MANULIFE FINANCIAL CORP (MFC)

CA56501R1064 - Common Stock

24.99  +0.33 (+1.34%)

After market: 25.44 +0.45 (+1.8%)

Fundamental Rating

5

Taking everything into account, MFC scores 5 out of 10 in our fundamental rating. MFC was compared to 140 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.



5

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.
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 worse Return On Assets (0.55%) than 61.87% of its industry peers.
The Return On Equity of MFC (10.15%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 0.81%, MFC is in line with its industry, outperforming 48.92% of the companies in the same industry.
Industry RankSector 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

MFC has a Profit Margin of 14.33%. This is in the better half of the industry: MFC outperforms 79.86% of its industry peers.
MFC's Profit Margin has improved in the last couple of years.
MFC has a Operating Margin of 23.90%. This is amongst the best in the industry. MFC outperforms 84.89% of its industry peers.
MFC's Operating Margin has improved in the last couple of years.
Industry RankSector 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

4

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.
MFC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MFC has less shares outstanding
MFC has a better debt/assets ratio than last year.

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.
With an excellent Debt to FCF ratio value of 0.62, MFC belongs to the best of the industry, outperforming 83.45% of the companies in the same industry.
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 Debt to Equity ratio of 0.27. This is in the better half of the industry: MFC outperforms 66.91% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 0.62
Altman-Z N/A
ROIC/WACC0.1
WACC8.36%

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A

5

3. Growth

3.1 Past

MFC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.61%, which is quite good.
MFC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.78% yearly.
MFC shows a strong growth in Revenue. In the last year, the Revenue has grown by 56.60%.
The Revenue has been decreasing by -2.11% on average over the past years.
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

Based on estimates for the next years, MFC will show a small growth in Earnings Per Share. The EPS will grow by 1.03% on average per year.
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 Y8.32%
EPS Next 2Y8.37%
EPS Next 3Y8.81%
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.

6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 9.80, the valuation of MFC can be described as reasonable.
Based on the Price/Earnings ratio, MFC is valued a bit cheaper than the industry average as 64.75% of the companies are valued more expensively.
MFC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.48.
With a Price/Forward Earnings ratio of 9.05, the valuation of MFC can be described as very reasonable.
MFC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MFC is cheaper than 62.59% of the companies in the same industry.
MFC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.79, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 9.8
Fwd PE 9.05

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 75.54% of the companies listed in the same industry.
MFC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MFC is cheaper than 83.45% of the companies in the same industry.
Industry RankSector Rank
P/FCF 3
EV/EBITDA 6.25

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)1.18
PEG (5Y)2.05
EPS Next 2Y8.37%
EPS Next 3Y8.81%

6

5. Dividend

5.1 Amount

MFC has a Yearly Dividend Yield of 4.87%, which is a nice return.
Compared to an average industry Dividend Yield of 4.13, MFC pays a better dividend. On top of this MFC pays more dividend than 87.77% of the companies listed in the same industry.
MFC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 4.87%

5.2 History

The dividend of MFC is nicely growing with an annual growth rate of 12.35%!
MFC has been paying a dividend for at least 10 years, so it has a reliable track record.
MFC has decreased its dividend in the last 3 years.
Dividend Growth(5Y)12.35%
Div Incr Years2
Div Non Decr Years2

5.3 Sustainability

MFC pays out 61.92% of its income as dividend. This is not a sustainable payout ratio.
The dividend of MFC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP61.92%
EPS Next 2Y8.37%
EPS Next 3Y8.81%

MANULIFE FINANCIAL CORP

NYSE:MFC (3/28/2024, 8:23:53 PM)

After market: 25.44 +0.45 (+1.8%)

24.99

+0.33 (+1.34%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap45.13B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 4.87%
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(16)
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Revenue beat(2)
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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 RankSector Rank
PE 9.8
Fwd PE 9.05
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)1.18
PEG (5Y)2.05
Profitability
Industry RankSector 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 RankSector 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 Y8.32%
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