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MANULIFE FINANCIAL CORP - MFCCN 6.35 PERP (MFC-PR-K.CA) Stock Fundamental Analysis

TSX:MFC-PR-K - Toronto Stock Exchange - CA56501R7426 - Currency: CAD

24.2  +0.05 (+0.21%)

Fundamental Rating

5

Taking everything into account, MFC-PR-K scores 5 out of 10 in our fundamental rating. MFC-PR-K was compared to 86 industry peers in the Insurance industry. MFC-PR-K has an average financial health and profitability rating. MFC-PR-K is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

In the past year MFC-PR-K was profitable.
MFC-PR-K had a positive operating cash flow in the past year.
Of the past 5 years MFC-PR-K 4 years were profitable.
In the past 5 years MFC-PR-K always reported a positive cash flow from operatings.
MFC-PR-K.CA Yearly Net Income VS EBIT VS OCF VS FCFMFC-PR-K.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-K's Return On Assets of 0.54% is in line compared to the rest of the industry. MFC-PR-K outperforms 49.41% of its industry peers.
MFC-PR-K's Return On Equity of 10.18% is on the low side compared to the rest of the industry. MFC-PR-K is outperformed by 63.53% of its industry peers.
MFC-PR-K has a Return On Invested Capital (0.82%) which is in line with its industry peers.
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-K.CA Yearly ROA, ROE, ROICMFC-PR-K.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10

1.3 Margins

Looking at the Profit Margin, with a value of 14.12%, MFC-PR-K belongs to the top of the industry, outperforming 85.88% of the companies in the same industry.
In the last couple of years the Profit Margin of MFC-PR-K has grown nicely.
MFC-PR-K has a Operating Margin of 24.24%. This is amongst the best in the industry. MFC-PR-K outperforms 84.71% of its industry peers.
MFC-PR-K's Operating Margin has improved in the last couple of years.
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-K.CA Yearly Profit, Operating, Gross MarginsMFC-PR-K.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-K is destroying value.
MFC-PR-K has less shares outstanding than it did 1 year ago.
The number of shares outstanding for MFC-PR-K has been reduced compared to 5 years ago.
Compared to 1 year ago, MFC-PR-K has an improved debt to assets ratio.
MFC-PR-K.CA Yearly Shares OutstandingMFC-PR-K.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B
MFC-PR-K.CA Yearly Total Debt VS Total AssetsMFC-PR-K.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

The Debt to FCF ratio of MFC-PR-K is 0.52, which is an excellent value as it means it would take MFC-PR-K, only 0.52 years of fcf income to pay off all of its debts.
MFC-PR-K's Debt to FCF ratio of 0.52 is amongst the best of the industry. MFC-PR-K outperforms 90.59% of its industry peers.
MFC-PR-K has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
MFC-PR-K's Debt to Equity ratio of 0.26 is fine compared to the rest of the industry. MFC-PR-K outperforms 72.94% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.26
Debt/FCF 0.52
Altman-Z N/A
ROIC/WACC0.1
WACC8.47%
MFC-PR-K.CA Yearly LT Debt VS Equity VS FCFMFC-PR-K.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-K.CA Yearly Current Assets VS Current LiabilitesMFC-PR-K.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

The Earnings Per Share has grown by an nice 10.23% over the past year.
The Earnings Per Share has been growing slightly by 4.78% on average over the past years.
Looking at the last year, MFC-PR-K shows a quite strong growth in Revenue. The Revenue has grown by 13.06% in the last year.
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

Based on estimates for the next years, MFC-PR-K will show a small growth in Earnings Per Share. The EPS will grow by 5.74% on average per year.
The Revenue is expected to grow by 15.13% on average over the next years. This is quite good.
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

The EPS growth rate is accelerating: in the next years the growth will be better 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.
MFC-PR-K.CA Yearly Revenue VS EstimatesMFC-PR-K.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-K.CA Yearly EPS VS EstimatesMFC-PR-K.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

A Price/Earnings ratio of 6.42 indicates a rather cheap valuation of MFC-PR-K.
MFC-PR-K's Price/Earnings ratio is a bit more expensive when compared to the industry. MFC-PR-K is more expensive than 67.06% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.27. MFC-PR-K is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 5.84, the valuation of MFC-PR-K can be described as very cheap.
MFC-PR-K's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 96.48. MFC-PR-K is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 6.42
Fwd PE 5.84
MFC-PR-K.CA Price Earnings VS Forward Price EarningsMFC-PR-K.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MFC-PR-K is valued a bit cheaper than the industry average as 71.76% of the companies are valued more expensively.
MFC-PR-K's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 1.66
EV/EBITDA 3.49
MFC-PR-K.CA Per share dataMFC-PR-K.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

MFC-PR-K's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.6
PEG (5Y)1.34
EPS Next 2Y9.48%
EPS Next 3Y9.27%

5

5. Dividend

5.1 Amount

MFC-PR-K has a Yearly Dividend Yield of 3.73%.
Compared to an average industry Dividend Yield of 4.22, MFC-PR-K is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.31, MFC-PR-K pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.73%

5.2 History

On average, the dividend of MFC-PR-K grows each year by 12.35%, which is quite nice.
MFC-PR-K has been paying a dividend for at least 10 years, so it has a reliable track record.
MFC-PR-K has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)12.35%
Div Incr Years2
Div Non Decr Years4
MFC-PR-K.CA Yearly Dividends per shareMFC-PR-K.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.5 1 1.5

5.3 Sustainability

MFC-PR-K pays out 61.19% of its income as dividend. This is not a sustainable payout ratio.
MFC-PR-K'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-K.CA Yearly Income VS Free CF VS DividendMFC-PR-K.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-K.CA Dividend Payout.MFC-PR-K.CA Dividend Payout, showing the Payout Ratio.MFC-PR-K.CA Dividend Payout.PayoutRetained Earnings

MANULIFE FINANCIAL CORP - MFCCN 6.35 PERP

TSX:MFC-PR-K (2/13/2025, 7:00:00 PM)

24.2

+0.05 (+0.21%)

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 Cap42.40B
Analysts76.67
Price Target26.82 (10.83%)
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)2.38%
PT rev (3m)13.8%
EPS NQ rev (1m)0.5%
EPS NQ rev (3m)-0.13%
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 6.42
Fwd PE 5.84
P/S 1.17
P/FCF 1.66
P/OCF 1.66
P/B 0.85
P/tB 1.08
EV/EBITDA 3.49
EPS(TTM)3.77
EY15.58%
EPS(NY)4.15
Fwd EY17.14%
FCF(TTM)14.58
FCFY60.23%
OCF(TTM)14.58
OCFY60.23%
SpS20.61
BVpS28.58
TBVpS22.46
PEG (NY)0.6
PEG (5Y)1.34
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
WACC8.47%
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%