Access comprehensive financial analyses and make smarter investments - get the Manual of Investments on Amazon!

MFC

Understanding Manulife Financial Stocks – A Fundamental Analysis

Now trading at a price of $30.68, Manulife Financial has moved 0.2% so far today.

Manulife Financial returned gains of 13.7% last year, with its stock price reaching a high of $33.07 and a low of $23.3. Over the same period, the stock outperformed the S&P 500 index by 2.0%. More recently, the company's 50-day average price was $31.45. Manulife Financial Corporation, together with its subsidiaries, provides financial products and services in the United States, Canada, Asia, and internationally. Based in Toronto, Canada, the Large-Cap Finance company has 37,000 full time employees. Manulife Financial has offered a 5.4% dividend yield over the last 12 months.

Generally Positive Cash Flows and a Positive EPS Growth Rate:

2019 2020 2021 2022 2023 2024
Revenue (M) $79,570 $78,908 $61,821 $6,186 $6,746 $7,588
Interest Income (M) $1,319 $1,181 $1,011 $1,051 $1,554 $1,681
Net Margins 7% 7% 11% -32% 83% 77%
Net Income (M) $5,502 $5,576 $6,912 -$1,979 $5,607 $5,878
Earnings Per Share $2.77 $2.93 $3.54 -$1.15 $2.61 $2.84
EPS Growth n/a 5.78% 20.82% -132.49% 326.96% 8.81%
Free Cash Flow (M) $20,542 $20,048 $23,155 $16,628 $20,423 $26,494
Total Debt (M) $4,543 $6,164 $4,882 $6,234 $6,071 $6,629

The Market May Be Undervaluing Manulife Financial's Earnings and Assets:

Manulife Financial has a trailing twelve month P/E ratio of 16.2, compared to an average of 15.92 for the Finance sector. Based on its EPS guidance of $2.95, the company has a forward P/E ratio of 10.7. The 0.9% compound average growth rate of Manulife Financial's historical and projected earnings per share yields a PEG ratio of 17.95. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing Manulife Financial in terms of its equity because its P/B ratio is 1.07 while the sector average is 1.78.

Manulife Financial Has a Small Amount of Insider Shareholders:

The lone analyst who follows Manulife Financial has a rating of buy and a target price of $28.27, which is 8.5 away from its current price.

The largest shareholder is Royal Bank of Canada, whose 9% stake in the company is worth $4,537,073,893.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

IN FOCUS