MANULIFE FINANCIAL CORP (MFC) Stock Fundamental Analysis
USA - NYSE:MFC - CA56501R1064 - Common Stock
31.265 USD
-0.22 (-0.71%)
We assign a fundamental rating of 4 out of 10 to MFC. MFC was compared to 146 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. Finally MFC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
MFC had positive earnings in the past year.
MFC had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 0.56%, MFC is doing worse than 67.12% of the companies in the same industry.
MFC has a Return On Equity (10.90%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 0.80%, MFC is not doing good in the industry: 60.27% of the companies in the same industry are doing better.
| 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's Profit Margin of 14.07% is fine compared to the rest of the industry. MFC outperforms 79.45% of its industry peers.
MFC's Profit Margin has improved in the last couple of years.
MFC's Operating Margin of 23.25% is amongst the best of the industry. MFC outperforms 89.04% of its industry peers.
In the last couple of years the Operating Margin of MFC has grown nicely.
| 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
MFC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for MFC has been reduced compared to a year ago.
2.2 Solvency
MFC has a debt to FCF ratio of 0.46. This is a very positive value and a sign of high solvency as it would only need 0.46 years to pay back of all of its debts.
MFC has a better Debt to FCF ratio (0.46) than 78.77% 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.
Looking at the Debt to Equity ratio, with a value of 0.27, MFC is in line with its industry, outperforming 59.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.46 | ||
| Altman-Z | N/A |
ROIC/WACC0.09
WACC8.49%
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.
Measured over the past 5 years, MFC shows a small growth in Earnings Per Share. The EPS has been growing by 5.49% on average per year.
Looking at the last year, MFC shows a quite strong growth in Revenue. The Revenue has grown by 11.59% in the last year.
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)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.
Based on estimates for the next years, MFC will show a quite strong growth in Revenue. The Revenue will grow by 11.05% on average per year.
EPS Next Y4.29%
EPS Next 2Y6.7%
EPS Next 3Y7.03%
EPS Next 5Y5.15%
Revenue Next Year8.59%
Revenue Next 2Y8.42%
Revenue Next 3Y7.1%
Revenue Next 5Y11.05%
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 10.82, which indicates a very decent valuation of MFC.
Compared to the rest of the industry, the Price/Earnings ratio of MFC is on the same level as its industry peers.
MFC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
A Price/Forward Earnings ratio of 9.73 indicates a reasonable valuation of MFC.
The rest of the industry has a similar Price/Forward Earnings ratio as MFC.
MFC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.82 | ||
| Fwd PE | 9.73 |
4.2 Price Multiples
70.55% of the companies in the same industry are more expensive than MFC, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MFC indicates a rather cheap valuation: MFC is cheaper than 88.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.55 | ||
| EV/EBITDA | 6.31 |
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)2.52
PEG (5Y)1.97
EPS Next 2Y6.7%
EPS Next 3Y7.03%
5. Dividend
5.1 Amount
MFC has a Yearly Dividend Yield of 4.00%, which is a nice return.
Compared to an average industry Dividend Yield of 3.43, 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
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
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 2Y6.7%
EPS Next 3Y7.03%
NYSE:MFC (9/17/2025, 11:40:04 AM)
31.265
-0.22 (-0.71%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners55.65%
Inst Owner Change2.26%
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap52.98B
Analysts76.47
Price Target35.47 (13.45%)
Short Float %0.82%
Short Ratio6.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
Yearly Dividend1.29
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)-1.71%
PT rev (3m)-1.6%
EPS NQ rev (1m)0.96%
EPS NQ rev (3m)-1.58%
EPS NY rev (1m)-3.13%
EPS NY rev (3m)-3.13%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.31%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.82 | ||
| Fwd PE | 9.73 | ||
| P/S | 1.89 | ||
| P/FCF | 2.55 | ||
| P/OCF | 2.55 | ||
| P/B | 1.46 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 6.31 |
EPS(TTM)2.89
EY9.24%
EPS(NY)3.21
Fwd EY10.28%
FCF(TTM)12.28
FCFY39.28%
OCF(TTM)12.28
OCFY39.28%
SpS16.58
BVpS21.4
TBVpS16.75
PEG (NY)2.52
PEG (5Y)1.97
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
WACC8.49%
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)7.59%
EPS 3Y6.08%
EPS 5Y5.49%
EPS Q2Q%4.4%
EPS Next Y4.29%
EPS Next 2Y6.7%
EPS Next 3Y7.03%
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 5Y11.05%
EBIT growth 1Y18.36%
EBIT growth 3Y-1.3%
EBIT growth 5Y3.07%
EBIT Next Year-70.64%
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%