MANULIFE FINANCIAL CORP (MFC) Stock Fundamental Analysis
USA - NYSE:MFC - CA56501R1064 - Common Stock
34.43 USD
0 (0%)
34.65 USD
+0.22 (+0.64%)
Taking everything into account, MFC scores 5 out of 10 in our fundamental rating. MFC was compared to 146 industry peers in the Insurance industry. MFC has only an average score on both its financial health and profitability. MFC has a decent growth rate and is not valued too expensively.
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.
MFC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MFC's Return On Assets of 0.56% is on the low side compared to the rest of the industry. MFC is outperformed by 69.86% of its industry peers.
MFC has a Return On Equity (10.90%) which is in line with its industry peers.
MFC has a Return On Invested Capital of 0.80%. This is in the lower half of the industry: MFC underperforms 62.33% 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's Profit Margin of 14.07% is fine compared to the rest of the industry. MFC outperforms 76.71% 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 23.25%, MFC belongs to the top of the industry, outperforming 85.62% 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 | 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
The number of shares outstanding for MFC has been reduced compared to 5 years ago.
The debt/assets ratio for MFC has been reduced compared to a year ago.
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.
With an excellent Debt to FCF ratio value of 0.46, MFC belongs to the best of the industry, outperforming 80.82% of the companies in the same industry.
MFC has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of MFC (0.27) is better than 60.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.46 | ||
| Altman-Z | N/A |
ROIC/WACC0.1
WACC8.25%
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.
The Revenue for MFC have been decreasing by -13.62% on average. This is quite bad
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
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 11.40% on average per year.
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
A Price/Earnings ratio of 11.63 indicates a reasonable valuation of MFC.
MFC's Price/Earnings ratio is in line with the industry average.
MFC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.91.
A Price/Forward Earnings ratio of 10.90 indicates a reasonable valuation of MFC.
MFC's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 34.57. MFC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.63 | ||
| Fwd PE | 10.9 |
4.2 Price Multiples
65.75% 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 rather cheap when compared to the industry. MFC is cheaper than 84.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.86 | ||
| EV/EBITDA | 7.15 |
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 3.65%. Purely for dividend investing, there may be better candidates out there.
MFC's Dividend Yield is a higher than the industry average which is at 3.46.
Compared to an average S&P500 Dividend Yield of 2.36, MFC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
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 in the last 3 years.
Dividend Growth(5Y)20.17%
Div Incr Years3
Div Non Decr Years3
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%
34.43
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners55.61%
Inst Owner Change-1.07%
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap58.34B
Revenue(TTM)37.44B
Net Income(TTM)5.43B
Analysts74.74
Price Target36.01 (4.59%)
Short Float %0.33%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
Yearly Dividend1.28
Dividend Growth(5Y)20.17%
DP59.31%
Div Incr Years3
Div Non Decr Years3
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)3.58%
PT rev (3m)0.37%
EPS NQ rev (1m)-0.9%
EPS NQ rev (3m)-1.33%
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 | 10.9 | ||
| P/S | 2.12 | ||
| P/FCF | 2.86 | ||
| P/OCF | 2.86 | ||
| P/B | 1.64 | ||
| P/tB | 2.09 | ||
| EV/EBITDA | 7.15 |
EPS(TTM)2.96
EY8.6%
EPS(NY)3.16
Fwd EY9.18%
FCF(TTM)12.06
FCFY35.01%
OCF(TTM)12.06
OCFY35.01%
SpS16.28
BVpS21.01
TBVpS16.45
PEG (NY)2.73
PEG (5Y)2.12
Graham Number37.41
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
WACC8.25%
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 FAQ
What is the fundamental rating for MFC stock?
ChartMill assigns a fundamental rating of 5 / 10 to MFC.
What is the valuation status for MFC stock?
ChartMill assigns a valuation rating of 5 / 10 to MANULIFE FINANCIAL CORP (MFC). This can be considered as Fairly Valued.
How profitable is MANULIFE FINANCIAL CORP (MFC) stock?
MANULIFE FINANCIAL CORP (MFC) has a profitability rating of 4 / 10.
What are the PE and PB ratios of MANULIFE FINANCIAL CORP (MFC) stock?
The Price/Earnings (PE) ratio for MANULIFE FINANCIAL CORP (MFC) is 11.63 and the Price/Book (PB) ratio is 1.64.
What is the financial health of MANULIFE FINANCIAL CORP (MFC) stock?
The financial health rating of MANULIFE FINANCIAL CORP (MFC) is 4 / 10.