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MANULIFE FINANCIAL CORP - MFCCN 5.978 PERP (MFC-PR-I.CA) Stock Fundamental Analysis

TSX:MFC-PR-I - Toronto Stock Exchange - CA56501R7830 - Currency: CAD

24.84  +0.12 (+0.49%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to MFC-PR-I. MFC-PR-I was compared to 84 industry peers in the Insurance industry. MFC-PR-I has only an average score on both its financial health and profitability. MFC-PR-I has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

In the past year MFC-PR-I was profitable.
MFC-PR-I had a positive operating cash flow in the past year.
Of the past 5 years MFC-PR-I 4 years were profitable.
Each year in the past 5 years MFC-PR-I had a positive operating cash flow.
MFC-PR-I.CA Yearly Net Income VS EBIT VS OCF VS FCFMFC-PR-I.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B 15B 20B

1.2 Ratios

MFC-PR-I has a Return On Assets (0.54%) which is comparable to the rest of the industry.
MFC-PR-I has a Return On Equity of 10.18%. This is in the lower half of the industry: MFC-PR-I underperforms 67.47% of its industry peers.
With a Return On Invested Capital value of 0.82%, MFC-PR-I perfoms like the industry average, outperforming 56.63% of the companies in the same industry.
Industry RankSector 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
MFC-PR-I.CA Yearly ROA, ROE, ROICMFC-PR-I.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10

1.3 Margins

MFC-PR-I's Profit Margin of 14.12% is amongst the best of the industry. MFC-PR-I outperforms 83.13% of its industry peers.
MFC-PR-I's Profit Margin has improved in the last couple of years.
MFC-PR-I's Operating Margin of 24.24% is amongst the best of the industry. MFC-PR-I outperforms 81.93% of its industry peers.
In the last couple of years the Operating Margin of MFC-PR-I has grown nicely.
Industry RankSector 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
MFC-PR-I.CA Yearly Profit, Operating, Gross MarginsMFC-PR-I.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20

4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MFC-PR-I is destroying value.
The number of shares outstanding for MFC-PR-I has been reduced compared to 1 year ago.
Compared to 5 years ago, MFC-PR-I has less shares outstanding
MFC-PR-I has a better debt/assets ratio than last year.
MFC-PR-I.CA Yearly Shares OutstandingMFC-PR-I.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B
MFC-PR-I.CA Yearly Total Debt VS Total AssetsMFC-PR-I.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 200B 400B 600B 800B

2.2 Solvency

MFC-PR-I 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-PR-I has a Debt to FCF ratio of 0.52. This is amongst the best in the industry. MFC-PR-I outperforms 87.95% of its industry peers.
MFC-PR-I has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
MFC-PR-I has a better Debt to Equity ratio (0.26) than 69.88% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.26
Debt/FCF 0.52
Altman-Z N/A
ROIC/WACC0.1
WACC8.46%
MFC-PR-I.CA Yearly LT Debt VS Equity VS FCFMFC-PR-I.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B 40B 50B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
MFC-PR-I.CA Yearly Current Assets VS Current LiabilitesMFC-PR-I.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B 20B

5

3. Growth

3.1 Past

MFC-PR-I shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.23%, which is quite good.
The Earnings Per Share has been growing slightly by 4.78% on average over the past years.
MFC-PR-I shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.06%.
MFC-PR-I shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.11% yearly.
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

MFC-PR-I is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.74% yearly.
MFC-PR-I is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.13% yearly.
EPS Next Y10.64%
EPS Next 2Y9.48%
EPS Next 3Y9.27%
EPS Next 5Y5.74%
Revenue Next Year-13.04%
Revenue Next 2Y-2.28%
Revenue Next 3Y-0.16%
Revenue Next 5Y15.13%

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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
MFC-PR-I.CA Yearly Revenue VS EstimatesMFC-PR-I.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 20B 40B 60B 80B
MFC-PR-I.CA Yearly EPS VS EstimatesMFC-PR-I.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1 2 3 4

6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 6.59, the valuation of MFC-PR-I can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of MFC-PR-I indicates a slightly more expensive valuation: MFC-PR-I is more expensive than 72.29% of the companies listed in the same industry.
MFC-PR-I's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.12.
With a Price/Forward Earnings ratio of 5.99, the valuation of MFC-PR-I can be described as very cheap.
MFC-PR-I's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 94.77. MFC-PR-I is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 6.59
Fwd PE 5.99
MFC-PR-I.CA Price Earnings VS Forward Price EarningsMFC-PR-I.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

68.67% of the companies in the same industry are more expensive than MFC-PR-I, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MFC-PR-I is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 1.7
EV/EBITDA 3.6
MFC-PR-I.CA Per share dataMFC-PR-I.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

MFC-PR-I's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.62
PEG (5Y)1.38
EPS Next 2Y9.48%
EPS Next 3Y9.27%

5

5. Dividend

5.1 Amount

MFC-PR-I has a Yearly Dividend Yield of 3.73%.
MFC-PR-I's Dividend Yield is slightly below the industry average, which is at 4.31.
MFC-PR-I's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
Industry RankSector Rank
Dividend Yield 3.73%

5.2 History

On average, the dividend of MFC-PR-I grows each year by 12.35%, which is quite nice.
MFC-PR-I has paid a dividend for at least 10 years, which is a reliable track record.
MFC-PR-I has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)12.35%
Div Incr Years2
Div Non Decr Years4
MFC-PR-I.CA Yearly Dividends per shareMFC-PR-I.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.5 1

5.3 Sustainability

61.19% of the earnings are spent on dividend by MFC-PR-I. This is not a sustainable payout ratio.
MFC-PR-I's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP61.19%
EPS Next 2Y9.48%
EPS Next 3Y9.27%
MFC-PR-I.CA Yearly Income VS Free CF VS DividendMFC-PR-I.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B 15B 20B
MFC-PR-I.CA Dividend Payout.MFC-PR-I.CA Dividend Payout, showing the Payout Ratio.MFC-PR-I.CA Dividend Payout.PayoutRetained Earnings

MANULIFE FINANCIAL CORP - MFCCN 5.978 PERP

TSX:MFC-PR-I (2/7/2025, 7:00:00 PM)

24.84

+0.12 (+0.49%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)11-06 2024-11-06/amc
Earnings (Next)02-19 2025-02-19/amc
Inst Owners60.28%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap43.52B
Analysts76.67
Price Target26.57 (6.96%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.73%
Yearly Dividend1.62
Dividend Growth(5Y)12.35%
DP61.19%
Div Incr Years2
Div Non Decr Years4
Ex-DateN/A
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)0%
PT rev (3m)12.45%
EPS NQ rev (1m)0.55%
EPS NQ rev (3m)-0.08%
EPS NY rev (1m)0.11%
EPS NY rev (3m)1.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.67%
Valuation
Industry RankSector Rank
PE 6.59
Fwd PE 5.99
P/S 1.21
P/FCF 1.7
P/OCF 1.7
P/B 0.87
P/tB 1.11
EV/EBITDA 3.6
EPS(TTM)3.77
EY15.18%
EPS(NY)4.15
Fwd EY16.7%
FCF(TTM)14.58
FCFY58.68%
OCF(TTM)14.58
OCFY58.68%
SpS20.61
BVpS28.58
TBVpS22.46
PEG (NY)0.62
PEG (5Y)1.38
Profitability
Industry RankSector 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 RankSector 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
WACC8.46%
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 Y10.64%
EPS Next 2Y9.48%
EPS Next 3Y9.27%
EPS Next 5Y5.74%
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 5Y15.13%
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%