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Manulife Financial

TSX:MFC
Snowflake Description

Undervalued with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MFC
TSX
CA$52B
Market Cap
  1. Home
  2. CA
  3. Insurance
Company description

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. The last earnings update was 65 days ago. More info.


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MFC Share Price and Events
7 Day Returns
1.9%
TSX:MFC
2.9%
CA Insurance
1.2%
CA Market
1 Year Returns
2.7%
TSX:MFC
3%
CA Insurance
4.1%
CA Market
MFC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Manulife Financial (MFC) 1.9% 6.2% 15.2% 2.7% 31.2% 20.6%
CA Insurance 2.9% 4.8% 13.2% 3% 11.4% 20.3%
CA Market 1.2% 2.4% 7.9% 4.1% 15.3% 7.4%
1 Year Return vs Industry and Market
  • MFC underperformed the Market in Canada which returned 4.1% over the past year.
Price Volatility
MFC
Industry
5yr Volatility vs Market

MFC Value

 Is Manulife Financial undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Manulife Financial to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Manulife Financial.

TSX:MFC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 13 analysts.
= Stable Book Value * Return on Equity
= CA$24.73 * 12.6%
CA$3.11
Book Value of Equity per Share Weighted future Book Value estimates from 11 analysts. CA$24.73
Discount Rate (Cost of Equity) See below 7.3%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:MFC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.66
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.656 (1 + (1- 26.5%) (37.26%))
0.89
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.89
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (0.89 * 5.96%)
7.25%

Discounted Cash Flow Calculation for TSX:MFC using Excess Returns Model Model

The calculations below outline how an intrinsic value for Manulife Financial is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

TSX:MFC Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (12.6% – 7.25%) * CA$24.73)
CA$1.32
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= CA$1.32 / (7.25% - 1.95%)
CA$24.88
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= CA$24.73 + CA$24.88
CA$49.61
TSX:MFC Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$49.61
Current discount Discount to share price of CA$24.64
= -1 x (CA$24.64 - CA$49.61) / CA$49.61
50.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Manulife Financial is available for.
Intrinsic value
>50%
Share price is CA$24.64 vs Future cash flow value of CA$49.61
Current Discount Checks
For Manulife Financial to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Manulife Financial's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Manulife Financial's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Manulife Financial's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Manulife Financial's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:MFC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CAD CA$2.34
TSX:MFC Share Price ** TSX (2019-04-18) in CAD CA$24.64
Canada Insurance Industry PE Ratio Median Figure of 11 Publicly-Listed Insurance Companies 11.79x
Canada Market PE Ratio Median Figure of 556 Publicly-Listed Companies 15.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Manulife Financial.

TSX:MFC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:MFC Share Price ÷ EPS (both in CAD)

= 24.64 ÷ 2.34

10.55x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Manulife Financial is good value based on earnings compared to the CA Insurance industry average.
  • Manulife Financial is good value based on earnings compared to the Canada market.
Price based on expected Growth
Does Manulife Financial's expected growth come at a high price?
Raw Data
TSX:MFC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.55x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
11.3%per year
Canada Insurance Industry PEG Ratio Median Figure of 9 Publicly-Listed Insurance Companies 1.27x
Canada Market PEG Ratio Median Figure of 257 Publicly-Listed Companies 1.21x

*Line of best fit is calculated by linear regression .

TSX:MFC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.55x ÷ 11.3%

0.93x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Manulife Financial is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Manulife Financial's assets?
Raw Data
TSX:MFC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CAD CA$21.43
TSX:MFC Share Price * TSX (2019-04-18) in CAD CA$24.64
Canada Insurance Industry PB Ratio Median Figure of 14 Publicly-Listed Insurance Companies 1.15x
Canada Market PB Ratio Median Figure of 2,375 Publicly-Listed Companies 1.52x
TSX:MFC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:MFC Share Price ÷ Book Value per Share (both in CAD)

