Manulife Financial Corp revenue dropped on 38.2% in 2015
11/02/2016 • About Manulife Financial Corp (
$945) • By InTwits
Manulife Financial Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Manulife Financial Corp is a company in decline: 2015 revenue growth was -38.2%, 5 years revenue CAGR was -2.2%
- The company has potentially unprofitable business model: ROIC is at 1.1%
- It operates with high leverage: Net Debt/EBITDA is while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Manulife Financial Corp ($945) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 49,982 | 28,076 | 17,485 | 53,069 | 32,815 | -38.2% |
| Net Income | 129 | 1,810 | 3,130 | 3,501 | 2,191 | -37.4% |
Balance Sheet
|
|---|
| Cash | 12,813 | 13,386 | 13,630 | 21,079 | 17,885 | -15.2% |
| Short Term Debt | 18,010 | 18,857 | 19,869 | 18,384 | 18,114 | -1.5% |
| Long Term Debt | 9,515 | 8,949 | 9,160 | 9,311 | 9,548 | 2.5% |
Cash flow
|
|---|
| Capex | 0 | 0 | 0 | 0 | 0 | |
Ratios
|
|---|
| Revenue growth | 36.4% | -43.8% | -37.7% | 203.5% | -38.2% | |
| Net Income Margin | 0.3% | 6.4% | 17.9% | 6.6% | 6.7% | 0.1% |
| ROIC | 0.6% | 0.9% | 1.9% | 2.0% | 1.1% | -0.8% |
| ROE | 0.2% | 7.6% | 12.5% | 12.0% | 6.0% | -6.0% |
Revenue and profitability
The company's Revenue dropped on 38.2% in 2015.
Net Income marign showed almost no change in 2015.
Return on investment
The company operates at low ROIC (1.15%) and ROE (6.01%). ROIC decreased slightly on 0.84 pp from 2.0% to 1.1% in 2015. ROE decreased on 6.0 pp from 12.0% to 6.0% in 2015.
Leverage (Debt)
Debt showed almost no change in 2015 while cash dropped on 15.2% in 2015.
Management team
Manulife Financial Corp's CEO Donald A Guloien has spent 9 years at the company. Steve Bernard Roder is a Manulife Financial Corp's CFO. Steve Bernard Roder has spent 6 years at the company.
Appendix 1: Peers in Insurance
Below you can find Manulife Financial Corp benchmarking vs. other companies in Insurance industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ping An Insurance Group Co of China Ltd ($2318) | 39.5% | 25.1% | 24.2% | 25.8% | |
| PICC Property & Casualty Co Ltd ($2328) | 6.9% | 18.7% | 18.1% | 16.9% | |
| AIA Group Ltd ($1299) | -22.6% | 42.3% | 8.6% | 16.2% | |
| People's Insurance Co Group of China Ltd ($1339) | 7.5% | 8.9% | 18.4% | 15.3% | |
| China Pacific Insurance Group Co Ltd ($2601) | 10.0% | 7.5% | 15.0% | 12.5% | |
| |
|---|
| Median (9 companies) | 5.7% | 18.7% | 15.0% | 12.5% | |
|---|
| Manulife Financial Corp ($945) | | -43.8% | -37.7% | 203.5% | -38.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Asia Financial Holdings Ltd ($662) | 0.1% | 0.3% | 0.0% | 14.0% | |
| China Taiping Insurance Holdings Co Ltd ($966) | 0.7% | 1.2% | 2.3% | 4.9% | |
| Ping An Insurance Group Co of China Ltd ($2318) | 2.0% | 2.5% | 2.4% | 2.6% | |
| AIA Group Ltd ($1299) | 0.6% | 2.0% | 2.2% | 1.8% | |
| China Pacific Insurance Group Co Ltd ($2601) | 1.1% | 1.8% | 1.9% | 1.7% | |
| |
|---|
| Median (9 companies) | 1.4% | 1.4% | 1.6% | 1.7% | |
|---|
| Manulife Financial Corp ($945) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| PICC Property & Casualty Co Ltd ($2328) | 6.3% | 7.0% | 6.4% | 7.4% | |
| Asia Financial Holdings Ltd ($662) | -2.7% | 4.7% | 2.6% | 3.7% | |
| People's Insurance Co Group of China Ltd ($1339) | 3.1% | 3.1% | 2.7% | 3.2% | |
| AIA Group Ltd ($1299) | 2.0% | 3.1% | 2.9% | 3.2% | |
| China Pacific Insurance Group Co Ltd ($2601) | 2.6% | 1.7% | 2.5% | 2.6% | |
| |
|---|
| Median (9 companies) | 1.9% | 1.7% | 2.5% | 2.6% | |
|---|
| Manulife Financial Corp ($945) | 0.6% | 0.9% | 1.9% | 2.0% | 1.1% |
