Manulife Financial Corp Stock Beneish M Score

MFC Stock  USD 24.99  0.33  1.34%   
This module uses fundamental data of Manulife Financial to approximate the value of its Beneish M Score. Manulife Financial M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Manulife Financial Piotroski F Score and Manulife Financial Altman Z Score analysis.
  
At present, Manulife Financial's Debt Ratio is projected to increase slightly based on the last few years of reporting. The current year's Cash Flow To Debt Ratio is expected to grow to 1.71, whereas Short and Long Term Debt Total is forecasted to decline to about 8 B. At present, Manulife Financial's Price Earnings Ratio is projected to decrease significantly based on the last few years of reporting. The current year's Dividend Yield is expected to grow to 0.06, whereas Price To Sales Ratio is forecasted to decline to 0.93.
At this time, it appears that Manulife Financial Corp is an unlikely manipulator. The earnings manipulation may begin if Manulife Financial's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Manulife Financial executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Manulife Financial's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-3.39
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.13

Focus
Asset Quality

0.99

Focus
Expense Coverage

1.41

Focus
Gross Margin Strengs

N/A

Focus
Accruals Factor

1.41

Focus
Depreciation Resistance

1.31

Focus
Net Sales Growth

0.93

Focus
Financial Leverage Condition

1.98

Focus

Manulife Financial Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Manulife Financial's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Total Revenue39.3 B42.3 B
Significantly Down
Slightly volatile
Total Assets467.4 B875.6 B
Way Down
Slightly volatile
Non Current Assets Total173.7 B248 B
Way Down
Slightly volatile
Selling General Administrative5.7 B4.3 B
Significantly Up
Slightly volatile
Non Current Liabilities Total13.1 B13.8 B
Notably Down
Slightly volatile
Long Term DebtB12.1 B
Way Down
Slightly volatile
Short Term Investments89.6 B167.7 B
Way Down
Slightly volatile

Manulife Financial Corp Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Manulife Financial's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Manulife Financial in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Manulife Financial's degree of accounting gimmicks and manipulations.

About Manulife Financial Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Other Operating Expenses

34.32 Billion

At present, Manulife Financial's Other Operating Expenses is projected to increase significantly based on the last few years of reporting.

Manulife Financial Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Manulife Financial. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables1.4B1.4B1.3B1.4B1.7B1.7B
Total Revenue77.8B77.1B59.8B15.3B42.3B39.3B
Total Assets809.1B880.3B917.6B848.9B875.6B467.4B
Total Current Assets21.7B27.6B23.9B20.6B20.3B19.4B
Net Debt(8.6B)(12.2B)(10.7B)(6.8B)(7.6B)(8.0B)
Long Term Debt11.7B14.0B11.9B12.4B12.1B9.0B
Operating Income(4.4B)3.6B5.4B10.1B5.5B3.6B
Investments(13.8B)(14.1B)(24.4B)(18.6B)(13.7B)(13.0B)

Manulife Financial ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Manulife Financial's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Manulife Financial's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Manulife Financial Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Manulife Financial Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Manulife Financial using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Manulife Financial Corp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Manulife Financial Corporation, together with its subsidiaries, provides financial products and services in Asia, Canada, the United States, and internationally. Manulife Financial Corporation was incorporated in 1887 and is headquartered in Toronto, Canada. Manulife Financial operates under InsuranceLife classification in the United States and is traded on New York Stock Exchange. It employs 38000 people.

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When determining whether Manulife Financial Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Manulife Financial's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Manulife Financial Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Manulife Financial Corp Stock:
Check out Manulife Financial Piotroski F Score and Manulife Financial Altman Z Score analysis.
Note that the Manulife Financial Corp information on this page should be used as a complementary analysis to other Manulife Financial's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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Is Manulife Financial's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Manulife Financial. If investors know Manulife will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Manulife Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.961
Dividend Share
1.46
Earnings Share
1.92
Revenue Per Share
14.856
Quarterly Revenue Growth
3.903
The market value of Manulife Financial Corp is measured differently than its book value, which is the value of Manulife that is recorded on the company's balance sheet. Investors also form their own opinion of Manulife Financial's value that differs from its market value or its book value, called intrinsic value, which is Manulife Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Manulife Financial's market value can be influenced by many factors that don't directly affect Manulife Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Manulife Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Manulife Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Manulife Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.