Snowflake Score | |
---|---|
Valuation | 4/6 |
Future Growth | 0/6 |
Past Performance | 4/6 |
Financial Health | 5/6 |
Dividends | 6/6 |
POW Stock Overview
Power Corporation of Canada operates as an international management and holding company in North America, Europe, and Asia.
Power Corporation of Canada Competitors
Price History & Performance
Historical stock prices | |
---|---|
Current Share Price | CA$33.12 |
52 Week High | CA$44.53 |
52 Week Low | CA$32.47 |
Beta | 1.02 |
1 Month Change | -9.90% |
3 Month Change | -14.31% |
1 Year Change | -15.25% |
3 Year Change | 17.53% |
5 Year Change | 9.49% |
Change since IPO | 747.87% |
Recent News & Updates
Shareholder Returns
POW | CA Insurance | CA Market | |
---|---|---|---|
7D | -1.7% | 1.1% | -0.8% |
1Y | -15.3% | -6.0% | -5.0% |
Return vs Industry: POW underperformed the Canadian Insurance industry which returned -6% over the past year.
Return vs Market: POW underperformed the Canadian Market which returned -5% over the past year.
Price Volatility
POW volatility | |
---|---|
POW Average Weekly Movement | 3.3% |
Insurance Industry Average Movement | 4.1% |
Market Average Movement | 10.1% |
10% most volatile stocks in CA Market | 17.4% |
10% least volatile stocks in CA Market | 4.4% |
Stable Share Price: POW is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: POW's weekly volatility (3%) has been stable over the past year.
About the Company
Founded | Employees | CEO | Website |
---|---|---|---|
1925 | n/a | Jeff Orr | https://www.powercorporation.com |
Power Corporation of Canada operates as an international management and holding company in North America, Europe, and Asia. It operates through Lifeco, IGM Financial, and GBL segments. The company offers life, disability, critical illness, accidental death, dismemberment, health and dental protection, and creditor insurance; retirement and investment management; asset management; and reinsurance and retrocession; investment advisory, financial planning, and related services; and fund, protection, and wealth management services.
Power Corporation of Canada Fundamentals Summary
POW fundamental statistics | |
---|---|
Market Cap | CA$22.53b |
Earnings (TTM) | CA$2.84b |
Revenue (TTM) | CA$67.41b |
7.8x
P/E Ratio0.3x
P/S RatioIs POW overvalued?
See Fair Value and valuation analysisEarnings & Revenue
POW income statement (TTM) | |
---|---|
Revenue | CA$67.41b |
Cost of Revenue | CA$52.28b |
Gross Profit | CA$15.13b |
Other Expenses | CA$12.29b |
Earnings | CA$2.84b |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
Aug 05, 2022
Earnings per share (EPS) | 4.23 |
Gross Margin | 22.45% |
Net Profit Margin | 4.21% |
Debt/Equity Ratio | 44.5% |
How did POW perform over the long term?
See historical performance and comparisonDividends
6.0%
Current Dividend Yield44%
Payout RatioValuation
Is POW undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6Valuation Score 4/6
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 POW?
Other financial metrics that can be useful for relative valuation.
What is POW's n/a Ratio? | |
---|---|
n/a Ratio | 0x |
n/a | n/a |
Market Cap | CA$22.53b |
Key Statistics | |
---|---|
Enterprise Value/Revenue | 0.7x |
Enterprise Value/EBITDA | 8.3x |
PEG Ratio | -1.7x |
Price to Earnings Ratio vs Peers
How does POW's PE Ratio compare to its peers?
POW PE Ratio vs Peers |
---|
Company | PE | Estimated Growth | Market Cap |
---|---|---|---|
Peer Average | 7.8x | ||
GWO Great-West Lifeco | 9.2x | 3.8% | CA$29.3b |
SLF Sun Life Financial | 9x | 6.2% | CA$34.6b |
MFC Manulife Financial | 4.7x | -18.2% | CA$42.8b |
IAG iA Financial | 8.5x | 11.7% | CA$6.9b |
POW Power Corporation of Canada | 7.8x | -4.5% | CA$22.5b |
Price-To-Earnings vs Peers: POW is good value based on its Price-To-Earnings Ratio (7.8x) compared to the peer average (7.8x).
Price to Earnings Ratio vs Industry
How does POW's PE Ratio compare vs other companies in the North American Insurance Industry?
Price-To-Earnings vs Industry: POW is expensive based on its Price-To-Earnings Ratio (7.8x) compared to the Canadian Insurance industry average (7.8x)
Price to Earnings Ratio vs Fair Ratio
What is POW'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.
