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GWO

Great-West LifecoTSX:GWO Stock Report

Market Cap

CA$34.8b

7D

-3.3%

1Y

21.7%

Updated

01 Dec, 2021

Data

Company Financials +
GWO fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance4/6
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

E-L Financial

TSX:ELF

CA$3.3b

Berkshire Hathaway

NYSE:BRK.A

US$619.1b

Royal Bank of Canada

TSX:RY

CA$184.8b

Toronto-Dominion Bank

TSX:TD

CA$170.5b

Price History & Performance

Summary of all time highs, changes and price drops for Great-West Lifeco
Historical stock prices
Current Share PriceCA$37.08
52 Week HighCA$39.73
52 Week LowCA$28.79
Beta0.85
1 Month Change1.84%
3 Month Change-2.88%
1 Year Change21.65%
3 Year Change24.64%
5 Year Change6.46%
Change since IPO1,725.48%

Recent News & Updates

Shareholder Returns

GWOCA InsuranceCA Market
7D-3.3%-4.3%-3.7%
1Y21.7%16.9%20.6%

Return vs Industry: GWO exceeded the Canadian Insurance industry which returned 19.9% over the past year.

Return vs Market: GWO underperformed the Canadian Market which returned 23.7% over the past year.

Price Volatility

Is GWO's price volatile compared to industry and market?
GWO volatility
GWO Average Weekly Movement1.7%
Insurance Industry Average Movement3.4%
Market Average Movement9.4%
10% most volatile stocks in CA Market17.3%
10% least volatile stocks in CA Market3.5%

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.

About the Company

FoundedEmployeesCEOWebsite
189124,500Paul 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 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.

Great-West Lifeco Fundamentals Summary

How do Great-West Lifeco's earnings and revenue compare to its market cap?
GWO fundamental statistics
Market CapCA$34.85b
Earnings (TTM)CA$3.28b
Revenue (TTM)CA$63.26b

10.5x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GWO income statement (TTM)
RevenueCA$63.26b
Cost of RevenueCA$51.90b
Gross ProfitCA$11.37b
ExpensesCA$8.09b
EarningsCA$3.28b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.52
Gross Margin17.97%
Net Profit Margin5.18%
Debt/Equity Ratio29.0%

How did GWO perform over the long term?

See historical performance and comparison

Dividends

5.3%

Current Dividend Yield

50%

Payout Ratio

Does GWO pay a reliable dividends?

See GWO dividend history and benchmarks
When do you need to buy GWO by to receive an upcoming dividend?
Great-West Lifeco dividend dates
Ex Dividend DateDec 02 2021
Dividend Pay DateDec 31 2021
Days until Ex dividend1 day
Days until Dividend pay date30 days

Does GWO pay a reliable dividends?

See GWO dividend history and benchmarks

Valuation

Is Great-West Lifeco undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GWO (CA$37.08) is trading below our estimate of fair value (CA$85.44)

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


Price To Earnings Ratio

PE vs Industry: GWO is poor value based on its PE Ratio (10.5x) compared to the Canadian Insurance industry average (9.6x).

PE vs Market: GWO is good value based on its PE Ratio (10.5x) compared to the Canadian market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: GWO is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: GWO is overvalued based on its PB Ratio (1.4x) compared to the CA Insurance industry average (1.3x).


Future Growth

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

9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GWO's forecast earnings growth (9% per year) is above the savings rate (1.6%).

Earnings vs Market: GWO's earnings (9% per year) are forecast to grow slower than the Canadian market (10.5% per year).

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

Revenue vs Market: Insufficient data to determine if GWO's revenue is forecast to grow faster than the Canadian market.

High Growth Revenue: Insufficient data to determine if GWO's revenue is forecast to grow faster 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 (15.2%).


Past Performance

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

3.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GWO has high quality earnings.

Growing Profit Margin: GWO's current net profit margins (5.2%) are higher than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: GWO's earnings have grown by 3.9% per year over the past 5 years.

Accelerating Growth: GWO's earnings growth over the past year (28.7%) exceeds its 5-year average (3.9% per year).

Earnings vs Industry: GWO earnings growth over the past year (28.7%) underperformed the Insurance industry 60.9%.


Return on Equity

High ROE: GWO's Return on Equity (12.4%) is considered low.


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$6.2B).

Long Term Liabilities: GWO's short term assets (CA$151.6B) do not cover its long term liabilities (CA$578.5B).


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 21.8% to 29% over the past 5 years.

Debt Coverage: GWO's debt is well covered by operating cash flow (119%).

Interest Coverage: GWO's interest payments on its debt are well covered by EBIT (14.7x coverage).


Balance Sheet


Dividend

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

5.29%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GWO's dividend (5.29%) is higher than the bottom 25% of dividend payers in the Canadian market (1.57%).

High Dividend: GWO's dividend (5.29%) is in the top 25% of dividend payers in the Canadian market (4.6%)


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 reasonably low payout ratio (49.7%), GWO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GWO's dividends in 3 years are forecast to be covered by earnings (55.3% 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 (57 yo)

8.5yrs

Tenure

CA$7,869,104

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 ($USD6.15M) is about average for companies of similar size in the Canadian market ($USD5.54M).

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 (4.4 years average tenure).


Board Members

Experienced Board: GWO's board of directors are considered experienced (8.4 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
  • Market Cap: CA$34.847b
  • Shares outstanding: 930.50m
  • 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 Analysis2021/12/01 00:00
End of Day Share Price2021/11/30 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.