MANULIFE FINANCIAL CORP (MFC) Stock Fundamental Analysis
USA - NYSE:MFC - CA56501R1064 - Common Stock
31.64 USD
-0.01 (-0.03%)
31.75 USD
+0.11 (+0.35%)
MFC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 147 industry peers in the Insurance industry. Both the profitability and the financial health of MFC get a neutral evaluation. Nothing too spectacular is happening here. 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.
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 0.56%. This is in the lower half of the industry: MFC underperforms 69.39% of its industry peers.
Looking at the Return On Equity, with a value of 10.90%, MFC is in line with its industry, outperforming 53.74% of the companies in the same industry.
MFC's Return On Invested Capital of 0.80% is on the low side compared to the rest of the industry. MFC is outperformed by 61.90% 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
Looking at the Profit Margin, with a value of 14.07%, MFC is in the better half of the industry, outperforming 78.23% of the companies in the same industry.
In the last couple of years the Profit Margin of MFC has grown nicely.
MFC has a better Operating Margin (23.25%) than 88.44% 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
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.
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 0.46, which is an excellent value as it means it would take MFC, only 0.46 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MFC (0.46) is better than 79.59% 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 Debt to Equity ratio of 0.27. This is comparable to the rest of the industry: MFC outperforms 59.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.46 | ||
| Altman-Z | N/A |
ROIC/WACC0.1
WACC8.28%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
MFC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.59%.
The Earnings Per Share has been growing slightly by 5.49% on average over the past years.
The Revenue has grown by 11.59% 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)7.59%
EPS 3Y6.08%
EPS 5Y5.49%
EPS Q2Q%4.4%
Revenue 1Y (TTM)11.59%
Revenue growth 3Y-12.52%
Revenue growth 5Y-13.62%
Sales Q2Q%19.94%
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.
MFC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.24% yearly.
EPS Next Y4.23%
EPS Next 2Y6.64%
EPS Next 3Y6.89%
EPS Next 5Y5.15%
Revenue Next Year8.59%
Revenue Next 2Y8.42%
Revenue Next 3Y7.1%
Revenue Next 5Y11.24%
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
MFC is valuated reasonably with a Price/Earnings ratio of 11.18.
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 27.42.
A Price/Forward Earnings ratio of 10.06 indicates a reasonable 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, MFC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.18 | ||
| Fwd PE | 10.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MFC is valued a bit cheaper than 70.07% of the companies in the same industry.
87.76% 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 | 2.63 | ||
| EV/EBITDA | 6.5 |
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)2.64
PEG (5Y)2.04
EPS Next 2Y6.64%
EPS Next 3Y6.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.96%, MFC has a reasonable but not impressive dividend return.
MFC's Dividend Yield is rather good when compared to the industry average which is at 3.31. MFC pays more dividend than 81.63% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, MFC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
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 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.
The dividend of MFC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP59.31%
EPS Next 2Y6.64%
EPS Next 3Y6.89%
31.64
-0.01 (-0.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners55.61%
Inst Owner Change-0.18%
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap53.61B
Analysts74.44
Price Target34.97 (10.52%)
Short Float %0.38%
Short Ratio3.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
Yearly Dividend1.27
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)-1.41%
PT rev (3m)-3.38%
EPS NQ rev (1m)-0.91%
EPS NQ rev (3m)-1.26%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-3.18%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.18 | ||
| Fwd PE | 10.06 | ||
| P/S | 1.95 | ||
| P/FCF | 2.63 | ||
| P/OCF | 2.63 | ||
| P/B | 1.51 | ||
| P/tB | 1.93 | ||
| EV/EBITDA | 6.5 |
EPS(TTM)2.83
EY8.94%
EPS(NY)3.14
Fwd EY9.94%
FCF(TTM)12.03
FCFY38.02%
OCF(TTM)12.03
OCFY38.02%
SpS16.24
BVpS20.96
TBVpS16.41
PEG (NY)2.64
PEG (5Y)2.04
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
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-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
WACC8.28%
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)7.59%
EPS 3Y6.08%
EPS 5Y5.49%
EPS Q2Q%4.4%
EPS Next Y4.23%
EPS Next 2Y6.64%
EPS Next 3Y6.89%
EPS Next 5Y5.15%
Revenue 1Y (TTM)11.59%
Revenue growth 3Y-12.52%
Revenue growth 5Y-13.62%
Sales Q2Q%19.94%
Revenue Next Year8.59%
Revenue Next 2Y8.42%
Revenue Next 3Y7.1%
Revenue Next 5Y11.24%
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%