MANULIFE FINANCIAL CORP - MFCCN 5.542 PERP (MFC-PR-M.CA) Stock Fundamental Analysis
TSX:MFC-PR-M - Toronto Stock Exchange - CA56501R6923 - Currency: CAD
Taking everything into account, MFC-PR-M scores 5 out of 10 in our fundamental rating. MFC-PR-M was compared to 80 industry peers in the Insurance industry. MFC-PR-M has only an average score on both its financial health and profitability. MFC-PR-M has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year MFC-PR-M was profitable.
In the past year MFC-PR-M had a positive cash flow from operations.
Of the past 5 years MFC-PR-M 4 years were profitable.
MFC-PR-M had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MFC-PR-M's Return On Assets of 0.52% is in line compared to the rest of the industry. MFC-PR-M outperforms 53.75% of its industry peers.
MFC-PR-M's Return On Equity of 9.84% is on the low side compared to the rest of the industry. MFC-PR-M is outperformed by 87.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.78%, MFC-PR-M is in the better half of the industry, outperforming 62.50% 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-M belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
MFC-PR-M's Profit Margin has improved in the last couple of years.
MFC-PR-M has a Operating Margin of 23.43%. This is amongst the best in the industry. MFC-PR-M outperforms 85.00% of its industry peers.
In the last couple of years the Operating Margin of MFC-PR-M has grown nicely.
| 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-M is destroying value.
Compared to 1 year ago, MFC-PR-M has less shares outstanding
Compared to 5 years ago, MFC-PR-M has less shares outstanding
The debt/assets ratio for MFC-PR-M has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of MFC-PR-M is 0.53, which is an excellent value as it means it would take MFC-PR-M, only 0.53 years of fcf income to pay off all of its debts.
MFC-PR-M has a Debt to FCF ratio of 0.53. This is amongst the best in the industry. MFC-PR-M outperforms 92.50% of its industry peers.
MFC-PR-M has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
MFC-PR-M has a Debt to Equity ratio of 0.27. This is in the better half of the industry: MFC-PR-M outperforms 72.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.53 | ||
| Altman-Z | N/A |
ROIC/WACC0.09
WACC8.25%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
MFC-PR-M shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.14%, which is quite good.
The Earnings Per Share has been growing slightly by 5.49% on average over the past years.
Looking at the last year, MFC-PR-M shows a quite strong growth in Revenue. The Revenue has grown by 11.76% in the last year.
The Revenue for MFC-PR-M have been decreasing by -13.62% on average. This is quite bad
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
Based on estimates for the next years, MFC-PR-M will show a small growth in Earnings Per Share. The EPS will grow by 5.14% on average per year.
Based on estimates for the next years, MFC-PR-M 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
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.
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 5.71 indicates a rather cheap valuation of MFC-PR-M.
Based on the Price/Earnings ratio, MFC-PR-M is valued a bit more expensive than the industry average as 61.25% of the companies are valued more cheaply.
MFC-PR-M is valuated cheaply when we compare the Price/Earnings ratio to 28.22, which is the current average of the S&P500 Index.
MFC-PR-M is valuated cheaply with a Price/Forward Earnings ratio of 5.30.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MFC-PR-M is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 20.86. MFC-PR-M is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.71 | ||
| Fwd PE | 5.3 |
4.2 Price Multiples
MFC-PR-M's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MFC-PR-M is cheaper than 76.25% of the companies in the same industry.
MFC-PR-M's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.44 | ||
| EV/EBITDA | 2.74 |
4.3 Compensation for Growth
MFC-PR-M's 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
With a Yearly Dividend Yield of 4.12%, MFC-PR-M is a good candidate for dividend investing.
MFC-PR-M's Dividend Yield is comparable with the industry average which is at 4.38.
Compared to an average S&P500 Dividend Yield of 2.44, MFC-PR-M pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.12% |
5.2 History
On average, the dividend of MFC-PR-M grows each year by 20.17%, which is quite nice.
MFC-PR-M has been paying a dividend for at least 10 years, so it has a reliable track record.
MFC-PR-M has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)20.17%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
MFC-PR-M pays out 62.26% of its income as dividend. This is not a sustainable payout ratio.
MFC-PR-M's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP62.26%
EPS Next 2Y8.57%
EPS Next 3Y6.76%
MANULIFE FINANCIAL CORP - MFCCN 5.542 PERP
TSX:MFC-PR-M (5/2/2025, 7:00:00 PM)
22.15
+0.03 (+0.14%)
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 Cap38.06B
Analysts76.67
Price Target26.34 (18.92%)
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 Years0
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)-3.41%
PT rev (3m)2.65%
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 | 5.71 | ||
| Fwd PE | 5.3 | ||
| P/S | 1.02 | ||
| P/FCF | 1.44 | ||
| P/OCF | 1.44 | ||
| P/B | 0.74 | ||
| P/tB | 0.94 | ||
| EV/EBITDA | 2.74 |
EPS(TTM)3.88
EY17.52%
EPS(NY)4.18
Fwd EY18.86%
FCF(TTM)15.42
FCFY69.61%
OCF(TTM)15.42
OCFY69.61%
SpS21.79
BVpS29.99
TBVpS23.56
PEG (NY)0.75
PEG (5Y)1.04
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
WACC8.25%
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%