Fair Ratio | |
---|---|
Current PE Ratio | 7.8x |
Fair PE Ratio | 9.2x |
Price-To-Earnings vs Fair Ratio: POW is good value based on its Price-To-Earnings Ratio (7.8x) compared to the estimated Fair Price-To-Earnings Ratio (9.2x).
Share Price vs Fair Value
What is the Fair Price of POW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: POW (CA$33.12) is trading below our estimate of fair value (CA$72.76)
Significantly Below Fair Value: POW is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: POW's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
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Future Growth
How is Power Corporation of Canada forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
Future Growth Score
0/6Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
-4.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: POW's earnings are forecast to decline over the next 3 years (-4.5% per year).
Earnings vs Market: POW's earnings are forecast to decline over the next 3 years (-4.5% per year).
High Growth Earnings: POW's earnings are forecast to decline over the next 3 years.
Revenue vs Market: POW's revenue (5.2% per year) is forecast to grow slower than the Canadian market (6.5% per year).
High Growth Revenue: POW's revenue (5.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: POW's Return on Equity is forecast to be low in 3 years time (11.2%).
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Past Performance
How has Power Corporation of Canada performed over the past 5 years?
Past Performance Score
4/6Past Performance Score 4/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
18.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: POW has high quality earnings.
Growing Profit Margin: POW's current net profit margins (4.2%) are higher than last year (3.6%).
Past Earnings Growth Analysis
Earnings Trend: POW's earnings have grown by 18.2% per year over the past 5 years.
Accelerating Growth: POW's earnings growth over the past year (20.8%) exceeds its 5-year average (18.2% per year).
Earnings vs Industry: POW earnings growth over the past year (20.8%) underperformed the Insurance industry 30.7%.
Return on Equity
High ROE: POW's Return on Equity (10.9%) is considered low.
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Financial Health
How is Power Corporation of Canada's financial position?
Financial Health Score
5/6Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: POW's short term assets (CA$140.0B) exceed its short term liabilities (CA$1.4B).
Long Term Liabilities: POW's short term assets (CA$140.0B) do not cover its long term liabilities (CA$587.0B).
Debt to Equity History and Analysis
Debt Level: POW has more cash than its total debt.
Reducing Debt: POW's debt to equity ratio has reduced from 46.7% to 44.5% over the past 5 years.
Debt Coverage: POW's debt is well covered by operating cash flow (55.8%).
Interest Coverage: POW's interest payments on its debt are well covered by EBIT (9.2x coverage).
Balance Sheet
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Dividend
What is Power Corporation of Canada current dividend yield, its reliability and sustainability?
Dividend Score
6/6Dividend Score 6/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
5.98%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: POW's dividend (5.98%) is higher than the bottom 25% of dividend payers in the Canadian market (2.02%).
High Dividend: POW's dividend (5.98%) is in the top 25% of dividend payers in the Canadian market (5.4%)
Stability and Growth of Payments
Stable Dividend: POW's dividends per share have been stable in the past 10 years.
Growing Dividend: POW's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (43.8%), POW's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its low cash payout ratio (13.2%), POW's dividend payments are thoroughly covered by cash flows.
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Management
How experienced are the management team and are they aligned to shareholders interests?
5.5yrs
Average management tenure
CEO
Jeff Orr (63 yo)
2.42yrs
Tenure
CA$13,500,737
Compensation
Mr. Robert Jeffrey Orr, also known as Jeff, serves as the Chief Executive Officer and President at Power Financial Corporation since May 9, 2005. Mr. Orr serves as the Chief Executive Officer and President...
CEO Compensation Analysis
Compensation vs Market: Jeff's total compensation ($USD10.45M) is about average for companies of similar size in the Canadian market ($USD8.42M).
Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: POW's management team is seasoned and experienced (5.5 years average tenure).
Board Members
Experienced Board: POW's board of directors are seasoned and experienced ( 12.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: POW 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
Power Corporation of Canada's employee growth, exchange listings and data sources
Key Information
- Name: Power Corporation of Canada
- Ticker: POW
- Exchange: TSX
- Founded: 1925
- Industry: Life and Health Insurance
- Sector: Insurance
- Implied Market Cap: CA$22.529b
- Shares outstanding: 670.38m
- Website: https://www.powercorporation.com
Number of Employees
Location
- Power Corporation of Canada
- 751 Victoria Square
- Montreal
- Quebec
- H2Y 2J3
- Canada
Listings
Company Analysis and Financial Data Status
Data | Last Updated (UTC time) |
---|---|
Company Analysis | 2022/07/03 00:00 |
End of Day Share Price | 2022/06/30 00:00 |
Earnings | 2022/03/31 |
Annual Earnings | 2021/12/31 |
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.