TSX:MFC

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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, the United States, and internationally. More Details


Snowflake Analysis

Established dividend payer and good value.


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

Stable Share Price: MFC is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MFC's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

0.9%

MFC

1.1%

CA Insurance

-0.5%

CA Market


1 Year Return

-12.4%

MFC

-9.1%

CA Insurance

1.6%

CA Market

Return vs Industry: MFC underperformed the Canadian Insurance industry which returned -9.2% over the past year.

Return vs Market: MFC underperformed the Canadian Market which returned 1.7% over the past year.


Shareholder returns

MFCIndustryMarket
7 Day0.9%1.1%-0.5%
30 Day7.7%5.1%2.9%
90 Day28.5%15.9%12.2%
1 Year-7.4%-12.4%-4.6%-9.1%5.3%1.6%
3 Year0.8%-12.0%9.5%-3.6%13.1%2.3%
5 Year59.1%29.2%43.6%18.0%66.1%40.5%

Long-Term 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

Below Fair Value: MFC (CA$24.18) is trading below our estimate of fair value (CA$52.7)

Significantly Below Fair Value: 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 (9.1x) compared to the CA Insurance industry average (11.6x).

PE vs Market: MFC is good value based on its PE Ratio (9.1x) compared to the Canadian market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: MFC is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: MFC's PB Ratio (1x) is in line with the CA Insurance industry average.


Next Steps

Future Growth

How is Manulife Financial forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

7.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MFC's forecast earnings growth (7% per year) is above the savings rate (1.5%).

Earnings vs Market: MFC's earnings (7% per year) are forecast to grow slower than the Canadian market (25.9% per year).

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

Revenue vs Market: MFC's revenue (0.8% per year) is forecast to grow slower than the Canadian market (7.9% per year).

High Growth Revenue: MFC's revenue (0.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MFC's Return on Equity is forecast to be low in 3 years time (11.4%).


Next Steps

Past Performance

How has Manulife Financial performed over the past 5 years?

17.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MFC has high quality earnings.

Growing Profit Margin: MFC's current net profit margins (7.3%) are higher than last year (6.4%).


Past Earnings Growth Analysis

Earnings Trend: MFC's earnings have grown by 17.1% per year over the past 5 years.

Accelerating Growth: MFC's earnings growth over the past year (7.2%) is below its 5-year average (17.1% per year).

Earnings vs Industry: MFC earnings growth over the past year (7.2%) underperformed the Insurance industry 29.7%.


Return on Equity

High ROE: MFC's Return on Equity (9%) is considered low.


Next Steps

Financial Health

How is Manulife Financial's financial position?


Financial Position Analysis

Short Term Liabilities: MFC's short term assets (CA$112.6B) exceed its short term liabilities (CA$682.0M).

Long Term Liabilities: MFC's short term assets (CA$112.6B) do not cover its long term liabilities (CA$821.8B).


Debt to Equity History and Analysis

Debt Level: MFC's debt to equity ratio (53.9%) is considered high.

Reducing Debt: MFC's debt to equity ratio has reduced from 55.5% to 53.9% over the past 5 years.

Debt Coverage: MFC's debt is well covered by operating cash flow (67.2%).

Interest Coverage: MFC's interest payments on its debt are well covered by EBIT (5.8x coverage).


Balance Sheet


Next Steps

Dividend

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

4.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MFC's dividend (4.63%) is higher than the bottom 25% of dividend payers in the Canadian market (1.54%).

High Dividend: MFC's dividend (4.63%) is low compared to the top 25% of dividend payers in the Canadian market (4.99%).


Stability and Growth of Payments

Stable Dividend: MFC's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.1%), 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 (39% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Roy Gori (50 yo)

3.25yrs

Tenure

CA$14,695,549

Compensation

Mr. Rocco Gori, also known as Roy, is President and Chief Executive Officer of Manufacturers Life Insurance Company since June 5, 2017 and October 1, 2017 respectively. Along with serving as Chief Executiv...


CEO Compensation Analysis

Compensation vs Market: Roy's total compensation ($USD11.54M) is above average for companies of similar size in the Canadian market ($USD6.58M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Rocco Gori
President3.25yrsCA$14.70m0.023%
CA$ 10.7m
Philip Witherington
Chief Financial Officer3yrsCA$5.11m0.00043%
CA$ 201.7k
Rahul Joshi
Executive VP & COO1.58yrsCA$6.69m0.00025%
CA$ 117.3k
Marianne Harrison
President & CEO of John Hancockno dataCA$6.35m0.00048%
CA$ 225.2k
Anil Wadhwani
CEO & President of Manulife Asia3.17yrsCA$5.65m0.00038%
CA$ 178.3k
Scott Hartz
Chief Investment Officer1.83yrsno data0.0028%
CA$ 1.3m
Lynda Sullivan
Executive VP & Chief Accounting Officerno datano datano data
Shamus Edward Weiland
Chief Information Officer1.75yrsno data0.000070%
CA$ 32.8k
Adrienne O'Neill
Head of Investor Relations2.33yrsno datano data
James Gallagher
General Counsel4.25yrsno data0.000070%
CA$ 32.8k
Pamela Kimmet
Chief Human Resources Officer2.25yrsCA$182.77k0.0024%
CA$ 1.1m
Richard Brunet
Executive Vice President of Institutionalno datano datano data

2.3yrs

Average Tenure

57.5yo

Average Age

Experienced Management: MFC's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rocco Gori
President3.25yrsCA$14.70m0.023%
CA$ 10.7m
John Cassaday
Independent Chairman of the Board2.67yrsCA$528.44k0.0011%
CA$ 530.1k
Claude Prieur
Independent Director8yrsCA$323.67k0.0075%
CA$ 3.5m
Donald Lindsay
Independent Director10.42yrsCA$323.67k0.0010%
CA$ 483.2k
Andrea Rosen
Independent Director9.42yrsCA$323.67k0.00059%
CA$ 276.8k
John Ralph Palmer
Independent Director11.17yrsCA$270.83kno data
Joseph Caron
Independent Director10.25yrsCA$270.83k0.00046%
CA$ 215.8k
Susan Dabarno
Independent Director7.83yrsCA$270.83k0.0023%
CA$ 1.1m
Tsun-Yan Hsieh
Independent Director9.25yrsCA$368.11kno data
Sheila S. Fraser
Independent Director9.17yrsCA$323.67k0.000030%
CA$ 14.1k
Julie Dickson
Independent Director1.42yrsCA$107.87kno data
Guy Bainbridge
Independent Director1.42yrsCA$107.87kno data

8.6yrs

Average Tenure

66.5yo

Average Age

Experienced Board: MFC's board of directors are considered experienced (8.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MFC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$46.915b
  • Shares outstanding: 1.94b
  • Website: https://www.manulife.com

Number of Employees


Location

  • Manulife Financial Corporation
  • 200 Bloor Street East
  • NT 9
  • Toronto
  • Ontario
  • M4W 1E5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MFCTSX (The Toronto Stock Exchange)YesCommon SharesCACADSep 1999
MFCNYSE (New York Stock Exchange)YesCommon SharesUSUSDSep 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
0V5HLSE (London Stock Exchange)YesCommon SharesGBCADSep 1999
MFC NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNSep 1999
MNUF.FOTCPK (Pink Sheets LLC)PFD CL A SER 3USUSDJan 2006
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
MNLC.FOTCPK (Pink Sheets LLC)NONCUM PFD SHSUSUSDDec 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, th...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 23:35
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.