MANULIFE FINANCIAL CORP (MFC.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MFC - CA56501R1064 - Common Stock
50.56 CAD
+0.76 (+1.53%)
We assign a fundamental rating of 4 out of 10 to MFC. MFC was compared to 81 industry peers in the Insurance industry. MFC has only an average score on both its financial health and profitability. MFC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
MFC had positive earnings in the past year.
MFC had a positive operating cash flow in the past year.
Of the past 5 years MFC 4 years were profitable.
MFC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MFC has a Return On Assets of 0.53%. This is comparable to the rest of the industry: MFC outperforms 48.15% of its industry peers.
MFC has a worse Return On Equity (10.48%) than 77.78% of its industry peers.
MFC has a Return On Invested Capital of 0.75%. This is comparable to the rest of the industry: MFC outperforms 58.02% 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
MFC's Profit Margin of 13.87% is amongst the best of the industry. MFC outperforms 81.48% of its industry peers.
In the last couple of years the Profit Margin of MFC has grown nicely.
MFC's Operating Margin of 22.75% is fine compared to the rest of the industry. MFC outperforms 79.01% of its industry peers.
In the last couple of years the Operating Margin of MFC has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MFC is destroying value.
Compared to 1 year ago, MFC has less shares outstanding
MFC has less shares outstanding than it did 5 years ago.
MFC has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of MFC is 0.44, which is an excellent value as it means it would take MFC, only 0.44 years of fcf income to pay off all of its debts.
MFC has a Debt to FCF ratio of 0.44. This is amongst the best in the industry. MFC outperforms 82.72% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that MFC is not too dependend on debt financing.
MFC has a better Debt to Equity ratio (0.26) than 76.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.44 | ||
| Altman-Z | N/A |
ROIC/WACC0.09
WACC8.1%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
MFC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.55%, which is quite good.
MFC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.49% yearly.
The Revenue has been growing slightly by 7.70% in the past year.
MFC 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 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.15% yearly.
MFC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.43% yearly.
EPS Next Y8.22%
EPS Next 2Y8.36%
EPS Next 3Y8.8%
EPS Next 5Y5.15%
Revenue Next Year8.86%
Revenue Next 2Y8.68%
Revenue Next 3Y6.97%
Revenue Next 5Y12.43%
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 12.24 indicates a correct valuation of MFC.
MFC's Price/Earnings ratio is a bit more expensive when compared to the industry. MFC is more expensive than 70.37% of the companies in the same industry.
MFC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.17.
With a Price/Forward Earnings ratio of 11.10, the valuation of MFC can be described as very reasonable.
MFC's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. MFC is more expensive than 62.96% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.79. MFC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.24 | ||
| Fwd PE | 11.1 |
4.2 Price Multiples
MFC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MFC is cheaper than 67.90% of the companies in the same industry.
64.20% of the companies in the same industry are more expensive than MFC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.78 | ||
| EV/EBITDA | 7.34 |
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)1.49
PEG (5Y)2.23
EPS Next 2Y8.36%
EPS Next 3Y8.8%
5. Dividend
5.1 Amount
MFC has a Yearly Dividend Yield of 3.53%.
Compared to an average industry Dividend Yield of 4.57, MFC is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 1.94, MFC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
5.2 History
On average, the dividend of MFC grows each year by 20.17%, which is quite nice.
MFC has paid a dividend for at least 10 years, which is a reliable track record.
MFC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)20.17%
Div Incr Years11
Div Non Decr Years14
5.3 Sustainability
60.48% of the earnings are spent on dividend by MFC. This is not a sustainable payout ratio.
