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. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 2% per year for the next 3 years
Snowflake Analysis
6 star dividend payer and good value.
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 is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: GWO's weekly volatility (2%) has been stable over the past year.
Market Performance
7 Day Return
3.9%
GWO
1.5%
CA Insurance
0.4%
CA Market
1 Year Return
3.2%
GWO
2.6%
CA Insurance
11.1%
CA Market
Return vs Industry: GWO matched the Canadian Insurance industry which returned -0% over the past year.
Return vs Market: GWO underperformed the Canadian Market which returned 10.1% over the past year.
Shareholder returns
| GWO | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.9% | 1.5% | 0.4% |
| 30 Day | 10.2% | 5.1% | 3.2% |
| 90 Day | 6.8% | 8.5% | 7.3% |
| 1 Year | 10.1%3.2% | 7.8%2.6% | 15.2%11.1% |
| 3 Year | 14.0%-2.4% | 23.0%8.3% | 24.7%12.9% |
| 5 Year | 19.0%-6.3% | 48.9%22.3% | 60.1%35.9% |
Long-Term 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
1 month ago | Simply Wall St
Has Great-West Lifeco Inc.'s (TSE:GWO) Impressive Stock Performance Got Anything to Do With Its Fundamentals?2 months ago | Simply Wall St
What Type Of Returns Would Great-West Lifeco's(TSE:GWO) Shareholders Have Earned If They Purchased Their SharesThree Years Ago?2 months ago | Simply Wall St
Only Four Days Left To Cash In On Great-West Lifeco's (TSE:GWO) DividendValuation
Is Great-West Lifeco undervalued compared to its fair value and its price relative to the market?
45.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GWO (CA$32.2) is trading below our estimate of fair value (CA$59.22)
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 (10.1x) compared to the CA Insurance industry average (11.7x).
PE vs Market: GWO is good value based on its PE Ratio (10.1x) compared to the Canadian market (17.2x).
Price to Earnings Growth Ratio
PEG Ratio: GWO's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: GWO is overvalued based on its PB Ratio (1.4x) compared to the CA Insurance industry average (1.1x).
Next Steps
Future Growth
How is Great-West Lifeco forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
-2.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GWO's earnings are forecast to decline over the next 3 years (-2% per year).
Earnings vs Market: GWO's earnings are forecast to decline over the next 3 years (-2% per year).
High Growth Earnings: GWO's earnings are forecast to decline over the next 3 years.
Revenue vs Market: GWO's revenue (2% per year) is forecast to grow slower than the Canadian market (8.3% per year).
High Growth Revenue: GWO's revenue (2% per year) is forecast to grow slower 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 (10.6%).
Next Steps
Past Performance
How has Great-West Lifeco performed over the past 5 years?
-0.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GWO has high quality earnings.
Growing Profit Margin: GWO's current net profit margins (4.9%) are lower than last year (5.3%).
Past Earnings Growth Analysis
Earnings Trend: GWO's earnings have declined by 0.9% per year over the past 5 years.
Accelerating Growth: GWO's earnings growth over the past year (24.9%) exceeds its 5-year average (-0.9% per year).
Earnings vs Industry: GWO earnings growth over the past year (24.9%) underperformed the Insurance industry 33.9%.
Return on Equity
High ROE: GWO's Return on Equity (11.7%) 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$151.6B) exceed its short term liabilities (CA$9.6B).
Long Term Liabilities: GWO's short term assets (CA$151.6B) do not cover its long term liabilities (CA$563.9B).
Debt to Equity History and Analysis
Debt Level: GWO's debt to equity ratio (37.5%) is considered satisfactory.
Reducing Debt: GWO's debt to equity ratio has increased from 23.9% to 37.5% over the past 5 years.
Debt Coverage: GWO's debt is well covered by operating cash flow (94.8%).
Interest Coverage: GWO's interest payments on its debt are well covered by EBIT (13.3x coverage).
Balance Sheet
Next Steps
Dividend
What is Great-West Lifeco current dividend yield, its reliability and sustainability?
5.38%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: GWO's dividend (5.44%) is higher than the bottom 25% of dividend payers in the Canadian market (1.54%).
