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Manulife Financial
(NYSE:MFC)
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Rating:75Outperform
Price Target:
C$64.00
â–²(20.30% Upside)
Action:Reiterated
Date:06/23/26
The score is driven primarily by solid financial performance (profitability recovery, moderate leverage, healthy ROE) and strong technical trend confirmation (price above major moving averages with positive MACD). The earnings call added support via reaffirmed targets, strong capital position and buybacks, while valuation is reasonable with a ~3.24% yield. The main constraints are cash-flow momentum volatility and business-specific headwinds flagged on the call (GWAM outflows and ALDA charge).
Positive Factors
New business CSM growth & diversified sales
Sustained double-digit new business CSM growth across insurance segments expands the locked-in contractual margin that converts to future earnings. Combined with geographic diversification (Asia, Canada, U.S.), rising CSM supports durable revenue visibility and smoother earnings generation over the medium term.
Negative Factors
Global WAM net outflows and active fund redemptions
Large, persistent net outflows in GWAM reduce fee-bearing AUM and pressure recurring management fees and earnings. If redemptions persist, it constrains GWAM margin expansion, weakens scale economics, and makes earnings from asset management less predictable over a multi-quarter horizon.
Read all positive and negative factors
Positive Factors
Negative Factors
New business CSM growth & diversified sales
Sustained double-digit new business CSM growth across insurance segments expands the locked-in contractual margin that converts to future earnings. Combined with geographic diversification (Asia, Canada, U.S.), rising CSM supports durable revenue visibility and smoother earnings generation over the medium term.
Read all positive factors
Manulife Financial (MFC) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$95.99B
Dividend Yield3.49%
Average Volume (3M)7.34M
Price to Earnings (P/E)16.4
Beta (1Y)0.92
Revenue Growth15.84%
EPS Growth31.26%
CountryCA
Employees37,000
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)3.50
Shares Outstanding1,668,890,500
10 Day Avg. Volume5,131,434
30 Day Avg. Volume7,344,126
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$56.25Price Target Upside5.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)4.47
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:May 13, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call conveyed solid operating momentum and clear strategic progress: strong new business CSM growth, robust Asia and U.S. sales, core EPS up 11%, improved ROE and healthy capital metrics. At the same time, headline headwinds persist in Global WAM net flows (-$4.4bn), a notable ALDA charge ($242m) and localized Canada group insurance experience. Management articulated constructive remediation plans, one-time items that should normalize, and optimistic run-rate outlooks (GWAM margin targets, remittances, and 18%+ ROE by 2027). On balance the positives around growth, capital strength, and execution materially outweigh the transitory and business-specific challenges.Positive Updates
Strong new business growth and CSM expansion
New business contractual service margin (CSM) grew 16% year-over-year, with each insurance segment achieving double-digit new business CSM growth; overall CSM balance increased 18%, strengthening future earnings potential.
Negative Updates
Global WAM net outflows
Global Wealth & Asset Management recorded net outflows of $4.4 billion in the quarter driven by higher active mutual fund redemptions in North America (including two model redemptions that accounted for $3.4 billion) and U.S. retirement plan redemptions.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong new business growth and CSM expansion
New business contractual service margin (CSM) grew 16% year-over-year, with each insurance segment achieving double-digit new business CSM growth; overall CSM balance increased 18%, strengthening future earnings potential.
Read all positive updates
Company Guidance
The company reiterated its medium‑term targets and near‑term guidance: core EPS grew 11% this quarter (in line with their medium‑term target) and management is aiming for 18%+ core ROE by 2027 (current Q1 core ROE 16.5%, up 90 bps YoY); adjusted book value per share was $39.01 (+6% YoY) even after returning $5.3 billion of capital over the past year and $1.2 billion in the quarter (new buyback program up to 2.5% of shares); cumulative remittances target remains $22 billion (implying ~$5.5 billion p.a.), with 60%–70% of earnings expected to convert to remittances versus a 35%–45% dividend payout; balance‑sheet metrics stayed strong (LICAT 136%, $25 billion above supervisory target; leverage 22.5% vs. 25% medium‑term target); Global WAM guidance includes a Q2 run‑rate approaching CAD 500 million with a ~CAD 25 million quarter‑to‑quarter uplift as eMPF one‑offs (CAD ~33 million / CAD 25 million guidance) unwind, a GWAM EBITDA margin target of ~30% next year (Q1 core EBITDA margin +60 bps YoY), and management expects GWAM net flows and ALDA performance to normalize (Q1 gross flows $56 billion, net outflows $4.4 billion; ALDA charge ~$242 million including a ~$50 million timber charge), while ECL remained ~$39 million pre‑tax.Manulife Financial Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
78
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 53.61B | 53.01B | 45.58B | 42.31B | 23.62B | 59.84B |
| Gross Profit | 27.15B | 13.53B | 15.11B | 13.68B | 1.00B | 25.27B |
| EBITDA | 8.25B | 6.79B | 7.26B | 6.59B | -3.56B | 9.66B |
| Net Income | 6.42B | 5.78B | 5.63B | 5.46B | -2.10B | 6.66B |
Balance Sheet | ||||||
| Total Assets | 1.03T | 1.03T | 978.82B | 875.57B | 848.94B | 917.64B |
| Cash, Cash Equivalents and Short-Term Investments | 14.53B | 36.33B | 25.79B | 20.34B | 19.15B | 22.59B |
| Total Debt | 13.45B | 14.68B | 14.16B | 12.74B | 12.36B | 11.86B |
| Total Liabilities | 973.46B | 972.95B | 925.86B | 826.85B | 792.56B | 858.77B |
| Stockholders Equity | 51.50B | 50.96B | 51.54B | 47.30B | 46.80B | 58.41B |
Cash Flow | ||||||
| Free Cash Flow | 28.95B | 32.10B | 26.49B | 20.42B | 16.63B | 23.16B |
| Operating Cash Flow | 28.95B | 32.10B | 26.49B | 20.42B | 16.63B | 23.16B |
| Investing Cash Flow | -24.84B | -28.36B | -18.46B | -13.72B | -18.40B | -24.44B |
| Financing Cash Flow | -3.81B | -2.05B | -4.17B | -5.04B | -1.83B | -2.05B |
Manulife Financial Technical Analysis
Positive
53.20
Price Trends
54.07
Positive
51.18
Positive
48.96
Positive
Market Momentum
1.14
Negative
65.88
Neutral
44.22
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 53.2 is below the 20-day moving average (MA) of 56.08, below the 50-day MA of 54.07, and above the 200-day MA of 48.96, indicating a bullish trend. The MACD of 1.14 indicates Negative momentum. The RSI at 65.88 is Neutral, neither overbought nor oversold. The STOCH value of 44.22 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | C$81.69B | 19.31 | 15.17% | 3.62% | 4.22% | 13.75% | |
79 Outperform | C$51.75B | 15.56 | 16.93% | 1.86% | 3.57% | 51.86% | |
76 Outperform | C$55.31B | 20.99 | 11.34% | 3.28% | 7.10% | 0.39% | |
75 Outperform | C$95.99B | 16.42 | 12.65% | 3.49% | 15.84% | 31.26% | |
71 Outperform | C$61.70B | 20.68 | 12.98% | 4.11% | -10.77% | -1.88% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | C$53.78B | 7.75 | 17.32% | 0.84% | 2.46% | 15.03% |
* Financial Sector Average
TSE:MFC
Manulife Financial
57.52
15.63
37.30%
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-4.32%
TSE:GWO
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81.54%
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Intact Financial Corporation
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-5.63%
TSE:POW
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72.46%
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.