MANULIFE FINANCIAL CORP (MFC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MFC - CA56501R1064 - Common Stock
34.87 USD
+0.33 (+0.96%)
34.8 USD
-0.07 (-0.2%)
Overall MFC gets a fundamental rating of 4 out of 10. We evaluated MFC against 147 industry peers in the Insurance industry. MFC has an average financial health and profitability rating. MFC has a correct valuation and a medium growth rate. Finally MFC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year MFC was profitable.
MFC had a positive operating cash flow in the past year.
Of the past 5 years MFC 4 years were profitable.
MFC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MFC (0.53%) is worse than 70.75% of its industry peers.
Looking at the Return On Equity, with a value of 10.48%, MFC is in line with its industry, outperforming 47.62% of the companies in the same industry.
MFC's Return On Invested Capital of 0.75% is on the low side compared to the rest of the industry. MFC is outperformed by 63.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.53% | ||
| ROE | 10.48% | ||
| ROIC | 0.75% |
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 (13.87%) than 76.19% of its industry peers.
In the last couple of years the Profit Margin of MFC has grown nicely.
MFC's Operating Margin of 22.75% is amongst the best of the industry. MFC outperforms 83.67% of its industry peers.
MFC's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.75% | ||
| PM (TTM) | 13.87% | ||
| 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.
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 0.44. This is a very positive value and a sign of high solvency as it would only need 0.44 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.44, MFC belongs to the best of the industry, outperforming 82.31% of the companies in the same industry.
A Debt/Equity ratio of 0.26 indicates that MFC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.26, MFC is in line with its industry, outperforming 59.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.44 | ||
| Altman-Z | N/A |
ROIC/WACC0.09
WACC8.17%
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 9.55% over the past year.
MFC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.49% yearly.
MFC shows a small growth in Revenue. In the last year, the Revenue has grown by 7.70%.
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)9.55%
EPS 3Y6.08%
EPS 5Y5.49%
EPS Q2Q%16%
Revenue 1Y (TTM)7.7%
Revenue growth 3Y-12.52%
Revenue growth 5Y-13.62%
Sales Q2Q%21.19%
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 5.15% on average per year.
MFC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.40% yearly.
EPS Next Y4.26%
EPS Next 2Y6.8%
EPS Next 3Y7.72%
EPS Next 5Y5.15%
Revenue Next Year8.38%
Revenue Next 2Y8.22%
Revenue Next 3Y6.84%
Revenue Next 5Y11.4%
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.
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
With a Price/Earnings ratio of 11.90, the valuation of MFC can be described as very reasonable.
MFC's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.65, MFC is valued rather cheaply.
A Price/Forward Earnings ratio of 11.11 indicates a reasonable valuation of MFC.
MFC's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of MFC to the average of the S&P500 Index (34.45), we can say MFC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.9 | ||
| Fwd PE | 11.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MFC is valued a bit cheaper than the industry average as 64.63% of the companies are valued more expensively.
MFC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MFC is cheaper than 86.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.72 | ||
| EV/EBITDA | 7.15 |
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)2.79
PEG (5Y)2.17
EPS Next 2Y6.8%
EPS Next 3Y7.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.16%, MFC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.46, MFC pays a better dividend. On top of this MFC pays more dividend than 91.16% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, MFC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.16% |
5.2 History
On average, the dividend of MFC grows each year by 20.17%, which is quite nice.
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
60.48% of the earnings are spent on dividend by MFC. This is not a sustainable payout ratio.
MFC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP60.48%
EPS Next 2Y6.8%
EPS Next 3Y7.72%
34.87
+0.33 (+0.96%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners55.61%
Inst Owner Change-1.42%
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap59.09B
Revenue(TTM)38.88B
Net Income(TTM)5.39B
Analysts74.74
Price Target38.07 (9.18%)
Short Float %0.88%
Short Ratio8.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.16% |
Yearly Dividend1.27
Dividend Growth(5Y)20.17%
DP60.48%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.09%
Min EPS beat(2)-2.89%
Max EPS beat(2)11.07%
EPS beat(4)2
Avg EPS beat(4)3.88%
Min EPS beat(4)-2.89%
Max EPS beat(4)11.07%
EPS beat(8)6
Avg EPS beat(8)4.13%
EPS beat(12)9
Avg EPS beat(12)4.52%
EPS beat(16)11
Avg EPS beat(16)2.93%
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)8.89%
PT rev (3m)7.72%
EPS NQ rev (1m)3.73%
EPS NQ rev (3m)3.68%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-0.03%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.9 | ||
| Fwd PE | 11.11 | ||
| P/S | 2.14 | ||
| P/FCF | 2.72 | ||
| P/OCF | 2.72 | ||
| P/B | 1.62 | ||
| P/tB | 2.06 | ||
| EV/EBITDA | 7.15 |
EPS(TTM)2.93
EY8.4%
EPS(NY)3.14
Fwd EY9%
FCF(TTM)12.82
FCFY36.76%
OCF(TTM)12.82
OCFY36.76%
SpS16.27
BVpS21.53
TBVpS16.93
PEG (NY)2.79
PEG (5Y)2.17
Graham Number37.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.53% | ||
| ROE | 10.48% | ||
| ROCE | 0.88% | ||
| ROIC | 0.75% | ||
| ROICexc | 0.77% | ||
| ROICexgc | 1.81% | ||
| OM | 22.75% | ||
| PM (TTM) | 13.87% | ||
| GM | N/A | ||
| FCFM | 78.76% |
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-Score5
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.44 | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 5.76 | ||
| Cash Conversion | 308.74% | ||
| Profit Quality | 568.01% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC8.17%
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)9.55%
EPS 3Y6.08%
EPS 5Y5.49%
EPS Q2Q%16%
EPS Next Y4.26%
EPS Next 2Y6.8%
EPS Next 3Y7.72%
EPS Next 5Y5.15%
Revenue 1Y (TTM)7.7%
Revenue growth 3Y-12.52%
Revenue growth 5Y-13.62%
Sales Q2Q%21.19%
Revenue Next Year8.38%
Revenue Next 2Y8.22%
Revenue Next 3Y6.84%
Revenue Next 5Y11.4%
EBIT growth 1Y1.1%
EBIT growth 3Y-1.3%
EBIT growth 5Y3.07%
EBIT Next Year-69.94%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y60.02%
FCF growth 3Y4.59%
FCF growth 5Y5.22%
OCF growth 1Y60.02%
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 11.9 and the Price/Book (PB) ratio is 1.62.
What is the financial health of MANULIFE FINANCIAL CORP (MFC) stock?
The financial health rating of MANULIFE FINANCIAL CORP (MFC) is 4 / 10.