= 24.64 ÷ 21.43

1.15x

* Primary Listing of Manulife Financial.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Manulife Financial is overvalued based on assets compared to the CA Insurance industry average.
X
Value checks
We assess Manulife Financial's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. Manulife Financial has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MFC Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Manulife Financial expected to grow at an attractive rate?
  • Manulife Financial's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Manulife Financial's earnings growth is positive but not above the Canada market average.
  • Manulife Financial's revenue growth is expected to exceed the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:MFC Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:MFC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts 11.3%
TSX:MFC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 14.7%
Canada Insurance Industry Earnings Growth Rate Market Cap Weighted Average 14.4%
Canada Insurance Industry Revenue Growth Rate Market Cap Weighted Average 8.8%
Canada Market Earnings Growth Rate Market Cap Weighted Average 18.2%
Canada Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:MFC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:MFC Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31
2021-12-31 52,185 6,547 1
2020-12-31 59,030 5,920 3
2019-12-31 51,426 5,452 2
TSX:MFC Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2018-12-31 37,428 19,188 4,632
2018-09-30 45,059 19,588 2,436
2018-06-30 48,959 18,544 1,971
2018-03-31 51,901 18,454 1,969
2017-12-31 56,720 17,791 1,945
2017-09-30 37,169 17,482 3,621
2017-06-30 39,691 18,098 3,638
2017-03-31 43,722 17,474 3,089
2016-12-31 51,897 17,017 2,796
2016-09-30 66,195 16,314 2,983
2016-06-30 58,831 11,860 2,493
2016-03-31 39,349 11,036 2,397

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Manulife Financial's earnings are expected to grow by 11.3% yearly, however this is not considered high growth (20% yearly).
  • Manulife Financial's revenue is expected to grow by 14.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:MFC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from Manulife Financial Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:MFC Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 3.62 3.62 3.62 1.00
2021-12-31 3.32 3.38 3.25 2.00
2020-12-31 3.04 3.25 2.44 11.00
2019-12-31 2.84 3.09 2.16 10.00
TSX:MFC Past Financials Data
Date (Data in CAD Millions) EPS *
2018-12-31 2.34
2018-09-30 1.23
2018-06-30 0.99
2018-03-31 0.99
2017-12-31 0.98
2017-09-30 1.83
2017-06-30 1.84
2017-03-31 1.56
2016-12-31 1.42
2016-09-30 1.51
2016-06-30 1.26
2016-03-31 1.22

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Manulife Financial is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Manulife Financial's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Manulife Financial has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MFC Past Performance

  How has Manulife Financial performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Manulife Financial's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Manulife Financial's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Manulife Financial's 1-year earnings growth exceeds its 5-year average (138.1% vs -3.8%)
  • Manulife Financial's earnings growth has exceeded the CA Insurance industry average in the past year (138.1% vs 17.4%).
Earnings and Revenue History
Manulife Financial's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Manulife Financial Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:MFC Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 37,428.00 4,632.00 7,957.00
2018-09-30 45,059.00 2,436.00 7,727.00
2018-06-30 48,959.00 1,971.00 7,668.00
2018-03-31 51,901.00 1,969.00 7,361.00
2017-12-31 56,720.00 1,945.00 7,233.00
2017-09-30 37,169.00 3,621.00 7,120.00
2017-06-30 39,691.00 3,638.00 7,160.00
2017-03-31 43,722.00 3,089.00 7,065.00
2016-12-31 51,897.00 2,796.00 6,995.00
2016-09-30 66,195.00 2,983.00 6,913.00
2016-06-30 58,831.00 2,493.00 6,598.00
2016-03-31 39,349.00 2,397.00 6,474.00
2015-12-31 33,448.00 2,075.00 6,221.00
2015-09-30 38,666.00 2,470.00 5,814.00
2015-06-30 42,672.00 2,949.00 5,478.00
2015-03-31 54,804.00 3,285.00 5,009.00
2014-12-31 53,234.00 3,375.00 4,772.00
2014-09-30 43,687.00 4,026.00 4,704.00
2014-06-30 39,009.00 3,955.00 4,618.00
2014-03-31 25,319.00 3,275.00 4,644.00
2013-12-31 17,045.00 2,999.00 4,618.00
2013-09-30 16,994.00 2,784.00 4,590.00
2013-06-30 18,338.00 1,541.00 4,558.00
2013-03-31 30,179.00 1,005.00 4,519.00
2012-12-31 28,182.00 1,698.00 4,415.00
2012-09-30 31,551.00 471.00 4,300.00
2012-06-30 47,382.00 -586.00 4,241.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Manulife Financial has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Manulife Financial used its assets less efficiently than the CA Insurance industry average last year based on Return on Assets.
  • Manulife Financial has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Manulife Financial's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Manulife Financial has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MFC Health

