
TSE:MFC
This summary was created by AI, based on 27 opinions in the last 12 months.
Manulife Financial (MFC) has received mixed reviews from various experts, highlighting both its strengths and concerns. Many praise the company for its solid performance in Asia and wealth management, coupled with a healthy dividend yield, making it an attractive income stock. However, some analysts express caution due to overvaluation, suggesting that MFC may be overbought, trading at over 2x book value with slow earnings growth of around 8-9%. While the stock is seen as a reasonable long-term holding, there are calls for potential buying opportunities during market pullbacks. The general sentiment reflects a wait-and-see approach given the mixed indicators and the overall health of the financial sector.
The reason it went down after the blowout earnings is related to the financial crisis. During the crisis, MFC almost went out of business. They totally de-risked themselves coming out of the crisis. They never benefitted from good times. The best thing for insurance companies is for interest rates go up. Prefers Sunlife, a much better company.
MFC vs. SLF With increasing interest rates, either makes a lot of sense right now. He owns SLF. With MFC, you get about twice the exposure to the Asian market. SLF has more exposure to Canada. MFC has more beta, higher dividend, a bit cheaper. With the Asian recovery, MFC could perform a bit better. SLF gives you more stability. SLF yield is 3.5%. MFC yield is 4.5%
MFC vs. SLF Equally good. Prefers MFC for the great Asian franchise, which has a lot of opportunity. Has also built a great asset management business that has continued to do well. MFC has a great growth profile at a cheaper multiple. MFC gets the nod, but you can own both. They're great businesses that will continue to pay a good dividend for many years.