Manulife Financial Corp revenue returned to growth in 2016: increased 57.5% vs. 38.2% decline a year earliner
09/02/2017 • About Manulife Financial Corp (
$945) • By InTwits
Manulife Financial Corp reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Manulife Financial Corp doesn't have a profitable business model yet: 2016 ROIC is 1.2%
- The company has potentially unprofitable business model: ROIC is at 1.2%
- 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 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 28,076 | 17,485 | 53,069 | 32,815 | 51,691 | 57.5% |
| Net Income | 1,810 | 3,130 | 3,501 | 2,191 | 2,929 | 33.7% |
Balance Sheet
|
|---|
| Cash | 13,386 | 13,630 | 21,079 | 17,885 | 15,151 | -15.3% |
| Short Term Debt | 18,857 | 19,869 | 18,384 | 18,114 | 17,919 | -1.1% |
| Long Term Debt | 8,949 | 9,160 | 9,311 | 9,548 | 12,876 | 34.9% |
Cash flow
|
|---|
| Capex | 0 | 0 | 0 | 0 | 0 | |
Ratios
|
|---|
| Revenue growth | -43.8% | -37.7% | 203.5% | -38.2% | 57.5% | |
| Net Income Margin | 6.4% | 17.9% | 6.6% | 6.7% | 5.7% | -1.0% |
| ROIC | 0.9% | 1.9% | 2.0% | 1.1% | 1.2% | 0.0% |
| ROE | 7.6% | 12.5% | 12.0% | 6.0% | 7.3% | 1.3% |
Revenue and profitability
Manulife Financial Corp's Revenue jumped on 57.5%.
Net Income marign decreased slightly on 1.0 pp from 6.7% to 5.7% in 2016.
Return on investment
The company operates at low ROIC (1.19%) and ROE (7.29%). ROIC showed almost no change in 2016. ROE increased slightly on 1.3 pp from 6.0% to 7.3% in 2016.
Leverage (Debt)
Debt surged on 11.3% while cash dropped on 15.3%.
Management team
The company's CEO is Donald A Guloien. Donald A Guloien has 9 years tenure 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 we provide Manulife Financial Corp benchmarking against other companies in Insurance industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Taiping Insurance Holdings Co Ltd ($966) | 20.4% | 46.0% | -9.0% | 88.8% | |
| PICC Property & Casualty Co Ltd ($2328) | 18.7% | 18.1% | 16.9% | 17.9% | |
| Target Insurance Holdings Ltd ($6161) | -7.5% | 5.3% | 5.1% | 10.0% | |
| AIA Group Ltd ($1299) | 42.3% | 8.6% | 16.2% | -8.2% | |
| Asia Financial Holdings Ltd ($662) | 113.9% | -4.3% | 9.0% | -16.8% | |
| |
|---|
| Median (5 companies) | 20.4% | 8.6% | 9.0% | 10.0% | |
|---|
| Manulife Financial Corp ($945) | | -37.7% | 203.5% | -38.2% | 57.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| PICC Property & Casualty Co Ltd ($2328) | 1.4% | 1.0% | 0.8% | 0.8% | |
| AIA Group Ltd ($1299) | 2.0% | 2.2% | 1.8% | 0.6% | |
| China Taiping Insurance Holdings Co Ltd ($966) | 1.2% | 2.3% | 4.9% | 0.5% | |
| Asia Financial Holdings Ltd ($662) | 0.3% | 0.0% | 14.0% | 0.3% | |
| Target Insurance Holdings Ltd ($6161) | 0.2% | 0.0% | 0.0% | 0.2% | |
| |
|---|
| Median (5 companies) | 1.2% | 1.0% | 1.8% | 0.5% | |
|---|
| Manulife Financial Corp ($945) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| PICC Property & Casualty Co Ltd ($2328) | 7.0% | 6.4% | 7.4% | 8.7% | |
| Target Insurance Holdings Ltd ($6161) | 2.7% | 5.8% | 7.4% | 6.2% | |
| China Taiping Insurance Holdings Co Ltd ($966) | 1.1% | 1.3% | 2.2% | 3.0% | |
| AIA Group Ltd ($1299) | 3.1% | 2.9% | 3.2% | 2.5% | |
| Asia Financial Holdings Ltd ($662) | 4.7% | 2.6% | 3.7% | 1.9% | |
| |
|---|
| Median (5 companies) | 3.1% | 2.9% | 3.7% | 3.0% | |
|---|
| Manulife Financial Corp ($945) | 0.9% | 1.9% | 2.0% | 1.1% | 1.2% |
