MANULIFE FINANCIAL CORP - MFCCN 4.09 PERP (MFC-PR-P.CA) Stock Fundamental Analysis
TSX:MFC-PR-P - Toronto Stock Exchange - CA56501R8416 - Currency: CAD
We assign a fundamental rating of 5 out of 10 to MFC-PR-P. MFC-PR-P was compared to 79 industry peers in the Insurance industry. MFC-PR-P has an average financial health and profitability rating. MFC-PR-P may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
MFC-PR-P had positive earnings in the past year.
MFC-PR-P had a positive operating cash flow in the past year.
Of the past 5 years MFC-PR-P 4 years were profitable.
In the past 5 years MFC-PR-P always reported a positive cash flow from operatings.
1.2 Ratios
MFC-PR-P has a Return On Assets of 0.48%. This is in the better half of the industry: MFC-PR-P outperforms 60.49% of its industry peers.
MFC-PR-P has a Return On Equity of 9.06%. This is amonst the worse of the industry: MFC-PR-P underperforms 80.25% of its industry peers.
With a decent Return On Invested Capital value of 0.72%, MFC-PR-P is doing good in the industry, outperforming 67.90% 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-P (12.55%) is better than 93.83% of its industry peers.
In the last couple of years the Profit Margin of MFC-PR-P has grown nicely.
MFC-PR-P has a better Operating Margin (21.86%) than 90.12% of its industry peers.
MFC-PR-P's Operating Margin has improved in the last couple of years.
| 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-P is destroying value.
The number of shares outstanding for MFC-PR-P has been reduced compared to 1 year ago.
Compared to 5 years ago, MFC-PR-P has less shares outstanding
MFC-PR-P has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of MFC-PR-P is 0.50, which is an excellent value as it means it would take MFC-PR-P, only 0.50 years of fcf income to pay off all of its debts.
MFC-PR-P has a better Debt to FCF ratio (0.50) than 95.06% of its industry peers.
MFC-PR-P has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
MFC-PR-P has a Debt to Equity ratio of 0.27. This is in the better half of the industry: MFC-PR-P outperforms 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.5 | ||
| Altman-Z | N/A |
ROIC/WACC0.08
WACC8.54%
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 grown by an nice 8.86% over the past year.
The Earnings Per Share has been growing slightly by 5.49% on average over the past years.
MFC-PR-P 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-P 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
MFC-PR-P is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.15% yearly.
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 Year7.19%
Revenue Next 2Y7.58%
Revenue Next 3Y6.59%
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.
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
With a Price/Earnings ratio of 4.75, the valuation of MFC-PR-P can be described as very cheap.
67.90% of the companies in the same industry are more expensive than MFC-PR-P, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of MFC-PR-P to the average of the S&P500 Index (26.82), we can say MFC-PR-P is valued rather cheaply.
The Price/Forward Earnings ratio is 4.08, which indicates a rather cheap valuation of MFC-PR-P.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MFC-PR-P indicates a somewhat cheap valuation: MFC-PR-P is cheaper than 67.90% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.21, MFC-PR-P is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.75 | ||
| Fwd PE | 4.08 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MFC-PR-P indicates a rather cheap valuation: MFC-PR-P is cheaper than 81.48% of the companies listed in the same industry.
71.60% of the companies in the same industry are more expensive than MFC-PR-P, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.11 | ||
| EV/EBITDA | 2.27 |
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.
MFC-PR-P has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.62
PEG (5Y)0.87
EPS Next 2Y8.57%
EPS Next 3Y6.76%
5. Dividend
5.1 Amount
MFC-PR-P has a Yearly Dividend Yield of 3.78%. Purely for dividend investing, there may be better candidates out there.
MFC-PR-P's Dividend Yield is slightly below the industry average, which is at 4.80.
MFC-PR-P's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
5.2 History
On average, the dividend of MFC-PR-P grows each year by 20.17%, which is quite nice.
MFC-PR-P has paid a dividend for at least 10 years, which is a reliable track record.
MFC-PR-P has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)20.17%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
67.87% of the earnings are spent on dividend by MFC-PR-P. This is not a sustainable payout ratio.
The dividend of MFC-PR-P 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 4.09 PERP
TSX:MFC-PR-P (7/31/2025, 7:00:00 PM)
18.67
+0.02 (+0.11%)
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 Cap31.80B
Analysts76.47
Price Target21.72 (16.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
Yearly Dividend1.79
Dividend Growth(5Y)20.17%
DP67.87%
Div Incr Years3
Div Non Decr Years3
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)7.9%
PT rev (3m)7.9%
EPS NQ rev (1m)-1.26%
EPS NQ rev (3m)-4.4%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.94%
Revenue NY rev (3m)-1.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.75 | ||
| Fwd PE | 4.08 | ||
| P/S | 0.85 | ||
| P/FCF | 1.11 | ||
| P/OCF | 1.11 | ||
| P/B | 0.61 | ||
| P/tB | 0.78 | ||
| EV/EBITDA | 2.27 |
EPS(TTM)3.93
EY21.05%
EPS(NY)4.57
Fwd EY24.5%
FCF(TTM)16.79
FCFY89.95%
OCF(TTM)16.79
OCFY89.95%
SpS21.95
BVpS30.39
TBVpS23.89
PEG (NY)0.62
PEG (5Y)0.87
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
WACC8.54%
ROIC/WACC0.08
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 Year7.19%
Revenue Next 2Y7.58%
Revenue Next 3Y6.59%
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%