Great-West Lifeco
Great-West Lifeco Inc., a financial services holding company, engages in life and health insurance, asset management, investment and retirement savings, and reinsurance businesses in Canada, the United States, and Europe. The last earnings update was 41 days ago. More info.
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GWO Share Price and Events
7 Day Returns
1 Year Returns
GWO Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Great-West Lifeco (GWO) | 2.9% | 10.7% | 16.4% | -3.5% | -8.6% | 8.3% |
| CA Insurance | 1.5% | 6% | 16% | -4.3% | 7.9% | 12.8% |
| CA Market | 0.3% | 2% | 13.2% | 0.7% | 16.6% | 5.6% |
1 Year Return vs Industry and Market
- GWO underperformed the Market in Canada which returned 0.7% over the past year.
Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Great-West Lifeco
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Great-West Lifeco.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | Excess Returns Model | |
| Stable EPS |
Weighted future Return on Equity estimates from 9 analysts.
= Stable Book Value * Return on Equity = CA$24.17 * 13.7% |
CA$3.31 |
| Book Value of Equity per Share | Weighted future Book Value estimates from 8 analysts. | CA$24.17 |
| Discount Rate (Cost of Equity) | See below | 6.9% |
| Perpetual Growth Rate | 10-Year CA Government Bond Rate | 1.9% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year CA Govt Bond Rate | 1.9% |
| Equity Risk Premium | S&P Global | 6% |
| Insurance Unlevered Beta | Simply Wall St/ S&P Global | 0.64 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.644 (1 + (1- 26.5%) (21.46%)) |
0.83 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.83 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (0.83 * 5.96%) |
6.89% |
Discounted Cash Flow Calculation for TSX:GWO using Excess Returns Model Model
The calculations below outline how an intrinsic value for Great-West Lifeco is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
Note the calculations below are per share.
See our documentation to learn about this calculation.
| Calculation | Result | |
|---|---|---|
| Excess Returns |
= (Stable Return on equity – Cost of equity) (Book Value of
Equity per share)
= (13.7% – 6.89%) * CA$24.17) |
CA$1.65 |
| Terminal Value of Excess Returns |
= Excess Returns / (Cost of Equity -
Expected Growth Rate)
= CA$1.65 / (6.89% - 1.95%) |
CA$33.35 |
| Value of Equity |
= Book Value per share + Terminal Value of
Excess Returns
= CA$24.17 + CA$33.35 |
CA$57.52 |
| Calculation | Result | |
|---|---|---|
| Value per share (CAD) | From above. | CA$57.52 |
| Current discount | Discount to share price of
CA$32.63
= -1 x (CA$32.63 - CA$57.52) / CA$57.52 |
43.3% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Great-West Lifeco's share price is below the future cash flow value, and at a moderate discount (> 20%).
- Great-West Lifeco's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Great-West Lifeco's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Great-West Lifeco's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in CAD | CA$3.00 |
| TSX:GWO Share Price ** | TSX (2019-03-20) in CAD | CA$32.63 |
| Canada Insurance Industry PE Ratio | Median Figure of 11 Publicly-Listed Insurance Companies | 11.13x |
| Canada Market PE Ratio | Median Figure of 542 Publicly-Listed Companies | 14.78x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Great-West Lifeco.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = TSX:GWO Share Price ÷ EPS (both in CAD) = 32.63 ÷ 3.00 |
10.89x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Great-West Lifeco is good value based on earnings compared to the CA Insurance industry average.
- Great-West Lifeco is good value based on earnings compared to the Canada market.
Price based on expected Growth
Does
Great-West Lifeco's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 10.89x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts |
4%per year |
| Canada Insurance Industry PEG Ratio | Median Figure of 9 Publicly-Listed Insurance Companies | 1.33x |
| Canada Market PEG Ratio | Median Figure of 253 Publicly-Listed Companies | 1.2x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 10.89x ÷ 4% |
2.74x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Great-West Lifeco is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Great-West Lifeco's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in CAD | CA$22.08 |
| TSX:GWO Share Price * | TSX (2019-03-20) in CAD | CA$32.63 |
| Canada Insurance Industry PB Ratio | Median Figure of 14 Publicly-Listed Insurance Companies | 1.12x |
| Canada Market PB Ratio | Median Figure of 2,349 Publicly-Listed Companies | 1.58x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = TSX:GWO Share Price ÷ Book Value per Share (both in CAD) = 32.63 ÷ 22.08 |
1.48x |
* Primary Listing of Great-West Lifeco.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Great-West Lifeco is overvalued based on assets compared to the CA Insurance industry average.
