MANULIFE FINANCIAL CORP - MFCCN 5.169 PERP (MFC-PR-N.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MFC-PR-N - CA56501R6766
24.2 CAD
-0.14 (-0.58%)
Taking everything into account, MFC-PR-N scores 5 out of 10 in our fundamental rating. MFC-PR-N was compared to 80 industry peers in the Insurance industry. MFC-PR-N has only an average score on both its financial health and profitability. MFC-PR-N is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make MFC-PR-N a good candidate for value investing.
1. Profitability
1.1 Basic Checks
- MFC-PR-N had positive earnings in the past year.
- In the past year MFC-PR-N had a positive cash flow from operations.
- MFC-PR-N had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years MFC-PR-N had a positive operating cash flow.
1.2 Ratios
- MFC-PR-N has a Return On Assets of 0.53%. This is comparable to the rest of the industry: MFC-PR-N outperforms 56.25% of its industry peers.
- MFC-PR-N has a Return On Equity of 10.48%. This is in the lower half of the industry: MFC-PR-N underperforms 70.00% of its industry peers.
- MFC-PR-N has a Return On Invested Capital of 0.75%. This is in the better half of the industry: MFC-PR-N outperforms 67.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.53% | ||
| ROE | 10.48% | ||
| ROIC | 0.75% |
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 13.87%, MFC-PR-N belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
- MFC-PR-N's Profit Margin has improved in the last couple of years.
- The Operating Margin of MFC-PR-N (22.75%) is better than 87.50% of its industry peers.
- MFC-PR-N's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.75% | ||
| PM (TTM) | 13.87% | ||
| 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
- MFC-PR-N has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- MFC-PR-N has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for MFC-PR-N has been reduced compared to 5 years ago.
- Compared to 1 year ago, MFC-PR-N has an improved debt to assets ratio.
2.2 Solvency
- MFC-PR-N has a debt to FCF ratio of 0.44. This is a very positive value and a sign of high solvency as it would only need 0.44 years to pay back of all of its debts.
- MFC-PR-N has a better Debt to FCF ratio (0.44) than 91.25% of its industry peers.
- A Debt/Equity ratio of 0.26 indicates that MFC-PR-N is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.26, MFC-PR-N belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.44 | ||
| Altman-Z | N/A |
ROIC/WACC0.09
WACC8.5%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- MFC-PR-N shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.55%, which is quite good.
- Measured over the past 5 years, MFC-PR-N shows a small growth in Earnings Per Share. The EPS has been growing by 5.49% on average per year.
- The Revenue has been growing slightly by 7.70% in the past year.
- MFC-PR-N shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -13.62% yearly.
EPS 1Y (TTM)9.55%
EPS 3Y6.08%
EPS 5Y5.49%
EPS Q2Q%16%
Revenue 1Y (TTM)7.7%
Revenue growth 3Y-12.52%
Revenue growth 5Y-13.62%
Sales Q2Q%21.19%
3.2 Future
- MFC-PR-N is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.15% yearly.
- MFC-PR-N is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.90% yearly.
EPS Next Y8.17%
EPS Next 2Y8.45%
EPS Next 3Y8.81%
EPS Next 5Y5.15%
Revenue Next Year8.86%
Revenue Next 2Y8.68%
Revenue Next 3Y6.97%
Revenue Next 5Y11.9%
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-N is valuated cheaply with a Price/Earnings ratio of 5.86.
- MFC-PR-N's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 27.21. MFC-PR-N is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 5.30 indicates a rather cheap valuation of MFC-PR-N.
- MFC-PR-N's Price/Forward Earnings ratio is in line with the industry average.
- MFC-PR-N is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.86 | ||
| Fwd PE | 5.3 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MFC-PR-N indicates a somewhat cheap valuation: MFC-PR-N is cheaper than 80.00% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, MFC-PR-N is valued cheaper than 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.33 | ||
| EV/EBITDA | 2.86 |
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)0.72
PEG (5Y)1.07
EPS Next 2Y8.45%
EPS Next 3Y8.81%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.48%, MFC-PR-N has a reasonable but not impressive dividend return.
- MFC-PR-N's Dividend Yield is slightly below the industry average, which is at 4.42.
- MFC-PR-N's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
5.2 History
- On average, the dividend of MFC-PR-N grows each year by 20.17%, which is quite nice.
- MFC-PR-N has paid a dividend for at least 10 years, which is a reliable track record.
- MFC-PR-N has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)20.17%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- MFC-PR-N pays out 60.48% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of MFC-PR-N is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP60.48%
EPS Next 2Y8.45%
EPS Next 3Y8.81%
MANULIFE FINANCIAL CORP - MFCCN 5.169 PERP / MFC-PR-N.CA FAQ
What is the fundamental rating for MFC-PR-N stock?
ChartMill assigns a fundamental rating of 5 / 10 to MFC-PR-N.CA.
What is the valuation status of MANULIFE FINANCIAL CORP - MFCCN 5.169 PERP (MFC-PR-N.CA) stock?
ChartMill assigns a valuation rating of 7 / 10 to MANULIFE FINANCIAL CORP - MFCCN 5.169 PERP (MFC-PR-N.CA). This can be considered as Undervalued.
Can you provide the profitability details for MANULIFE FINANCIAL CORP - MFCCN 5.169 PERP?
MANULIFE FINANCIAL CORP - MFCCN 5.169 PERP (MFC-PR-N.CA) has a profitability rating of 5 / 10.
What is the valuation of MANULIFE FINANCIAL CORP - MFCCN 5.169 PERP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MANULIFE FINANCIAL CORP - MFCCN 5.169 PERP (MFC-PR-N.CA) is 5.86 and the Price/Book (PB) ratio is 0.79.
Can you provide the financial health for MFC-PR-N stock?
The financial health rating of MANULIFE FINANCIAL CORP - MFCCN 5.169 PERP (MFC-PR-N.CA) is 5 / 10.