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.
GWO passed our risk checks.
Great-West Lifeco Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||CA$31.43|
|52 Week High||CA$41.50|
|52 Week Low||CA$30.39|
|1 Month Change||-8.82%|
|3 Month Change||-14.66%|
|1 Year Change||-14.13%|
|3 Year Change||3.70%|
|5 Year Change||-10.66%|
|Change since IPO||1,447.32%|
Recent News & Updates
|GWO||CA Insurance||CA Market|
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.
|GWO Average Weekly Movement||3.0%|
|Insurance Industry Average Movement||4.0%|
|Market Average Movement||10.0%|
|10% most volatile stocks in CA Market||17.3%|
|10% least volatile stocks in CA Market||4.4%|
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
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
|GWO fundamental statistics|
Is GWO overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|GWO income statement (TTM)|
|Cost of Revenue||CA$50.97b|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
Aug 03, 2022
|Earnings per share (EPS)||3.42|
|Net Profit Margin||5.15%|
How did GWO perform over the long term?See historical performance and comparison
6.2%Current Dividend Yield
Is GWO undervalued compared to its fair value, analyst forecasts and its price relative to the market?
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
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.
|What is GWO's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does GWO's PE Ratio compare to its peers?
|GWO PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
POW Power Corporation of Canada
SLF Sun Life Financial
MFC Manulife Financial
IAG iA Financial
GWO Great-West Lifeco
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.
|Current PE Ratio||9.2x|
|Fair PE Ratio||10.5x|
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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How is Great-West Lifeco forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Future Growth Score3/6
Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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
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How has Great-West Lifeco performed over the past 5 years?
Past Performance Score2/6
Past Performance Score 2/6
Growing Profit Margin
Earnings vs Industry
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.
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How is Great-West Lifeco's financial position?
Financial Health Score4/6
Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
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$564.4B).
Debt to Equity History and Analysis
Debt Level: GWO has more cash than its total debt.
Reducing Debt: GWO's debt to equity ratio has increased from 23% to 31.8% over the past 5 years.
Debt Coverage: GWO's debt is well covered by operating cash flow (103.3%).
Interest Coverage: GWO's interest payments on its debt are well covered by EBIT (11.5x coverage).
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What is Great-West Lifeco current dividend yield, its reliability and sustainability?
Dividend Score 6/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: GWO's dividend (6.24%) is higher than the bottom 25% of dividend payers in the Canadian market (1.99%).
High Dividend: GWO's dividend (6.24%) is in the top 25% of dividend payers in the Canadian market (5.27%)
Stability and Growth of Payments
Stable Dividend: GWO's dividends per share have been stable in the past 10 years.
Growing Dividend: GWO's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonable payout ratio (54.1%), GWO's dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its low cash payout ratio (18.3%), GWO's dividend payments are well covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Paul Mahon (57 yo)
Mr. Paul Anthony Mahon had been the Chief Executive Officer and President of London Life Insurance Company, Canada Life Financial Corporation, Great-West Lifeco Inc. and Canada Life Limited since May 3, 20...
CEO Compensation Analysis
Compensation vs Market: Paul's total compensation ($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.
Experienced Management: GWO's management team is considered experienced (4.8 years average tenure).
Experienced Board: GWO's board of directors are considered experienced (9.5 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Great-West Lifeco Inc.'s employee growth, exchange listings and data sources
- 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
- Great-West Lifeco Inc.
- 100 Osborne Street North
- R3C 1V3
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/06/28 00:00|
|End of Day Share Price||2022/06/28 00:00|
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.