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Manulife Financial Corp (TSE:MFC)
TSX:MFC
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Manulife Financial
(TSX:MFC)
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Rating:76Outperform
Price Target:
C$47.00
â–²(8.57% Upside)
Manulife Financial's strong financial performance and positive earnings call are the most significant factors contributing to its score. The company's strategic growth in Asia and effective asset management are key strengths. Technical analysis shows a neutral trend, and valuation metrics are favorable, supporting a solid investment case.
Positive Factors
Negative Factors
Manulife Financial (MFC) vs. iShares MSCI Canada ETF (EWC)
Market Cap
$72.54B
Dividend Yield3.95%
Average Volume (3M)7.45M
Price to Earnings (P/E)13.7
Beta (1Y)1.21
Revenue Growth9.37%
EPS Growth32.06%
CountryCA
Employees37,000
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)0.95
Shares Outstanding1,698,536,000
10 Day Avg. Volume6,316,082
30 Day Avg. Volume7,446,101
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.32
Enterprise Value/Revenue2.02
Enterprise Value/Gross Profit6.11
Enterprise Value/Ebitda12.80
Forecast
1Y Price Target
$50.36Price Target Upside16.32% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
Manulife Financial Business Overview & Revenue Model
Company DescriptionManulife Financial Corporation (MFC) is a leading international financial services group headquartered in Toronto, Canada. The company operates primarily in the segments of insurance and wealth management, offering a diverse range of products and services including life insurance, health insurance, retirement solutions, mutual funds, and investment services. Manulife serves millions of customers across Canada, the United States, and Asia, positioning itself as a key player in the global financial landscape and focusing on delivering tailored financial solutions to meet the varying needs of individuals and businesses.
How the Company Makes MoneyManulife Financial generates revenue through several key streams. The primary source of income comes from premiums collected from its insurance policies, including life and health insurance. The company also earns money through investment income generated from its portfolio of assets, which includes bonds, stocks, and real estate investments. Additionally, Manulife receives fees from managing mutual funds and other investment products. The firm benefits from its partnerships with financial advisors and institutions, which help distribute its products and expand its market reach. Furthermore, the company leverages technology and digital platforms to enhance customer engagement and streamline operations, ultimately contributing to its profitability.
Manulife Financial Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong growth in APE sales, positive net flows in Global WAM, and a strategic acquisition. However, it also noted challenges such as unfavorable U.S. mortality experience and elevated credit loss provisions. The sentiment is balanced with optimism for future growth and strategic alignment.Q3-2025 Updates
Positive Updates
Strong Business Growth
APE sales increased 15% from the prior year with more than 30% growth in both Asia and the U.S. Strong sales supported significant growth in value metrics with 37% growth in new business CSM and 20% growth in new business value.
Positive Net Flows in Global WAM
Global WAM delivered positive net flows of nearly $1 billion, demonstrating the strength of its diversified platform.
Acquisition of Comvest Credit Partners
Manulife announced the acquisition of a 75% stake in Comvest Credit Partners for USD 937.5 million, expected to be immediately accretive to core EPS, core ROE, and core EBITDA margin.
Strong Capital Position
The LICAT capital ratio remained strong at 136% and the financial leverage ratio was 23.6%, continuing to stay well below the 25% medium-term target.
Continued Growth in Asia
Asia's APE increased 31% from the prior year, with substantial growth in Hong Kong, Mainland China, and Singapore.
Negative Updates
Unfavorable U.S. Mortality Experience
The U.S. segment's core earnings decreased by 53% from the prior year due to unfavorable mortality experience in the life business.
Elevated Expected Credit Loss Provision
The net investment result was impacted by a net charge in the expected credit loss provision, primarily related to certain below-investment-grade loan investments in the U.S.
Impact of eMPF Transition
The transition to the new eMPF platform in Hong Kong is expected to have a full quarterly run rate impact of approximately USD 25 million beginning in the first quarter of 2026.
Decline in U.S. Core Earnings
U.S. core earnings decreased due to unfavorable mortality experience, lower investment spreads, and strengthened ECL provisions.
