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Manulife Financial
(TSX:MFC)
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Rating:78Outperform
Price Target:
C$70.00
â–²(17.23% Upside)
Action:Reiterated
Date:08/10/26
Overall score is driven primarily by solid financial performance (healthy profitability, conservative leverage, strong cash generation) and supportive technicals (price above key moving averages with positive momentum). Earnings-call commentary adds support via reiterated guidance, strong growth/profitability trends, and strong capital, while valuation appears fair rather than compelling and historical earnings/cash-flow variability remains the main risk.
Positive Factors
Broad insurance growth and stronger future earnings backlog
Double-digit APE growth across Asia, Canada and the U.S., alongside rising CSM measures, indicates broad demand and a larger stock of future contractual earnings. This supports revenue visibility beyond one reporting period.
Negative Factors
Insurance claims and investment spread pressure
Unfavorable claims and expense experience in Canada, combined with U.S. claims and spread pressure, can weigh on insurance margins. Persistent adverse experience would limit the conversion of sales growth into durable earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad insurance growth and stronger future earnings backlog
Double-digit APE growth across Asia, Canada and the U.S., alongside rising CSM measures, indicates broad demand and a larger stock of future contractual earnings. This supports revenue visibility beyond one reporting period.
Read all positive factors
Manulife Financial (MFC) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$99.07B
Dividend Yield3.16%
Average Volume (3M)4.13M
Price to Earnings (P/E)16.2
Beta (1Y)0.85
Revenue Growth18.31%
EPS Growth18.90%
CountryCA
Employees37,000
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)3.71
Shares Outstanding1,659,249,400
10 Day Avg. Volume2,865,566
30 Day Avg. Volume4,133,796
Financial Highlights & Ratios
PEG Ratio2.01
Price to Book (P/B)1.67
Price to Sales (P/S)1.60
P/FCF Ratio2.64
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$66.47Price Target Upside11.32% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)4.5
Revenue Forecast (FY)C$43.14B
Manulife Financial Business Overview & Revenue Model
Company Description
Manulife Financial Corporation is a global provider of financial products and services, operating across Asia, Canada, the United States, and other international regions. Its business is structured into three main segments: Wealth and Asset Manage...
How the Company Makes Money
Manulife makes money primarily through a combination of (1) insurance-related earnings and fees and (2) wealth and asset management fees.
1) Insurance underwriting and policy-related earnings
- Premiums and pricing margin: Manulife collects premi...
Manulife Financial Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call highlighted multiple strong operating and financial results — double-digit APE growth across segments, meaningful improvements in new business metrics and core EPS, robust capital ratios (LICAT 136%) and strategic execution including an innovative LTC biometric risk transfer and AI leadership. Headwinds include unfavorable insurance experience in Canada and some U.S. life spread/ALDA pressure, targeted outflows in parts of Global WAM, and elevated central expenses. Management presented these challenges as manageable with mitigating actions (claims management, repricing ability, continued capital generation and targeted investments). Overall, the positives around growth, profitability, capital strength and risk-reduction transactions materially outweigh the contained negatives.Positive Updates
Strong APE Sales Growth Across Segments
Total APE sales grew 21% year-over-year with double-digit growth across all insurance segments: Asia +21%, Canada +23%, U.S. +12%. APE sales per active agent increased over 30% YoY.
Negative Updates
Canada Insurance Experience and Earnings Pressure
Canada core earnings declined 10% YoY, driven by unfavorable claims and expense experience in group insurance and normal claims variability in individual insurance; management expects Canada insurance experience to trend to neutral by year-end but elevated transformation expenses will persist.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong APE Sales Growth Across Segments
Total APE sales grew 21% year-over-year with double-digit growth across all insurance segments: Asia +21%, Canada +23%, U.S. +12%. APE sales per active agent increased over 30% YoY.
