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GWO

Great-West Lifeco TSX:GWO Stock Report

Last Price

CA$31.43

Market Cap

CA$29.2b

7D

-0.4%

1Y

-14.1%

Updated

28 Jun, 2022

Data

Company Financials +
GWO fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance2/6
Financial Health4/6
Dividends6/6

GWO Stock Overview

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.

Great-West Lifeco Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Great-West Lifeco
Historical stock prices
Current Share PriceCA$31.43
52 Week HighCA$41.50
52 Week LowCA$30.39
Beta0.80
1 Month Change-8.82%
3 Month Change-14.66%
1 Year Change-14.13%
3 Year Change3.70%
5 Year Change-10.66%
Change since IPO1,447.32%

Recent News & Updates

Shareholder Returns

GWOCA InsuranceCA Market
7D-0.4%1.0%0.1%
1Y-14.1%-6.3%-2.6%

Return vs Industry: GWO underperformed the Canadian Insurance industry which returned -6.3% over the past year.

Return vs Market: GWO underperformed the Canadian Market which returned -2.6% over the past year.

Price Volatility

Is GWO's price volatile compared to industry and market?
GWO volatility
GWO Average Weekly Movement3.0%
Insurance Industry Average Movement4.0%
Market Average Movement10.0%
10% most volatile stocks in CA Market17.3%
10% least volatile stocks in CA Market4.4%

Stable Share Price: GWO is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: GWO's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
189128,000Paul Mahonhttps://www.greatwestlifeco.com

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. The company offers a portfolio of financial and benefit plan solutions for individuals, families, businesses, and organizations; life, disability, critical illness, accidental death, dismemberment, health and dental protection, and creditor insurance products; and retirement savings and income, annuity, and other specialty products. It also provides employer-sponsored retirement savings plans, individual retirement and taxable brokerage accounts, enrollment services, communication materials, investment options, and education services; and fund management, investment, and advisory services.

Great-West Lifeco Fundamentals Summary

How do Great-West Lifeco's earnings and revenue compare to its market cap?
GWO fundamental statistics
Market CapCA$29.17b
Earnings (TTM)CA$3.19b
Revenue (TTM)CA$61.95b

9.2x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GWO income statement (TTM)
RevenueCA$61.95b
Cost of RevenueCA$50.97b
Gross ProfitCA$10.98b
Other ExpensesCA$7.79b
EarningsCA$3.19b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 03, 2022

Earnings per share (EPS)3.42
Gross Margin17.72%
Net Profit Margin5.15%
Debt/Equity Ratio31.8%

How did GWO perform over the long term?

See historical performance and comparison

Dividends

6.2%

Current Dividend Yield

54%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is GWO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GWO?

Other financial metrics that can be useful for relative valuation.

GWO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA8.5x
PEG Ratio1.6x

Price to Earnings Ratio vs Peers

How does GWO's PE Ratio compare to its peers?

GWO PE Ratio vs Peers
The above table shows the PE ratio for GWO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average7.5x
POW Power Corporation of Canada
8x6.5%CA$23.1b
SLF Sun Life Financial
9x7.1%CA$34.6b
MFC Manulife Financial
4.8x-12.1%CA$42.5b
IAG iA Financial
8.3x11.7%CA$6.6b
GWO Great-West Lifeco
9.2x5.9%CA$29.2b

Price-To-Earnings vs Peers: GWO is expensive based on its Price-To-Earnings Ratio (9.2x) compared to the peer average (7.5x).


Price to Earnings Ratio vs Industry

How does GWO's PE Ratio compare vs other companies in the North American Insurance Industry?

Price-To-Earnings vs Industry: GWO is expensive based on its Price-To-Earnings Ratio (9.2x) compared to the Canadian Insurance industry average (8x)


Price to Earnings Ratio vs Fair Ratio

What is GWO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GWO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.2x
Fair PE Ratio10.5x

Price-To-Earnings vs Fair Ratio: GWO is good value based on its Price-To-Earnings Ratio (9.2x) compared to the estimated Fair Price-To-Earnings Ratio (10.5x).


Share Price vs Fair Value

What is the Fair Price of GWO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GWO (CA$31.43) is trading below our estimate of fair value (CA$92.13)

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


Price to Earnings Growth Ratio

PEG Ratio: GWO is poor value based on its PEG Ratio (1.6x)


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Future Growth

How is Great-West Lifeco forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


5.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GWO's forecast earnings growth (5.9% per year) is above the savings rate (1.6%).

Earnings vs Market: GWO's earnings (5.9% per year) are forecast to grow slower than the Canadian market (7.5% per year).

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

Revenue vs Market: GWO's revenue (56.7% per year) is forecast to grow faster than the Canadian market (7% per year).

High Growth Revenue: GWO's revenue (56.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GWO's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


5.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GWO has high quality earnings.

Growing Profit Margin: GWO's current net profit margins (5.2%) are lower than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: GWO's earnings have grown by 5.8% 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 (-3.5%) over the past year, making it difficult to compare to the Insurance industry average (30.7%).


Return on Equity

High ROE: GWO's Return on Equity (11.9%) is considered low.


Discover strong past performing companies

Financial Health

How is Great-West Lifeco's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: GWO's short term assets (CA$144.8B) exceed its short term liabilities (CA$5.7B).

Long Term Liabilities: GWO's short term assets (CA$144.8B) do not cover its long term liabilities (CA$564.4B).


Debt to Equity History and Analysis

Debt Level: GWO has more cash than its total debt.

Reducing Debt: GWO's debt to equity ratio has increased from 23% to 31.8% over the past 5 years.

Debt Coverage: GWO's debt is well covered by operating cash flow (103.3%).

Interest Coverage: GWO's interest payments on its debt are well covered by EBIT (11.5x coverage).


Balance Sheet


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Dividend

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

Dividend Score

6/6

Dividend Score 6/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


6.24%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: GWO's dividend (6.24%) is higher than the bottom 25% of dividend payers in the Canadian market (1.99%).

High Dividend: GWO's dividend (6.24%) is in the top 25% of dividend payers in the Canadian market (5.27%)


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (54.1%), GWO's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (18.3%), GWO's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

4.8yrs

Average management tenure


CEO

Paul Mahon (57 yo)

9.08yrs

Tenure

CA$9,092,151

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 ($USD7.05M) is about average for companies of similar size in the Canadian market ($USD8.43M).

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


Leadership Team

Experienced Management: GWO's management team is considered experienced (4.8 years average tenure).


Board Members

Experienced Board: GWO's board of directors are considered experienced (9.5 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 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
  • Implied Market Cap: CA$29.174b
  • Shares outstanding: 931.77m
  • Website: https://www.greatwestlifeco.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/28 00:00
End of Day Share Price2022/06/28 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.