MANULIFE FINANCIAL CORP (MFC) Stock Fundamental Analysis
USA - NYSE:MFC - CA56501R1064 - Common Stock
32.34 USD
+0.45 (+1.41%)
32.34 USD
0 (0%)
Overall MFC gets a fundamental rating of 4 out of 10. We evaluated MFC against 146 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 is not valued too expensively and it also shows a decent growth rate. Finally MFC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
MFC had positive earnings in the past year.
In the past year MFC had a positive cash flow from operations.
MFC had positive earnings in 4 of the past 5 years.
Each year in the past 5 years MFC had a positive operating cash flow.
1.2 Ratios
MFC has a worse Return On Assets (0.56%) than 67.12% of its industry peers.
MFC has a Return On Equity (10.90%) which is in line with its industry peers.
MFC has a Return On Invested Capital of 0.80%. This is in the lower half of the industry: MFC underperforms 60.27% of its industry peers.
| 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
With a decent Profit Margin value of 14.07%, MFC is doing good in the industry, outperforming 79.45% of the companies in the same industry.
In the last couple of years the Profit Margin of MFC has grown nicely.
Looking at the Operating Margin, with a value of 23.25%, MFC belongs to the top of the industry, outperforming 89.04% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MFC is destroying value.
The number of shares outstanding for MFC has been reduced compared to 1 year ago.
The number of shares outstanding for MFC has been reduced compared to 5 years ago.
The debt/assets ratio for MFC has been reduced compared to a year ago.
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.
With a decent Debt to FCF ratio value of 0.46, MFC is doing good in the industry, outperforming 78.77% 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.
Looking at the Debt to Equity ratio, with a value of 0.27, MFC is in line with its industry, outperforming 59.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.46 | ||
| Altman-Z | N/A |
ROIC/WACC0.09
WACC8.48%
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%.
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.
The Revenue has grown by 11.59% in the past year. This is quite good.
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
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.
The Revenue is expected to grow by 11.05% on average over the next years. This is quite good.
EPS Next Y4.29%
EPS Next 2Y6.7%
EPS Next 3Y7.03%
EPS Next 5Y5.15%
Revenue Next Year8.59%
Revenue Next 2Y8.42%
Revenue Next 3Y7.1%
Revenue Next 5Y11.05%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.27, 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.
MFC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.27.
The Price/Forward Earnings ratio is 10.12, which indicates a very decent 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's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.27 | ||
| Fwd PE | 10.12 |
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 68.49% 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 88.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.65 | ||
| EV/EBITDA | 6.55 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.63
PEG (5Y)2.05
EPS Next 2Y6.7%
EPS Next 3Y7.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.00%, MFC is a good candidate for dividend investing.
MFC's Dividend Yield is a higher than the industry average which is at 3.43.
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 | 4% |
5.2 History
The dividend of MFC is nicely growing with an annual growth rate of 20.17%!
MFC has paid a dividend for at least 10 years, which is 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 59.31% of its income as dividend. This is a bit on the high side, but may be sustainable.
MFC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP59.31%
EPS Next 2Y6.7%
EPS Next 3Y7.03%
32.34
+0.45 (+1.41%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners55.65%
Inst Owner Change2.26%
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap54.80B
Analysts76.47
Price Target35.47 (9.68%)
Short Float %1.4%
Short Ratio10.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
Yearly Dividend1.29
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)-1.71%
PT rev (3m)-1.6%
EPS NQ rev (1m)0.96%
EPS NQ rev (3m)-1.58%
EPS NY rev (1m)-3.13%
EPS NY rev (3m)-3.13%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.31%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.27 | ||
| Fwd PE | 10.12 | ||
| P/S | 1.96 | ||
| P/FCF | 2.65 | ||
| P/OCF | 2.65 | ||
| P/B | 1.52 | ||
| P/tB | 1.94 | ||
| EV/EBITDA | 6.55 |
EPS(TTM)2.87
EY8.87%
EPS(NY)3.2
Fwd EY9.88%
FCF(TTM)12.22
FCFY37.77%
OCF(TTM)12.22
OCFY37.77%
SpS16.49
BVpS21.29
TBVpS16.67
PEG (NY)2.63
PEG (5Y)2.05
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
WACC8.48%
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 Y4.29%
EPS Next 2Y6.7%
EPS Next 3Y7.03%
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 5Y11.05%
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%