SLF:CC - Manulife Financial: Company Firing On All Cylinders But Valuation Too Rich (Rating Downgrade)
2024-04-19 17:58:27 ET
Summary
- Manulife Financial is a conservatively managed financial services company with a solid core North American business and good growth prospects in Asia.
- The company reported strong performance in terms of net income, premiums, and profitability.
- Manulife achieved several milestones in 2023, including a long-term care reinsurance deal and returning capital to shareholders.
- The share price has run up nearly 20% since Q4 2023 and is now ahead of fair value.
Manulife Financial ( MFC ) is a conservatively managed financial services company with a solid core North American business and good future growth prospects primarily in Asia. MFC is a beneficiary of higher for longer interest rates, which should continue to boost margins as its invested assets turn over. The 5% dividend is well covered, with a payout ratio of around 50%. Since my last article in November 2023, when I rated MFC a buy, the share price has increased by 18.5%.
MFC is a buy for long-term dividend growth investors, but in my opinion, now trades at Fair Value, so I am downgrading my rating to hold for now. In this article, I update the full-year performance and outlook, and review the valuation....
Manulife Financial: Company Firing On All Cylinders, But Valuation Too Rich (Rating Downgrade)