MANULIFE FINANCIAL CORP (MFC) Stock Fundamental Analysis
USA - NYSE:MFC - CA56501R1064 - Common Stock
33.02 USD
+0.65 (+2.01%)
33.02 USD
0 (0%)
MFC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 146 industry peers in the Insurance industry. MFC has only an average score on both its financial health and profitability. MFC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
MFC had positive earnings in the past year.
In the past year MFC had a positive cash flow from operations.
Of the past 5 years MFC 4 years were profitable.
In the past 5 years MFC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.56%, MFC is doing worse than 69.86% of the companies in the same industry.
MFC has a Return On Equity (10.90%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 0.80%, MFC is doing worse than 62.33% of the companies in the same industry.
| 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 has a better Profit Margin (14.07%) than 77.40% of its industry peers.
In the last couple of years the Profit Margin of MFC has grown nicely.
The Operating Margin of MFC (23.25%) is better than 88.36% 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.
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 0.46, 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 79.45% 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.
With a decent Debt to Equity ratio value of 0.27, MFC is doing good in the industry, outperforming 60.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.46 | ||
| Altman-Z | N/A |
ROIC/WACC0.1
WACC8.27%
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 been growing slightly by 7.59% over the past year.
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.
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)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
The Earnings Per Share is expected to grow by 5.15% on average over the next years.
Based on estimates for the next years, MFC will show a quite strong growth in Revenue. The Revenue will grow by 11.24% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
The Price/Earnings ratio is 11.67, which indicates a very decent valuation of MFC.
The rest of the industry has a similar Price/Earnings ratio as MFC.
Compared to an average S&P500 Price/Earnings ratio of 26.11, MFC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.50, the valuation of MFC can be described as reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as MFC.
MFC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.55, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.67 | ||
| Fwd PE | 10.5 |
4.2 Price Multiples
MFC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MFC is cheaper than 68.49% of the companies in the same industry.
MFC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MFC is cheaper than 86.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.74 | ||
| EV/EBITDA | 6.67 |
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)2.76
PEG (5Y)2.12
EPS Next 2Y6.64%
EPS Next 3Y6.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.27%, MFC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.27, MFC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, MFC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
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 59.31% of its income as dividend. 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 2Y6.64%
EPS Next 3Y6.89%
33.02
+0.65 (+2.01%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners55.61%
Inst Owner Change-0.67%
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap55.95B
Revenue(TTM)38.63B
Net Income(TTM)5.43B
Analysts74.44
Price Target36.22 (9.69%)
Short Float %0.33%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
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)2.12%
PT rev (3m)0.07%
EPS NQ rev (1m)-0.82%
EPS NQ rev (3m)-1.54%
EPS NY rev (1m)0%
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)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.67 | ||
| Fwd PE | 10.5 | ||
| P/S | 2.03 | ||
| P/FCF | 2.74 | ||
| P/OCF | 2.74 | ||
| P/B | 1.57 | ||
| P/tB | 2.01 | ||
| EV/EBITDA | 6.67 |
EPS(TTM)2.83
EY8.57%
EPS(NY)3.15
Fwd EY9.53%
FCF(TTM)12.04
FCFY36.45%
OCF(TTM)12.04
OCFY36.45%
SpS16.25
BVpS20.97
TBVpS16.42
PEG (NY)2.76
PEG (5Y)2.12
Graham Number36.55
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
WACC8.27%
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%
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 11.67 and the Price/Book (PB) ratio is 1.57.
What is the financial health of MANULIFE FINANCIAL CORP (MFC) stock?
The financial health rating of MANULIFE FINANCIAL CORP (MFC) is 4 / 10.