 How is Manulife Financial's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Manulife Financial's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Manulife Financial is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Manulife Financial's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Manulife Financial's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Manulife Financial Company Filings, last reported 3 months ago.

TSX:MFC Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 47,151.00 19,316.00 27,733.00
2018-09-30 45,487.00 19,151.00 25,231.00
2018-06-30 45,318.00 19,013.00 28,240.00
2018-03-31 44,089.00 18,987.00 28,689.00
2017-12-31 42,163.00 19,480.00 29,261.00
2017-09-30 43,755.00 20,623.00 29,794.00
2017-06-30 44,225.00 21,443.00 32,116.00
2017-03-31 43,931.00 22,781.00 32,821.00
2016-12-31 42,823.00 24,860.00 37,427.00
2016-09-30 43,315.00 34,948.00 58,556.00
2016-06-30 42,383.00 36,619.00 62,803.00
2016-03-31 41,351.00 30,339.00 51,536.00
2015-12-31 41,938.00 22,248.00 40,857.00
2015-09-30 40,890.00 22,713.00 43,163.00
2015-06-30 38,677.00 19,748.00 32,147.00
2015-03-31 39,435.00 25,003.00 43,023.00
2014-12-31 33,926.00 19,368.00 38,553.00
2014-09-30 32,596.00 16,197.00 30,178.00
2014-06-30 30,780.00 15,727.00 25,104.00
2014-03-31 31,187.00 17,069.00 24,200.00
2013-12-31 29,033.00 17,500.00 22,827.00
2013-09-30 26,881.00 15,930.00 24,097.00
2013-06-30 26,544.00 15,607.00 23,624.00
2013-03-31 25,791.00 15,315.00 24,917.00
2012-12-31 25,159.00 15,790.00 27,713.00
2012-09-30 24,961.00 15,952.00 26,131.00
2012-06-30 26,085.00 16,184.00 29,334.00
  • Manulife Financial's level of debt (41%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (60.2% vs 41% today).
  • Debt is well covered by operating cash flow (99.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.3x coverage).
X
Financial health checks
We assess Manulife Financial's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Manulife Financial has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MFC Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.06%
Current annual income from Manulife Financial dividends. Estimated to be 4.28% next year.
If you bought CA$2,000 of Manulife Financial shares you are expected to receive CA$81 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Manulife Financial's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.04%).
  • Manulife Financial's dividend is below the markets top 25% of dividend payers in Canada (5.56%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:MFC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
Canada Insurance Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 3.9%
Canada Market Average Dividend Yield Market Cap Weighted Average of 331 Stocks 3.4%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2%
Canada Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:MFC Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31 1.15 2.00
2020-12-31 1.09 8.00
2019-12-31 1.00 9.00
TSX:MFC Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-02-13 1.000 4.379
2018-11-01 1.000 4.808
2018-08-08 0.880 3.892
2018-05-02 0.880 3.625
2018-02-07 0.880 3.646
2017-11-08 0.820 3.074
2017-08-09 0.820 3.260
2017-05-03 0.820 3.366
2017-02-09 0.820 3.432
2016-11-10 0.740 3.071
2016-08-04 0.740 4.026
2016-05-05 0.740 4.086
2016-02-11 0.740 4.079
2015-11-12 0.680 3.407
2015-08-06 0.680 3.188
2015-05-07 0.680 2.924
2014-11-13 0.620 2.856
2014-08-07 0.620 2.893
2014-05-01 0.520 2.471
2014-02-13 0.520 2.478
2013-11-07 0.520 2.534
2013-08-08 0.520 2.943
2013-05-02 0.520 3.091
2013-02-07 0.520 3.491
2012-11-08 0.520 3.887
2012-08-09 0.520 4.414
2012-05-03 0.520 4.707
2012-02-09 0.520 4.030
2011-11-03 0.520 4.531
2011-08-11 0.520 4.122
2011-05-05 0.520 3.243
2011-02-10 0.520 3.005
2010-11-04 0.520 3.158
2010-08-05 0.520 4.049
2010-05-06 0.520 3.160
2010-02-11 0.520 2.653
2009-11-05 0.520 2.676
2009-08-06 0.520 2.379
2009-05-07 1.040 4.643
2009-04-20 1.040 5.080

