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Manulife Financial

Market Cap

CA$52.8b

Last Updated

2021/05/05 22:38 UTC

Data Sources

Company Financials +

Executive Summary

Manulife Financial Corporation, together with its subsidiaries, provides financial products and services 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 +/- 3% a week.

Volatility Over Time: MFC's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

1.6%

MFC

1.2%

CA Insurance

0.7%

CA Market


1 Year Return

62.9%

MFC

52.2%

CA Insurance

37.1%

CA Market

Return vs Industry: MFC exceeded the Canadian Insurance industry which returned 52.2% over the past year.

Return vs Market: MFC exceeded the Canadian Market which returned 37.1% over the past year.


Shareholder returns

MFCIndustryMarket
7 Day1.6%1.2%0.7%
30 Day-0.6%4.1%1.8%
90 Day13.2%15.5%8.2%
1 Year72.2%62.9%59.3%52.2%41.6%37.1%
3 Year26.2%9.9%33.4%17.1%29.9%17.5%
5 Year83.1%48.6%63.6%33.8%59.0%35.1%

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$27.19) is trading below our estimate of fair value (CA$58.55)

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 (9.3x) compared to the CA Insurance industry average (11.7x).

PE vs Market: MFC is good value based on its PE Ratio (9.3x) compared to the Canadian market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: MFC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: MFC's PB Ratio (1.1x) is in line with the CA Insurance industry average.


Future Growth

How is Manulife Financial forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

-9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MFC's earnings are forecast to decline over the next 3 years (-9.2% per year).

Earnings vs Market: MFC's earnings are forecast to decline over the next 3 years (-9.2% per year).

High Growth Earnings: MFC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MFC's revenue is expected to decline over the next 3 years (-2.1% per year).

High Growth Revenue: MFC's revenue is forecast to decline over the next 3 years (-2.1% 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%).


Past Performance

How has Manulife Financial performed over the past 5 years?

18.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MFC has high quality earnings.

Growing Profit Margin: MFC's current net profit margins (7.4%) are higher than last year (7%).


Past Earnings Growth Analysis

Earnings Trend: MFC's earnings have grown by 18% per year over the past 5 years.

Accelerating Growth: MFC's earnings growth over the past year (5.2%) is below its 5-year average (18% per year).

Earnings vs Industry: MFC earnings growth over the past year (5.2%) underperformed the Insurance industry 15.1%.


Return on Equity

High ROE: MFC's Return on Equity (10.5%) is considered low.


Financial Health

How is Manulife Financial's financial position?


Financial Position Analysis

Short Term Liabilities: MFC's short term assets (CA$103.8B) exceed its short term liabilities (CA$17.2B).

Long Term Liabilities: MFC's short term assets (CA$103.8B) do not cover its long term liabilities (CA$810.1B).


Debt to Equity History and Analysis

Debt Level: MFC's debt to equity ratio (50.3%) is considered high.

Reducing Debt: MFC's debt to equity ratio has reduced from 53.5% to 50.3% over the past 5 years.

Debt Coverage: MFC's debt is well covered by operating cash flow (75.2%).

Interest Coverage: MFC's interest payments on its debt are well covered by EBIT (6.7x coverage).


Balance Sheet


Dividend

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

4.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MFC's dividend (4.12%) is higher than the bottom 25% of dividend payers in the Canadian market (1.51%).

High Dividend: MFC's dividend (4.12%) is low compared to the top 25% of dividend payers in the Canadian market (4.7%).


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 (38.1%), 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 (36.9% payout ratio).


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Roy Gori (50 yo)

3.58yrs

Tenure

CA$14,697,088

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 ($USD11.97M) is above average for companies of similar size in the Canadian market ($USD6.69M).

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


Leadership Team

Experienced Management: MFC's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: MFC's board of directors are considered experienced (8.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MFC insiders have only sold shares 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$52.802b
  • 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


Biography

Manulife Financial Corporation, together with its subsidiaries, provides financial products and services in Asia, Canada, the United States, and internationally. The company operates through Wealth and Ass...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/05 22:38
End of Day Share Price2021/05/05 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.