MANULIFE FINANCIAL CORP (MFC) Stock Fundamental Analysis
NYSE:MFC - New York Stock Exchange, Inc. - CA56501R1064 - Common Stock - Currency: USD
Taking everything into account, MFC scores 5 out of 10 in our fundamental rating. MFC was compared to 145 industry peers in the Insurance industry. MFC has an average financial health and profitability rating. MFC is not valued too expensively and it also shows a decent growth rate.
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.
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 0.48%. This is in the lower half of the industry: MFC underperforms 68.97% of its industry peers.
Looking at the Return On Equity, with a value of 9.06%, MFC is in line with its industry, outperforming 46.21% of the companies in the same industry.
The Return On Invested Capital of MFC (0.72%) is worse than 62.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 9.06% | ||
| ROIC | 0.72% |
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
The Profit Margin of MFC (12.55%) is better than 75.86% of its industry peers.
In the last couple of years the Profit Margin of MFC has grown nicely.
With an excellent Operating Margin value of 21.86%, MFC belongs to the best of the industry, outperforming 83.45% 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 | 21.86% | ||
| PM (TTM) | 12.55% | ||
| 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.
MFC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for MFC has been reduced compared to 5 years ago.
MFC has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of MFC is 0.50, which is an excellent value as it means it would take MFC, only 0.50 years of fcf income to pay off all of its debts.
MFC has a Debt to FCF ratio of 0.50. This is in the better half of the industry: MFC outperforms 78.62% of its industry peers.
MFC has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
MFC has a better Debt to Equity ratio (0.27) than 60.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.5 | ||
| Altman-Z | N/A |
ROIC/WACC0.09
WACC8.29%
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 8.86% over the past year.
MFC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.49% yearly.
Looking at the last year, MFC shows a quite strong growth in Revenue. The Revenue has grown by 11.13% 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)8.86%
EPS 3Y6.08%
EPS 5Y5.49%
EPS Q2Q%5.32%
Revenue 1Y (TTM)11.13%
Revenue growth 3Y-12.52%
Revenue growth 5Y-13.62%
Sales Q2Q%-11.27%
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 18.63% yearly.
EPS Next Y7.65%
EPS Next 2Y8.57%
EPS Next 3Y6.76%
EPS Next 5Y5.15%
Revenue Next Year9.3%
Revenue Next 2Y7.46%
Revenue Next 3Y6.55%
Revenue Next 5Y18.63%
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 10.62 indicates a reasonable valuation of MFC.
Based on the Price/Earnings ratio, MFC is valued a bit cheaper than 62.76% of the companies in the same industry.
MFC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 9.12, which indicates a very decent valuation of MFC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MFC is on the same level as its industry peers.
MFC is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.62 | ||
| Fwd PE | 9.12 |
4.2 Price Multiples
MFC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MFC is cheaper than 71.03% of the companies in the same industry.
85.52% of the companies in the same industry are more expensive than MFC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.5 | ||
| EV/EBITDA | 6.69 |
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)1.39
PEG (5Y)1.93
EPS Next 2Y8.57%
EPS Next 3Y6.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.58%, MFC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.64, MFC pays a bit more dividend than its industry peers.
MFC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.58% |
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
MFC pays out 67.87% 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.
DP67.87%
EPS Next 2Y8.57%
EPS Next 3Y6.76%
30.48
-0.24 (-0.78%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners55.65%
Inst Owner Change0%
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap52.20B
Analysts76.47
Price Target36.13 (18.54%)
Short Float %0.36%
Short Ratio2.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.58% |
Yearly Dividend1.31
Dividend Growth(5Y)20.17%
DP67.87%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.67%
Min EPS beat(2)-0.52%
Max EPS beat(2)7.87%
EPS beat(4)3
Avg EPS beat(4)3.94%
Min EPS beat(4)-0.52%
Max EPS beat(4)7.87%
EPS beat(8)7
Avg EPS beat(8)5.06%
EPS beat(12)9
Avg EPS beat(12)3.72%
EPS beat(16)11
Avg EPS beat(16)2.45%
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)1.45%
PT rev (3m)1.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.18%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.98%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.62 | ||
| Fwd PE | 9.12 | ||
| P/S | 1.91 | ||
| P/FCF | 2.5 | ||
| P/OCF | 2.5 | ||
| P/B | 1.38 | ||
| P/tB | 1.76 | ||
| EV/EBITDA | 6.69 |
EPS(TTM)2.87
EY9.42%
EPS(NY)3.34
Fwd EY10.96%
FCF(TTM)12.2
FCFY40.03%
OCF(TTM)12.2
OCFY40.03%
SpS15.95
BVpS22.08
TBVpS17.36
PEG (NY)1.39
PEG (5Y)1.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 9.06% | ||
| ROCE | 0.85% | ||
| ROIC | 0.72% | ||
| ROICexc | 0.74% | ||
| ROICexgc | 1.72% | ||
| OM | 21.86% | ||
| PM (TTM) | 12.55% | ||
| GM | N/A | ||
| FCFM | 76.52% |
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
ROICexcg growth 3Y-2.15%
ROICexcg 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-Score7
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.5 | ||
| Debt/EBITDA | 1.56 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 5.23 | ||
| Cash Conversion | 314.66% | ||
| Profit Quality | 609.81% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC8.29%
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)8.86%
EPS 3Y6.08%
EPS 5Y5.49%
EPS Q2Q%5.32%
EPS Next Y7.65%
EPS Next 2Y8.57%
EPS Next 3Y6.76%
EPS Next 5Y5.15%
Revenue 1Y (TTM)11.13%
Revenue growth 3Y-12.52%
Revenue growth 5Y-13.62%
Sales Q2Q%-11.27%
Revenue Next Year9.3%
Revenue Next 2Y7.46%
Revenue Next 3Y6.55%
Revenue Next 5Y18.63%
EBIT growth 1Y7.6%
EBIT growth 3Y-1.3%
EBIT growth 5Y3.07%
EBIT Next Year-70.64%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y67.64%
FCF growth 3Y4.59%
FCF growth 5Y5.22%
OCF growth 1Y67.64%
OCF growth 3Y4.59%
OCF growth 5Y5.22%