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Manulife Financial's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.9x coverage).
X
Income/ dividend checks
We assess Manulife Financial's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Manulife Financial afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Manulife Financial has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MFC Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Roy Gori
COMPENSATION CA$12,986,344
AGE 48
TENURE AS CEO 1.5 years
CEO Bio

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 serving as Chief Executive Officer and President of Manulife, he has also been a member of the Board since October 1, 2017. He served as Senior Executive Vice President and General Manager of Asia at Manulife Financial Corporation from March 1, 2015 until June 05, 2017. Mr. Gori served as Head of Retail Banking for Asia Pacific Region at Citigroup Inc. from April 2013 until February 2015. Prior to March 2015, he served as Head of Consumer Banking, North Asia and Australia and Regional Head of Retail Banking, Asia Pacific at Citi, which included responsibility for its insurance and wealth management businesses. From March 2008 to March 2013, he served as Chief Executive Officer of Citibank Australia, overseeing various credit card and consumer loans businesses across Asia. He served various roles at Citi, including finance, operations and marketing. Mr. Gori has an Economics and Finance degree from the University of New South Wales and an MBA from the University of Technology, Sydney.

CEO Compensation
  • Roy's compensation has been consistent with company performance over the past year.
  • Roy's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the Manulife Financial management team in years:

1.3
Average Tenure
  • The average tenure for the Manulife Financial management team is less than 2 years, this suggests a new team.
Management Team

Roy Gori

TITLE
President
COMPENSATION
CA$13M
AGE
48
TENURE
1.5 yrs

Phil Witherington

TITLE
Chief Financial Officer
COMPENSATION
CA$5M
TENURE
1.3 yrs

Pam Kimmet

TITLE
Chief Human Resources Officer
COMPENSATION
CA$183K
AGE
59
TENURE
0.5 yrs

Marianne Harrison

TITLE
President & CEO of John Hancock
COMPENSATION
CA$6M

Anil Wadhwani

TITLE
CEO & President of Manulife Asia
COMPENSATION
CA$5M
TENURE
1.4 yrs

Linda Mantia

TITLE
Chief Operating Officer
COMPENSATION
CA$5M
TENURE
2.5 yrs

Lynda Sullivan

TITLE
Executive VP & Chief Accounting Officer

Shamus Weiland

TITLE
Chief Information Officer
TENURE
0.3 yrs

Adrienne O'Neill

TITLE
Head of Investor Relations
TENURE
0.6 yrs

Jim Gallagher

TITLE
General Counsel
TENURE
2.3 yrs
Board of Directors Tenure

Average tenure and age of the Manulife Financial board of directors in years:

7.6
Average Tenure
66
Average Age
  • The tenure for the Manulife Financial board of directors is about average.
Board of Directors