Value checks
We assess Great-West Lifeco's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check) Great-West Lifeco has a total score of 4/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Great-West Lifeco's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
- Great-West Lifeco's earnings growth is positive but not above the Canada market average.
- Great-West Lifeco's revenue growth is expected to exceed the Canada market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| TSX:GWO Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts | 4% |
| TSX:GWO Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts | 11.2% |
| Canada Insurance Industry Earnings Growth Rate | Market Cap Weighted Average | 11.9% |
| Canada Insurance Industry Revenue Growth Rate | Market Cap Weighted Average | 7.6% |
| Canada Market Earnings Growth Rate | Market Cap Weighted Average | 17.8% |
| Canada Market Revenue Growth Rate | Market Cap Weighted Average | 6.9% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 9 Analyst Estimates (S&P Global) | See Below |
| Date (Data in CAD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 3,378 | |||
| 2020-12-31 | 55,305 | 3,177 | 1 | |
| 2019-12-31 | 51,569 | 2,946 | 1 |
| Date (Data in CAD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 44,036 | 6,494 | 2,961 |
| 2018-09-30 | 45,146 | 7,216 | 2,643 |
| 2018-06-30 | 43,340 | 6,306 | 2,535 |
| 2018-03-31 | 43,798 | 6,439 | 2,289 |
| 2017-12-31 | 47,124 | 6,757 | 2,149 |
| 2017-09-30 | 42,033 | 5,859 | 2,433 |
| 2017-06-30 | 45,215 | 5,880 | 2,526 |
| 2017-03-31 | 46,967 | 6,365 | 2,612 |
| 2016-12-31 | 46,416 | 6,254 | 2,641 |
| 2016-09-30 | 46,911 | 5,928 | 2,648 |
| 2016-06-30 | 42,100 | 5,770 | 2,694 |
| 2016-03-31 | 33,501 | 5,397 | 2,682 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 9 Analyst Estimates (S&P Global) | See Below |
All data from Great-West Lifeco Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in CAD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 3.66 | 3.66 | 3.66 | 1.00 |
| 2020-12-31 | 3.31 | 3.44 | 3.15 | 8.00 |
| 2019-12-31 | 3.02 | 3.22 | 2.87 | 8.00 |
| Date (Data in CAD Millions) | EPS * |
|---|---|
| 2018-12-31 | 3.00 |
| 2018-09-30 | 2.67 |
| 2018-06-30 | 2.56 |
| 2018-03-31 | 2.31 |
| 2017-12-31 | 2.17 |
| 2017-09-30 | 2.46 |
| 2017-06-30 | 2.56 |
| 2017-03-31 | 2.64 |
| 2016-12-31 | 2.67 |
| 2016-09-30 | 2.67 |
| 2016-06-30 | 2.71 |
| 2016-03-31 | 2.70 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Great-West Lifeco's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Great-West Lifeco has a total score of 2/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Great-West Lifeco performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Great-West Lifeco's year on year earnings growth rate has been positive over the past 5 years.
- Great-West Lifeco's 1-year earnings growth exceeds its 5-year average (37.8% vs 0.6%)
- Great-West Lifeco's earnings growth has exceeded the CA Insurance industry average in the past year (37.8% vs 10.6%).
