It's been a great afternoon session for Manulife Financial investors, who saw their shares rise 7.6% to a price of $32.04 per share. At these higher prices, is the company still fairly valued? If you are thinking about investing, make sure to check the company's fundamentals before making a decision.
Manulife Financial Is Fairly Priced:
Manulife Financial Corporation, together with its subsidiaries, provides financial products and services in the United States, Canada, Asia, and internationally. The company belongs to the Finance sector, which has an average price to earnings (P/E) ratio of 20.04 and an average price to book (P/B) ratio of 1.86. In contrast, Manulife Financial has a trailing 12 month P/E ratio of 16.1 and a P/B ratio of 1.81.
Manulife Financial has moved 22.8% over the last year compared to 20.8% for the S&P 500 — a difference of 2.0%. Manulife Financial has a 52 week high of $33.07 and a 52 week low of $22.61.
A Positive EPS Growth Rate and Generally Positive Cash Flows:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $38,972 | $79,570 | $78,908 | $61,821 | $6,186 | $6,746 |
| Interest Income (M) | $1,275 | $1,319 | $1,181 | $1,011 | $1,051 | $1,554 |
| Net Margins | 13% | 7% | 7% | 11% | -32% | 83% |
| Net Income (M) | $4,887 | $5,502 | $5,576 | $6,912 | -$1,979 | $5,607 |
| Earnings Per Share | $2.33 | $2.77 | $2.93 | $3.54 | -$1.15 | $2.61 |
| EPS Growth | n/a | 18.88% | 5.78% | 20.82% | -132.49% | 326.96% |
| Free Cash Flow (M) | $19,188 | $20,542 | $20,048 | $23,155 | $16,628 | $20,423 |
| Total Debt (M) | $4,769 | $4,543 | $6,164 | $4,882 | $6,234 | $6,071 |
