MANULIFE FINANCIAL CORP (MFC) Stock Fundamental Analysis
NYSE:MFC - New York Stock Exchange, Inc. - CA56501R1064 - Common Stock - Currency: USD
MFC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 143 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
MFC had positive earnings in the past year.
In the past year MFC had a positive cash flow from operations.
MFC had positive earnings in 4 of the past 5 years.
MFC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MFC (0.52%) is worse than 71.13% of its industry peers.
With a Return On Equity value of 9.84%, MFC perfoms like the industry average, outperforming 49.30% of the companies in the same industry.
With a Return On Invested Capital value of 0.78%, MFC is not doing good in the industry: 62.68% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.52% | ||
| ROE | 9.84% | ||
| ROIC | 0.78% |
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's Profit Margin of 13.55% is fine compared to the rest of the industry. MFC outperforms 73.94% 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 23.43%, MFC belongs to the best of the industry, outperforming 84.51% of the companies in the same industry.
MFC's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.43% | ||
| PM (TTM) | 13.55% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
Compared to 1 year ago, MFC has an improved debt to assets ratio.
2.2 Solvency
MFC has a debt to FCF ratio of 0.53. This is a very positive value and a sign of high solvency as it would only need 0.53 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.53, MFC belongs to the best of the industry, outperforming 80.28% of the companies in the same industry.
MFC has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
MFC's Debt to Equity ratio of 0.27 is fine compared to the rest of the industry. MFC outperforms 63.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.53 | ||
| Altman-Z | N/A |
ROIC/WACC0.09
WACC8.23%
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 12.82% over the past year.
MFC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.62% yearly.
The Revenue has grown by 11.76% 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)12.82%
EPS 3Y6.3%
EPS 5Y5.62%
EPS Q2Q%14.52%
Revenue 1Y (TTM)11.76%
Revenue growth 3Y-12.52%
Revenue growth 5Y-13.62%
Sales Q2Q%48.7%
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 4.04% on average per year.
The Revenue is expected to grow by 23.38% on average over the next years. This is a very strong growth
EPS Next Y6.1%
EPS Next 2Y7.83%
EPS Next 3Y2.96%
EPS Next 5Y4.04%
Revenue Next Year11.17%
Revenue Next 2Y8.02%
Revenue Next 3Y29.74%
Revenue Next 5Y23.38%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
The Price/Earnings ratio is 11.30, which indicates a very decent valuation of MFC.
MFC's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of MFC to the average of the S&P500 Index (29.75), we can say MFC is valued rather cheaply.
A Price/Forward Earnings ratio of 10.67 indicates a reasonable valuation of MFC.
MFC's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.44, MFC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.3 | ||
| Fwd PE | 10.67 |
4.2 Price Multiples
MFC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MFC is cheaper than 72.54% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MFC is valued a bit cheaper than the industry average as 79.58% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.87 | ||
| EV/EBITDA | 6.83 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)1.85
PEG (5Y)2.01
EPS Next 2Y7.83%
EPS Next 3Y2.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.96%, MFC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.06, MFC pays a better dividend. On top of this MFC pays more dividend than 80.28% of the companies listed in the same industry.
MFC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
5.2 History
The dividend of MFC is nicely growing with an annual growth rate of 20.17%!
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
62.26% of the earnings are spent on dividend by MFC. 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.
DP62.26%
EPS Next 2Y7.83%
EPS Next 3Y2.96%
30.62
-0.54 (-1.73%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners56.7%
Inst Owner Change-2.19%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap52.76B
Analysts76.67
Price Target33.54 (9.54%)
Short Float %0.65%
Short Ratio5.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
Yearly Dividend1.24
Dividend Growth(5Y)20.17%
DP62.26%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.03%
Min EPS beat(2)5.71%
Max EPS beat(2)10.34%
EPS beat(4)4
Avg EPS beat(4)5.2%
Min EPS beat(4)2.05%
Max EPS beat(4)10.34%
EPS beat(8)7
Avg EPS beat(8)5.14%
EPS beat(12)9
Avg EPS beat(12)3.34%
EPS beat(16)12
Avg EPS beat(16)2.96%
Revenue beat(2)2
Avg Revenue beat(2)571.15%
Min Revenue beat(2)527.89%
Max Revenue beat(2)614.4%
Revenue beat(4)4
Avg Revenue beat(4)552.78%
Min Revenue beat(4)527.89%
Max Revenue beat(4)614.4%
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)0%
PT rev (3m)1.06%
EPS NQ rev (1m)0.67%
EPS NQ rev (3m)1.52%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)0.47%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.62%
Revenue NY rev (3m)1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.3 | ||
| Fwd PE | 10.67 | ||
| P/S | 2.03 | ||
| P/FCF | 2.87 | ||
| P/OCF | 2.87 | ||
| P/B | 1.48 | ||
| P/tB | 1.88 | ||
| EV/EBITDA | 6.83 |
EPS(TTM)2.71
EY8.85%
EPS(NY)2.87
Fwd EY9.38%
FCF(TTM)10.66
FCFY34.81%
OCF(TTM)10.66
OCFY34.81%
SpS15.06
BVpS20.73
TBVpS16.29
PEG (NY)1.85
PEG (5Y)2.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.52% | ||
| ROE | 9.84% | ||
| ROCE | 0.92% | ||
| ROIC | 0.78% | ||
| ROICexc | 0.8% | ||
| ROICexgc | 1.86% | ||
| OM | 23.43% | ||
| PM (TTM) | 13.55% | ||
| GM | N/A | ||
| FCFM | 70.77% |
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-Score5
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.53 | ||
| Debt/EBITDA | 1.47 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 5.57 | ||
| Cash Conversion | 274.83% | ||
| Profit Quality | 522.15% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC8.23%
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)12.82%
EPS 3Y6.3%
EPS 5Y5.62%
EPS Q2Q%14.52%
EPS Next Y6.1%
EPS Next 2Y7.83%
EPS Next 3Y2.96%
EPS Next 5Y4.04%
Revenue 1Y (TTM)11.76%
Revenue growth 3Y-12.52%
Revenue growth 5Y-13.62%
Sales Q2Q%48.7%
Revenue Next Year11.17%
Revenue Next 2Y8.02%
Revenue Next 3Y29.74%
Revenue Next 5Y23.38%
EBIT growth 1Y9.56%
EBIT growth 3Y-1.3%
EBIT growth 5Y3.07%
EBIT Next Year-70.25%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y29.73%
FCF growth 3Y4.59%
FCF growth 5Y5.22%
OCF growth 1Y29.73%
OCF growth 3Y4.59%
OCF growth 5Y5.22%