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Manulife FinancialPHS:MFC 65 Degree of Operating Leverage is 0.55 as of Jun. 2026. GuruFocus rates PHS:MFC with a GF Score™ of 65/100 and a GF Value™ of ₱1,902.83 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 367 Insurance companies, Manulife Financial ranks better than 61.85% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Manulife Financial's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 0.55. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Manulife Financial's Degree of Operating Leverage or its related term are showing as below:
PHS:MFC's Degree of Operating Leverage is ranked better than 61.85% of 367
companies
in the Insurance industry
Industry Median: 1.12
vs PHS:MFC: 0.55
Manulife Financial (PHS:MFC) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Manulife Financial Degree of Operating Leverage Related Terms
Manulife Financial Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Manulife Financial's Degree of Operating Leverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Manulife Financial Degree of Operating Leverage Chart
PHS:MFC vs AFL, MET, PRU: Degree of Operating Leverage Comparison
For the Insurance - Life subindustry, Manulife Financial's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Manulife Financial Degree of Operating Leverage vs Insurance Industry
For the Insurance industry and Financial Services sector, Manulife Financial's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Manulife Financial's Degree of Operating Leverage falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of 0.55 mean?
Manulife Financial (PHS:MFC) has a Degree of Operating Leverage of 0.55 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Manulife Financial and its competitors. According to the industry distribution chart, Manulife Financial ranks #140 out of 367 companies in the Insurance industry, placing it in the top 38.1%.
Is Manulife Financial's Degree of Operating Leverage too high?
Manulife Financial's current Degree of Operating Leverage is 0.55. The Insurance industry median Degree of Operating Leverage is 1.12. Manulife Financial's value of 0.55 is 50.9% below this industry median. Based on the distribution chart, Manulife Financial ranks #140 out of 367 companies in the Insurance industry, which is above the industry midpoint. Overall, Manulife Financial has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Manulife Financial's Degree of Operating Leverage compare to AFL and MET?
According to the Insurance industry distribution chart, Manulife Financial ranks #140 out of 367 companies for Degree of Operating Leverage. This puts Manulife Financial in the upper half of its industry. The industry median Degree of Operating Leverage is 1.12. Manulife Financial's value of 0.55 is 50.9% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for an Insurance company?
The median Degree of Operating Leverage among Insurance companies is 1.12, based on 367 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Manulife Financial's current Degree of Operating Leverage of 0.55 is 50.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Manulife Financial and its competitors. For the Insurance industry, the median Degree of Operating Leverage is 1.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Manulife Financial's current Degree of Operating Leverage is 0.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Manulife Financial stock overvalued right now?
Based on GuruFocus' analysis, Manulife Financial (PHS:MFC) is currently considered Significantly Overvalued. The stock's GF Value™ is ₱1,902.83, compared to a current price of ₱2,500.00 — trading 31.4% above its estimated fair value. The current Degree of Operating Leverage is 0.55 and 50.9% below the Insurance industry median of 1.12. Manulife Financial's overall GF Score™ is 65/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Manulife Financial (PHS:MFC), the current Degree of Operating Leverage is 0.55 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Manulife Financial (PHS:MFC) Overvalued in 2026?
Based on GuruFocus' analysis, Manulife Financial stock appears to be overvalued.
The current stock price of ₱2,500.00 is trading 31.4% above its estimated GF Value™ of ₱1,902.83.
GuruFocus considers Manulife Financial to be Significantly Overvalued.
Key valuation signals for PHS:MFC:
Degree of Operating Leverage: 0.55
GF Value™: ₱1,902.83 vs. price of ₱2,500.00 (31.4% above fair value)
Industry Position: 50.9% below the Insurance median (#140 of 367)
No single metric tells the full story. See the PHS:MFC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Manulife Financial is one of the Big Three Canadian life insurers. The firm provides life insurance, annuities, asset management, and wealth management products to individuals and group customers in Canada, the United States, and Asia. The Canadian business segment contributes approximately 21% of 2025 adjusted earnings. The Asia segment operates across 12 countries and contributes around 38% of earnings, with a significant presence in Hong Kong and Singapore. The US business, which primarily operates under the John Hancock brand, contributes about 16% of earnings. Manulife's global asset and wealth management business contributes approximately 25% of its earnings and had around CAD 1.1 trillion in assets under management and administration as of the end of 2025.
65GF Score
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