Loading...

Power Financial

TSX:PWF
Snowflake Description

6 star dividend payer with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PWF
TSX
CA$22B
Market Cap
  1. Home
  2. CA
  3. Insurance
Company description

Power Financial Corporation provides financial services in Canada, the United States, Europe, and Asia. The last earnings update was 129 days ago. More info.


Add to Portfolio Compare Print
PWF Share Price and Events
7 Day Returns
1.1%
TSX:PWF
0.9%
CA Insurance
0.9%
CA Market
1 Year Returns
-8.4%
TSX:PWF
-6.4%
CA Insurance
-0.2%
CA Market
PWF Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Power Financial (PWF) 1.1% 6.9% 18.3% -8.4% -8.1% -12.2%
CA Insurance 0.9% 5.4% 12.5% -6.4% 5.5% 10.7%
CA Market 0.9% 2.2% 10.5% -0.2% 15.7% 4.9%
1 Year Return vs Industry and Market
  • PWF underperformed the Insurance industry which returned -6.4% over the past year.
  • PWF underperformed the Market in Canada which returned -0.2% over the past year.
Price Volatility
PWF
Industry
5yr Volatility vs Market

Value

 Is Power Financial undervalued based on future cash flows and its price relative to the stock market?

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 Power Financial 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.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Power Financial.

TSX:PWF Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= CA$24.28 * 10.3%
CA$2.50
Book Value of Equity per Share Median Book Value from the past 5 years. CA$24.28
Discount Rate (Cost of Equity) See below 7.8%
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.

Calculation of Discount Rate/ Cost of Equity for TSX:PWF
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))
= 0.637 (1 + (1- 26.5%) (70.9%))
0.98
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.98
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (0.98 * 5.96%)
7.79%

Discounted Cash Flow Calculation for TSX:PWF using Excess Returns Model Model

The calculations below outline how an intrinsic value for Power Financial 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.

TSX:PWF Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (10.3% – 7.79%) * CA$24.28)
CA$0.61
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= CA$0.61 / (7.79% - 1.95%)
CA$10.49
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= CA$24.28 + CA$10.49
CA$34.77
TSX:PWF Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$34.77
Current discount Discount to share price of CA$30.24
= -1 x (CA$30.24 - CA$34.77) / CA$34.77
13%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Power Financial is available for.
Intrinsic value
13%
Share price is CA$30.24 vs Future cash flow value of CA$34.77
Current Discount Checks
For Power Financial to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Power Financial's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Power Financial's share price is below the future cash flow value, but not 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 Power Financial's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Power Financial's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:PWF PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in CAD CA$2.79
TSX:PWF Share Price ** TSX (2019-03-15) in CAD CA$30.24
Canada Insurance Industry PE Ratio Median Figure of 11 Publicly-Listed Insurance Companies 10.84x
Canada Market PE Ratio Median Figure of 542 Publicly-Listed Companies 14.84x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Power Financial.

TSX:PWF PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:PWF Share Price ÷ EPS (both in CAD)

= 30.24 ÷ 2.79

10.84x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Power Financial is good value based on earnings compared to the CA Insurance industry average.
  • Power Financial is good value based on earnings compared to the Canada market.
Price based on expected Growth
Does Power Financial's expected growth come at a high price?
Raw Data
TSX:PWF PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.84x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
9%per year
Canada Insurance Industry PEG Ratio Median Figure of 9 Publicly-Listed Insurance Companies 1.32x
Canada Market PEG Ratio Median Figure of 251 Publicly-Listed Companies 1.2x

*Line of best fit is calculated by linear regression .

TSX:PWF PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.84x ÷ 9%

1.21x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Power Financial is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Power Financial's assets?
Raw Data
TSX:PWF PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in CAD CA$25.85
TSX:PWF Share Price * TSX (2019-03-15) in CAD CA$30.24
Canada Insurance Industry PB Ratio Median Figure of 14 Publicly-Listed Insurance Companies 1.09x
Canada Market PB Ratio Median Figure of 2,348 Publicly-Listed Companies 1.57x
TSX:PWF PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:PWF Share Price ÷ Book Value per Share (both in CAD)

= 30.24 ÷ 25.85

1.17x

* Primary Listing of Power Financial.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Power Financial is overvalued based on assets compared to the CA Insurance industry average.
X
Value checks
We assess Power Financial's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. Power Financial has a total score of 2/6, 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

 How is Power Financial expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

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!
Annual Growth Rate
9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Power Financial expected to grow at an attractive rate?
  • Power Financial's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Power Financial's earnings growth is positive but not above the Canada market average.
  • Power Financial's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:PWF Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:PWF Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 9%
TSX:PWF Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 5.3%
Canada Insurance Industry Earnings Growth Rate Market Cap Weighted Average 12%
Canada Insurance Industry Revenue Growth Rate Market Cap Weighted Average 7.5%
Canada Market Earnings Growth Rate Market Cap Weighted Average 17.9%
Canada Market Revenue Growth Rate Market Cap Weighted Average 6.8%