John Cassaday

TITLE
Chairman of the Board
COMPENSATION
CA$481K
AGE
64
TENURE
0.9 yrs

Roy Gori

TITLE
President
COMPENSATION
CA$13M
AGE
48
TENURE
1.5 yrs

Don Lindsay

TITLE
Director
COMPENSATION
CA$306K
AGE
59
TENURE
8.7 yrs

Andrea Rosen

TITLE
Director
COMPENSATION
CA$288K
AGE
64
TENURE
7.7 yrs

Sheila S. Fraser

TITLE
Director
COMPENSATION
CA$324K
AGE
67
TENURE
7.4 yrs

Jim Prieur

TITLE
Director
COMPENSATION
CA$331K
AGE
67
TENURE
6.3 yrs

Luther Helms

TITLE
Director
COMPENSATION
CA$272K
AGE
74
TENURE
11.9 yrs

John Ralph Palmer

TITLE
Director
COMPENSATION
CA$269K
AGE
74
TENURE
9.4 yrs

Joe Caron

TITLE
Director
COMPENSATION
CA$284K
AGE
70
TENURE
8.5 yrs

Tsun-Yan Hsieh

TITLE
Director
COMPENSATION
CA$358K
AGE
65
TENURE
7.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
13. Dec 18 Buy Linda Mantia Individual 10. Dec 18 10. Dec 18 5,000 CA$20.00 CA$99,993
06. Dec 18 Buy Claude Prieur Individual 06. Dec 18 06. Dec 18 45,000 CA$20.93 CA$941,805
29. Nov 18 Buy Gregory Framke Individual 26. Nov 18 28. Nov 18 4,000 CA$22.18 CA$88,570
18. Nov 18 Buy Steven Finch Individual 15. Nov 18 15. Nov 18 6,000 CA$21.97 CA$131,587
13. Nov 18 Buy Paul Lorentz Individual 13. Nov 18 13. Nov 18 4,460 CA$22.41 CA$99,949
10. May 18 Buy Ronalee Ambrose Individual 10. May 18 10. May 18 6,000 CA$24.69 CA$148,134
07. May 18 Buy Gregory Framke Individual 07. May 18 07. May 18 1,000 CA$24.23 CA$24,228
X
Management checks
We assess Manulife Financial's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Manulife Financial has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MFC News

Simply Wall St News

Should Manulife Financial Corporation (TSE:MFC) Be Part Of Your Portfolio?

Could Manulife Financial Corporation (TSE:MFC) be an attractive dividend share to own for the long haul? Today we'll run through a few important checks to use on any potential dividend stock.. … In this case, Manulife Financial likely looks attractive to investors, given its 4.2% dividend yield and a payment history of over ten years. … Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1

Simply Wall St -

Is Manulife Financial Corporation's (TSE:MFC) P/E Ratio Really That Good?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll look at Manulife Financial Corporation's (TSE:MFC) P/E ratio and reflect on what it tells us about the company's share price. … How Do I Calculate Manulife Financial's Price To Earnings Ratio

Simply Wall St -

Is Manulife Financial Corporation's (TSE:MFC) Future Growth Already Accounted For In Today's Price?

Looking at Manulife Financial Corporation’s (TSE:MFC) fundamentals some investors are wondering if its last closing price of CA$23.58 represents a good value for money for this high growth stock. … What can we expect from Manulife Financial in the future. … Investors in Manulife Financial have been patiently waiting for the uptick in earnings.

Simply Wall St -

What Are Analysts Saying About Manulife Financial Corporation's (TSE:MFC) Earnings Outlook?

The latest earnings update Manulife Financial Corporation (TSE:MFC) released in December 2018a

Simply Wall St -

A Look At Manulife Financial Corporation's (TSE:MFC) Exceptional Fundamentals

I've been keeping an eye on Manulife Financial Corporation (TSE:MFC) because I'm attracted to its fundamentals. … is a company that has been able to sustain great financial health, trading at an attractive share price. … report on Manulife Financial here

Simply Wall St -

How Many Insiders Bought Manulife Financial Corporation (TSE:MFC) Shares?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … So before you buy or sell Manulife Financial Corporation (TSE:MFC), you may well want to know whether insiders have been buying or selling. … The Last 12 Months Of Insider Transactions At Manulife Financial.

Simply Wall St -

How Many Manulife Financial Corporation (TSE:MFC) Shares Do Institutions Own?

Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … Manulife Financial has a market capitalization of CA$41b, so it's too big to fly under the radar. … Taking a look at the our data on the ownership groups (below), it's seems that.

