DB:MLU

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

Excellent balance sheet, good value and pays a dividend.


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

-0.04%

DB:MLU

0.5%

DE Insurance

-0.7%

DE Market


1 Year Return

6.3%

DB:MLU

21.2%

DE Insurance

-7.6%

DE Market

MLU underperformed the Insurance industry which returned 19% over the past year.

MLU outperformed the Market in Germany which returned -8.5% over the past year.


Share holder returns

MLUIndustryMarket
7 Day-0.04%0.5%-0.7%
30 Day3.7%2.0%-0.5%
90 Day0.3%2.1%-3.8%
1 Year10.9%6.3%26.5%21.2%-4.6%-7.6%
3 Year48.1%32.4%85.4%63.0%18.5%8.3%
5 Year27.3%6.7%101.2%61.1%28.9%11.1%

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

No news available

Valuation

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

Manulife Financial is good value based on earnings compared to the DE Insurance industry average.

Manulife Financial is good value based on earnings compared to the Germany market.


Price Based on Expected Growth

Manulife Financial is poor value based on expected growth next year.


Price Based on Value of Assets

Manulife Financial is overvalued based on assets compared to the DE Insurance industry average.


Next Steps

Future Growth

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

8.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Manulife Financial's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Manulife Financial's earnings are expected to grow by 8.4% yearly, however this is not considered high growth (20% yearly).

Manulife Financial's revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.

Manulife Financial's earnings growth is positive but not above the Germany market average.

Manulife Financial's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Manulife Financial is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Manulife Financial performed over the past 5 years?

0.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Manulife Financial's year on year earnings growth rate has been positive over the past 5 years.

Manulife Financial's 1-year earnings growth exceeds its 5-year average (175.9% vs 0.5%)

Manulife Financial's earnings growth has exceeded the DE Insurance industry average in the past year (175.9% vs 9.4%).


Return on Equity

Manulife Financial has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Manulife Financial used its assets less efficiently than the DE Insurance industry average last year based on Return on Assets.


Return on Capital Employed

Manulife Financial has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

  • Explore strong past performing companies in the insurance industry.

Financial Health

How is Manulife Financial's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Manulife Financial's level of debt (39.4%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (54.7% vs 39.4% today).

Debt is well covered by operating cash flow (99.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.8x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 4.1x debt.


Next Steps

Dividend

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

4.48%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Manulife Financial's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.49%).

Manulife Financial's dividend is above the markets top 25% of dividend payers in Germany (3.92%).

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

Dividends paid are well covered by earnings (2.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.9x coverage).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Roy Gori (49yo)

1.8yrs

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

Roy's remuneration is higher than average for companies of similar size in Germany.

Roy's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.5yrs

Average Tenure

56.5yo

Average Age

The average tenure for the Manulife Financial management team is less than 2 years, this suggests a new team.


Board Age and Tenure

7.7yrs

Average Tenure

66.5yo

Average Age

The tenure for the Manulife Financial board of directors is about average.


Insider Trading

No 3 month individual insider trading information.


Recent Insider Transactions

Buy€65,68113 Dec 18
Linda Mantia
EntityIndividual
Role
Chief Operating Officer
Shares5,000
Max Price€13.14
Buy€616,38906 Dec 18
Claude Prieur
EntityIndividual
Role
Member of the Board of Directors
Shares45,000
Max Price€13.70
Buy€58,85429 Nov 18
Gregory Framke
EntityIndividual
Shares4,000
Max Price€14.74
Buy€88,02618 Nov 18
Steven Finch
EntityIndividual
Shares6,000
Max Price€14.70
Buy€66,95513 Nov 18
Paul Lorentz
EntityIndividual
Shares4,460
Max Price€15.01

Ownership Breakdown


Management Team

  • Lynda Sullivan

    Executive VP & Chief Accounting Officer

  • Linda Mantia

    Chief Operating Officer

    • Tenure: 2.8yrs
    • Compensation: CA$4.53m
  • Anil Wadhwani

    CEO & President of Manulife Asia

    • Tenure: 1.7yrs
    • Compensation: CA$5.11m
  • Marianne Harrison (55yo)