Earnings and Revenue History
All data from Great-West Lifeco Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in CAD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 44,036.00 | 2,961.00 | 5,033.00 | |
| 2018-09-30 | 45,146.00 | 2,643.00 | 5,087.00 | |
| 2018-06-30 | 43,340.00 | 2,535.00 | 4,952.00 | |
| 2018-03-31 | 43,798.00 | 2,289.00 | 4,865.00 | |
| 2017-12-31 | 47,124.00 | 2,149.00 | 4,705.00 | |
| 2017-09-30 | 42,033.00 | 2,433.00 | 4,718.00 | |
| 2017-06-30 | 45,215.00 | 2,526.00 | 4,789.00 | |
| 2017-03-31 | 46,967.00 | 2,612.00 | 4,796.00 | |
| 2016-12-31 | 46,416.00 | 2,641.00 | 4,799.00 | |
| 2016-09-30 | 46,911.00 | 2,648.00 | 4,724.00 | |
| 2016-06-30 | 42,100.00 | 2,694.00 | 4,676.00 | |
| 2016-03-31 | 33,501.00 | 2,682.00 | 4,596.00 | |
| 2015-12-31 | 33,820.00 | 2,762.00 | 4,466.00 | |
| 2015-09-30 | 36,239.00 | 2,736.00 | 4,296.00 | |
| 2015-06-30 | 36,097.00 | 2,703.00 | 4,052.00 | |
| 2015-03-31 | 41,940.00 | 2,659.00 | 3,886.00 | |
| 2014-12-31 | 39,198.00 | 2,546.00 | 3,741.00 | |
| 2014-09-30 | 36,490.00 | 2,606.00 | 3,665.00 | |
| 2014-06-30 | 35,242.00 | 2,442.00 | 3,591.00 | |
| 2014-03-31 | 28,795.00 | 2,348.00 | 3,396.00 | |
| 2013-12-31 | 26,410.00 | 2,278.00 | 3,159.00 | |
| 2013-09-30 | 26,045.00 | 1,912.00 | 2,973.00 | |
| 2013-06-30 | 27,462.00 | 1,907.00 | 2,815.00 | |
| 2013-03-31 | 31,639.00 | 1,874.00 | 2,737.00 | |
| 2012-12-31 | 30,588.00 | 1,806.00 | 2,684.00 | |
| 2012-09-30 | 30,921.00 | 2,079.00 | 2,083.00 | |
| 2012-06-30 | 30,806.00 | 2,018.00 | 2,032.00 | |
| 2012-03-31 | 30,131.00 | 2,056.00 | 1,948.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Great-West Lifeco has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Great-West Lifeco used its assets less efficiently than the CA Insurance industry average last year based on Return on Assets.
- Great-West Lifeco's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Great-West Lifeco's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Great-West Lifeco has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Great-West Lifeco's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Great-West Lifeco's finances.
The net worth of a company is the difference between its assets and liabilities.
- Great-West Lifeco is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Great-West Lifeco's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 17.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Great-West Lifeco Company Filings, last reported 2 months ago.
| Date (Data in CAD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 27,398.00 | 6,916.00 | 105,392.00 |
| 2018-09-30 | 26,624.00 | 6,086.00 | 103,657.00 |
| 2018-06-30 | 26,620.00 | 6,191.00 | 103,753.00 |
| 2018-03-31 | 26,435.00 | 6,085.00 | 105,173.00 |
| 2017-12-31 | 25,536.00 | 6,212.00 | 102,200.00 |
| 2017-09-30 | 25,386.00 | 5,552.00 | 98,311.00 |
| 2017-06-30 | 25,428.00 | 5,691.00 | 99,709.00 |
| 2017-03-31 | 25,372.00 | 5,849.00 | 99,332.00 |
| 2016-12-31 | 25,008.00 | 6,588.00 | 99,783.00 |
| 2016-09-30 | 24,256.00 | 5,287.00 | 99,968.00 |
| 2016-06-30 | 24,201.00 | 5,365.00 | 96,579.00 |
| 2016-03-31 | 24,531.00 | 5,445.00 | 96,493.00 |
| 2015-12-31 | 25,260.00 | 6,035.00 | 96,622.00 |
| 2015-09-30 | 24,534.00 | 5,445.00 | 93,389.00 |
| 2015-06-30 | 23,470.00 | 5,427.00 | 89,607.00 |
| 2015-03-31 | 22,888.00 | 5,532.00 | 93,127.00 |
| 2014-12-31 | 21,897.00 | 5,964.00 | 89,817.00 |
| 2014-09-30 | 21,627.00 | 5,703.00 | 84,627.00 |
| 2014-06-30 | 21,122.00 | 5,770.00 | 82,767.00 |
| 2014-03-31 | 20,964.00 | 5,941.00 | 82,579.00 |
| 2013-12-31 | 19,830.00 | 6,283.00 | 80,692.00 |
| 2013-09-30 | 19,435.00 | 7,673.00 | 78,377.00 |
| 2013-06-30 | 17,843.00 | 7,318.00 | 74,005.00 |
| 2013-03-31 | 17,268.00 | 6,594.00 | 74,169.00 |
| 2012-12-31 | 17,011.00 | 4,895.00 | 73,195.00 |
| 2012-09-30 | 17,004.00 | 6,069.00 | 70,990.00 |
| 2012-06-30 | 16,692.00 | 5,871.00 | 70,639.00 |
| 2012-03-31 | 16,406.00 | 5,793.00 | 69,126.00 |
- Great-West Lifeco's level of debt (25.2%) compared to net worth is satisfactory (less than 40%).