Company Guidance
During the Manulife Financial second quarter 2025 earnings call, several key metrics and strategic updates were highlighted. The company announced its acquisition of a 75% stake in Comvest Credit Partners for USD 937.5 million, which is expected to be immediately accretive to core earnings per share (EPS), core return on equity (ROE), and core EBITDA margin. The acquisition will scale Manulife's private markets business, enhancing its private credit capabilities with Comvest's USD 14.7 billion platform. Manulife's LICAT ratio is expected to decrease by less than 3 percentage points due to the acquisition but remains strong at 136%. The second quarter results showed continued top-line growth, with insurance segments generating over 30% growth in new business contractual service margin (CSM) and 2% growth in core EPS from the previous year. However, profitability was affected by elevated U.S. mortality and a provision in expected credit loss, with core EPS growth normalizing to 7% when excluding the latter. The U.S. business saw a 40% increase in annual premium equivalent (APE) sales despite core earnings decreasing due to unfavorable mortality experience and lower investment spreads. Overall, Manulife remains confident in achieving its 2027 targets, including an 18%+ ROE, supported by strong underlying business growth and strategic capital deployment.Manulife Financial Financial Statement Overview
Summary
Manulife Financial demonstrates robust financial health with strong profitability and cash generation. The balance sheet is stable with prudent leverage management. While revenue growth is moderate, the company's operational efficiency and shareholder value creation are commendable.Income Statement
Manulife Financial shows strong profitability with a gross profit margin of 52.53% and a net profit margin of 10.04% in TTM (Trailing-Twelve-Months), indicating efficient cost management. However, revenue growth has been relatively stagnant with a slight decline from the previous year. The EBIT margin remains robust at 37.08%, reflecting operational efficiency.78
Positive
Balance Sheet
The balance sheet is stable with a debt-to-equity ratio of 0.27, suggesting prudent leverage management. The equity ratio of 5.28% indicates a conservative structure suitable for the insurance industry. Return on equity stands at 10.18%, showcasing effective shareholder value creation.75
Positive
Cash Flow
The cash flow statement highlights strong cash generation with a positive operating cash flow to net income ratio of 5.43 in TTM, signifying efficient cash operations. Free cash flow has grown significantly by 7.99% from the previous year, indicating robust financial health.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 47.46B | 45.58B | 42.31B | 23.62B | 59.84B | 77.12B |
| Gross Profit | 15.72B | 15.11B | 13.68B | 1.00B | 25.27B | 23.30B |
| EBITDA | 7.50B | 7.26B | 6.59B | -3.56B | 9.66B | 8.61B |
| Net Income | 6.05B | 5.63B | 5.46B | -2.10B | 6.66B | 5.33B |
Balance Sheet | ||||||
| Total Assets | 977.47B | 978.82B | 875.57B | 848.94B | 917.64B | 880.35B |
| Cash, Cash Equivalents and Short-Term Investments | 23.77B | 25.79B | 20.34B | 19.15B | 22.59B | 26.17B |
| Total Debt | 13.28B | 14.16B | 12.74B | 12.36B | 11.86B | 13.99B |
| Total Liabilities | 926.22B | 925.86B | 826.85B | 792.56B | 858.77B | 827.34B |
| Stockholders Equity | 49.85B | 51.54B | 47.30B | 46.80B | 58.41B | 51.55B |
Cash Flow | ||||||
| Free Cash Flow | 28.61B | 26.49B | 20.42B | 16.63B | 23.16B | 20.05B |
| Operating Cash Flow | 28.61B | 26.49B | 20.42B | 16.63B | 23.16B | 20.05B |
| Investing Cash Flow | -20.88B | -18.46B | -13.72B | -18.40B | -24.44B | -14.15B |
| Financing Cash Flow | -6.07B | -4.17B | -5.04B | -1.83B | -2.05B | 663.00M |
Manulife Financial Technical Analysis
Positive
43.29
Price Trends
42.09
Positive
42.38
Positive
42.18
Positive
Market Momentum
0.42
Negative
55.70
Neutral
39.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MFC, the sentiment is Positive. The current price of 43.29 is above the 20-day moving average (MA) of 42.66, above the 50-day MA of 42.09, and above the 200-day MA of 42.18, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 55.70 is Neutral, neither overbought nor oversold. The STOCH value of 39.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MFC.
Manulife Financial Peers Comparison
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | 59.26B | 8.32 | 16.10% | 0.87% | 16.79% | 20.82% | |
77 Outperform | 48.43B | 20.48 | 12.58% | 1.91% | 5.25% | 15.06% | |
76 Outperform | $72.54B | 13.69 | 11.57% | 3.95% | 9.37% | 32.06% | |
75 Outperform | 14.46B | 14.32 | 12.86% | 2.36% | -4.55% | 42.41% | |
75 Outperform | 46.68B | 14.55 | 12.17% | 4.14% | -0.61% | 6.69% | |
72 Outperform | 49.74B | 13.28 | 13.06% | 4.43% | 15.27% | 4.72% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
TSE:MFC
Manulife Financial
43.57
6.12
16.34%
SLF
Sun Life Financial
60.19
5.62
10.30%
FRFHF
Fairfax Financial Holdings
1,790.63
565.06
46.11%
TSE:GWO
Great-West Lifeco
53.84
9.89
22.50%
TSE:IAG
iA Financial Corporation Inc
156.36
50.37
47.52%
TSE:IFC
Intact Financial Corporation
271.58
20.00
7.95%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.