MANULIFE FINANCIAL CORP - MFCCN 6.35 PERP (MFC-PR-K.CA) Stock Fundamental Analysis
TSX:MFC-PR-K - Toronto Stock Exchange - CA56501R7426 - Currency: CAD
MFC-PR-K gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 industry peers in the Insurance industry. MFC-PR-K has an average financial health and profitability rating. MFC-PR-K has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
MFC-PR-K had positive earnings in the past year.
In the past year MFC-PR-K had a positive cash flow from operations.
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.
1.2 Ratios
With a Return On Assets value of 0.52%, MFC-PR-K perfoms like the industry average, outperforming 53.66% of the companies in the same industry.
MFC-PR-K's Return On Equity of 9.84% is on the low side compared to the rest of the industry. MFC-PR-K is outperformed by 87.80% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.78%, MFC-PR-K is in the better half of the industry, outperforming 62.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.52% | ||
| ROE | 9.84% | ||
| ROIC | 0.78% |
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
Looking at the Profit Margin, with a value of 13.55%, MFC-PR-K belongs to the top of the industry, outperforming 86.59% of the companies in the same industry.
MFC-PR-K's Profit Margin has improved in the last couple of years.
MFC-PR-K has a Operating Margin of 23.43%. This is amongst the best in the industry. MFC-PR-K outperforms 84.15% of its industry peers.
MFC-PR-K's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.43% | ||
| PM (TTM) | 13.55% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
2.2 Solvency
The Debt to FCF ratio of MFC-PR-K is 0.53, which is an excellent value as it means it would take MFC-PR-K, only 0.53 years of fcf income to pay off all of its debts.
MFC-PR-K has a better Debt to FCF ratio (0.53) than 91.46% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that MFC-PR-K is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.27, MFC-PR-K is in the better half of the industry, outperforming 71.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.53 | ||
| Altman-Z | N/A |
ROIC/WACC0.09
WACC8.22%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
MFC-PR-K shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.14%, which is quite good.
Measured over the past 5 years, MFC-PR-K shows a small growth in Earnings Per Share. The EPS has been growing by 5.49% on average per year.
MFC-PR-K shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.76%.
MFC-PR-K shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -13.62% yearly.
EPS 1Y (TTM)12.14%
EPS 3Y6.08%
EPS 5Y5.49%
EPS Q2Q%11.96%
Revenue 1Y (TTM)11.76%
Revenue growth 3Y-12.52%
Revenue growth 5Y-13.62%
Sales Q2Q%48.7%
3.2 Future
MFC-PR-K is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.14% yearly.
The Revenue is expected to grow by 18.62% on average over the next years. This is quite good.
EPS Next Y7.65%
EPS Next 2Y8.57%
EPS Next 3Y6.76%
EPS Next 5Y5.14%
Revenue Next Year9.3%
Revenue Next 2Y7.46%
Revenue Next 3Y6.55%
Revenue Next 5Y18.62%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
MFC-PR-K is valuated cheaply with a Price/Earnings ratio of 6.16.
Compared to the rest of the industry, the Price/Earnings ratio of MFC-PR-K indicates a slightly more expensive valuation: MFC-PR-K is more expensive than 63.41% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.10. MFC-PR-K is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 5.72, which indicates a rather cheap valuation of MFC-PR-K.
MFC-PR-K's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.74. MFC-PR-K is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.16 | ||
| Fwd PE | 5.72 |
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 74.39% of the companies are valued more expensively.
MFC-PR-K's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.55 | ||
| EV/EBITDA | 3.03 |
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)0.8
PEG (5Y)1.12
EPS Next 2Y8.57%
EPS Next 3Y6.76%
5. Dividend
5.1 Amount
MFC-PR-K has a Yearly Dividend Yield of 4.12%, which is a nice return.
Compared to an average industry Dividend Yield of 4.35, MFC-PR-K has a dividend in line with its industry peers.
