TSX:MFC

Stock Analysis Report

Manulife Financial

Executive Summary

Manulife Financial Corporation, together with its subsidiaries, provides financial advice, insurance, and wealth and asset management solutions for individuals, groups, and institutions in Asia, Canada, and the United States.

Snowflake

Fundamentals

Undervalued with proven track record.


Similar Companies

Share Price & News

How has Manulife Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.4%

MFC

0.8%

CA Insurance

-0.2%

CA Market


1 Year Return

16.6%

MFC

10.0%

CA Insurance

1.1%

CA Market

Return vs Industry: MFC exceeded the Canadian Insurance industry which returned 10% over the past year.

Return vs Market: MFC exceeded the Canadian Market which returned 1.1% over the past year.


Shareholder returns

MFCIndustryMarket
7 Day1.4%0.8%-0.2%
30 Day-0.4%-0.6%-3.3%
90 Day0.04%2.4%-1.6%
1 Year21.9%16.6%14.8%10.0%4.6%1.1%
3 Year39.7%24.9%24.3%10.8%13.1%3.1%
5 Year41.9%18.5%42.3%18.2%24.7%6.7%

Price Volatility Vs. Market

How volatile is Manulife Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Manulife Financial undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: MFC (CA$24.33) is trading below our estimate of fair value (CA$49.47)

Significantly Undervalued: MFC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MFC is good value based on its PE Ratio (8.5x) compared to the Insurance industry average (12.7x).

PE vs Market: MFC is good value based on its PE Ratio (8.5x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: MFC is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: MFC is good value based on its PB Ratio (1.1x) compared to the CA Insurance industry average (1.1x).


Next Steps

Future Growth

How is Manulife Financial forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

7.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MFC's forecast earnings growth (7.8% per year) is above the savings rate (1.9%).

Earnings vs Market: MFC's earnings (7.8% per year) are forecast to grow slower than the Canadian market (13.6% per year).

High Growth Earnings: MFC's earnings are forecast to grow, but not significantly.

Revenue vs Market: MFC's revenue is expected to decline over the next 3 years (-7.5% per year).

High Growth Revenue: MFC's revenue is forecast to decline over the next 3 years (-7.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: MFC's Return on Equity is forecast to be low in 3 years time (12.5%).


Next Steps

Past Performance

How has Manulife Financial performed over the past 5 years?

5.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MFC's earnings have grown by 5% per year over the past 5 years.

Accelerating Growth: MFC's earnings growth over the past year (186.5%) exceeds its 5-year average (5% per year).

Earnings vs Industry: MFC earnings growth over the past year (186.5%) exceeded the Insurance industry -0.8%.


Return on Equity

High ROE: MFC's Return on Equity (12%) is considered low.


Return on Assets

ROA vs Industry: MFC's Return on Assets is below or equal to the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: MFC has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Manulife Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: MFC has a low level of unsold assets or inventory.

Debt Coverage by Assets: MFC's debt is covered by short term assets (assets are 3.899130x debt).


Financial Institutions Analysis

Asset Level: MFC's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if MFC has a sufficient allowance for bad loans.

Low Risk Liabilities: MFC reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if MFC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: MFC has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if MFC has an appropriate level of bad loans.


Next Steps

Dividend

What is Manulife Financial's current dividend yield, its reliability and sustainability?

4.11%

Current Dividend Yield


Dividend Yield vs Market

company4.1%marketbottom25%2.0%markettop25%6.0%industryaverage4.1%forecastin3Years4.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MFC's dividend (4.11%) is higher than the bottom 25% of dividend payers in the Canadian market (2.04%).

High Dividend: MFC's dividend (4.11%) is low compared to the top 25% of dividend payers in the Canadian market (6.03%).

Stable Dividend: MFC's dividend payments have been volatile in the past 10 years.

Growing Dividend: MFC's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.9%), MFC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MFC's dividends in 3 years are forecast to be well covered by earnings (34.8% payout ratio).


Next Steps

Management

What is the CEO of Manulife Financial's salary, the management and board of directors tenure and is there insider trading?

1.1yrs

Average management tenure


CEO

Roy Gori (49yo)

2yrs

Tenure

CA$12,986,344

Compensation

Mr. Rocco Gori, more commonly known as Roy, is Manulife's President and Chief Executive Officer. He was named President on June 5, 2017 and named Chief Executive Officer on October 1, 2017. Along with serv ...


CEO Compensation Analysis

Compensation vs. Market: Roy has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Canadian market.