MFC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP60.48%
EPS Next 2Y8.36%
EPS Next 3Y8.8%
TSX:MFC (1/5/2026, 7:00:00 PM)
50.56
+0.76 (+1.53%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners56.4%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap85.19B
Revenue(TTM)38.88B
Net Income(TTM)5.39B
Analysts74.74
Price Target53.77 (6.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
Yearly Dividend1.79
Dividend Growth(5Y)20.17%
DP60.48%
Div Incr Years11
Div Non Decr Years14
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.09%
Min EPS beat(2)-2.89%
Max EPS beat(2)11.07%
EPS beat(4)2
Avg EPS beat(4)3.88%
Min EPS beat(4)-2.89%
Max EPS beat(4)11.07%
EPS beat(8)6
Avg EPS beat(8)4.13%
EPS beat(12)9
Avg EPS beat(12)4.52%
EPS beat(16)11
Avg EPS beat(16)2.93%
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)0.54%
PT rev (3m)10.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.05%
EPS NY rev (1m)0%
EPS NY rev (3m)3.83%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.24 | ||
| Fwd PE | 11.1 | ||
| P/S | 2.19 | ||
| P/FCF | 2.78 | ||
| P/OCF | 2.78 | ||
| P/B | 1.66 | ||
| P/tB | 2.11 | ||
| EV/EBITDA | 7.34 |
EPS(TTM)4.13
EY8.17%
EPS(NY)4.56
Fwd EY9.01%
FCF(TTM)18.18
FCFY35.95%
OCF(TTM)18.18
OCFY35.95%
SpS23.08
BVpS30.53
TBVpS24.01
PEG (NY)1.49
PEG (5Y)2.23
Graham Number53.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.53% | ||
| ROE | 10.48% | ||
| ROCE | 0.88% | ||
| ROIC | 0.75% | ||
| ROICexc | 0.77% | ||
| ROICexgc | 1.81% | ||
| OM | 22.75% | ||
| PM (TTM) | 13.87% | ||
| GM | N/A | ||
| FCFM | 78.76% |
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
ROICexgc growth 3Y-2.15%
ROICexgc 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 | 0.26 | ||
| Debt/FCF | 0.44 | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 5.76 | ||
| Cash Conversion | 308.74% | ||
| Profit Quality | 568.01% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC8.1%
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)9.55%
EPS 3Y6.08%
EPS 5Y5.49%
EPS Q2Q%16%
EPS Next Y8.22%
EPS Next 2Y8.36%
EPS Next 3Y8.8%
EPS Next 5Y5.15%
Revenue 1Y (TTM)7.7%
Revenue growth 3Y-12.52%
Revenue growth 5Y-13.62%
Sales Q2Q%21.19%
Revenue Next Year8.86%
Revenue Next 2Y8.68%
Revenue Next 3Y6.97%
Revenue Next 5Y12.43%
EBIT growth 1Y1.1%
EBIT growth 3Y-1.3%
EBIT growth 5Y3.07%
EBIT Next Year-72.75%
EBIT Next 3Y-28.58%
EBIT Next 5YN/A
FCF growth 1Y60.02%
FCF growth 3Y4.59%
FCF growth 5Y5.22%
OCF growth 1Y60.02%
OCF growth 3Y4.59%
OCF growth 5Y5.22%
MANULIFE FINANCIAL CORP / MFC.CA FAQ
What is the fundamental rating for MFC stock?
ChartMill assigns a fundamental rating of 4 / 10 to MFC.CA.
Can you provide the valuation status for MANULIFE FINANCIAL CORP?
ChartMill assigns a valuation rating of 4 / 10 to MANULIFE FINANCIAL CORP (MFC.CA). This can be considered as Fairly Valued.
How profitable is MANULIFE FINANCIAL CORP (MFC.CA) stock?
MANULIFE FINANCIAL CORP (MFC.CA) has a profitability rating of 5 / 10.
How financially healthy is MANULIFE FINANCIAL CORP?
The financial health rating of MANULIFE FINANCIAL CORP (MFC.CA) is 4 / 10.
What is the earnings growth outlook for MANULIFE FINANCIAL CORP?
The Earnings per Share (EPS) of MANULIFE FINANCIAL CORP (MFC.CA) is expected to grow by 8.22% in the next year.