    President & CEO of John Hancock

    • Tenure: 6.5yrs
    • Compensation: CA$5.92m
  • Shamus Edward Weiland

    Chief Information Officer

    • Tenure: 0.3yrs
  • Scott Hartz (58yo)

    Chief Investment Officer

    • Tenure: 0.3yrs
  • Pam Kimmet (60yo)

    Chief Human Resources Officer

    • Tenure: 0.8yrs
    • Compensation: CA$182.77k
  • Phil Witherington

    Chief Financial Officer

    • Tenure: 1.5yrs
    • Compensation: CA$4.60m
  • Roy Gori (49yo)

    President

    • Tenure: 1.8yrs
    • Compensation: CA$12.99m
  • Rahul Joshi

    Executive VP & COO

    • Tenure: 0.1yrs

Board Members

  • Joe Caron (71yo)

    Director

    • Tenure: 8.8yrs
    • Compensation: CA$284.01k
  • Jim Prieur (68yo)

    Director

    • Tenure: 6.5yrs
    • Compensation: CA$331.14k
  • Andrea Rosen (65yo)

    Director

    • Tenure: 7.9yrs
    • Compensation: CA$287.61k
  • John Ralph Palmer (75yo)

    Director

    • Tenure: 9.7yrs
    • Compensation: CA$269.27k
  • Don Lindsay (60yo)

    Director

    • Tenure: 8.9yrs
    • Compensation: CA$305.96k
  • John Cassaday (65yo)

    Chairman of the Board

    • Tenure: 1.2yrs
    • Compensation: CA$480.80k
  • Sheila S. Fraser (68yo)

    Director

    • Tenure: 7.7yrs
    • Compensation: CA$324.08k
  • Tsun-Yan Hsieh (66yo)

    Director

    • Tenure: 7.8yrs
    • Compensation: CA$358.07k
  • Roy Gori (49yo)

    President

    • Tenure: 1.8yrs
    • Compensation: CA$12.99m
  • Lesley Daniels Webster (67yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: CA$281.53k

Company Information

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


Key Information

  • Name: Manulife Financial Corporation
  • Ticker: MLU
  • Exchange: DB
  • Founded: 1887
  • Industry: life and health insurance
  • Sector: insurance
  • Market Cap: CA$47.376b
  • Listing Market Cap: CA$32.243b
  • Shares outstanding: 1.96b
  • Website: Click here

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MFCPSE (Philippines Stock Exchange)YesCommon SharesPHPHPSep 1999
MLUDB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1999
MFCTSX (The Toronto Stock Exchange)YesCommon SharesCACADSep 1999
MFCNYSE (New York Stock Exchange)YesCommon SharesUSUSDSep 1999
0V5HLSE (London Stock Exchange)YesCommon SharesGBCADSep 1999
945SEHK (The Stock Exchange of Hong Kong Ltd.)YesCommon SharesHKHKDSep 1999
MFC.PRCTSX (The Toronto Stock Exchange)PFD CL A SER 3CACADJan 2006
MFC.PRLTSX (The Toronto Stock Exchange)PFD CL 1 SR-15CACADFeb 2014
MFC.PRJTSX (The Toronto Stock Exchange)NONCUM PF1 SER11CACADDec 2012
MFC.PRRTSX (The Toronto Stock Exchange)PFD CL 1 SER 23CACADNov 2016
MFC.PRKTSX (The Toronto Stock Exchange)PFD SHS CL 1 S13CACADJun 2013
MFC.PRNTSX (The Toronto Stock Exchange)NONCUM PFD SHSCACADDec 2014
MFC.PRFTSX (The Toronto Stock Exchange)CV PFD-3 CL1CACADMar 2011
MFC.PROTSX (The Toronto Stock Exchange)PFD SER 21CACADFeb 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 Analysis2019/07/19 20:37
End of Day Share Price2019/07/19 00:00
Earnings2019/03/31
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.