*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
Raw Data
TSX:PWF Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:PWF Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 55,305 2,860 1
2019-12-31 51,569 2,590 1
2018-12-31 50,784 2,837 1
TSX:PWF Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2018-09-30 48,131 7,823 1,992
2018-06-30 46,275 6,913 1,932
2018-03-31 46,724 6,929 1,819
2017-12-31 49,885 7,255 1,717
2017-09-30 44,952 6,415 2,108
2017-06-30 48,127 6,464 2,184
2017-03-31 49,788 7,106 2,144
2016-12-31 49,157 6,900 1,919
2016-09-30 49,507 6,606 1,831
2016-06-30 44,682 6,390 1,894
2016-03-31 36,113 5,932 2,005
2015-12-31 36,512 5,783 2,319

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Power Financial's earnings are expected to grow by 9% yearly, however this is not considered high growth (20% yearly).
  • Power Financial's revenue is expected to grow by 5.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:PWF Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Power Financial Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:PWF Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 3.67 4.02 3.31 2.00
2019-12-31 3.19 3.50 2.88 2.00
2018-12-31 3.31 3.31 3.31 1.00
TSX:PWF Past Financials Data
Date (Data in CAD Millions) EPS *
2018-09-30 2.79
2018-06-30 2.71
2018-03-31 2.55
2017-12-31 2.41
2017-09-30 2.96
2017-06-30 3.06
2017-03-31 3.01
2016-12-31 2.69
2016-09-30 2.57
2016-06-30 2.66
2016-03-31 2.81
2015-12-31 3.25

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Power Financial is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Power Financial's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Power Financial has a total score of 1/6, 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 Power Financial 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
Below we compare Power Financial's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Power Financial's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Power Financial's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Power Financial's 1-year earnings growth is negative, it can't be compared to the CA Insurance industry average.
Earnings and Revenue History
Power Financial's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Power Financial Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:PWF Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 48,131.00 1,992.00 6,813.00
2018-06-30 46,275.00 1,932.00 6,657.00
2018-03-31 46,724.00 1,819.00 6,711.00
2017-12-31 49,885.00 1,717.00 6,680.00
2017-09-30 44,952.00 2,108.00 6,571.00
2017-06-30 48,127.00 2,184.00 6,611.00
2017-03-31 49,788.00 2,144.00 6,397.00
2016-12-31 49,157.00 1,919.00 6,317.00
2016-09-30 49,507.00 1,831.00 6,173.00
2016-06-30 44,682.00 1,894.00 6,071.00
2016-03-31 36,113.00 2,005.00 5,968.00
2015-12-31 36,512.00 2,319.00 5,817.00
2015-09-30 38,909.00 2,297.00 5,365.00
2015-06-30 38,762.00 2,290.00 5,109.00
2015-03-31 44,577.00 2,242.00 4,934.00
2014-12-31 41,792.00 2,136.00 4,773.00
2014-09-30 39,077.00 2,223.00 4,619.00
2014-06-30 37,746.00 2,062.00 4,574.00
2014-03-31 31,266.00 1,969.00 4,335.00
2013-12-31 28,832.00 1,896.00 4,049.00
2013-09-30 28,402.00 1,580.00 3,912.00
2013-06-30 29,818.00 1,604.00 3,668.00
2013-03-31 33,961.00 1,558.00 3,570.00
2012-12-31 32,925.00 1,618.00 3,513.00
2012-09-30 33,283.00 1,844.00 2,384.00
2012-06-30 33,190.00 1,667.00 2,314.00
2012-03-31 32,595.00 1,744.00 2,213.00

*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.
  • Power Financial has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Power Financial used its assets less efficiently than the CA Insurance industry average last year based on Return on Assets.
  • Power Financial's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Power Financial's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Power Financial has a total score of 0/6, 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 Power Financial'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 Power Financial's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Power Financial is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Power Financial's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Power Financial's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 7.2x 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.
Raw Data

All data from Power Financial Company Filings, last reported 5 months ago.

