MANULIFE FINANCIAL CORP (MFC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MFC - CA56501R1064 - Common Stock
35.31 USD
+0.44 (+1.26%)
35.4 USD
+0.09 (+0.25%)
Overall MFC gets a fundamental rating of 4 out of 10. We evaluated MFC against 147 industry peers in the Insurance industry. MFC has an average financial health and profitability rating. MFC has a correct valuation and a medium growth rate. Finally 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.
Of the past 5 years MFC 4 years were profitable.
Each year in the past 5 years MFC had a positive operating cash flow.
1.2 Ratios
MFC has a worse Return On Assets (0.53%) than 70.75% of its industry peers.
MFC has a Return On Equity (10.48%) which is comparable to the rest of the industry.
The Return On Invested Capital of MFC (0.75%) is worse than 63.95% 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 has a Profit Margin of 13.87%. This is in the better half of the industry: MFC outperforms 76.19% of its industry peers.
In the last couple of years the Profit Margin of MFC has grown nicely.
Looking at the Operating Margin, with a value of 22.75%, MFC belongs to the top of the industry, outperforming 83.67% of the companies in the same industry.
MFC's Operating Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
Compared to 1 year ago, MFC has an improved debt to assets ratio.
2.2 Solvency
MFC has a debt to FCF ratio of 0.44. This is a very positive value and a sign of high solvency as it would only need 0.44 years to pay back of all of its debts.
MFC has a Debt to FCF ratio of 0.44. This is amongst the best in the industry. MFC outperforms 82.31% of its industry peers.
MFC has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.26, MFC is in line with its industry, outperforming 59.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.44 | ||
| Altman-Z | N/A |
ROIC/WACC0.09
WACC8.17%
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.
Measured over the past 5 years, MFC shows a small growth in Earnings Per Share. The EPS has been growing by 5.49% on average per year.
Looking at the last year, MFC shows a small growth in Revenue. The Revenue has grown by 7.70% in the last year.
The Revenue for MFC have been decreasing by -13.62% on average. This is quite bad
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
Based on estimates for the next years, MFC will show a small growth in Earnings Per Share. The EPS will grow by 5.15% on average per year.
MFC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.40% yearly.
EPS Next Y4.26%
EPS Next 2Y6.8%
EPS Next 3Y7.72%
EPS Next 5Y5.15%
Revenue Next Year8.38%
Revenue Next 2Y8.22%
Revenue Next 3Y6.84%
Revenue Next 5Y11.4%
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 correctly with a Price/Earnings ratio of 12.05.
MFC's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of MFC to the average of the S&P500 Index (25.98), we can say MFC is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.26, the valuation of MFC can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as MFC.
MFC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.05 | ||
| Fwd PE | 11.26 |
4.2 Price Multiples
MFC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MFC is cheaper than 63.95% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MFC indicates a rather cheap valuation: MFC is cheaper than 86.39% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.76 | ||
| EV/EBITDA | 7.26 |
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)2.83
PEG (5Y)2.19
EPS Next 2Y6.8%
EPS Next 3Y7.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.16%, MFC is a good candidate for dividend investing.
MFC's Dividend Yield is rather good when compared to the industry average which is at 3.46. MFC pays more dividend than 91.16% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, MFC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.16% |
5.2 History
On average, the dividend of MFC grows each year by 20.17%, which is quite nice.
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
MFC pays out 60.48% 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.
DP60.48%
EPS Next 2Y6.8%
EPS Next 3Y7.72%
35.31
+0.44 (+1.26%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners55.61%
Inst Owner Change-1.42%
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap59.83B
Revenue(TTM)38.88B
Net Income(TTM)5.39B
Analysts74.74
Price Target38.07 (7.82%)
Short Float %0.88%
Short Ratio8.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.16% |
Yearly Dividend1.27
Dividend Growth(5Y)20.17%
DP60.48%
Div Incr Years3
Div Non Decr Years3
Ex-Date
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)8.89%
PT rev (3m)7.72%
EPS NQ rev (1m)3.73%
EPS NQ rev (3m)3.68%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-0.03%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.05 | ||
| Fwd PE | 11.26 | ||
| P/S | 2.17 | ||
| P/FCF | 2.76 | ||
| P/OCF | 2.76 | ||
| P/B | 1.64 | ||
| P/tB | 2.09 | ||
| EV/EBITDA | 7.26 |
EPS(TTM)2.93
EY8.3%
EPS(NY)3.14
Fwd EY8.88%
FCF(TTM)12.81
FCFY36.27%
OCF(TTM)12.81
OCFY36.27%
SpS16.26
BVpS21.51
TBVpS16.92
PEG (NY)2.83
PEG (5Y)2.19
Graham Number37.66
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
WACC8.17%
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 Y4.26%
EPS Next 2Y6.8%
EPS Next 3Y7.72%
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 Year8.38%
Revenue Next 2Y8.22%
Revenue Next 3Y6.84%
Revenue Next 5Y11.4%
EBIT growth 1Y1.1%
EBIT growth 3Y-1.3%
EBIT growth 5Y3.07%
EBIT Next Year-69.94%
EBIT Next 3YN/A
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 FAQ
What is the fundamental rating for MFC stock?
ChartMill assigns a fundamental rating of 4 / 10 to MFC.
What is the valuation status for MFC stock?
ChartMill assigns a valuation rating of 5 / 10 to MANULIFE FINANCIAL CORP (MFC). This can be considered as Fairly Valued.
How profitable is MANULIFE FINANCIAL CORP (MFC) stock?
MANULIFE FINANCIAL CORP (MFC) has a profitability rating of 4 / 10.
What are the PE and PB ratios of MANULIFE FINANCIAL CORP (MFC) stock?
The Price/Earnings (PE) ratio for MANULIFE FINANCIAL CORP (MFC) is 12.05 and the Price/Book (PB) ratio is 1.64.
What is the financial health of MANULIFE FINANCIAL CORP (MFC) stock?
The financial health rating of MANULIFE FINANCIAL CORP (MFC) is 4 / 10.