
TSE:MFC
This summary was created by AI, based on 27 opinions in the last 12 months.
Manulife Financial (MFC) is viewed positively by several analysts, who note its solid growth in Asia and the wealth management sector. The company is seen as a stable and reliable option, with a decent dividend yield that appeals to income-focused investors. Analysts acknowledge that while MFC has experienced some recent challenges, especially in its U.S. operations and corrections after strong performances, it maintains a healthy growth outlook. Concerns about the overall market and macroeconomic factors have led to suggestions of caution, but many believe MFC's valuation is still attractive relative to its peers, particularly the banks. In the long term, it remains a compelling investment opportunity with the potential for growth, other factors such as credit risk being minimal.
vs. the Canadian banks It's not an either-or question. You can buy both. The new CEO has done a very good job to put aside the legacy businesses that are a drag. They have high-growth insurance business in Asia. MFC has lagged SLF the past few years in terms of stock price, but MFC's earnings should outpace SLF's. Also, MFC is closer to book value than SLF. It pays a good dividend. The banks are attractively priced too.
The word hope is always mentioned with MFC as in hoping the price rises to $30. That said, MFC is Scotiabank's top insurance pick. It's the only one to exceed EPS expectations. All Canadian insurers need the markets to do better and be less volatile. MFC's wealth management had outflows of $9 billion last quarter; this quarter only $1 billion which is good. EPS grew 20% in the last quarter. He will wait till MFC breaks out of its 10-year trendline.
Pros and cons. Yes, they won the trial, but there remains a litigation overhang (they should win their appeal). They just had a good quarter, but it was driven by Asia--is this sustainable? He expects 9% EPS growth and 10% annual dividend growth. Trades around 7x. It's outstanding value, but all insurance companies are hurt by falling interest rates. MFC has done a great job diversifying away from that, though.