- The level of debt compared to net worth has been reduced over the past 5 years (31.6% vs 25.2% today).
- Debt is well covered by operating cash flow (93.9%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 18.5x coverage).
Financial health checks
We assess Great-West Lifeco's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Great-West Lifeco has a total score of 5/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Great-West Lifeco's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
CA$2,000 of
Great-West Lifeco
shares you are expected to receive
CA$95
in your first year as a dividend.
Dividend Amount
- Great-West Lifeco's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.02%).
- Great-West Lifeco's dividend is below the markets top 25% of dividend payers in Canada (5.61%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 9 Analyst Estimates (S&P Global) | See Below |
| Canada Insurance Industry Average Dividend Yield | Market Cap Weighted Average of 10 Stocks | 4.1% |
| Canada Market Average Dividend Yield | Market Cap Weighted Average of 330 Stocks | 3.5% |
| Canada Minimum Threshold Dividend Yield | 10th Percentile | 1.1% |
| Canada Bottom 25% Dividend Yield | 25th Percentile | 2% |
| Canada Top 25% Dividend Yield | 75th Percentile | 5.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in CA$) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-12-31 | 1.86 | 1.00 |
| 2020-12-31 | 1.71 | 6.00 |
| 2019-12-31 | 1.62 | 6.00 |
| Date (Data in CA$) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-02-07 | 1.556 | 5.109 |
| 2018-10-31 | 1.556 | 5.345 |
| 2018-08-01 | 1.556 | 4.981 |
| 2018-05-03 | 1.556 | 4.731 |
| 2017-11-02 | 1.468 | 4.268 |
| 2017-08-02 | 1.468 | 4.152 |
| 2017-05-04 | 1.468 | 4.238 |
| 2017-02-09 | 1.468 | 3.985 |
| 2016-11-03 | 1.384 | 3.920 |
| 2016-08-03 | 1.384 | 4.287 |
| 2016-02-11 | 1.384 | 3.968 |
| 2015-11-05 | 1.304 | 3.786 |
| 2015-05-07 | 1.304 | 3.732 |
| 2015-02-12 | 1.304 | 3.587 |
| 2014-11-06 | 1.230 | 3.743 |
| 2014-08-07 | 1.230 | 3.875 |
| 2014-05-08 | 1.230 | 4.059 |
| 2013-11-07 | 1.230 | 3.932 |
| 2013-07-31 | 1.230 | 4.035 |
| 2013-05-02 | 1.230 | 4.228 |
| 2012-11-08 | 1.230 | 4.827 |
| 2012-08-01 | 1.230 | 5.521 |
| 2012-05-03 | 1.230 | 5.682 |
| 2012-02-09 | 1.230 | 5.122 |
| 2011-11-10 | 1.230 | 5.930 |
| 2011-08-03 | 1.230 | 5.736 |
| 2011-05-05 | 1.230 | 4.872 |
| 2011-02-10 | 1.230 | 4.613 |
| 2010-11-10 | 1.230 | 4.708 |
| 2010-08-04 | 1.230 | 4.866 |
| 2010-05-06 | 1.230 | 4.925 |
| 2010-02-11 | 1.230 | 4.438 |
| 2009-11-05 | 1.230 | 4.844 |
| 2009-08-06 | 1.230 | 4.848 |
| 2009-05-07 | 1.230 | 5.439 |
| 2009-03-23 | 1.230 | 6.440 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Great-West Lifeco's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are covered by earnings (1.9x coverage).
