MANULIFE FINANCIAL CORP (MFC)
CA56501R1064 - Common Stock
Taking everything into account, MFC scores 5 out of 10 in our fundamental rating. MFC was compared to 141 industry peers in the Insurance industry. MFC has only an average score on both its financial health and profitability. MFC has a correct valuation and a medium 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.
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
The Return On Assets of MFC (0.54%) is worse than 69.29% of its industry peers.
The Return On Equity of MFC (10.18%) is comparable to the rest of the industry.
MFC has a worse Return On Invested Capital (0.82%) than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 10.18% | ||
| ROIC | 0.82% |
ROA(3y)0.35%
ROA(5y)0.47%
ROE(3y)5.84%
ROE(5y)7.94%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
MFC's Profit Margin of 14.12% is fine compared to the rest of the industry. MFC outperforms 74.29% of its industry peers.
In the last couple of years the Profit Margin of MFC has grown nicely.
MFC has a better Operating Margin (24.24%) than 82.86% of its industry peers.
In the last couple of years the Operating Margin of MFC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.24% | ||
| PM (TTM) | 14.12% | ||
| GM | N/A |
OM growth 3Y40.5%
OM growth 5Y5.56%
PM growth 3Y21.82%
PM growth 5Y2.88%
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.
Compared to 1 year ago, MFC has less shares outstanding
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
MFC has a debt to FCF ratio of 0.52. This is a very positive value and a sign of high solvency as it would only need 0.52 years to pay back of all of its debts.
MFC has a Debt to FCF ratio of 0.52. This is amongst the best in the industry. MFC outperforms 82.14% of its industry peers.
MFC has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.26, MFC is doing good in the industry, outperforming 61.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.52 | ||
| Altman-Z | N/A |
ROIC/WACC0.1
WACC8.23%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
MFC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.23%, which is quite good.
MFC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.78% yearly.
The Revenue has grown by 13.06% in the past year. This is quite good.
The Revenue has been decreasing by -2.11% on average over the past years.
EPS 1Y (TTM)10.23%
EPS 3Y7.83%
EPS 5Y4.78%
EPS Q2Q%8.7%
Revenue 1Y (TTM)13.06%
Revenue growth 3Y-22.48%
Revenue growth 5Y-2.11%
Sales Q2Q%77.9%
3.2 Future
The Earnings Per Share is expected to grow by 5.39% on average over the next years.
MFC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.75% yearly.
EPS Next Y10.52%
EPS Next 2Y9.15%
EPS Next 3Y8.91%
EPS Next 5Y5.39%
Revenue Next Year-13.04%
Revenue Next 2Y-2.28%
Revenue Next 3Y-0.16%
Revenue Next 5Y14.75%
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
A Price/Earnings ratio of 11.58 indicates a reasonable valuation of MFC.
The rest of the industry has a similar Price/Earnings ratio as MFC.
MFC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.73.
MFC is valuated reasonably with a Price/Forward Earnings ratio of 10.57.
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 22.83, MFC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.58 | ||
| Fwd PE | 10.57 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MFC indicates a somewhat cheap valuation: MFC is cheaper than 70.71% of the companies listed in the same industry.
81.43% 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 | 2.99 | ||
| EV/EBITDA | 7.06 |
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)1.1
PEG (5Y)2.42
EPS Next 2Y9.15%
EPS Next 3Y8.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.69%, MFC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.33, MFC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, MFC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
5.2 History
On average, the dividend of MFC grows each year by 12.35%, 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)12.35%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
MFC pays out 61.19% of its income as dividend. This is not a sustainable payout ratio.
MFC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP61.19%
EPS Next 2Y9.15%
EPS Next 3Y8.91%
MANULIFE FINANCIAL CORP
NYSE:MFC (12/20/2024, 8:24:08 PM)
After market: 30.33 0 (0%)30.33
+0.25 (+0.83%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners60.28%
Inst Owner Change-3.18%
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap53.13B
Analysts76.84
Price Target33.69 (11.08%)
Short Float %1.43%
Short Ratio12.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
Dividend Growth(5Y)12.35%
DP61.19%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.2%
Min EPS beat(2)2.69%
Max EPS beat(2)5.71%
EPS beat(4)4
Avg EPS beat(4)4.37%
Min EPS beat(4)2.05%
Max EPS beat(4)7.05%
EPS beat(8)7
Avg EPS beat(8)4.84%
EPS beat(12)9
Avg EPS beat(12)2.62%
EPS beat(16)12
Avg EPS beat(16)2.46%
Revenue beat(2)2
Avg Revenue beat(2)571.51%
Min Revenue beat(2)528.61%
Max Revenue beat(2)614.4%
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)14.28%
PT rev (3m)14.71%
EPS NQ rev (1m)-0.63%
EPS NQ rev (3m)-0.63%
EPS NY rev (1m)1.83%
EPS NY rev (3m)1.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.67%
Revenue NY rev (3m)-0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.58 | ||
| Fwd PE | 10.57 | ||
| P/S | 2.11 | ||
| P/FCF | 2.99 | ||
| P/OCF | 2.99 | ||
| P/B | 1.52 | ||
| P/tB | 1.94 | ||
| EV/EBITDA | 7.06 |
EPS(TTM)2.62
EY8.64%
EPS(NY)2.87
Fwd EY9.46%
FCF(TTM)10.15
FCFY33.46%
OCF(TTM)10.15
OCFY33.46%
SpS14.35
BVpS19.9
TBVpS15.64
PEG (NY)1.1
PEG (5Y)2.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 10.18% | ||
| ROCE | 0.94% | ||
| ROIC | 0.82% | ||
| ROICexc | 0.84% | ||
| ROICexgc | 1.95% | ||
| OM | 24.24% | ||
| PM (TTM) | 14.12% | ||
| GM | N/A | ||
| FCFM | 70.72% |
ROA(3y)0.35%
ROA(5y)0.47%
ROE(3y)5.84%
ROE(5y)7.94%
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 3Y7.77%
ROICexcg growth 5Y-0.14%
ROICexc growth 3Y8.9%
ROICexc growth 5Y0.2%
OM growth 3Y40.5%
OM growth 5Y5.56%
PM growth 3Y21.82%
PM growth 5Y2.88%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.52 | ||
| Debt/EBITDA | 1.41 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 5.56 | ||
| Cash Conversion | 273% | ||
| Profit Quality | 500.96% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC8.23%
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)10.23%
EPS 3Y7.83%
EPS 5Y4.78%
EPS Q2Q%8.7%
EPS Next Y10.52%
EPS Next 2Y9.15%
EPS Next 3Y8.91%
EPS Next 5Y5.39%
Revenue 1Y (TTM)13.06%
Revenue growth 3Y-22.48%
Revenue growth 5Y-2.11%
Sales Q2Q%77.9%
Revenue Next Year-13.04%
Revenue Next 2Y-2.28%
Revenue Next 3Y-0.16%
Revenue Next 5Y14.75%
EBIT growth 1Y34.07%
EBIT growth 3Y8.91%
EBIT growth 5Y3.34%
EBIT Next Year-71.84%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y38.16%
FCF growth 3Y0.62%
FCF growth 5Y1.26%
OCF growth 1Y38.16%
OCF growth 3Y0.62%
OCF growth 5Y1.26%