MANULIFE FINANCIAL CORP - MFCCN 6.35 PERP (MFC-PR-K.CA) Stock Fundamental Analysis
TSX:MFC-PR-K - Toronto Stock Exchange - CA56501R7426 - Currency: CAD
Taking everything into account, MFC-PR-K scores 5 out of 10 in our fundamental rating. MFC-PR-K was compared to 81 industry peers in the Insurance industry. Both the profitability and the financial health of MFC-PR-K get a neutral evaluation. Nothing too spectacular is happening here. MFC-PR-K is not valued too expensively and it also shows a decent growth rate.
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.
1.2 Ratios
MFC-PR-K has a Return On Assets (0.48%) which is in line with its industry peers.
MFC-PR-K has a Return On Equity of 9.06%. This is amonst the worse of the industry: MFC-PR-K underperforms 86.42% of its industry peers.
With a decent Return On Invested Capital value of 0.72%, MFC-PR-K is doing good in the industry, outperforming 60.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 9.06% | ||
| ROIC | 0.72% |
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
The Profit Margin of MFC-PR-K (12.55%) is better than 86.42% of its industry peers.
MFC-PR-K's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 21.86%, MFC-PR-K belongs to the best of the industry, outperforming 82.72% of the companies in the same industry.
In the last couple of years the Operating Margin of MFC-PR-K has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.86% | ||
| PM (TTM) | 12.55% | ||
| 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.
The debt/assets ratio for MFC-PR-K has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of MFC-PR-K is 0.50, which is an excellent value as it means it would take MFC-PR-K, only 0.50 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.50, MFC-PR-K belongs to the best of the industry, outperforming 87.65% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that MFC-PR-K is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.27, MFC-PR-K is doing good in the industry, outperforming 71.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.5 | ||
| Altman-Z | N/A |
ROIC/WACC0.09
WACC8.36%
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 8.86%, which is quite good.
MFC-PR-K shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.49% yearly.
MFC-PR-K shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.13%.
Measured over the past years, MFC-PR-K shows a very negative growth in Revenue. The Revenue has been decreasing by -13.62% on average per year.
EPS 1Y (TTM)8.86%
EPS 3Y6.08%
EPS 5Y5.49%
EPS Q2Q%5.32%
Revenue 1Y (TTM)11.13%
Revenue growth 3Y-12.52%
Revenue growth 5Y-13.62%
Sales Q2Q%-11.27%
3.2 Future
The Earnings Per Share is expected to grow by 5.15% on average over the next years.
The Revenue is expected to grow by 18.63% on average over the next years. This is quite good.
EPS Next Y7.65%
EPS Next 2Y8.57%
EPS Next 3Y6.76%
EPS Next 5Y5.15%
Revenue Next Year9.3%
Revenue Next 2Y7.46%
Revenue Next 3Y6.55%
Revenue Next 5Y18.63%
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.
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
Based on the Price/Earnings ratio of 6.36, the valuation of MFC-PR-K can be described as very cheap.
60.49% of the companies in the same industry are cheaper than MFC-PR-K, based on the Price/Earnings ratio.
MFC-PR-K's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.18.
A Price/Forward Earnings ratio of 5.47 indicates a rather cheap valuation of MFC-PR-K.
The rest of the industry has a similar Price/Forward Earnings ratio as MFC-PR-K.
MFC-PR-K's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.36 | ||
| Fwd PE | 5.47 |
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 72.84% of the companies are valued more expensively.
MFC-PR-K's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.49 | ||
| EV/EBITDA | 3.47 |
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)0.83
PEG (5Y)1.16
EPS Next 2Y8.57%
EPS Next 3Y6.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.52%, MFC-PR-K is a good candidate for dividend investing.
MFC-PR-K's Dividend Yield is comparable with the industry average which is at 5.18.
Compared to an average S&P500 Dividend Yield of 2.34, MFC-PR-K pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.52% |
5.2 History
The dividend of MFC-PR-K is nicely growing with an annual growth rate of 20.17%!
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
67.87% 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.
DP67.87%
EPS Next 2Y8.57%
EPS Next 3Y6.76%
MANULIFE FINANCIAL CORP - MFCCN 6.35 PERP
TSX:MFC-PR-K (7/15/2025, 7:00:00 PM)
25
-0.05 (-0.2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners55.65%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap42.70B
Analysts76.47
Price Target29.18 (16.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.52% |
Yearly Dividend1.79
Dividend Growth(5Y)20.17%
DP67.87%
Div Incr Years2
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.67%
Min EPS beat(2)-0.52%
Max EPS beat(2)7.87%
EPS beat(4)3
Avg EPS beat(4)3.94%
Min EPS beat(4)-0.52%
Max EPS beat(4)7.87%
EPS beat(8)7
Avg EPS beat(8)5.06%
EPS beat(12)9
Avg EPS beat(12)3.72%
EPS beat(16)11
Avg EPS beat(16)2.45%
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)6.61%
PT rev (3m)7.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.18%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.98%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.36 | ||
| Fwd PE | 5.47 | ||
| P/S | 1.14 | ||
| P/FCF | 1.49 | ||
| P/OCF | 1.49 | ||
| P/B | 0.82 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | 3.47 |
EPS(TTM)3.93
EY15.72%
EPS(NY)4.57
Fwd EY18.29%
FCF(TTM)16.75
FCFY66.99%
OCF(TTM)16.75
OCFY66.99%
SpS21.89
BVpS30.31
TBVpS23.83
PEG (NY)0.83
PEG (5Y)1.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 9.06% | ||
| ROCE | 0.85% | ||
| ROIC | 0.72% | ||
| ROICexc | 0.74% | ||
| ROICexgc | 1.72% | ||
| OM | 21.86% | ||
| PM (TTM) | 12.55% | ||
| GM | N/A | ||
| FCFM | 76.52% |
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-Score7
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.5 | ||
| Debt/EBITDA | 1.56 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 5.23 | ||
| Cash Conversion | 314.66% | ||
| Profit Quality | 609.81% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC8.36%
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)8.86%
EPS 3Y6.08%
EPS 5Y5.49%
EPS Q2Q%5.32%
EPS Next Y7.65%
EPS Next 2Y8.57%
EPS Next 3Y6.76%
EPS Next 5Y5.15%
Revenue 1Y (TTM)11.13%
Revenue growth 3Y-12.52%
Revenue growth 5Y-13.62%
Sales Q2Q%-11.27%
Revenue Next Year9.3%
Revenue Next 2Y7.46%
Revenue Next 3Y6.55%
Revenue Next 5Y18.63%
EBIT growth 1Y7.6%
EBIT growth 3Y-1.3%
EBIT growth 5Y3.07%
EBIT Next Year-70.64%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y67.64%
FCF growth 3Y4.59%
FCF growth 5Y5.22%
OCF growth 1Y67.64%
OCF growth 3Y4.59%
OCF growth 5Y5.22%