- Dividends after 3 years are expected to be covered by earnings (2x coverage).
Income/ dividend checks
We assess Great-West Lifeco's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Great-West Lifeco afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Great-West Lifeco has a total score of 5/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | CA$7,852,629 |
| AGE | 54 |
| TENURE AS CEO | 5.8 years |
CEO Bio
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, 2013. Mr. Mahon has been the Chief Executive Officer and President of The Great-West Life Assurance Company since 2013. He serves as the President of Canada Operations and Chief Operating Officer of Canada Operations at Great-West Life Capital Trust. He has been the Chief Executive Officer and President of The Canada Life Assurance Company since May, 2013 and also serves its Director since May 2, 2013. He has been associated with Great-West Life for 27 years in increasingly senior roles. He served as the President of Canada Operations at Great-West Lifeco Inc. since 2008 and its Chief Operating Officer of Canada. He served as the Chief Operating Officer of Canada of Canada Life Financial Corporation of Canada Life Capital Trust since May 2008. He served as the President of Canada Operations and Chief Operating Officer of Canada Operations at The Canada Life Assurance Company since May 2008. He served as the President and Chief Operating Officer of Canada at The Great-West Life Assurance Company. Mr. Mahon served as an Executive Vice President of Individual Distribution & Corporate Strategy from 2005 to 2008. He served as Senior Vice President of Strategic Planning, Canada and International from 2003 to 2005. He served as Senior Vice President of Group Strategy & Financial Management from 2000 to 2003. Mr. Mahon served as Senior Vice President of Individual Distribution Planning & Operations, Individual Insurance & Investment Products from 1998 to 2000. He served as Vice President of Distribution Research & Development from 1994 to 1998. He served as Manager of Agency Group Sales from 1988 to 1993. He has been a Director of Great-West Life & Annuity Insurance Co. since 2013; London Life Insurance Company since May 2, 2013; The Canada Life Group (U.K.) Limited since 2015; and Great-West Lifeco Inc., since August 2013. He has been a Director of The Great-West Life Assurance Company since May 02, 2013. He served as a Director of Agencies from 1993 to 1994. Mr. Mahon received Bachelor of Commerce from University of Manitoba in 1986 and hold Chartered Life Underwriter designation in 1992.
CEO Compensation
- Paul's compensation has increased by more than 20% in the past year.
- Paul's remuneration is about average for companies of similar size in Canada.
Management Team Tenure
Average tenure of the Great-West Lifeco management team in years:
- The tenure for the Great-West Lifeco management team is about average.
Management Team
Paul Mahon
President
CA$8M
54
5.8 yrs
Garry MacNicholas
Executive VP & CFO
CA$2M
4 yrs
Raman Srivastava
Executive VP & Global Chief Investment Officer
CA$4M
1.6 yrs
Graham Bird
Executive VP & Chief Risk Officer
CA$3M
4 yrs
Arshil Jamal
President & COO of Europe
CA$3M
7.8 yrs
Gordon Menzie
Senior Vice-President of Corporate Finance & Treasury
Philip Armstrong
Executive VP & Global Chief Information Officer
CA$3M
3.2 yrs
Anne Sonnen
Senior VP & Chief Compliance Officer
1.3 yrs
Sharon Geraghty
Executive VP & General Counsel
1.1 yrs
Marlene Klassen
Assistant Vice President of Communications
Board of Directors Tenure
Average tenure and age of the Great-West Lifeco board of directors in years:
- The tenure for the Great-West Lifeco board of directors is about average.
