Manulife Financial Corporation
Manulife Financial Corporation Fundamental Analysis
Manulife Financial Corporation (MFC) shows moderate financial fundamentals with a PE ratio of 14.50, profit margin of 7.60%, and ROE of 11.38%. The company generates $74.9B in annual revenue with moderate year-over-year growth of 7.74%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze MFC's fundamental strength across five key dimensions:
Efficiency Score
WeakMFC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMFC trades at attractive valuation levels.
Growth Score
ModerateMFC shows steady but slowing expansion.
Financial Health Score
ModerateMFC shows balanced financial health with some risks.
Profitability Score
WeakMFC struggles to sustain strong margins.
Key Financial Metrics
Is MFC Expensive or Cheap?
P/E Ratio
MFC trades at 14.50 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MFC's PEG of -6.65 indicates potential undervaluation.
Price to Book
The market values Manulife Financial Corporation at 1.67 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.19 times EBITDA. This signals the market has high growth expectations.
How Well Does MFC Make Money?
Net Profit Margin
For every $100 in sales, Manulife Financial Corporation keeps $7.60 as profit after all expenses.
Operating Margin
Core operations generate 9.32 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.38 in profit for every $100 of shareholder equity.
ROA
Manulife Financial Corporation generates $0.56 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Manulife Financial Corporation generates strong operating cash flow of $31.60B, reflecting robust business health.
Free Cash Flow
Manulife Financial Corporation generates strong free cash flow of $31.60B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $18.85 in free cash annually.
FCF Yield
MFC converts 38.87% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.50
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-6.65
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.67
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.09
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.29
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.006
vs 25 benchmark
ROCE
Return on capital employed
0.007
vs 25 benchmark
How MFC Stacks Against Its Sector Peers
| Metric | MFC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.50 | 18.73 | Better (Cheaper) |
| ROE | 11.38% | 847.00% | Weak |
| Net Margin | 7.60% | 3919.00% | Weak |
| Debt/Equity | 0.29 | 0.93 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 674.76 | Weak Liquidity |
| ROA | 0.56% | -21563.00% (disorted) | Weak |
MFC outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Manulife Financial Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-35.53%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
17.62%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
41.95%
Industry Style: Value, Dividend, Cyclical
High Growth