Read all positive updates
Company Guidance
The company reiterated its medium‑term/2027 guidance and capital priorities: an 18%+ core ROE ambition (Q2 core ROE 16.3%, +130 bps YoY), a 2.5% ongoing share‑buyback program, and on‑track 2027 remittances, supported by strong capital and leverage metrics (LICAT 136%, ≈$26B excess of supervisory target; financial leverage 22.2% vs. 25% medium‑term target). Management expects Canada insurance experience to trend to neutral by year‑end, corporate results to be a loss of $300–$400M (likely toward the high end), and an expense‑efficiency medium‑term target below 45% (44.5%); operating and growth metrics cited include APE sales +21% YoY (Asia +21%, Hong Kong +37%, Canada +23%, U.S. +12%), new business CSM +16% YoY, CSM balance +20%, Global WAM net inflows $0.4B, core EPS +16% (core earnings +12% YoY; Asia core earnings +21%; Global WAM core earnings +9%), adjusted book value per share $41.12 (+15% YoY), core EBITDA margin 31.2% (+110 bps), and details on the LTC transaction ($3.2B of reserves at 80% quota share, ~−5% IFRS cede / ~6–7% NAIC cede, CAD 30M foregone core earnings in year 1), which reduces LTC morbidity risk by 24% while current LTC claim savings exceed 6% and the retained block is expected to start generating capital over the next 5–10 years.Manulife Financial Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
80
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 57.90B | 53.01B | 45.58B | 42.31B | 23.62B | 59.84B |
| Gross Profit | 21.19B | 13.53B | 15.11B | 13.68B | 1.00B | 25.27B |
| EBITDA | 8.60B | 6.79B | 7.26B | 6.59B | -3.56B | 9.66B |
| Net Income | 6.72B | 5.78B | 5.63B | 5.46B | -2.10B | 6.66B |
Balance Sheet | ||||||
| Total Assets | 1.09T | 1.03T | 978.82B | 875.57B | 848.94B | 917.64B |
| Cash, Cash Equivalents and Short-Term Investments | 37.92B | 36.33B | 25.79B | 20.34B | 19.15B | 22.59B |
| Total Debt | 14.13B | 14.68B | 14.16B | 12.74B | 12.36B | 11.86B |
| Total Liabilities | 1.04T | 972.95B | 925.86B | 826.85B | 792.56B | 858.77B |
| Stockholders Equity | 53.26B | 50.96B | 51.54B | 47.30B | 46.80B | 58.41B |
Cash Flow | ||||||
| Free Cash Flow | 30.76B | 32.10B | 26.49B | 20.42B | 16.63B | 23.16B |
| Operating Cash Flow | 30.76B | 32.10B | 26.49B | 20.42B | 16.63B | 23.16B |
| Investing Cash Flow | -27.08B | -28.36B | -18.46B | -13.72B | -18.40B | -24.44B |
| Financing Cash Flow | -889.00M | -2.05B | -4.17B | -5.04B | -1.83B | -2.05B |
Manulife Financial Technical Analysis
Positive
59.71
Price Trends
59.32
Positive
55.79
Positive
51.87
Positive
Market Momentum
-0.03
Positive
50.21
Neutral
36.98
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 59.71 is below the 20-day moving average (MA) of 60.68, above the 50-day MA of 59.32, and above the 200-day MA of 51.87, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 50.21 is Neutral, neither overbought nor oversold. The STOCH value of 36.98 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | C$99.07B | 16.16 | 12.98% | 3.01% | 18.31% | 18.90% | |
74 Outperform | C$61.59B | 18.49 | 13.89% | 3.17% | -0.59% | 5.22% | |
74 Outperform | C$79.80B | 18.49 | 15.48% | 2.77% | 4.29% | 21.91% | |
73 Outperform | C$47.29B | 14.77 | 15.73% | 1.91% | 3.25% | 38.09% | |
73 Outperform | C$57.36B | 22.37 | 10.91% | 2.76% | 7.10% | 0.39% | |
72 Outperform | C$51.02B | 7.60 | 16.94% | 0.90% | -1.15% | 1.30% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
TSE:MFC
Manulife Financial
59.97
19.28
47.37%
TSE:SLF
Sun Life Financial
109.65
32.65
42.39%
TSE:FFH
Fairfax Financial Holdings
2,238.49
-119.99
-5.09%
TSE:GWO
Great-West Lifeco
90.25
37.39
70.72%
TSE:IFC
Intact Financial Corporation
266.14
-4.16
-1.54%
TSE:POW
Power Corp of Canada
91.96
35.87
63.96%
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.