
TSE:MFC
This summary was created by AI, based on 27 opinions in the last 12 months.
Manulife Financial (MFC) has shown a solid performance in recent quarters, buoyed by its strong presence in Asia and effective wealth management strategies. However, there are concerns regarding its valuation, as it is perceived to be somewhat overbought, trading over 2x book value with limited earnings growth expected in the near future. Despite these concerns, many experts highlight its decent dividend yield and ongoing growth potential, particularly in its Asian markets. The recent implementation of a tax on MFC products for mainland Chinese residents adds a layer of uncertainty. Overall, the sentiment among analysts is cautiously optimistic, with a call for careful monitoring of market conditions and potential entry points for investment.
Outlook in 12 months? He has added to his holdings recently. 2 things are big negatives for this company. Falling stock market and falling bond yields. Their hedging programs are protecting them much more than he used to. Operations are starting to do better. Core operating earnings are probably running around $1.20-$1.30 a share, which gives you less than a 10X multiple. Can see leverage upside from improvements in the market generally. Risk/reward is great. 4.6% dividend yield.
If the economy recovers in the next 2 years, amongst the best performing sectors are going to be lifecos because this is a whole industry that has been viciously beaten down by low interest rates. If you have a long enough time rising, you can absolutely have a positive return on lifecos but this company would not be his favourite.
Very interestingly positioned. 2012 earnings have come out to about $.65 a share but this includes a lot of haircuts the company is taking in its balance sheet on account of regulatory issues regarding its variable annuity stream. Understands they could do about $1.50 next year so there could be upside to the name. Has a good presence in Asia. If you are looking at it from a tax loss perspective in December with a healthy dividend, it could be a good name.