TSX:MFCInsurance
Manulife (TSX:MFC) Stock Looks Cheap as Profit Quality Improves
Manulife Financial stock closed at CA$62.52, capping a 90 day gain of about 14%, so investors came into this earnings print with momentum already on their side. The headline this quarter is profit quality. Trailing earnings grew 26% over the past year while net profit margins sit at 18.5%, comfortably above last year’s 15.6%.
That combination of earnings growth and firmer profitability now bumps up against a valuation puzzle. The P/E multiple is below direct peers, yet above the wider...