Manulife Financial Corp Stock Beneish M Score

MFC Stock  CAD 44.87  0.16  0.36%   
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 Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Manulife Financial Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
  
At this time, Manulife Financial's Interest Debt Per Share is very stable compared to the past year. As of the 29th of November 2024, Debt To Assets is likely to grow to 0.02, while Short and Long Term Debt Total is likely to drop about 8 B. At this time, Manulife Financial's PB Ratio is very stable compared to the past year. As of the 29th of November 2024, EV To Sales is likely to grow to 1.50, while Free Cash Flow Yield is likely to drop 0.33.
At this time, Manulife Financial's M Score is inapplicable. 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.
-3.29
Beneish M Score - Inapplicable
Elasticity of Receivables

0.91

Focus
Asset Quality

0.94

Focus
Expense Coverage

1.59

Focus
Gross Margin Strengs

0.89

Focus
Accruals Factor

1.59

Focus
Depreciation Resistance

1.36

Focus
Net Sales Growth

0.79

Focus
Financial Leverage Condition

2.17

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
Net Receivables1.2 B1.7 B
Way Down
Slightly volatile
Total Revenue39.7 B50.3 B
Significantly Down
Slightly volatile
Total Assets467.4 B875.6 B
Way Down
Slightly volatile
Total Current Assets69.1 B65.8 B
Sufficiently Up
Slightly volatile
Non Current Assets Total850.3 B809.8 B
Sufficiently Up
Slightly volatile
Property Plant Equipment1.8 B2.2 B
Significantly Down
Slightly volatile
Selling General Administrative5.4 B4.3 B
Significantly Up
Slightly volatile
Total Current Liabilities704 M741 M
Notably Down
Slightly volatile
Non Current Liabilities Total867.4 B826.1 B
Sufficiently Up
Pretty Stable
Long Term Debt10.5 B12.1 B
Fairly Down
Slightly volatile
Short Term Investments5.9 B6.2 B
Notably Down
Very volatile
Long Term Investments234.3 B237.7 B
Fairly Down
Slightly volatile
Gross Profit Margin0.580.65
Fairly 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.

Depreciation And Amortization

324.56 Million

At this time, Manulife Financial's Depreciation And Amortization is very stable compared to the past year.

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 Receivables1.4B1.4B1.3B1.4B1.7B1.2B
Total Revenue77.8B77.1B59.8B15.3B50.3B39.7B
Total Assets809.1B880.3B917.6B848.9B875.6B467.4B
Total Current Assets21.7B27.6B23.9B20.6B65.8B69.1B
Net Debt(8.6B)(12.2B)(10.7B)(6.8B)(1.4B)(1.5B)
Short Term Debt400M0.0649M615M594M564.3M
Long Term Debt11.7B14.0B11.9B12.4B12.1B10.5B
Operating Income(4.4B)3.6B5.4B10.1B9.4B9.9B
Investments(13.8B)(14.1B)(24.4B)(18.6B)(13.7B)(14.4B)

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.

Pair Trading with Manulife Financial

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Manulife Financial position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Manulife Financial will appreciate offsetting losses from the drop in the long position's value.

Moving against Manulife Stock

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The ability to find closely correlated positions to Manulife Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Manulife Financial when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Manulife Financial - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Manulife Financial Corp to buy it.
The correlation of Manulife Financial is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Manulife Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Manulife Financial Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Manulife Financial can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
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 Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Manulife Financial Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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.