MANULIFE FINANCIAL CORP (MFC.CA) Stock Fundamental Analysis
Canada - TSX:MFC - CA56501R1064 - Common Stock
44.5 CAD
-0.67 (-1.48%)
Overall MFC gets a fundamental rating of 5 out of 10. We evaluated MFC against 80 industry peers in the Insurance industry. MFC has an average financial health and profitability rating. MFC is not valued too expensively and it also shows a decent growth rate. 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's Return On Assets of 0.56% is in line compared to the rest of the industry. MFC outperforms 51.25% of its industry peers.
MFC has a worse Return On Equity (10.90%) than 75.00% of its industry peers.
With a Return On Invested Capital value of 0.80%, MFC perfoms like the industry average, outperforming 58.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.56% | ||
| ROE | 10.9% | ||
| ROIC | 0.8% |
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 14.07% is amongst the best of the industry. MFC outperforms 81.25% of its industry peers.
MFC's Profit Margin has improved in the last couple of years.
MFC has a better Operating Margin (23.25%) than 78.75% of its industry peers.
MFC's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.25% | ||
| PM (TTM) | 14.07% | ||
| 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 has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, MFC has less shares outstanding
MFC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MFC has an improved debt to assets ratio.
2.2 Solvency
MFC has a debt to FCF ratio of 0.46. This is a very positive value and a sign of high solvency as it would only need 0.46 years to pay back of all of its debts.
The Debt to FCF ratio of MFC (0.46) is better than 82.50% 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.
MFC has a better Debt to Equity ratio (0.27) than 66.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.46 | ||
| Altman-Z | N/A |
ROIC/WACC0.1
WACC8.35%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
MFC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.59%.
The Earnings Per Share has been growing slightly by 5.49% on average over the past years.
Looking at the last year, MFC shows a quite strong growth in Revenue. The Revenue has grown by 11.59% in the last year.
Measured over the past years, MFC shows a very negative growth in Revenue. The Revenue has been decreasing by -13.62% on average per year.
EPS 1Y (TTM)7.59%
EPS 3Y6.08%
EPS 5Y5.49%
EPS Q2Q%4.4%
Revenue 1Y (TTM)11.59%
Revenue growth 3Y-12.52%
Revenue growth 5Y-13.62%
Sales Q2Q%19.94%
3.2 Future
The Earnings Per Share is expected to grow by 5.15% 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 11.24% yearly.
EPS Next Y4.23%
EPS Next 2Y6.64%
EPS Next 3Y6.89%
EPS Next 5Y5.15%
Revenue Next Year8.59%
Revenue Next 2Y8.42%
Revenue Next 3Y7.1%
Revenue Next 5Y11.24%
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
MFC is valuated reasonably with a Price/Earnings ratio of 11.21.
MFC's Price/Earnings ratio is rather expensive when compared to the industry. MFC is more expensive than 86.25% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.29. MFC is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.09, the valuation of MFC can be described as very reasonable.
Based on the Price/Forward Earnings ratio, MFC is valued a bit more expensive than 61.25% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.85, MFC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.21 | ||
| Fwd PE | 10.09 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MFC indicates a somewhat cheap valuation: MFC is cheaper than 68.75% of the companies listed in the same industry.
MFC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.64 | ||
| EV/EBITDA | 6.52 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MFC does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.65
PEG (5Y)2.04
EPS Next 2Y6.64%
EPS Next 3Y6.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.42%, MFC is a good candidate for dividend investing.
MFC's Dividend Yield is a higher than the industry average which is at 5.02.
MFC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.42% |
5.2 History
The dividend of MFC is nicely growing with an annual growth rate of 20.17%!
MFC has been paying a dividend for at least 10 years, so it has a reliable track record.
MFC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)20.17%
Div Incr Years11
Div Non Decr Years14
5.3 Sustainability
MFC pays out 59.31% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of MFC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP59.31%
EPS Next 2Y6.64%
EPS Next 3Y6.89%
TSX:MFC (10/16/2025, 7:00:00 PM)
44.5
-0.67 (-1.48%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners55.61%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap75.41B
Analysts74.44
Price Target48.72 (9.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.42% |
Yearly Dividend1.79
Dividend Growth(5Y)20.17%
DP59.31%
Div Incr Years11
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.7%
Min EPS beat(2)-2.89%
Max EPS beat(2)-0.52%
EPS beat(4)2
Avg EPS beat(4)2.54%
Min EPS beat(4)-2.89%
Max EPS beat(4)7.87%
EPS beat(8)6
Avg EPS beat(8)4.05%
EPS beat(12)8
Avg EPS beat(12)3.32%
EPS beat(16)10
Avg EPS beat(16)1.94%
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)-0.65%
PT rev (3m)-1.51%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)-0.49%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-3.18%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.21 | ||
| Fwd PE | 10.09 | ||
| P/S | 1.95 | ||
| P/FCF | 2.64 | ||
| P/OCF | 2.64 | ||
| P/B | 1.51 | ||
| P/tB | 1.93 | ||
| EV/EBITDA | 6.52 |
EPS(TTM)3.97
EY8.92%
EPS(NY)4.41
Fwd EY9.91%
FCF(TTM)16.88
FCFY37.94%
OCF(TTM)16.88
OCFY37.94%
SpS22.8
BVpS29.42
TBVpS23.03
PEG (NY)2.65
PEG (5Y)2.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.56% | ||
| ROE | 10.9% | ||
| ROCE | 0.94% | ||
| ROIC | 0.8% | ||
| ROICexc | 0.82% | ||
| ROICexgc | 1.91% | ||
| OM | 23.25% | ||
| PM (TTM) | 14.07% | ||
| GM | N/A | ||
| FCFM | 74.06% |
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-Score8
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.46 | ||
| Debt/EBITDA | 1.33 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 5.72 | ||
| Cash Conversion | 287.17% | ||
| Profit Quality | 526.46% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC8.35%
ROIC/WACC0.1
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)7.59%
EPS 3Y6.08%
EPS 5Y5.49%
EPS Q2Q%4.4%
EPS Next Y4.23%
EPS Next 2Y6.64%
EPS Next 3Y6.89%
EPS Next 5Y5.15%
Revenue 1Y (TTM)11.59%
Revenue growth 3Y-12.52%
Revenue growth 5Y-13.62%
Sales Q2Q%19.94%
Revenue Next Year8.59%
Revenue Next 2Y8.42%
Revenue Next 3Y7.1%
Revenue Next 5Y11.24%
EBIT growth 1Y18.36%
EBIT growth 3Y-1.3%
EBIT growth 5Y3.07%
EBIT Next Year-69.94%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y57.69%
FCF growth 3Y4.59%
FCF growth 5Y5.22%
OCF growth 1Y57.69%
OCF growth 3Y4.59%
OCF growth 5Y5.22%