Compensation vs Earnings: Roy's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.1yrs

Average Tenure

56.5yo

Average Age

Experienced Management: MFC's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Age and Tenure

8.0yrs

Average Tenure

66.5yo

Average Age

Experienced Board: MFC's board of directors are considered experienced (8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$99,99313 Dec 18
Linda Mantia
EntityIndividual
Shares5,000
Max PriceCA$20.00
BuyCA$941,80506 Dec 18
Claude Prieur
EntityIndividual
Role
Member of the Board of Directors
Director
Shares45,000
Max PriceCA$20.93
BuyCA$88,57029 Nov 18
Gregory Framke
EntityIndividual
Shares4,000
Max PriceCA$22.18
BuyCA$131,58718 Nov 18
Steven Finch
EntityIndividual
Shares6,000
Max PriceCA$21.97
BuyCA$99,94913 Nov 18
Paul Lorentz
EntityIndividual
Shares4,460
Max PriceCA$22.41

Ownership Breakdown


Management Team

  • Scott Hartz (58yo)

    Chief Investment Officer

    • Tenure: 0.6yrs
  • Marianne Harrison (55yo)

    President & CEO of John Hancock

    • Tenure: 6.8yrs
    • Compensation: CA$5.92m
  • Pam Kimmet (60yo)

    Chief Human Resources Officer

    • Tenure: 1yrs
    • Compensation: CA$182.77k
  • Roy Gori (49yo)

    President

    • Tenure: 2yrs
    • Compensation: CA$12.99m
  • Lynda Sullivan

    Executive VP & Chief Accounting Officer

    • Tenure: 0yrs
  • Anil Wadhwani

    CEO & President of Manulife Asia

    • Tenure: 1.9yrs
    • Compensation: CA$5.11m
  • Phil Witherington

    Chief Financial Officer

    • Tenure: 1.8yrs
    • Compensation: CA$4.60m
  • Adrienne O'Neill

    Head of Investor Relations

    • Tenure: 1.1yrs
  • Shamus Edward Weiland

    Chief Information Officer

    • Tenure: 0.5yrs
  • Rahul Joshi

    Executive VP & COO

    • Tenure: 0.3yrs

Board Members

  • John Cassaday (65yo)

    Chairman of the Board

    • Tenure: 1.4yrs
    • Compensation: CA$480.80k
  • Jim Prieur (68yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: CA$331.14k
  • Lesley Daniels Webster (67yo)

    Independent Director

    • Tenure: 7yrs
    • Compensation: CA$281.53k
  • Don Lindsay (60yo)

    Independent Director

    • Tenure: 9.2yrs
    • Compensation: CA$305.96k
  • Andrea Rosen (65yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: CA$287.61k
  • John Ralph Palmer (75yo)

    Director

    • Tenure: 9.9yrs
    • Compensation: CA$269.27k
  • Joe Caron (71yo)

    Independent Director

    • Tenure: 9yrs
    • Compensation: CA$284.01k
  • Roy Gori (49yo)

    President

    • Tenure: 2yrs
    • Compensation: CA$12.99m
  • Tsun-Yan Hsieh (66yo)

    Independent Director

    • Tenure: 8yrs
    • Compensation: CA$358.07k
  • Sheila S. Fraser (68yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: CA$324.08k

Company Information

Manulife Financial Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Manulife Financial Corporation
  • Ticker: MFC
  • Exchange: TSX
  • Founded: 1887
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: CA$47.502b
  • Shares outstanding: 1.95b
  • Website: https://www.manulife.com

Number of Employees


Location

  • Manulife Financial Corporation
  • 200 Bloor Street East
  • NT 11
  • Toronto
  • Ontario
  • M4W 1E5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MFCTSX (The Toronto Stock Exchange)YesCommon SharesCACADSep 1999
0V5HLSE (London Stock Exchange)YesCommon SharesGBCADSep 1999
MLUDB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1999
945SEHK (The Stock Exchange of Hong Kong Ltd.)YesCommon SharesHKHKDSep 1999
MFCPSE (Philippines Stock Exchange)YesCommon SharesPHPHPSep 1999
MFCNYSE (New York Stock Exchange)YesCommon SharesUSUSDSep 1999
MFC.PRCTSX (The Toronto Stock Exchange)PFD CL A SER 3CACADJan 2006
MFC.PRFTSX (The Toronto Stock Exchange)CV PFD-3 CL1CACADMar 2011
MFC.PRJTSX (The Toronto Stock Exchange)NONCUM PF1 SER11CACADDec 2012
MFC.PRKTSX (The Toronto Stock Exchange)PFD SHS CL 1 S13CACADJun 2013
MFC.PRLTSX (The Toronto Stock Exchange)PFD CL 1 SR-15CACADFeb 2014
MFC.PRNTSX (The Toronto Stock Exchange)NONCUM PFD SHSCACADDec 2014
MFC.PROTSX (The Toronto Stock Exchange)PFD SER 21CACADFeb 2016
MFC.PRRTSX (The Toronto Stock Exchange)PFD CL 1 SER 23CACADNov 2016

Biography

Manulife Financial Corporation, together with its subsidiaries, provides financial advice, insurance, and wealth and asset management solutions for individuals, groups, and institutions in Asia, Canada, an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:38
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.