MANULIFE FINANCIAL CORP (MFC) Stock Fundamental Analysis
NYSE:MFC - New York Stock Exchange, Inc. - CA56501R1064 - Common Stock - Currency: USD
Overall MFC gets a fundamental rating of 4 out of 10. We evaluated MFC against 144 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.
Of the past 5 years MFC 4 years were profitable.
Each year in the past 5 years MFC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.54%, MFC is doing worse than 70.42% of the companies in the same industry.
MFC has a Return On Equity (10.18%) which is comparable to the rest of the industry.
MFC has a Return On Invested Capital of 0.82%. This is in the lower half of the industry: MFC underperforms 61.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 10.18% | ||
| ROIC | 0.82% |
ROA(3y)0.35%
ROA(5y)0.47%
ROE(3y)5.84%
ROE(5y)7.94%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 14.12%, MFC is in the better half of the industry, outperforming 74.65% of the companies in the same industry.
In the last couple of years the Profit Margin of MFC has grown nicely.
Looking at the Operating Margin, with a value of 24.24%, MFC belongs to the top of the industry, outperforming 83.10% 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 | 24.24% | ||
| PM (TTM) | 14.12% | ||
| GM | N/A |
OM growth 3Y40.5%
OM growth 5Y5.56%
PM growth 3Y21.82%
PM growth 5Y2.88%
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
MFC has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of MFC is 0.52, which is an excellent value as it means it would take MFC, only 0.52 years of fcf income to pay off all of its debts.
MFC has a better Debt to FCF ratio (0.52) than 82.39% 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 has a better Debt to Equity ratio (0.26) than 61.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.52 | ||
| Altman-Z | N/A |
ROIC/WACC0.1
WACC8.22%
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 10.23% over the past year.
The Earnings Per Share has been growing slightly by 4.78% on average over the past years.
Looking at the last year, MFC shows a quite strong growth in Revenue. The Revenue has grown by 13.06% in the last year.
Measured over the past years, MFC shows a decrease in Revenue. The Revenue has been decreasing by -2.11% on average per year.
EPS 1Y (TTM)10.23%
EPS 3Y7.83%
EPS 5Y4.78%
EPS Q2Q%8.7%
Revenue 1Y (TTM)13.06%
Revenue growth 3Y-22.48%
Revenue growth 5Y-2.11%
Sales Q2Q%77.9%
3.2 Future
MFC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.82% yearly.
MFC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.21% yearly.
EPS Next Y10.52%
EPS Next 2Y9.15%
EPS Next 3Y8.91%
EPS Next 5Y5.82%
Revenue Next Year-13.04%
Revenue Next 2Y-2.28%
Revenue Next 3Y-0.16%
Revenue Next 5Y15.21%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 11.42, the valuation of MFC can be described as very reasonable.
The rest of the industry has a similar Price/Earnings ratio as MFC.
The average S&P500 Price/Earnings ratio is at 28.46. MFC is valued rather cheaply when compared to this.
MFC is valuated reasonably with a Price/Forward Earnings ratio of 10.46.
MFC's Price/Forward Earnings ratio is in line with the industry average.
MFC is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.42 | ||
| Fwd PE | 10.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MFC is valued a bit cheaper than the industry average as 69.72% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MFC indicates a somewhat cheap valuation: MFC is cheaper than 79.58% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.96 | ||
| EV/EBITDA | 7.21 |
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)1.09
PEG (5Y)2.39
EPS Next 2Y9.15%
EPS Next 3Y8.91%
5. Dividend
5.1 Amount
MFC has a Yearly Dividend Yield of 3.63%. 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 3.11.
Compared to an average S&P500 Dividend Yield of 2.27, MFC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
5.2 History
On average, the dividend of MFC grows each year by 12.35%, 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)12.35%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
61.19% of the earnings are spent on dividend by MFC. This is not a sustainable payout ratio.
MFC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP61.19%
EPS Next 2Y9.15%
EPS Next 3Y8.91%
MANULIFE FINANCIAL CORP
NYSE:MFC (1/31/2025, 8:04:00 PM)
After market: 29.9311 +0.02 (+0.07%)29.91
-0.62 (-2.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners60.28%
Inst Owner Change-0.05%
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap52.40B
Analysts76.84
Price Target32.97 (10.23%)
Short Float %0.54%
Short Ratio4.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
Yearly Dividend1.62
Dividend Growth(5Y)12.35%
DP61.19%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.2%
Min EPS beat(2)2.69%
Max EPS beat(2)5.71%
EPS beat(4)4
Avg EPS beat(4)4.37%
Min EPS beat(4)2.05%
Max EPS beat(4)7.05%
EPS beat(8)7
Avg EPS beat(8)4.84%
EPS beat(12)9
Avg EPS beat(12)2.62%
EPS beat(16)12
Avg EPS beat(16)2.46%
Revenue beat(2)2
Avg Revenue beat(2)571.51%
Min Revenue beat(2)528.61%
Max Revenue beat(2)614.4%
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)-2.11%
PT rev (3m)11.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.63%
EPS NY rev (1m)0%
EPS NY rev (3m)1.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.42 | ||
| Fwd PE | 10.46 | ||
| P/S | 2.09 | ||
| P/FCF | 2.96 | ||
| P/OCF | 2.96 | ||
| P/B | 1.51 | ||
| P/tB | 1.92 | ||
| EV/EBITDA | 7.21 |
EPS(TTM)2.62
EY8.76%
EPS(NY)2.86
Fwd EY9.56%
FCF(TTM)10.11
FCFY33.8%
OCF(TTM)10.11
OCFY33.8%
SpS14.3
BVpS19.83
TBVpS15.58
PEG (NY)1.09
PEG (5Y)2.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 10.18% | ||
| ROCE | 0.94% | ||
| ROIC | 0.82% | ||
| ROICexc | 0.84% | ||
| ROICexgc | 1.95% | ||
| OM | 24.24% | ||
| PM (TTM) | 14.12% | ||
| GM | N/A | ||
| FCFM | 70.72% |
ROA(3y)0.35%
ROA(5y)0.47%
ROE(3y)5.84%
ROE(5y)7.94%
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 3Y7.77%
ROICexcg growth 5Y-0.14%
ROICexc growth 3Y8.9%
ROICexc growth 5Y0.2%
OM growth 3Y40.5%
OM growth 5Y5.56%
PM growth 3Y21.82%
PM growth 5Y2.88%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.52 | ||
| Debt/EBITDA | 1.41 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 5.56 | ||
| Cash Conversion | 273% | ||
| Profit Quality | 500.96% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC8.22%
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)10.23%
EPS 3Y7.83%
EPS 5Y4.78%
EPS Q2Q%8.7%
EPS Next Y10.52%
EPS Next 2Y9.15%
EPS Next 3Y8.91%
EPS Next 5Y5.82%
Revenue 1Y (TTM)13.06%
Revenue growth 3Y-22.48%
Revenue growth 5Y-2.11%
Sales Q2Q%77.9%
Revenue Next Year-13.04%
Revenue Next 2Y-2.28%
Revenue Next 3Y-0.16%
Revenue Next 5Y15.21%
EBIT growth 1Y34.07%
EBIT growth 3Y8.91%
EBIT growth 5Y3.34%
EBIT Next Year-71.84%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y38.16%
FCF growth 3Y0.62%
FCF growth 5Y1.26%
OCF growth 1Y38.16%
OCF growth 3Y0.62%
OCF growth 5Y1.26%