MANULIFE FINANCIAL CORP - MFCCN 5.775 PERP (MFC-PR-L.CA) Stock Fundamental Analysis
TSX:MFC-PR-L - Toronto Stock Exchange - CA56501R7269 - Currency: CAD
We assign a fundamental rating of 5 out of 10 to MFC-PR-L. MFC-PR-L was compared to 81 industry peers in the Insurance industry. MFC-PR-L has only an average score on both its financial health and profitability. MFC-PR-L has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
MFC-PR-L had positive earnings in the past year.
In the past year MFC-PR-L had a positive cash flow from operations.
MFC-PR-L had positive earnings in 4 of the past 5 years.
In the past 5 years MFC-PR-L always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MFC-PR-L (0.48%) is worse than 60.49% of its industry peers.
With a Return On Equity value of 9.06%, MFC-PR-L is not doing good in the industry: 87.65% of the companies in the same industry are doing better.
The Return On Invested Capital of MFC-PR-L (0.72%) is better than 64.20% of its industry peers.
| 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
With an excellent Profit Margin value of 12.55%, MFC-PR-L belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
In the last couple of years the Profit Margin of MFC-PR-L has grown nicely.
Looking at the Operating Margin, with a value of 21.86%, MFC-PR-L belongs to the top of the industry, outperforming 85.19% of the companies in the same industry.
In the last couple of years the Operating Margin of MFC-PR-L 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-L is destroying value.
The number of shares outstanding for MFC-PR-L has been reduced compared to 1 year ago.
The number of shares outstanding for MFC-PR-L has been reduced compared to 5 years ago.
Compared to 1 year ago, MFC-PR-L has an improved debt to assets ratio.
2.2 Solvency
MFC-PR-L has a debt to FCF ratio of 0.50. This is a very positive value and a sign of high solvency as it would only need 0.50 years to pay back of all of its debts.
The Debt to FCF ratio of MFC-PR-L (0.50) is better than 93.83% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that MFC-PR-L is not too dependend on debt financing.
The Debt to Equity ratio of MFC-PR-L (0.27) is better than 74.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.5 | ||
| Altman-Z | N/A |
ROIC/WACC0.09
WACC8.32%
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 been growing slightly by 7.89% over the past year.
Measured over the past 5 years, MFC-PR-L shows a small growth in Earnings Per Share. The EPS has been growing by 5.49% on average per year.
MFC-PR-L shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.13%.
The Revenue for MFC-PR-L have been decreasing by -13.62% on average. This is quite bad
EPS 1Y (TTM)7.89%
EPS 3Y6.08%
EPS 5Y5.49%
EPS Q2Q%1.58%
Revenue 1Y (TTM)11.13%
Revenue growth 3Y-12.52%
Revenue growth 5Y-13.62%
Sales Q2Q%-11.27%
3.2 Future
MFC-PR-L is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.14% yearly.
Based on estimates for the next years, MFC-PR-L will show a quite strong growth in Revenue. The Revenue will grow by 18.62% on average per year.
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
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
A Price/Earnings ratio of 5.72 indicates a rather cheap valuation of MFC-PR-L.
Compared to the rest of the industry, the Price/Earnings ratio of MFC-PR-L is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 25.82. MFC-PR-L is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 4.87 indicates a rather cheap valuation of MFC-PR-L.
The rest of the industry has a similar Price/Forward Earnings ratio as MFC-PR-L.
The average S&P500 Price/Forward Earnings ratio is at 21.76. MFC-PR-L is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.72 | ||
| Fwd PE | 4.87 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MFC-PR-L indicates a somewhat cheap valuation: MFC-PR-L is cheaper than 76.54% of the companies listed in the same industry.
MFC-PR-L's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.34 | ||
| EV/EBITDA | 2.98 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.75
PEG (5Y)1.04
EPS Next 2Y8.57%
EPS Next 3Y6.76%
5. Dividend
5.1 Amount
MFC-PR-L has a Yearly Dividend Yield of 3.95%. Purely for dividend investing, there may be better candidates out there.
MFC-PR-L's Dividend Yield is slightly below the industry average, which is at 4.38.
MFC-PR-L's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
5.2 History
On average, the dividend of MFC-PR-L grows each year by 20.17%, which is quite nice.
MFC-PR-L has been paying a dividend for at least 10 years, so it has a reliable track record.
MFC-PR-L has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)20.17%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
67.87% of the earnings are spent on dividend by MFC-PR-L. This is not a sustainable payout ratio.
MFC-PR-L's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP67.87%
EPS Next 2Y8.57%
EPS Next 3Y6.76%
MANULIFE FINANCIAL CORP - MFCCN 5.775 PERP
TSX:MFC-PR-L (5/23/2025, 7:00:00 PM)
22.26
-0.01 (-0.04%)
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 Cap38.25B
Analysts76.67
Price Target24.74 (11.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
Yearly Dividend1.79
Dividend Growth(5Y)20.17%
DP67.87%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.5%
Min EPS beat(2)-4.86%
Max EPS beat(2)7.87%
EPS beat(4)3
Avg EPS beat(4)2.85%
Min EPS beat(4)-4.86%
Max EPS beat(4)7.87%
EPS beat(8)7
Avg EPS beat(8)4.51%
EPS beat(12)9
Avg EPS beat(12)3.36%
EPS beat(16)11
Avg EPS beat(16)2.18%
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)-4.58%
PT rev (3m)-3.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.81%
EPS NY rev (1m)0%
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 | 5.72 | ||
| Fwd PE | 4.87 | ||
| P/S | 1.02 | ||
| P/FCF | 1.34 | ||
| P/OCF | 1.34 | ||
| P/B | 0.74 | ||
| P/tB | 0.94 | ||
| EV/EBITDA | 2.98 |
EPS(TTM)3.89
EY17.48%
EPS(NY)4.57
Fwd EY20.55%
FCF(TTM)16.65
FCFY74.79%
OCF(TTM)16.65
OCFY74.79%
SpS21.76
BVpS30.13
TBVpS23.69
PEG (NY)0.75
PEG (5Y)1.04
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
WACC8.32%
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)7.89%
EPS 3Y6.08%
EPS 5Y5.49%
EPS Q2Q%1.58%
EPS Next Y7.65%
EPS Next 2Y8.57%
EPS Next 3Y6.76%
EPS Next 5Y5.14%
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 5Y18.62%
EBIT growth 1Y7.6%
EBIT growth 3Y-1.3%
EBIT growth 5Y3.07%
EBIT Next Year-69.45%
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%