Board of Directors
Robert Orr
Chairman of the Board
CA$377K
59
5.8 yrs
Paul Mahon
President
CA$8M
54
5.6 yrs
Greg Tretiak
Director
CA$317K
62
6.8 yrs
Siim Vanaselja
Director
CA$440K
61
4.8 yrs
Donald Raymond
Director
CA$112K
57
1.8 yrs
André Desmarais
Director
CA$53K
61
26.9 yrs
Paul Desmarais
Director
CA$196K
64
32.8 yrs
Marcel Coutu
Director
CA$236K
64
11.8 yrs
Chaviva Hošek
Director
CA$157K
71
10.8 yrs
Brian Walsh
Director
CA$300K
64
9.8 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (CA$) | Value (CA$) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 03. Jan 19 | Sell | Great-West Lifeco U.S. Holdings, L.P. | Company | 31. Dec 18 | 31. Dec 18 | -51,057 | CA$27.36 | CA$-1,396,807 | ||
| 03. Jan 19 | Buy | Great-West Lifeco U.S. Holdings, L.P. | Company | 31. Dec 18 | 31. Dec 18 | 51,057 | CA$27.42 | CA$1,400,075 | ||
| 27. Nov 18 | Buy | James Singh | Individual | 26. Nov 18 | 26. Nov 18 | 2,000 | CA$30.78 | CA$61,569 | ||
| 03. May 18 | Sell | Great-West Lifeco U.S. Holdings, L.P. | Company | 30. Apr 18 | 30. Apr 18 | -1,611,861 | CA$33.32 | CA$-53,702,211 | ||
| 03. May 18 | Buy | Great-West Lifeco U.S. Holdings, L.P. | Company | 30. Apr 18 | 30. Apr 18 | 1,611,861 | CA$33.33 | CA$53,726,874 | ||
| 04. Apr 18 | Sell | Great-West Lifeco U.S. Holdings, L.P. | Company | 31. Mar 18 | 31. Mar 18 | -85,000 | CA$32.74 | CA$-2,782,611 | ||
| 04. Apr 18 | Buy | Great-West Lifeco U.S. Holdings, L.P. | Company | 31. Mar 18 | 31. Mar 18 | 85,000 | CA$32.75 | CA$2,784,141 | ||
Management checks
We assess Great-West Lifeco's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Great-West Lifeco has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
What Do Analysts Think About Great-West Lifeco Inc.'s (TSE:GWO) Future?
Based on Great-West Lifeco Inc.'s (TSE:GWO) earnings update in December 2018, … as a -0.5% fall in profits is expected in the upcoming year
Simply Wall St - – Full articleGreat-West Lifeco Inc. (TSE:GWO): Has Recent Earnings Growth Beaten Long-Term Trend?
For investors with a long-term horizon, assessing earnings trend over time and against industry benchmarks is more valuable than looking at a single earnings announcement in one point in time. … Investors may find my commentary, albeit very high-level and brief, on Great-West Lifeco Inc. … (TSE:GWO) useful as an attempt to give more color around how Great-West Lifeco is currently performing.
Simply Wall St - – Full articleHow Much Are Great-West Lifeco Inc. (TSE:GWO) Insiders Spending On Buying Shares?
So shareholders might well want to know whether insiders have been buying or selling shares in Great-West Lifeco Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … Great-West Lifeco Insider Transactions Over The Last Year
Simply Wall St - – Full articleGreat-West Lifeco Inc. (TSE:GWO): Will The Growth Last?
Help shape the future of investing tools and you could win a $250 gift card! … The most recent earnings release Great-West Lifeco Inc.'s (TSE:GWO) announced in December 2018a
Simply Wall St - – Full articleWhy Great-West Lifeco Inc. (TSE:GWO) Is A Dividend Rockstar
There is a lot to be liked about Great-West Lifeco Inc. … Let's take a look at Great-West Lifeco in more detail. … Check out our latest analysis for Great-West Lifeco?
Simply Wall St - – Full articleWhat Great-West Lifeco Inc.'s (TSE:GWO) ROE Can Tell Us
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows Great-West Lifeco has a return on equity of 10% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleIs Great-West Lifeco Inc.'s (TSE:GWO) CEO Overpaid Relative To Its Peers?
First, this article will compare CEO compensation with compensation at other large companies. … How Does Paul Mahon's Compensation Compare With Similar Sized Companies. … is worth CA$28b, and total annual CEO compensation is CA$7.9m.
