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, the United States, and internationally.


Snowflake Analysis

Undervalued established dividend payer.


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: MLU has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-8.8%

MLU

-4.8%

DE Insurance

-4.7%

DE Market


1 Year Return

9.6%

MLU

21.3%

DE Insurance

8.3%

DE Market

Return vs Industry: MLU underperformed the German Insurance industry which returned 21.3% over the past year.

Return vs Market: MLU exceeded the German Market which returned 8.3% over the past year.


Shareholder returns

MLUIndustryMarket
7 Day-8.8%-4.8%-4.7%
30 Day-12.2%-0.3%-4.0%
90 Day-6.3%3.7%-1.4%
1 Year14.3%9.6%26.6%21.3%11.7%8.3%
3 Year9.3%-2.8%61.2%41.7%11.4%1.6%
5 Year31.6%9.1%89.4%51.6%15.1%-0.7%

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

No news available

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: MLU (€17.8) is trading below our estimate of fair value (€50.4)

Significantly Below Fair Value: MLU is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MLU is good value based on its PE Ratio (9.3x) compared to the Insurance industry average (12.2x).

PE vs Market: MLU is good value based on its PE Ratio (9.3x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: MLU is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: MLU is good value based on its PB Ratio (1.1x) compared to the DE 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?

8.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MLU's forecast earnings growth (8.9% per year) is above the savings rate (-0.4%).

Earnings vs Market: MLU's earnings (8.9% per year) are forecast to grow slower than the German market (13% per year).

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

Revenue vs Market: MLU's revenue is expected to decline over the next 3 years (-18.8% per year).

High Growth Revenue: MLU's revenue is forecast to decline over the next 3 years (-18.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MLU'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?

13.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MLU has high quality earnings.

Growing Profit Margin: MLU's current net profit margins (7%) are lower than last year (12.4%).


Past Earnings Growth Analysis

Earnings Trend: MLU's earnings have grown by 13.5% per year over the past 5 years.

Accelerating Growth: MLU's earnings growth over the past year (17.2%) exceeds its 5-year average (13.5% per year).

Earnings vs Industry: MLU earnings growth over the past year (17.2%) exceeded the Insurance industry 7%.


Return on Equity

High ROE: MLU's Return on Equity (11%) is considered low.


Return on Assets


Return on Capital Employed


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: MLU has a low level of unsold assets or inventory.

Debt Coverage by Assets: MLU's debt is covered by short term assets (assets are 4.2x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

4.69%

Current Dividend Yield


Dividend Yield vs Market

company4.7%marketbottom25%1.4%markettop25%3.7%industryaverage3.7%forecastin3Years4.6%

Current dividend yield vs market & industry

Notable Dividend: MLU's dividend (4.34%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: MLU's dividend (4.34%) is in the top 25% of dividend payers in the German market (3.73%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.1%), MLU's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MLU's dividends in 3 years are forecast to be well covered by earnings (34.1% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Roy Gori (48yo)

2.3yrs

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's total compensation ($USD9.78M) is above average for companies of similar size in the German market ($USD4.41M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Rocco Gori
President2.3yrsCA$12.99m0.022% CA$6.9m
Philip Witherington
Chief Financial Officer2.1yrsCA$4.60mno data
Pamela Kimmet
Chief Human Resources Officer1.3yrsCA$182.77k0.0023% CA$742.8k
Marianne Harrison
President & CEO of John Hancock0yrsCA$5.92m0.000050% CA$16.1k
Anil Wadhwani
CEO & President of Manulife Asia2.3yrsCA$5.11mno data
Rahul Joshi
Executive VP & COO0.7yrsno datano data
Scott Hartz
Chief Investment Officer0.9yrsno data0.0026% CA$845.7k
Lynda Sullivan
Executive VP & Chief Accounting Officer0yrsno data0.000050% CA$16.1k
Shamus Edward Weiland
Chief Information Officer0.8yrsno datano data
Adrienne O'Neill
Head of Investor Relations1.4yrsno datano data

1.4yrs

Average Tenure

56yo

Average Age

Experienced Management: MLU's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Rocco Gori
President2.3yrsCA$12.99m0.022% CA$6.9m
John Cassaday
Independent Chairman of the Board1.8yrsCA$480.80k0.0011% CA$360.1k
Claude Prieur
Independent Director7.1yrsCA$331.14k0.0075% CA$2.4m
Lesley Daniels Webster
Independent Director7.3yrsCA$281.53k0.00062% CA$199.4k
Donald Lindsay
Independent Director9.5yrsCA$305.96k0.0010% CA$331.2k
Andrea Rosen
Independent Director8.5yrsCA$287.61k0.00059% CA$189.7k
John Ralph Palmer
Independent Director10.3yrsCA$269.27kno data
Joseph Caron
Independent Director9.3yrsCA$284.01k0.00045% CA$144.7k
Tsun-Yan Hsieh
Independent Director8.3yrsCA$358.07kno data
Sheila S. Fraser
Independent Director8.3yrsCA$324.08k0.000030% CA$9.6k

8.3yrs

Average Tenure

66.5yo

Average Age

Experienced Board: MLU's board of directors are considered experienced (8.3 years average tenure).


Ownership

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


Insider Trading Volume

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


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: MLU
  • Exchange: DB
  • Founded: 1887
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: CA$46.483b
  • Listing Market Cap: CA$32.154b
  • 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.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, the United States, and internationally. 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 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; and provides investment management, counseling, advisory, and dealer services. Manulife Financial Corporation was founded in 1887 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 20:40
End of Day Share Price2020/02/25 00:00
Earnings2019/12/31
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.