Simply Wall St -

Should You Investigate Manulife Financial Corporation (TSE:MFC) At CA$20.60?

Let's talk about the popular Manulife Financial Corporation (TSE:MFC). … As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Today I will analyse the most recent data on Manulife Financial’s outlook and valuation to see if the opportunity still exists.

Simply Wall St -

Despite Its High P/E Ratio, Is Manulife Financial Corporation (TSE:MFC) Still Undervalued?

We'll show how you can use Manulife Financial Corporation's (TSE:MFC) P/E ratio to inform your assessment of the investment opportunity. … Based on the last twelve months, Manulife Financial's P/E ratio is 15.15. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Is Manulife Financial Corporation's (TSE:MFC) 6.3% Worse Than Average?

We'll use ROE to examine Manulife Financial Corporation (TSE:MFC), by way of a worked example. … That means that for every CA$1 worth of shareholders' equity, it generated CA$0.063 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

MFC Company Info

Description

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. The company offers individual life, and individual and group long-term care insurance; and guaranteed and partially guaranteed annuity products through insurance agents, brokers, banks, financial planners, and direct marketing. It also provides mutual funds and exchange-traded funds, group retirement and savings products, and institutional asset management services through insurance agents and brokers affiliated with the company, securities brokerage firms, financial advisors, pension plan consultants, and banks; and banking products, such as deposit and credit products to Canadian customers. In addition, the company is involved in property and casualty insurance and reinsurance businesses; and run-off reinsurance operations, including variable annuities, and accident and health. Further, it manages timberland and agricultural portfolios; and engages in insurance agency, portfolio and mutual fund management, mutual fund dealer, life and financial reinsurance, and mutual funds marketing businesses. Additionally, the company holds and manages oil and gas properties; holds oil and gas royalties, and foreign bonds and equities; provides investment management, counseling, advisory, and dealer services; and develops and operates hydro-electric power projects. Manulife Financial Corporation was founded in 1887 and is headquartered in Toronto, Canada.

Details
Name: Manulife Financial Corporation
MFC
Exchange: TSX
Founded: 1887
CA$51,844,800,490
2,104,090,929
Website: http://www.manulife.com
Address: Manulife Financial Corporation
200 Bloor Street East,
NT 11,
Toronto,
Ontario, M4W 1E5,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX MFC Common Shares The Toronto Stock Exchange CA CAD 24. Sep 1999
NYSE MFC Common Shares New York Stock Exchange US USD 24. Sep 1999
DB MLU Common Shares Deutsche Boerse AG DE EUR 24. Sep 1999
LSE 0V5H Common Shares London Stock Exchange GB CAD 24. Sep 1999
SEHK 945 Common Shares The Stock Exchange of Hong Kong Ltd. HK HKD 24. Sep 1999
PSE MFC Common Shares Philippines Stock Exchange PH PHP 24. Sep 1999
TSX MFC.PRC PFD CL A SER 3 The Toronto Stock Exchange CA CAD 03. Jan 2006
TSX MFC.PRK PFD SHS CL 1 S13 The Toronto Stock Exchange CA CAD 21. Jun 2013
TSX MFC.PRO PFD SER 21 The Toronto Stock Exchange CA CAD 26. Feb 2016
TSX MFC.PRF CV PFD-3 CL1 The Toronto Stock Exchange CA CAD 11. Mar 2011
TSX MFC.PRJ NONCUM PF1 SER11 The Toronto Stock Exchange CA CAD 04. Dec 2012
TSX MFC.PRR PFD CL 1 SER 23 The Toronto Stock Exchange CA CAD 22. Nov 2016
TSX MFC.PRN NONCUM PFD SHS The Toronto Stock Exchange CA CAD 03. Dec 2014
TSX MFC.PRL PFD CL 1 SR-15 The Toronto Stock Exchange CA CAD 25. Feb 2014
Number of employees
Current staff
Staff numbers
34,000
Manulife Financial employees.
Industry
Life and Health Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 23:38
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/16
Last earnings filing: 2019/02/13
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.