TSE:MFC

Manulife Financial (MFC.TO)

54.00
+0.50 (0.93%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
1636 watching
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Investor Insights
star iconJun 5, 2026, 12:00 am

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.

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Consensus
Positive
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Valuation
Fair Value
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Similar
SLF
BUY

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.

BUY
He got concerned with the lawsuit, sold and bought SLF instead, but there's nothing wrong with MFC. He has shifted away from insurance to REITs, because the latter will benefit when interest rates are cut. You will do fine with MFC in the long term. Pay a 4.3% dividend, so you're paid to wait. This should drift a little higher. The valuation is reasonable, about 1x book.
COMMENT
She likes this holding in their portfolio and it trades at 1 times book. A trade deal between China and the US will be positive for the market as a whole. She is not sure it will make more than a market like improvement as their business is not focused on goods going in or out of China.
PAST TOP PICK
(A Top Pick May 25/18, Down 3%) Excellent quarter. Asia very good. Japan great. At book value and less than 10 times earnings.
TOP PICK
Above its long-term support line of $22. History of breaking the 200 day moving average, but always bounces back. Take advantage of the short-term weakness. Yield is 4.3%.
COMMENT
Upside potential with exposure to Asian market? Not expensive trades a 9-10X earnings, 4.1% dividend yield. Asian franchise has been fantastic and growing but hasn't offset their terrible U.S. franchise which has been depressing their return on equity. Has grown the asset under management business globally but has had some net outflows on the asset management side. Great chance to grow the Asian franchise, has a great brand name in Asia. Not expensive, nice dividend.
HOLD
Preferreds are a hold or sell? The preferreds have been terrible performers as the resets are lower because interest rates have been lower. He doesn't like resets but they are doing OK now. Manulife got good results.
BUY

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.

WAIT

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.

COMMENT
It scores well on valuation -- 99 percentile. Only 9 times PE. Good yield which is safe. An interest rate cut would hurt their margins and possibly their share price. Without global growth turning around yet, rates could come under pressure. Yield 4%
BUY
Why hasn't it taken off? He loves it this year, outperforming the banks. He sees great upside. They're buying back a lot of shares. That lawsuit overhang is gone. It's trading below historical valuation.
WEAK BUY
He has a small position. He lightened it in the past. He would buy on a pullback. Asia looks promising. We have not seen a whole lot of growth out of their Asia operations so far, however. He has difficulty with their growth model otherwise. (Analysts’ price target is $29.00)
COMMENT
Their bet on Asia paid off. One of the major headwinds is interest rates. Over ten years you were just clipping the dividend. If you think interest rates are headed higher then you would be more bullish or if you agree with him that they are going lower then you would stay away. (Analysts’ price target is $28.58)
PAST TOP PICK
(A Top Pick May 03/18, Up 8%) They beat earnings. Still modeling good growth and trading at ridiculously low valuation. Still there.
COMMENT
It's trying to break through consolidation now or it could pause. It moves up and down and this pattern may continue, meaning falling back to the lower trading range of $22.
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