MANULIFE FINANCIAL CORP (MFC.CA)
CA56501R1064 - Common Stock
MFC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 69 industry peers in the Insurance industry. MFC has only an average score on both its financial health and profitability. MFC is not valued too expensively and it also shows a decent growth rate. Finally MFC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year MFC was profitable.
In the past year MFC had a positive cash flow from operations.
MFC had positive earnings in 4 of the past 5 years.
In the past 5 years MFC always reported a positive cash flow from operatings.
1.2 Ratios
MFC has a worse Return On Assets (0.55%) than 68.12% of its industry peers.
Looking at the Return On Equity, with a value of 10.15%, MFC is in line with its industry, outperforming 46.38% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 0.81%, MFC is in line with its industry, outperforming 43.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.55% | ||
| ROE | 10.15% | ||
| ROIC | 0.81% |
ROA(3y)0.35%
ROA(5y)0.47%
ROE(3y)5.84%
ROE(5y)7.94%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 14.33%, MFC is in the better half of the industry, outperforming 76.81% of the companies in the same industry.
MFC's Profit Margin has improved in the last couple of years.
The Operating Margin of MFC (23.90%) is better than 78.26% of its industry peers.
MFC's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.9% | ||
| PM (TTM) | 14.33% | ||
| GM | N/A |
OM growth 3Y40.5%
OM growth 5Y5.56%
PM growth 3Y21.82%
PM growth 5Y2.88%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MFC is destroying value.
MFC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MFC has less shares outstanding
Compared to 1 year ago, MFC has an improved debt to assets ratio.
2.2 Solvency
MFC has a debt to FCF ratio of 0.62. This is a very positive value and a sign of high solvency as it would only need 0.62 years to pay back of all of its debts.
MFC has a Debt to FCF ratio of 0.62. This is in the better half of the industry: MFC outperforms 78.26% of its industry peers.
MFC has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.27, MFC is doing good in the industry, outperforming 63.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.62 | ||
| Altman-Z | N/A |
ROIC/WACC0.1
WACC8.55%
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 11.61% over the past year.
MFC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.78% yearly.
The Revenue has grown by 56.60% in the past year. This is a very strong growth!
MFC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.11% yearly.
EPS 1Y (TTM)11.61%
EPS 3Y7.83%
EPS 5Y4.78%
EPS growth Q2Q4.55%
Revenue 1Y (TTM)56.6%
Revenue growth 3Y-22.48%
Revenue growth 5Y-2.11%
Revenue growth Q2Q-39.97%
3.2 Future
The Earnings Per Share is expected to grow by 1.03% on average over the next years.
MFC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.47% yearly.
EPS Next Y8.36%
EPS Next 2Y8.46%
EPS Next 3Y8.91%
EPS Next 5Y1.03%
Revenue Next Year-8.22%
Revenue Next 2Y-2.11%
Revenue Next 3Y-0.55%
Revenue Next 5Y16.47%
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 decreasing.
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
With a Price/Earnings ratio of 9.31, the valuation of MFC can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of MFC indicates a rather expensive valuation: MFC more expensive than 88.41% of the companies listed in the same industry.
MFC is valuated cheaply when we compare the Price/Earnings ratio to 25.25, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.59 indicates a reasonable valuation of MFC.
81.16% of the companies in the same industry are cheaper than MFC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.67, MFC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.31 | ||
| Fwd PE | 8.59 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MFC.
MFC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.85 | ||
| EV/EBITDA | 5.89 |
4.3 Compensation for Growth
MFC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.11
PEG (5Y)1.95
EPS Next 2Y8.46%
EPS Next 3Y8.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.06%, MFC is a good candidate for dividend investing.
MFC's Dividend Yield is comparable with the industry average which is at 3.78.
Compared to an average S&P500 Dividend Yield of 2.45, MFC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.06% |
5.2 History
On average, the dividend of MFC grows each year by 12.35%, which is quite nice.
MFC has paid a dividend for at least 10 years, which is a reliable track record.
MFC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)12.35%
Div Incr Years11
Div Non Decr Years12
5.3 Sustainability
MFC pays out 61.92% of its income as dividend. This is not a sustainable payout ratio.
MFC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP61.92%
EPS Next 2Y8.46%
EPS Next 3Y8.91%
MANULIFE FINANCIAL CORP
TSX:MFC (4/23/2024, 6:00:00 PM)
32.21
+0.07 (+0.22%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap58.18B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.06% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.31 | ||
| Fwd PE | 8.59 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.11
PEG (5Y)1.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.55% | ||
| ROE | 10.15% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.9% | ||
| PM (TTM) | 14.33% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)11.61%
EPS 3Y7.83%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.36%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)56.6%
Revenue growth 3Y-22.48%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y