MANULIFE FINANCIAL CORP (MFC) Stock Fundamental Analysis
NYSE:MFC - New York Stock Exchange, Inc. - CA56501R1064 - Common Stock - Currency: USD
Overall MFC gets a fundamental rating of 5 out of 10. We evaluated MFC against 141 industry peers in the Insurance industry. Both the profitability and the financial health of MFC get a neutral evaluation. Nothing too spectacular is happening here. MFC has a correct valuation and a medium growth rate. MFC also has an excellent dividend rating.
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.
MFC had positive earnings in 4 of the past 5 years.
MFC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MFC has a Return On Assets of 0.56%. This is in the lower half of the industry: MFC underperforms 65.03% of its industry peers.
MFC has a Return On Equity of 10.90%. This is comparable to the rest of the industry: MFC outperforms 51.75% of its industry peers.
The Return On Invested Capital of MFC (0.80%) is comparable to the rest of the 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 fine compared to the rest of the industry. MFC outperforms 79.72% of its industry peers.
In the last couple of years the Profit Margin of MFC has grown nicely.
With an excellent Operating Margin value of 23.25%, MFC belongs to the best of the industry, outperforming 89.51% of the companies in the same industry.
In the last couple of years the Operating Margin of MFC has grown nicely.
| 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.
The number of shares outstanding for MFC has been reduced compared to 1 year ago.
MFC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MFC has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of MFC is 0.46, which is an excellent value as it means it would take MFC, only 0.46 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MFC (0.46) is better than 78.32% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that MFC is not too dependend on debt financing.
The Debt to Equity ratio of MFC (0.27) is better than 60.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.46 | ||
| Altman-Z | N/A |
ROIC/WACC0.09
WACC8.49%
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.
MFC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.59%.
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.
Based on estimates for the next years, MFC will show a quite strong growth in Revenue. The Revenue will grow by 11.14% on average per year.
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 5Y11.14%
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 10.55, the valuation of MFC can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of MFC is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.84, MFC is valued rather cheaply.
A Price/Forward Earnings ratio of 9.16 indicates a reasonable valuation of MFC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MFC is on the same level as its industry peers.
MFC is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.55 | ||
| Fwd PE | 9.16 |
4.2 Price Multiples
MFC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MFC is cheaper than 72.03% of the companies in the same industry.
MFC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MFC is cheaper than 86.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.49 | ||
| EV/EBITDA | 6.11 |
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)1.38
PEG (5Y)1.92
EPS Next 2Y8.57%
EPS Next 3Y6.76%
5. Dividend
5.1 Amount
MFC has a Yearly Dividend Yield of 6.36%, which is a nice return.
Compared to an average industry Dividend Yield of 3.59, MFC pays a better dividend. On top of this MFC pays more dividend than 86.71% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, MFC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.36% |
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 its dividend in the last 3 years.
Dividend Growth(5Y)20.17%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
59.31% of the earnings are spent on dividend by MFC. 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 2Y8.57%
EPS Next 3Y6.76%
30.38
-0.21 (-0.69%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners55.65%
Inst Owner Change2.27%
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap51.75B
Analysts76.67
Price Target36.08 (18.76%)
Short Float %0.61%
Short Ratio4.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.36% |
Yearly Dividend1.3
Dividend Growth(5Y)20.17%
DP59.31%
Div Incr Years3
Div Non Decr Years3
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)-0.13%
PT rev (3m)1.32%
EPS NQ rev (1m)-1.31%
EPS NQ rev (3m)-2.51%
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 | 10.55 | ||
| Fwd PE | 9.16 | ||
| P/S | 1.85 | ||
| P/FCF | 2.49 | ||
| P/OCF | 2.49 | ||
| P/B | 1.43 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | 6.11 |
EPS(TTM)2.88
EY9.48%
EPS(NY)3.32
Fwd EY10.92%
FCF(TTM)12.18
FCFY40.08%
OCF(TTM)12.18
OCFY40.08%
SpS16.44
BVpS21.22
TBVpS16.61
PEG (NY)1.38
PEG (5Y)1.92
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
WACC8.49%
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)7.59%
EPS 3Y6.08%
EPS 5Y5.49%
EPS Q2Q%4.4%
EPS Next Y7.65%
EPS Next 2Y8.57%
EPS Next 3Y6.76%
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 Year7.19%
Revenue Next 2Y7.58%
Revenue Next 3Y6.59%
Revenue Next 5Y11.14%
EBIT growth 1Y18.36%
EBIT growth 3Y-1.3%
EBIT growth 5Y3.07%
EBIT Next Year-70.64%
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%