High Dividend: GWO's dividend (5.44%) is in the top 25% of dividend payers in the Canadian market (4.93%)
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 (55.2%), 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 (64.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.4yrs
Average management tenure
CEO
Paul Mahon (56 yo)
7.75yrs
Tenure
CA$7,631,682
Compensation
Mr. Paul Anthony Mahon had been the Chief Executive Officer and President of London Life Insurance Company, Canada Life Financial Corporation, Great-West Lifeco Inc. and Canada Life Limited since May 3, 20...
CEO Compensation Analysis
Compensation vs Market: Paul's total compensation ($USD6.10M) is about average for companies of similar size in the Canadian market ($USD6.55M).
Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 7.75yrs | CA$7.63m | 0.018% CA$ 5.2m | |
| Executive VP & CFO | 5.92yrs | CA$2.82m | 0.00055% CA$ 164.3k | |
| Executive VP & Global Chief Investment Officer | 3.5yrs | CA$3.53m | 0.00034% CA$ 101.6k | |
| President & Group Head of Strategy | 1yr | CA$3.40m | no data | |
| Executive VP & Chief Risk Officer | 5.92yrs | CA$3.19m | 0.00075% CA$ 224.1k | |
| Senior Vice-President of Corporate Finance & Treasury | no data | no data | no data | |
| Executive VP & Global Chief Information Officer | 5.08yrs | CA$3.01m | 0.00018% CA$ 53.8k | |
| Senior VP & Chief Compliance Officer | 3.17yrs | no data | no data | |
| Executive VP & General Counsel | 3.08yrs | CA$3.51m | no data | |
| Assistant Vice President of Communications | no data | no data | no data | |
| Executive VP & Chief HR Officer | 6.25yrs | no data | no data | |
| Senior VP & Chief Internal Auditor | 3.75yrs | no data | no data |
4.4yrs
Average Tenure
Experienced Management: GWO's management team is considered experienced (4.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 7.75yrs | CA$7.63m | 0.018% CA$ 5.2m | |
| President & CEO of Putnam Investments LLC and Chair of Great West Lifeco U.S. LLC | 1.92yrs | no data | no data | |
| Independent Director | 13.75yrs | CA$398.79k | 0.0011% CA$ 322.7k | |
| Director | 28.83yrs | CA$398.79k | 0.038% CA$ 11.3m | |
| Independent Director | 6.75yrs | CA$620.02k | 0.0027% CA$ 803.8k | |
| Independent Director | 11.75yrs | CA$526.02k | no data | |
| Director | 34.75yrs | CA$398.79k | 0.011% CA$ 3.2m | |
| Director | 8.75yrs | CA$430.04k | no data | |
| Chairman of the Board | 7.75yrs | CA$498.79k | 0.0022% CA$ 645.4k | |
| Independent Director | 6.75yrs | CA$529.40k | no data | |
| Director | 5.75yrs | CA$417.54k | no data | |
| Independent Director | 2.75yrs | CA$523.99k | no data |
7.6yrs
Average Tenure
63.5yo
Average Age
Experienced Board: GWO's board of directors are considered experienced (7.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: GWO 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$29.881b
- Shares outstanding: 928.00m
- Website: https://www.greatwestlifeco.com
Number of Employees
Location
- Great-West Lifeco Inc.
- 100 Osborne Street North
- Winnipeg
- Manitoba
- R3C 1V3
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| GWO | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Jun 1986 |
| GWS | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jun 1986 |
| GWLI.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Jun 1986 |
| 0AH3 | LSE (London Stock Exchange) | Yes | Common Shares | GB | CAD | Jun 1986 |
| GWO.PRI | TSX (The Toronto Stock Exchange) | PFD 1ST SER I | CA | CAD | Apr 2006 | |
| GWO.PRN | TSX (The Toronto Stock Exchange) | 5YR RATE PFD-N | CA | CAD | Nov 2010 | |
| GWO.PRQ | TSX (The Toronto Stock Exchange) | 1ST PFD SER Q | CA | CAD | Jul 2012 | |
| GWO.PRS | TSX (The Toronto Stock Exchange) | 1ST PFD SER S | CA | CAD | May 2014 | |
| GWO.PRT | TSX (The Toronto Stock Exchange) | 5.15 FST PFD T | CA | CAD | May 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/02/27 01:28 |
| End of Day Share Price | 2021/02/26 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.