Simply Wall St - – Full articleDid Great-West Lifeco Inc's (TSE:GWO) Recent Earnings Growth Beat The Trend?
Below, I will assess GWO's recent performance announced on 30 September 2018 and compare these figures to its historical trend and industry movements. … Did GWO beat its long-term earnings growth trend and its industry. … Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 1.1%, indicating the rate at which GWO is growing has accelerated
Simply Wall St - – Full articleIs Now The Time To Look At Buying Great-West Lifeco Inc (TSE:GWO)?
saw its share price hover around a small range of CA$29.75 to CA$32.72 over the last few weeks? … But is this actually reflective of the share value of the? … Let’s take a look at Great-West Lifeco’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change
Simply Wall St - – Full articleShould Great-West Lifeco Inc (TSE:GWO) Be Part Of Your Dividend Portfolio?
There is a lot to be liked about Great-West Lifeco Inc (TSE:GWO) as an income stock. … Does Great-West Lifeco tick all the boxes of a great dividend stock? … View our latest analysis for Great-West Lifeco
Simply Wall St - – Full articleCompany Info
Description
Great-West Lifeco Inc., a financial services holding company, engages in life and health insurance, asset management, investment and retirement savings, 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, dental protection, direct marketing, health, and creditor insurance products; and wealth savings and income, accumulation, and annuity products. It also provides employer-sponsored retirement savings plans, individual retirement accounts, enrollment services, communication materials, investment options, and education services; and fund management, investment, and advisory services. In addition, the company offers private-label recordkeeping and administrative services; executive benefits products; and investment products, including equity, fixed income, absolute return, and alternative strategies. Further, it provides protection and wealth management products; payout annuity, and property and casualty reinsurance and retrocession products; and pension products. The company offers its products under the under various brand names, including the Great-West Life, London Life, the Canada Life, the Freedom 55 Financial, the Irish Life, the Great-West Financial, the Empower Retirement, the Putnam Investments, and PanAgora. It distributes its products through a network of advisors, dealers, brokers, managing general agencies, financial institutions, consultants, third-party administrators, wholesale and retail sales force, financial planners, employee benefit consultants, banks, and multi-tied agents. The company was founded in 1891 and is based in Winnipeg, Canada. Great-West Lifeco Inc. is a subsidiary of Power Financial Corporation.
Details
| Name: | Great-West Lifeco Inc. |
| GWO | |
| Exchange: | TSX |
| Founded: | 1891 |
| CA$32,230,003,121 | |
| 987,741,438 | |
| Website: | http://www.greatwestlifeco.com |
| Address: |
Great-West Lifeco Inc. 100 Osborne Street North, Winnipeg, Manitoba, R3C 1V3, Canada |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| TSX | GWO | Common Shares | The Toronto Stock Exchange | CA | CAD | 26. Jun 1986 | |
| OTCPK | GWLI.F | Common Shares | Pink Sheets LLC | US | USD | 26. Jun 1986 | |
| DB | GWS | Common Shares | Deutsche Boerse AG | DE | EUR | 26. Jun 1986 | |
| LSE | 0AH3 | Common Shares | London Stock Exchange | GB | CAD | 26. Jun 1986 | |
| TSX | GWO.PRT | 5.15 FST PFD T | The Toronto Stock Exchange | CA | CAD | 18. May 2017 | |
| TSX | GWO.PRS | 1ST PFD SER S | The Toronto Stock Exchange | CA | CAD | 22. May 2014 | |
| TSX | GWO.PRQ | 1ST PFD SER Q % | The Toronto Stock Exchange | CA | CAD | 09. Jul 2012 | |
| TSX | GWO.PRN | 5YR RATE PFD-N | The Toronto Stock Exchange | CA | CAD | 23. Nov 2010 | |
| TSX | GWO.PRI | PFD 1ST SER I | The Toronto Stock Exchange | CA | CAD | 12. Apr 2006 |
Number of employees
Current staff
Industry
| Life and Health Insurance | |
| Insurance |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/03/20 23:37 |
| End of day share price update: | 2019/03/20 00:00 |
| Last estimates confirmation: | 2019/03/19 |
| Last earnings filing: | 2019/02/07 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
