Fact based stock research
Manulife Financial (TSX:MFC)

CA56501R1064

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Manulife Financial stock research in summary

manulife.com

ANALYSIS: With an Obermatt Combined Rank of 91 (better than 91% compared with investment alternatives), Manulife Financial (Life & Health Insurance, Canada) shares have much better financial characteristics than comparable stocks. Shares of Manulife Financial are a good value (attractively priced) with a consolidated Value Rank of 55 (better than 55% of alternatives), show above-average growth (Growth Rank of 75), and are safely financed (Safety Rank of 100), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 91, is a strong buy recommendation based on Manulife Financial's financial characteristics. As the company Manulife Financial's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 55), above-average growth (Obermatt Growth Rank of 75), and indicate that the company is safely financed (Obermatt Safety Rank of 100), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of Manulife Financial. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	55
Growth Rank	75
Safety Rank	100
Combined Rank	91

Country	Canada
Industry	Life & Health Insurance
Index	TSX Composite
Size class	XX-Large

This stock has achievements: Top 10 Stock.

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Manulife Financial

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	86	97	82	55
GROWTH
GROWTH	42	27	73	75
SAFETY
SAFETY	94	100	100	100
SENTIMENT
SENTIMENT	n/a	47	96	^new
360° VIEW
360° VIEW	n/a	63	94	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Manulife Financial is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	86	97	82	55
GROWTH
GROWTH	42	27	73	75
SAFETY
SAFETY	94	100	100	100
COMBINED
COMBINED	81	91	91	91

Last update of combined financial performance: 6-Oct-2022. Stock analysis on combined financial performance: The higher the rank of Manulife Financial the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 55 (better than 55% compared with alternatives), Manulife Financial shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Manulife Financial. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 58 which means that the stock price compared with what market professionals expect for future profits is lower than for 58% of comparable companies, indicating a good value concerning Manulife Financial's profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 56, and for Dividend Yield with a Dividend Yield Rank of 89. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 76% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 24). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 55, is a buy recommendation based on Manulife Financial's stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that Manulife Financial has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing Manulife Financial shares. 9. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	57	79	35	24
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	78	91	86	58
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	69	67	66	56
DIVIDEND YIELD
DIVIDEND YIELD	86	93	96	89
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	86	97	82	55

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Manulife Financial; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 75 (better than 75% compared with alternatives) for 2022, Manulife Financial shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Manulife Financial. Sales Growth has a rank of 98 which means that currently professionals expect the company to grow more than 98% of its competitors. Stock Returns are also above average with a rank of 87. But Capital Growth has only a rank of 37, which means that currently professionals expect the company to grow its invested capital less than 63% of its competitors. Profit Growth is also low, with a rank of only 30, which means that, currently, professionals expect the company to grow its profits below average. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 75, is a buy recommendation for growth and momentum investors. This is a surprising picture, as the messages from the operating growth indicators of revenues, profits, and invested capital are mixed, while stock returns are above average. It may indicate new intellectual properties, such as brand improvement or a strong market position that shows in revenues but not in the capital. The low profit-growth rate may indicate an early phase where costs are still high, and revenues don't fully cover upfront investments or fixed costs. The positive investor outlook with a 87% peer outperformance is reaffirmed in this case which may be a good sign for an investment into a well-protected high-growth company. This fact needs to be confirmed by researching the company website and press. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	12	82	81	98
PROFIT GROWTH
PROFIT GROWTH	46	37	34	30
CAPITAL GROWTH
CAPITAL GROWTH	n/a	29	49	37
STOCK RETURNS
STOCK RETURNS	73	37	79	87
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	42	27	73	75

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Manulife Financial.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 100 (better than 100% compared with alternatives) for 2022, the company Manulife Financial has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Manulife Financial is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators where two out of three are above average for Manulife Financial.Leverage is at 74, meaning the company has a below-average debt-to-equity ratio. It has less debt than 74% of its competitors.Refinancing is at a rank of 76, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 76% of its competitors. Liquidity is at 34, meaning that the company generates less profit to service its debt than 66% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 100 (better than 100% compared with alternatives), Manulife Financial has a financing structure that is significantly safer than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for Manulife Financial more challenging. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	77	48	77	74
REFINANCING
REFINANCING	79	76	76	76
LIQUIDITY
LIQUIDITY	100	37	50	34
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	94	100	100	100

Last update of Safety Rank: 6-Oct-2022. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Manulife Financial and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	70	55	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	30	59	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	17	96	^new
MARKET PULSE
MARKET PULSE	n/a	62	87	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	47	96	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Manulife Financial.
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