Executive Summary
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.
Rewards
Risk Analysis
No risks detected for GWO from our risk checks.
Snowflake Analysis
Established 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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.6%
GWO
1.3%
CA Insurance
0.8%
CA Market
1 Year Return
17.8%
GWO
24.1%
CA Insurance
10.6%
CA Market
Return vs Industry: GWO underperformed the Canadian Insurance industry which returned 25% over the past year.
Return vs Market: GWO exceeded the Canadian Market which returned 10.4% over the past year.
Shareholder returns
| GWO | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.6% | 1.3% | 0.8% |
| 30 Day | 3.8% | 2.7% | 2.1% |
| 90 Day | 10.8% | 10.4% | 6.6% |
| 1 Year | 24.3%17.8% | 29.3%24.1% | 14.1%10.6% |
| 3 Year | 9.4%-5.3% | 23.4%9.7% | 17.0%6.4% |
| 5 Year | 33.6%7.1% | 50.5%25.0% | 38.5%18.2% |
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
21 hours ago | Simply Wall St
Is It Time To Consider Buying Great-West Lifeco Inc. (TSE:GWO)?2 weeks ago | Simply Wall St
Did Great-West Lifeco's (TSE:GWO) Share Price Deserve to Gain 19%?4 weeks ago | Simply Wall St
Does Great-West Lifeco Inc.'s (TSE:GWO) CEO Salary Reflect Performance?Valuation
Is Great-West Lifeco undervalued compared to its fair value and its price relative to the market?
48.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GWO (CA$33.71) is trading below our estimate of fair value (CA$65.88)
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 (12.7x) compared to the Insurance industry average (15x).
PE vs Market: GWO is good value based on its PE Ratio (12.7x) compared to the Canadian market (15.8x).
Price to Earnings Growth Ratio
PEG Ratio: GWO is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: GWO is overvalued based on its PB Ratio (1.6x) compared to the CA Insurance industry average (1.3x).
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?
10.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GWO's forecast earnings growth (9.9% per year) is above the savings rate (1.4%).
Earnings vs Market: GWO's earnings (10.8% per year) are forecast to grow faster than the Canadian market (10% per year).
High Growth Earnings: GWO's earnings are forecast to grow, but not significantly.
Revenue vs Market: GWO's revenue (11.2% per year) is forecast to grow faster than the Canadian market (5% per year).
High Growth Revenue: GWO's revenue (11.2% 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 (14.3%).
Next Steps
Past Performance
How has Great-West Lifeco performed over the past 5 years?
-0.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GWO has high quality earnings.
Growing Profit Margin: GWO's current net profit margins (5.6%) are lower than last year (5.8%).
Past Earnings Growth Analysis
Earnings Trend: GWO's earnings have declined by -0.5% 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 (-3.3%) over the past year, making it difficult to compare to the Insurance industry average (-0.4%).
Return on Equity
High ROE: GWO's Return on Equity (10.8%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Great-West Lifeco's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: GWO has a low level of unsold assets or inventory.
Debt Coverage by Assets: GWO's debt is covered by short term assets (assets are 20.5x debt).
Financial Institutions Analysis
Asset Level: GWO's level of assets compared to its equity is moderate.
Allowance for Bad Loans: Insufficient data to determine if GWO has a sufficient allowance for bad loans.
Low Risk Liabilities: GWO reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if GWO has an acceptable proportion of non-loan assets held.
Low Risk Deposits: GWO has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if GWO has an appropriate level of bad loans.
Next Steps
Dividend
What is Great-West Lifeco's current dividend yield, its reliability and sustainability?
4.78%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: GWO's dividend (4.9%) is higher than the bottom 25% of dividend payers in the Canadian market (1.88%).
High Dividend: GWO's dividend (4.9%) is low compared to the top 25% of dividend payers in the Canadian market (5.48%).
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 (61.2%), 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 (54.5% payout ratio).
Next Steps
Management
What is the CEO of Great-West Lifeco's salary, the management and board of directors tenure and is there insider trading?
4.4yrs
Average management tenure
CEO
Paul Mahon (55yo)
6.7yrs
Tenure
CA$7,116,415
Compensation
Mr. Paul Anthony Mahon has been the Chief Executive Officer and President of London Life Insurance Company, Canada Life Financial Corporation, Great-West Lifeco Inc. and Canada Life Limited since May 3, 20 ...
CEO Compensation Analysis
Compensation vs Market: Paul's total compensation ($USD5.45M) is about average for companies of similar size in the Canadian market ($USD7.32M).
Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.
Management Age and Tenure
4.4yrs
Average Tenure
Experienced Management: GWO's management team is considered experienced (4.4 years average tenure).
Board Age and Tenure
7.2yrs
Average Tenure
64yo
Average Age
Experienced Board: GWO's board of directors are considered experienced (7.2 years average tenure).
Insider Trading
Insider Buying: GWO insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Shares | 2,500 |
| Max Price | CA$33.05 |
| Entity | Company |
| Shares | 368,883 |
| Max Price | CA$31.13 |
| Entity | Company |
| Shares | 368,883 |
| Max Price | CA$31.10 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Grace Palombo (55yo)
Executive VP & Chief HR Officer
- Tenure: 5.2yrs
Marlene Klassen
Assistant Vice President of Communications
Raman Srivastava
Executive VP & Global Chief Investment Officer
- Tenure: 2.4yrs
- Compensation: CA$3.46m
Paul Mahon (55yo)
President
- Tenure: 6.7yrs
- Compensation: CA$7.12m
Garry MacNicholas
Executive VP & CFO
- Tenure: 4.8yrs
- Compensation: CA$2.40m
Gordon Menzie
Senior Vice-President of Corporate Finance & Treasury
Graham Bird
Executive VP & Chief Risk Officer
- Tenure: 4.8yrs
- Compensation: CA$2.67m
Philip Armstrong
Executive VP & Global Chief Information Officer
- Tenure: 4yrs
- Compensation: CA$3.01m
Anne Sonnen
Senior VP & Chief Compliance Officer
- Tenure: 2.1yrs
Sharon Geraghty
Executive VP & General Counsel
- Tenure: 1.9yrs
- Compensation: CA$3.51m
Board Members
Marcel Coutu (65yo)
Independent Director
- Tenure: 12.7yrs
- Compensation: CA$325.88k
Bob Reynolds (67yo)
President & CEO of Putnam Investments LLC and Chair of Great West Lifeco U.S. LLC
- Tenure: 0.8yrs
André Desmarais (62yo)
Director
- Tenure: 27.8yrs
- Compensation: CA$52.69k
Siim Vanaselja (62yo)
Independent Director
- Tenure: 5.7yrs
- Compensation: CA$534.26k
Brian Walsh (65yo)
Independent Director
- Tenure: 10.7yrs
- Compensation: CA$408.04k
Paul Desmarais (65yo)
Director
- Tenure: 33.7yrs
- Compensation: CA$291.88k
Greg Tretiak (63yo)
Director
- Tenure: 7.7yrs
- Compensation: CA$360.00k
Robert Orr (60yo)
Chairman of the Board
- Tenure: 6.7yrs
- Compensation: CA$427.88k
Tim Ryan (73yo)
Independent Director
- Tenure: 5.7yrs
- Compensation: CA$416.25k
Paul Mahon (55yo)
President
- Tenure: 6.7yrs
- Compensation: CA$7.12m
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$32.005b
- Shares outstanding: 926.34m
- 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 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/22 23:37 |
| End of Day Share Price | 2020/01/22 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.