reasonable valuation of MFC.
MFC's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. MFC is 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 (34.59), we can say MFC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.63 | ||
| Fwd PE | 10.91 |
4.2 Price Multiples
MFC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MFC is cheaper than 68.75% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as MFC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.86 | ||
| EV/EBITDA | 7.16 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MFC does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.73
PEG (5Y)2.12
EPS Next 2Y6.8%
EPS Next 3Y7.72%
5. Dividend
5.1 Amount
MFC has a Yearly Dividend Yield of 4.51%, which is a nice return.
Compared to an average industry Dividend Yield of 4.39, MFC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, MFC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.51% |
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
59.31% of the earnings are spent on dividend by MFC. This is a bit on the high side, but may be sustainable.
MFC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP59.31%
EPS Next 2Y6.8%
EPS Next 3Y7.72%
TSX:MFC (11/14/2025, 7:00:00 PM)
48.26
-0.04 (-0.08%)
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 Cap81.78B
Revenue(TTM)37.44B
Net Income(TTM)5.43B
Analysts74.74
Price Target50.49 (4.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.51% |
Yearly Dividend1.79
Dividend Growth(5Y)20.17%
DP59.31%
Div Incr Years11
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.7%
Min EPS beat(2)-2.89%
Max EPS beat(2)-0.52%
EPS beat(4)2
Avg EPS beat(4)2.54%
Min EPS beat(4)-2.89%
Max EPS beat(4)7.87%
EPS beat(8)6
Avg EPS beat(8)4.05%
EPS beat(12)8
Avg EPS beat(12)3.32%
EPS beat(16)10
Avg EPS beat(16)1.94%
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)3.62%
PT rev (3m)2.8%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)-0.08%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-3.15%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.63 | ||
| Fwd PE | 10.91 | ||
| P/S | 2.12 | ||
| P/FCF | 2.86 | ||
| P/OCF | 2.86 | ||
| P/B | 1.64 | ||
| P/tB | 2.1 | ||
| EV/EBITDA | 7.16 |
EPS(TTM)4.15
EY8.6%
EPS(NY)4.43
Fwd EY9.17%
FCF(TTM)16.88
FCFY34.98%
OCF(TTM)16.88
OCFY34.98%
SpS22.8
BVpS29.42
TBVpS23.03
PEG (NY)2.73
PEG (5Y)2.12
Graham Number52.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.56% | ||
| ROE | 10.9% | ||
| ROCE | 0.94% | ||
| ROIC | 0.8% | ||
| ROICexc | 0.82% | ||
| ROICexgc | 1.91% | ||
| OM | 23.25% | ||
| PM (TTM) | 14.07% | ||
| GM | N/A | ||
| FCFM | 74.06% |
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-Score8
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.46 | ||
| Debt/EBITDA | 1.33 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 5.72 | ||
| Cash Conversion | 287.17% | ||
| Profit Quality | 526.46% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC8.16%
ROIC/WACC0.1
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)9.99%
EPS 3Y6.08%
EPS 5Y5.49%
EPS Q2Q%17.66%
EPS Next Y4.26%
EPS Next 2Y6.8%
EPS Next 3Y7.72%
EPS Next 5Y5.15%
Revenue 1Y (TTM)11.76%
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 1Y18.36%
EBIT growth 3Y-1.3%
EBIT growth 5Y3.07%
EBIT Next Year-69.94%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y57.69%
FCF growth 3Y4.59%
FCF growth 5Y5.22%
OCF growth 1Y57.69%
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 11.63 and the Price/Book (PB) ratio is 1.64.
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.