MFC-PR-K's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.12% |
5.2 History
On average, the dividend of MFC-PR-K grows each year by 20.17%, 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)20.17%
Div Incr Years2
Div Non Decr Years4
5.3 Sustainability
62.26% of the earnings are spent on dividend by MFC-PR-K. This is not a sustainable payout ratio.
The dividend of MFC-PR-K is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP62.26%
EPS Next 2Y8.57%
EPS Next 3Y6.76%
MANULIFE FINANCIAL CORP - MFCCN 6.35 PERP
TSX:MFC-PR-K (5/5/2025, 7:00:00 PM)
23.89
+0.08 (+0.34%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners56.7%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap41.05B
Analysts76.67
Price Target28.5 (19.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.12% |
Yearly Dividend1.79
Dividend Growth(5Y)20.17%
DP62.26%
Div Incr Years2
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.79%
Min EPS beat(2)5.71%
Max EPS beat(2)7.87%
EPS beat(4)4
Avg EPS beat(4)4.58%
Min EPS beat(4)2.05%
Max EPS beat(4)7.87%
EPS beat(8)7
Avg EPS beat(8)4.83%
EPS beat(12)9
Avg EPS beat(12)3.14%
EPS beat(16)12
Avg EPS beat(16)2.81%
Revenue beat(2)2
Avg Revenue beat(2)571.15%
Min Revenue beat(2)527.89%
Max Revenue beat(2)614.4%
Revenue beat(4)4
Avg Revenue beat(4)552.78%
Min Revenue beat(4)527.89%
Max Revenue beat(4)614.4%
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)0.54%
PT rev (3m)6.25%
EPS NQ rev (1m)-1.62%
EPS NQ rev (3m)-0.13%
EPS NY rev (1m)-0.98%
EPS NY rev (3m)0.72%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-4.68%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.16 | ||
| Fwd PE | 5.72 | ||
| P/S | 1.1 | ||
| P/FCF | 1.55 | ||
| P/OCF | 1.55 | ||
| P/B | 0.8 | ||
| P/tB | 1.01 | ||
| EV/EBITDA | 3.03 |
EPS(TTM)3.88
EY16.24%
EPS(NY)4.18
Fwd EY17.48%
FCF(TTM)15.42
FCFY64.54%
OCF(TTM)15.42
OCFY64.54%
SpS21.79
BVpS29.99
TBVpS23.56
PEG (NY)0.8
PEG (5Y)1.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.52% | ||
| ROE | 9.84% | ||
| ROCE | 0.92% | ||
| ROIC | 0.78% | ||
| ROICexc | 0.8% | ||
| ROICexgc | 1.86% | ||
| OM | 23.43% | ||
| PM (TTM) | 13.55% | ||
| GM | N/A | ||
| FCFM | 70.77% |
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-Score5
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.53 | ||
| Debt/EBITDA | 1.47 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 5.57 | ||
| Cash Conversion | 274.83% | ||
| Profit Quality | 522.15% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC8.22%
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)12.14%
EPS 3Y6.08%
EPS 5Y5.49%
EPS Q2Q%11.96%
EPS Next Y7.65%
EPS Next 2Y8.57%
EPS Next 3Y6.76%
EPS Next 5Y5.14%
Revenue 1Y (TTM)11.76%
Revenue growth 3Y-12.52%
Revenue growth 5Y-13.62%
Sales Q2Q%48.7%
Revenue Next Year9.3%
Revenue Next 2Y7.46%
Revenue Next 3Y6.55%
Revenue Next 5Y18.62%
EBIT growth 1Y9.56%
EBIT growth 3Y-1.3%
EBIT growth 5Y3.07%
EBIT Next Year-69.45%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y29.73%
FCF growth 3Y4.59%
FCF growth 5Y5.22%
OCF growth 1Y29.73%
OCF growth 3Y4.59%
OCF growth 5Y5.22%