MANULIFE FINANCIAL CORP (MFC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MFC - CA56501R1064 - Common Stock
35.29 USD
+0.03 (+0.09%)
35.29 USD
0 (0%)
MFC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 148 industry peers in the Insurance industry. MFC has an average financial health and profitability rating. MFC has a correct valuation and a medium growth rate. Finally MFC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year MFC was profitable.
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 in the lower half of the industry: MFC underperforms 72.97% of its industry peers.
The Return On Equity of MFC (10.48%) is comparable to the rest of the industry.
MFC has a Return On Invested Capital of 0.75%. This is in the lower half of the industry: MFC underperforms 64.86% 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 is in the better half of the industry, outperforming 76.35% of the companies in the same industry.
MFC's Profit Margin has improved in the last couple of years.
The Operating Margin of MFC (22.75%) is better than 81.76% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MFC 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.
MFC has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of MFC is 0.44, which is an excellent value as it means it would take MFC, only 0.44 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.44, MFC belongs to the best of the industry, outperforming 82.43% of the companies in the same industry.
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 60.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.44 | ||
| Altman-Z | N/A |
ROIC/WACC0.09
WACC8.17%
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 9.55%, which is quite good.
The Earnings Per Share has been growing slightly by 5.49% on average over the past years.
MFC shows a small growth in Revenue. In the last year, the Revenue has grown by 7.70%.
MFC shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -13.62% yearly.
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
The Earnings Per Share is expected to grow by 5.15% on average over the next years.
The Revenue is expected to grow by 12.43% on average over the next years. This is quite good.
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
A Price/Earnings ratio of 11.92 indicates a reasonable valuation of MFC.
The rest of the industry has a similar Price/Earnings ratio as MFC.
The average S&P500 Price/Earnings ratio is at 26.46. MFC is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.80, which indicates a very decent valuation of MFC.
The rest of the industry has a similar Price/Forward Earnings ratio as MFC.
The average S&P500 Price/Forward Earnings ratio is at 36.10. MFC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.92 | ||
| Fwd PE | 10.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MFC is valued a bit cheaper than the industry average as 64.86% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, MFC is valued cheaply inside the industry as 85.14% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.71 | ||
| EV/EBITDA | 7.1 |
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)1.45
PEG (5Y)2.17
EPS Next 2Y8.36%
EPS Next 3Y8.8%
5. Dividend
5.1 Amount
MFC has a Yearly Dividend Yield of 6.08%, which is a nice return.
MFC's Dividend Yield is rather good when compared to the industry average which is at 3.47. MFC pays more dividend than 90.54% of the companies in the same industry.
MFC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.08% |
5.2 History
The dividend of MFC is nicely growing with an annual growth rate of 20.17%!
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
MFC pays out 60.48% of its income as dividend. This is not a sustainable payout ratio.
The dividend of MFC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP60.48%
EPS Next 2Y8.36%
EPS Next 3Y8.8%
35.29
+0.03 (+0.09%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners56.33%
Inst Owner Change-1.42%
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap59.46B
Revenue(TTM)38.88B
Net Income(TTM)5.39B
Analysts74.74
Price Target38.45 (8.95%)
Short Float %0.8%
Short Ratio6.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.08% |
Yearly Dividend1.28
Dividend Growth(5Y)20.17%
DP60.48%
Div Incr Years3
Div Non Decr Years3
Ex-Date
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)6.16%
PT rev (3m)8.79%
EPS NQ rev (1m)3.65%
EPS NQ rev (3m)4.09%
EPS NY rev (1m)3.8%
EPS NY rev (3m)3.77%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.92 | ||
| Fwd PE | 10.8 | ||
| P/S | 2.13 | ||
| P/FCF | 2.71 | ||
| P/OCF | 2.71 | ||
| P/B | 1.61 | ||
| P/tB | 2.05 | ||
| EV/EBITDA | 7.1 |
EPS(TTM)2.96
EY8.39%
EPS(NY)3.27
Fwd EY9.26%
FCF(TTM)13.04
FCFY36.96%
OCF(TTM)13.04
OCFY36.96%
SpS16.56
BVpS21.91
TBVpS17.23
PEG (NY)1.45
PEG (5Y)2.17
Graham Number38.2
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
WACC8.17%
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 FAQ
What is the fundamental rating for MFC stock?
ChartMill assigns a fundamental rating of 4 / 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 11.92 and the Price/Book (PB) ratio is 1.61.
What is the financial health of MANULIFE FINANCIAL CORP (MFC) stock?
The financial health rating of MANULIFE FINANCIAL CORP (MFC) is 4 / 10.