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Manulife Financial Corp (TSE:MFC)
TSX:MFC
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Manulife Financial
(TSX:MFC)
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Rating:79Outperform
Price Target:
C$56.00
â–²(7.12% Upside)
Manulife Financial's strong financial performance and positive technical indicators are the most significant factors driving the score. The valuation is reasonable, and the recent earnings call provides a balanced outlook with growth opportunities and some challenges.
Positive Factors
Revenue Growth
Consistent revenue growth indicates robust demand for Manulife's products and services, supporting long-term market position and expansion.
Cash Flow Management
Strong cash flow management ensures Manulife can fund operations and growth initiatives, enhancing financial stability and shareholder value.
Balance Sheet Health
A stable debt-to-equity ratio reflects prudent financial management, providing flexibility for future investments and resilience against economic fluctuations.
Negative Factors
Revenue Decline Risk
Past revenue declines highlight potential vulnerabilities in market demand or operational challenges, which could impact future growth if not addressed.
Equity and Debt Volatility
Volatility in equity and debt levels may indicate financial instability, affecting investor confidence and the company's ability to raise capital efficiently.
Profit Margin Sustainability
While current margins are strong, historical declines suggest challenges in maintaining profitability, which could pressure future earnings and strategic initiatives.
Manulife Financial (MFC) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$88.09B
Dividend Yield3.49%
Average Volume (3M)4.53M
Price to Earnings (P/E)16.6
Beta (1Y)1.19
Revenue Growth5.46%
EPS Growth10.52%
CountryCA
Employees37,000
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)1.16
Shares Outstanding1,684,986,800
10 Day Avg. Volume4,550,353
30 Day Avg. Volume4,528,676
Financial Highlights & Ratios
PEG Ratio1.59
Price to Book (P/B)1.52
Price to Sales (P/S)1.72
P/FCF Ratio2.97
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$56.10Price Target Upside7.30% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)4.53
Revenue Forecast (FY)C$37.28B
Manulife Financial Business Overview & Revenue Model
Company DescriptionManulife Financial Corporation, together with its subsidiaries, provides financial products and services in Asia, Canada, the United States, and internationally. The company operates through Wealth and Asset Management Businesses; Insurance and Annuity Products; And Corporate and Other segments. The Wealth and Asset Management Businesses segment provides mutual funds and exchange-traded funds, group retirement and savings products, and institutional asset management services through agents and brokers affiliated with the company, securities brokerage firms, and financial advisors pension plan consultants and banks. The Insurance and Annuity Products segment offers deposit and credit products; individual life, and individual and group long-term care insurance; and guaranteed and partially guaranteed annuity products through insurance agents, brokers, banks, financial planners, and direct marketing. The Corporate and Other segment is involved in property and casualty insurance and reinsurance businesses; and run-off reinsurance operations, including variable annuities, and accident and health. It also manages timberland and agricultural portfolios; and engages in insurance agency, portfolio and mutual fund management, mutual fund dealer, life, annuity, long-term care, and financial reinsurance; and fund management businesses. Additionally, the company holds and manages provides investment management, counseling, advisory, and dealer services. Manulife Financial Corporation was incorporated in 1887 and is headquartered in Toronto, Canada.
How the Company Makes MoneyManulife generates revenue through several key streams, primarily from premiums collected on insurance products, management fees from investment funds, and commissions from financial advisory services. The company's insurance segment earns income by underwriting life and health insurance policies, which involves assessing risk and collecting premiums over the policy's term. In its wealth and asset management divisions, Manulife earns management fees by overseeing investment portfolios and funds, which are charged as a percentage of the assets under management. Additionally, the company may receive performance fees tied to the success of certain investment products. Strategic partnerships with financial advisors and distribution networks enhance its ability to reach customers and drive sales growth. Furthermore, investment income derived from the company's own investment portfolio, which includes bonds, stocks, and real estate, contributes significantly to its overall earnings. Factors such as global economic conditions, interest rates, and demographic trends also influence its revenue generation.
