MANULIFE FINANCIAL CORP (MFC) Stock Fundamental Analysis
USA - NYSE:MFC - CA56501R1064 - Common Stock
32.37 USD
+0.22 (+0.68%)
32.37 USD
0 (0%)
MFC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 146 industry peers in the Insurance industry. MFC has only an average score on both its financial health and profitability. MFC is not valued too expensively and it also shows a decent growth rate.
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.
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
With a Return On Assets value of 0.56%, MFC is not doing good in the industry: 69.39% of the companies in the same industry are doing better.
MFC has a Return On Equity (10.90%) which is comparable to the rest of the industry.
MFC has a worse Return On Invested Capital (0.80%) than 61.90% 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
MFC has a better Profit Margin (14.07%) than 77.55% of its industry peers.
MFC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 23.25%, MFC belongs to the top of the industry, outperforming 88.44% of the companies in the same industry.
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.
MFC has less shares outstanding than it did 1 year ago.
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.
MFC has a better Debt to FCF ratio (0.46) than 79.59% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that MFC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.27, MFC is in the better half of the industry, outperforming 60.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.46 | ||
| Altman-Z | N/A |
ROIC/WACC0.1
WACC8.27%
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%.
MFC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.49% yearly.
MFC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.59%.
MFC shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -13.62% yearly.
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
MFC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.15% yearly.
Based on estimates for the next years, MFC will show a quite strong growth in Revenue. The Revenue will grow by 11.24% on average per year.
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
Based on the Price/Earnings ratio of 11.44, the valuation of MFC can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of MFC is on the same level as its industry peers.
MFC is valuated cheaply when we compare the Price/Earnings ratio to 26.11, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.29 indicates a reasonable valuation of MFC.
MFC's Price/Forward Earnings is on the same level as the industry average.
MFC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.55.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.44 | ||
| Fwd PE | 10.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MFC is valued a bit cheaper than the industry average as 68.71% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MFC indicates a rather cheap valuation: MFC is cheaper than 87.07% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.69 | ||
| EV/EBITDA | 6.67 |
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)2.7
PEG (5Y)2.08
EPS Next 2Y6.64%
EPS Next 3Y6.89%
5. Dividend
5.1 Amount
MFC has a Yearly Dividend Yield of 3.27%. Purely for dividend investing, there may be better candidates out there.
MFC's Dividend Yield is a higher than the industry average which is at 3.27.
Compared to an average S&P500 Dividend Yield of 2.37, MFC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
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 2Y6.64%
EPS Next 3Y6.89%
32.37
+0.22 (+0.68%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners55.61%
Inst Owner Change-0.67%
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap54.85B
Revenue(TTM)38.63B
Net Income(TTM)5.43B
Analysts74.44
Price Target36.22 (11.89%)
Short Float %0.33%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
Yearly Dividend1.27
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)2.12%
PT rev (3m)0.07%
EPS NQ rev (1m)-0.82%
EPS NQ rev (3m)-1.54%
EPS NY rev (1m)0%
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)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.44 | ||
| Fwd PE | 10.29 | ||
| P/S | 1.99 | ||
| P/FCF | 2.69 | ||
| P/OCF | 2.69 | ||
| P/B | 1.54 | ||
| P/tB | 1.97 | ||
| EV/EBITDA | 6.67 |
EPS(TTM)2.83
EY8.74%
EPS(NY)3.15
Fwd EY9.72%
FCF(TTM)12.04
FCFY37.18%
OCF(TTM)12.04
OCFY37.18%
SpS16.25
BVpS20.97
TBVpS16.42
PEG (NY)2.7
PEG (5Y)2.08
Graham Number36.55
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
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-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
WACC8.27%
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%
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 11.44 and the Price/Book (PB) ratio is 1.54.
What is the financial health of MANULIFE FINANCIAL CORP (MFC) stock?
The financial health rating of MANULIFE FINANCIAL CORP (MFC) is 4 / 10.