TSX:GWO

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Great-West Lifeco

Executive Summary

Great-West Lifeco Inc., a financial services holding company, engages in the life and health insurance, retirement and investment services, asset management, and reinsurance businesses in Canada, the United States, and Europe.


Snowflake Analysis

6 star dividend payer with excellent balance sheet.


Similar Companies

Share Price & News

How has Great-West Lifeco's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GWO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.8%

GWO

2.3%

CA Insurance

0.5%

CA Market


1 Year Return

-3.0%

GWO

-3.2%

CA Insurance

-2.2%

CA Market

Return vs Industry: GWO matched the Canadian Insurance industry which returned -3.2% over the past year.

Return vs Market: GWO matched the Canadian Market which returned -2.2% over the past year.


Shareholder returns

GWOIndustryMarket
7 Day2.8%2.3%0.5%
30 Day11.3%7.2%4.0%
90 Day36.3%25.2%14.5%
1 Year3.1%-3.0%1.8%-3.2%1.3%-2.2%
3 Year-8.6%-21.8%4.9%-7.5%13.6%2.6%
5 Year3.3%-18.4%25.0%2.9%42.0%20.1%

Price Volatility Vs. Market

How volatile is Great-West Lifeco's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Great-West Lifeco undervalued compared to its fair value and its price relative to the market?

42.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GWO (CA$27.06) is trading below our estimate of fair value (CA$46.68)

Significantly Below Fair Value: GWO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GWO is good value based on its PE Ratio (10.3x) compared to the CA Insurance industry average (14.4x).

PE vs Market: GWO is good value based on its PE Ratio (10.3x) compared to the Canadian market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: GWO is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: GWO is overvalued based on its PB Ratio (1.2x) compared to the CA Insurance industry average (0.9x).


Next Steps

Future Growth

How is Great-West Lifeco forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GWO's forecast earnings growth (5.4% per year) is above the savings rate (1.7%).

Earnings vs Market: GWO's earnings (5.4% per year) are forecast to grow slower than the Canadian market (26.4% per year).

High Growth Earnings: GWO's earnings are forecast to grow, but not significantly.

Revenue vs Market: GWO's revenue (36.7% per year) is forecast to grow faster than the Canadian market (6.3% per year).

High Growth Revenue: GWO's revenue (36.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GWO's Return on Equity is forecast to be low in 3 years time (12.1%).


Next Steps

Past Performance

How has Great-West Lifeco performed over the past 5 years?

-2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GWO has high quality earnings.

Growing Profit Margin: GWO's current net profit margins (4.4%) are lower than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: GWO's earnings have declined by 2.3% per year over the past 5 years.

Accelerating Growth: GWO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GWO had negative earnings growth (-2.7%) over the past year, making it difficult to compare to the Insurance industry average (-2.5%).


Return on Equity

High ROE: GWO's Return on Equity (10.2%) is considered low.


Next Steps

Financial Health

How is Great-West Lifeco's financial position?


Financial Position Analysis

Short Term Liabilities: GWO's short term assets (CA$136.3B) exceed its short term liabilities (CA$6.7B).

Long Term Liabilities: GWO's short term assets (CA$136.3B) do not cover its long term liabilities (CA$425.2B).


Debt to Equity History and Analysis

Debt Level: GWO's debt to equity ratio (23%) is considered satisfactory.

Reducing Debt: GWO's debt to equity ratio has reduced from 23.1% to 23% over the past 5 years.

Debt Coverage: GWO's debt is well covered by operating cash flow (98.9%).

Interest Coverage: GWO's interest payments on its debt are well covered by EBIT (12.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Great-West Lifeco current dividend yield, its reliability and sustainability?

6.47%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: GWO's dividend (6.47%) is higher than the bottom 25% of dividend payers in the Canadian market (1.73%).

High Dividend: GWO's dividend (6.47%) is in the top 25% of dividend payers in the Canadian market (5.65%)


Stability and Growth of Payments

Stable Dividend: GWO's dividends per share have been stable in the past 10 years.

Growing Dividend: GWO's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (64.5%), GWO's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GWO's dividends in 3 years are forecast to be covered by earnings (62.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure


CEO

Paul Mahon (56 yo)

7.25yrs

Tenure

CA$7,631,682

Compensation

Mr. Paul Anthony Mahon has been the Chief Executive Officer and President of London Life Insurance Company, Canada Life Financial Corporation, Great-West Lifeco Inc. and Canada Life Limited since May 3, 20 ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD5.76M) is about average for companies of similar size in the Canadian market ($USD7.18M).

Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Paul Mahon
President7.25yrsCA$7.63m0.017%
CA$ 4.2m
Garry MacNicholas
Executive VP & CFO5.42yrsCA$2.82m0.00055%
CA$ 138.1k
Raman Srivastava
Executive VP & Global Chief Investment Officer3yrsCA$3.53m0.00034%
CA$ 85.4k
Arshil Jamal
President & Group Head of Strategy0.50yrCA$3.40mno data
Graham Bird
Executive VP & Chief Risk Officer5.42yrsCA$3.19m0.00075%
CA$ 188.3k
Gordon Menzie
Senior Vice-President of Corporate Finance & Treasuryno datano datano data
Philip Armstrong
Executive VP & Global Chief Information Officer4.58yrsCA$3.01m0.00018%
CA$ 45.2k
Anne Sonnen
Senior VP & Chief Compliance Officer2.67yrsno datano data
Sharon Geraghty
Executive VP & General Counsel2.58yrsCA$3.51mno data
Marlene Klassen
Assistant Vice President of Communicationsno datano datano data
Grace Palombo
Executive VP & Chief HR Officer5.75yrsno datano data
Nancy Russell
Senior VP & Chief Internal Auditor3.25yrsno datano data

3.9yrs

Average Tenure

Experienced Management: GWO's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Mahon
President7.25yrsCA$7.63m0.017%
CA$ 4.2m
Robert Reynolds
President & CEO of Putnam Investments LLC and Chair of Great West Lifeco U.S. LLC1.42yrsno datano data
Marcel Coutu
Independent Director13.25yrsCA$398.79k0.0011%
CA$ 271.1k
Andre Desmarais
Director28.33yrsCA$398.79k0.038%
CA$ 9.5m
Siim Vanaselja
Independent Director6.25yrsCA$620.02k0.0027%
CA$ 675.3k
Brian Walsh
Independent Director11.25yrsCA$526.02kno data
Paul Desmarais
Director34.25yrsCA$398.79k0.011%
CA$ 2.7m
Gregory Tretiak
Director8.25yrsCA$430.04kno data
Robert Orr
Chairman of the Board7.25yrsCA$498.79k0.0022%
CA$ 542.2k
Thomas Ryan
Independent Director6.25yrsCA$529.40kno data
Claude Généreux
Director5.25yrsCA$417.54kno data
Paula Madoff
Independent Director2.25yrsCA$523.99kno data

7.1yrs

Average Tenure

63.5yo

Average Age

Experienced Board: GWO's board of directors are considered experienced (7.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Great-West Lifeco Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Great-West Lifeco Inc.
  • Ticker: GWO
  • Exchange: TSX
  • Founded: 1891
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: CA$25.103b
  • Shares outstanding: 927.68m
  • Website: https://www.greatwestlifeco.com

Number of Employees


Location

  • Great-West Lifeco Inc.
  • 100 Osborne Street North
  • Winnipeg
  • Manitoba
  • R3C 1V3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GWOTSX (The Toronto Stock Exchange)YesCommon SharesCACADJun 1986
GWSDB (Deutsche Boerse AG)YesCommon SharesDEEURJun 1986
GWLI.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 1986
0AH3LSE (London Stock Exchange)YesCommon SharesGBCADJun 1986
GWO.PRITSX (The Toronto Stock Exchange)PFD 1ST SER ICACADApr 2006
GWO.PRNTSX (The Toronto Stock Exchange)5YR RATE PFD-NCACADNov 2010
GWO.PRQTSX (The Toronto Stock Exchange)1ST PFD SER QCACADJul 2012
GWO.PRSTSX (The Toronto Stock Exchange)1ST PFD SER SCACADMay 2014
GWO.PRTTSX (The Toronto Stock Exchange)5.15 FST PFD TCACADMay 2017

Biography

Great-West Lifeco Inc., a financial services holding company, engages in the life and health insurance, retirement and investment services, asset management, and reinsurance businesses in Canada, the Unite ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/15 05:45
End of Day Share Price2020/08/14 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.