Manulife Financial Earnings Call Summary
Earnings Call Date:Nov 12, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 18, 2026
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 exhibits strong financial health with solid revenue growth, profitability, and cash flow management. The company has effectively managed its leverage and equity, contributing to a stable financial foundation. Occasional fluctuations in revenue and equity are noted, but overall performance is consistent.Income Statement
Manulife Financial has shown a strong revenue growth rate of 6.15% in the TTM, indicating a positive trend in revenue generation. The gross profit margin is healthy at 32.25%, and the net profit margin is solid at 12.70%, reflecting efficient cost management. EBIT and EBITDA margins are also robust, suggesting strong operational performance. However, the company experienced a significant revenue decline in 2022, which could pose a risk if repeated.78
Positive
Balance Sheet
The company's debt-to-equity ratio is stable at 0.27, indicating a balanced approach to leveraging. Return on equity is strong at 11.91%, showcasing effective utilization of shareholder funds. The equity ratio is not explicitly calculated, but the overall financial stability appears solid. Historical fluctuations in equity and debt levels suggest potential volatility.75
Positive
Cash Flow
Manulife Financial demonstrates strong cash flow management with a free cash flow to net income ratio of 1.0, indicating efficient cash generation relative to profits. The operating cash flow to net income ratio is not available for TTM, but past data shows robust cash flow coverage. Free cash flow growth is positive, albeit modest, at 0.7% in the TTM.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 50.17B | 45.58B | 42.31B | 23.62B | 59.84B | 77.12B |
| Gross Profit | 15.25B | 15.11B | 13.68B | 1.00B | 25.27B | 23.30B |
| EBITDA | 7.33B | 7.26B | 6.59B | -3.56B | 9.66B | 8.61B |
| Net Income | 5.91B | 5.63B | 5.46B | -2.10B | 6.66B | 5.33B |
Balance Sheet | ||||||
| Total Assets | 1.03T | 978.82B | 875.57B | 848.94B | 917.64B | 880.35B |
| Cash, Cash Equivalents and Short-Term Investments | 25.83B | 25.79B | 20.34B | 19.15B | 22.59B | 26.17B |
| Total Debt | 13.43B | 14.16B | 12.74B | 12.36B | 11.86B | 13.99B |
| Total Liabilities | 973.69B | 925.86B | 826.85B | 792.56B | 858.77B | 827.34B |
| Stockholders Equity | 51.44B | 51.54B | 47.30B | 46.80B | 58.41B | 51.55B |
Cash Flow | ||||||
| Free Cash Flow | 30.63B | 26.49B | 20.42B | 16.63B | 23.16B | 20.05B |
| Operating Cash Flow | 30.63B | 26.49B | 20.42B | 16.63B | 23.16B | 20.05B |
| Investing Cash Flow | -23.98B | -18.46B | -13.72B | -18.40B | -24.44B | -14.15B |
| Financing Cash Flow | -3.95B | -4.17B | -5.04B | -1.83B | -2.05B | 663.00M |
Manulife Financial Technical Analysis
Positive
52.28
Price Trends
49.09
Positive
46.27
Positive
43.90
Positive
Market Momentum
0.84
Negative
66.60
Neutral
78.22
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 52.28 is above the 20-day moving average (MA) of 50.60, above the 50-day MA of 49.09, and above the 200-day MA of 43.90, indicating a bullish trend. The MACD of 0.84 indicates Negative momentum. The RSI at 66.60 is Neutral, neither overbought nor oversold. The STOCH value of 78.22 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | C$60.22B | 8.51 | 18.65% | 0.84% | 10.08% | 24.18% | |
79 Outperform | C$88.09B | 16.64 | 11.23% | 3.49% | 5.46% | 10.52% | |
78 Outperform | C$60.60B | 15.41 | 15.09% | 3.62% | -20.64% | 14.88% | |
76 Outperform | C$45.86B | 15.05 | 13.24% | 3.28% | -9.03% | 44.14% | |
73 Outperform | C$48.22B | 16.17 | 16.27% | 1.86% | 2.51% | 44.44% | |
68 Neutral | C$48.61B | 16.54 | 11.96% | 4.11% | -19.88% | -13.92% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
TSE:MFC
Manulife Financial
52.28
9.77
22.98%
TSE:SLF
Sun Life Financial
87.21
5.79
7.11%
TSE:FFH
Fairfax Financial Holdings
2,570.25
602.80
30.64%
TSE:GWO
Great-West Lifeco
66.86
23.02
52.51%
TSE:IFC
Intact Financial Corporation
270.37
20.93
8.39%
TSE:POW
Power Corp of Canada
72.51
30.95
74.47%
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.