Manulife Financial (MFC) Stock Analysis
Here is a fundamental analysis of Manulife Financial (MFC), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.
Performance
Cumulative Growth
Trailing Returns
Performance at a Glance
| Metric | Current stock: MFC | Industry group median |
|---|---|---|
| 1-Year Return | 27.85% | 8.77% |
Risk
Drawdown
Risk at a Glance
| Metric | Current stock: MFC | Industry group median |
|---|---|---|
| 1-Year Volatility | 20.87% | 27.79% |
| Beta | 0.84 | 0.55 |
Company Profile
| Profile Item | MFC |
|---|---|
| Name | Manulife Financial Corporation |
| Country/Region | Canada |
| GICS Sector | Financials |
| GICS Industry Group | Insurance |
| GICS Industry | Insurance |
| GICS Sub-Industry | Life & Health Insurance |
| Market Capitalization | 67.14 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | September 24, 1999 |
| Security Type | Common Stock |
Valuation
Price-to-Earnings Ratio (TTM)
Manulife Financial (MFC) trades at P/E ratio of 16.19, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.
MFC
Insurance industry group
16.19
Group distribution
- Max
- 25.24
- Q3
- 16.46
- MFC
- 16.19
- Median
- 12.28
- Q1
- 8.66
- Min
- 3.44
Largest peers
- MRSH
- 21.09
- AON
- 18.41
- MFC
- 16.19
- AFL
- 13.46
- CB
- 11.60
- PGR
- 10.33
- TRV
- 9.08
Price-to-Sales Ratio (TTM)
Manulife Financial (MFC) trades at 2.10 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.
MFC
Insurance industry group
2.10
Group distribution
- Max
- 3.96
- Q3
- 2.13
- MFC
- 2.10
- Median
- 1.17
- Q1
- 0.82
- Min
- 0.13
Largest peers
- AON
- 4.10
- AFL
- 3.31
- MRSH
- 2.95
- MFC
- 2.10
- CB
- 2.09
- PGR
- 1.33
- TRV
- 1.32
Price-to-Book Ratio (MRQ)
Manulife Financial (MFC) trades at 1.92 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.
MFC
Insurance industry group
1.92
Group distribution
- Max
- 3.70
- Q3
- 2.21
- MFC
- 1.92
- Median
- 1.61
- Q1
- 1.12
- Min
- -0.14
Largest peers
- AON
- 7.28
- MRSH
- 5.58
- PGR
- 3.70
- TRV
- 2.02
- AFL
- 2.01
- MFC
- 1.92
- CB
- 1.73
Valuation at a Glance
| Metric | Current stock: MFC | Industry group median |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 16.19 | 12.28 |
| Price-to-Sales Ratio (TTM) | 2.10 | 1.17 |
| Price-to-Book Ratio (MRQ) | 1.92 | 1.61 |
| Free Cash Flow Yield | -- | -- |
Profitability
Return on Equity (TTM)
Manulife Financial (MFC) posts ROE of 12.56%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.
MFC
Insurance industry group
12.56%
Group distribution
- Max
- 38.88%
- Q3
- 22.34%
- Median
- 14.13%
- MFC
- 12.56%
- Q1
- 9.51%
- Min
- -6.23%
Largest peers
- AON
- 46.45%
- PGR
- 37.90%
- MRSH
- 27.57%
- TRV
- 25.27%
- AFL
- 16.47%
- CB
- 15.43%
- MFC
- 12.56%
Net Profit Margin (TTM)
Manulife Financial (MFC) keeps 20.04% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.
MFC
Insurance industry group
20.04%
Group distribution
- Max
- 38.86%
- MFC
- 20.04%
- Q3
- 19.36%
- Median
- 11.07%
- Q1
- 5.09%
- Min
- -2.80%
Largest peers
- AFL
- 25.60%
- AON
- 22.54%
- MFC
- 20.04%
- CB
- 18.53%
- TRV
- 15.54%
- MRSH
- 14.26%
- PGR
- 12.93%
Operating Profit Margin (TTM)
operating margin is set aside for Manulife Financial (MFC) in Insurance: the operating-income line is not a clean boundary for this business model, so net margin, ROE, FFO, or industry-specific measures may be more useful.
Profitability at a Glance
| Metric | Current stock: MFC | Industry group median |
|---|---|---|
| Return on Equity (TTM) | 12.56% | 14.13% |
| Return on Assets (TTM) | 0.59% | 2.66% |
| Net Profit Margin (TTM) | 20.04% | 11.07% |
| Operating Profit Margin (TTM) | -- | -- |
| Gross Profit Margin (TTM) | -- | -- |
Financial Strength
Current Ratio (MRQ)
current ratio is set aside for Manulife Financial (MFC) in Insurance: these balance sheets are not best read through a current/non-current split, so regulatory, funding, or liquidity-coverage measures usually matter more.
Debt-to-Equity Ratio (MRQ)
debt-to-equity ratio is set aside for Manulife Financial (MFC) in Insurance: leverage is part of the business model itself, so capital adequacy, funding mix, and regulatory measures are usually better risk gauges.
Financial Strength at a Glance
| Metric | Current stock: MFC | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | -- | -- |
| Debt-to-Equity Ratio (MRQ) | -- | -- |
| Net Debt / EBITDA | -- | -- |
Dividends
Dividend Yield (TTM)
Manulife Financial (MFC) has dividend yield of 3.33%, in the upper peer-yield quartile while still inside the industry range. The dividend offers more cash income per dollar of share price than most peers, though payout coverage still matters.
MFC
Insurance industry group
3.33%
Group distribution
- Max
- 5.43%
- MFC
- 3.33%
- Q3
- 2.64%
- Median
- 1.35%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- PGR
- 6.84%
- MFC
- 3.33%
- MRSH
- 2.13%
- AFL
- 2.07%
- TRV
- 1.64%
- CB
- 1.24%
- AON
- 0.98%
Dividend Payout Ratio (TTM)
Manulife Financial (MFC) has payout ratio of 52.02%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.
MFC
Insurance industry group
52.02%
Group distribution
- Max
- 86.52%
- MFC
- 52.02%
- Q3
- 35.43%
- Median
- 14.92%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- PGR
- 70.70%
- MFC
- 52.02%
- MRSH
- 43.94%
- AFL
- 26.86%
- AON
- 16.36%
- CB
- 13.72%
- TRV
- 13.13%
Dividends at a Glance
| Metric | Current stock: MFC | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 3.33% | 1.35% |
| Dividend Payout Ratio (TTM) | 52.02% | 14.92% |