TSX:PWF Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 34,453.00 15,311.00 104,157.00
2018-06-30 34,441.00 15,739.00 105,362.00
2018-03-31 34,207.00 15,730.00 106,782.00
2017-12-31 33,524.00 16,159.00 6,002.00
2017-09-30 33,400.00 14,827.00 4,492.00
2017-06-30 33,315.00 15,199.00 5,301.00
2017-03-31 32,848.00 15,471.00 4,803.00
2016-12-31 32,216.00 15,842.00 5,029.00
2016-09-30 31,543.00 14,172.00 4,238.00
2016-06-30 31,131.00 14,233.00 4,180.00
2016-03-31 31,460.00 13,971.00 3,980.00
2015-12-31 32,280.00 14,659.00 4,905.00
2015-09-30 31,477.00 13,755.00 4,970.00
2015-06-30 30,607.00 13,596.00 3,906.00
2015-03-31 30,007.00 13,597.00 4,677.00
2014-12-31 28,902.00 14,250.00 4,729.00
2014-09-30 28,793.00 13,676.00 4,771.00
2014-06-30 28,310.00 13,221.00 4,420.00
2014-03-31 28,134.00 13,204.00 4,602.00
2013-12-31 26,934.00 13,390.00 4,919.00
2013-09-30 26,257.00 12,320.00 3,897.00
2013-06-30 24,929.00 11,865.00 4,138.00
2013-03-31 24,254.00 10,977.00 3,395.00
2012-12-31 23,665.00 11,355.00 3,893.00
2012-09-30 23,806.00 10,633.00 3,036.00
2012-06-30 23,631.00 10,671.00 72,165.00
2012-03-31 23,449.00 10,553.00 70,594.00
  • Power Financial's level of debt (44.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (47% vs 44.4% today).
  • Debt is well covered by operating cash flow (51.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 14.5x coverage).
X
Financial health checks
We assess Power Financial's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Power Financial has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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 Power Financial'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
Dividend payments
5.73%
Current annual income from Power Financial dividends. Estimated to be 5.82% next year.
If you bought CA$2,000 of Power Financial shares you are expected to receive CA$115 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Power Financial's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.09%).
  • Power Financial's dividend is above the markets top 25% of dividend payers in Canada (5.65%).
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.
Raw Data
TSX:PWF Annualized Past and Future Dividends
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 2 Analyst Estimates (S&P Global) See Below
Canada Insurance Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 4.2%
Canada Market Average Dividend Yield Market Cap Weighted Average of 331 Stocks 3.6%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
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.

TSX:PWF Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 1.80 4.00
2019-12-31 1.73 5.00
2018-12-31 1.72 5.00
TSX:PWF Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2018-11-08 1.732 6.287
2018-08-03 1.732 5.828
2018-03-23 1.732 5.441
2017-11-10 1.650 4.817
2017-08-04 1.650 4.752
2017-05-11 1.650 4.978
2017-03-24 1.650 4.775
2016-11-11 1.570 4.566
2016-08-05 1.570 5.132
2016-05-12 1.570 5.120
2016-03-23 1.570 4.869
2015-11-13 1.490 4.681
2015-08-07 1.490 4.657
2015-05-14 1.490 4.165
2015-03-18 1.490 3.971
2014-11-14 1.400 3.925
2014-08-08 1.400 4.108
2014-05-15 1.400 4.137
2014-03-19 1.400 4.075
2013-08-02 1.400 4.120
2013-05-14 1.400 4.466
2012-11-14 1.400 4.935
2012-08-03 1.400 5.499
2012-05-14 1.400 5.521
2012-03-14 1.400 4.815
2011-11-11 1.400 5.352
2011-08-05 1.400 5.363
2011-05-12 1.400 4.738
2011-03-10 1.400 4.514
2010-11-12 1.400 4.583
2010-08-06 1.400 4.796
2010-05-12 1.400 4.928
2010-03-11 1.400 4.379
2009-11-12 1.400 4.673
2009-08-07 1.400 4.787
2009-05-12 1.400 5.246
2009-03-18 1.400 6.359

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 Power Financial's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (2x coverage).
X
Income/ dividend checks
We assess Power Financial's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Power Financial afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Power Financial has a total score of 6/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Power Financial's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Robert Orr
COMPENSATION CA$12,410,240
AGE 59
TENURE AS CEO 13.8 years
CEO Bio

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 served as the President and Chief Executive Officer of IGM Financial Inc. from May 01, 2001 to April 27, 2005. He serves as the Chairman of Investors Group Inc. Mr. Orr serves as Chairman of the Board of IGM Financial Inc. and Canada Life Limited. He serves as the Chairman of The Great-West Life Assurance Company. He has been the Chairman of Great-West Lifeco Inc., since May 2013. He has been Chairman of the Board of London Life Insurance Company since May 2, 2013. He serves as Chairman of the Board of Putnam LLC and The Canada Life Assurance Company since May 2013. Mr. Orr has been the Chairman at Great-west Life & Annuity Insurance Co since July 2013. Before joined Investors Group Inc. in 2001, he served as the Chairman and Chief Executive Officer at BMO Nesbit Burns Inc. Mr. Orr serves as the Chairman of the Board of Putnam Investments. He served as Vice-Chairman of Investment Banking Group at Bank of Montreal. He served as Vice-Chairman of Mackenzie Financial Corporation - Manager of MSP Maxxum Trust. He serves as a Director of PanAgora Asset Management Inc. He serves as a Director at The Canada Life Group (U.K.) Limited. He has been a Director of The Great-West Life Assurance Company since July 30, 2002. He serves as Member of Advisory Board at University of Western Ontario, Ivey School of Business. He has been a Director of Power Financial Corporation since May 9, 2005 and London Life Insurance Company since July 30, 2002. He has been an Independent Director of Great-West Lifeco Inc. since July 30, 2002. He serves as a Director of Great-West, London Life and Mackenzie Inc. Mr. Orr has been a Director of Great-West Life Capital Trust since July 30, 2002; The Canada Life Assurance Company since April 29, 2004 and Canada Life Financial Corporation Canada Life Capital Trust since July 10, 2003. He has been a Director of Power Corporation of Canada since May 10, 2005. He has been a Director of IGM Financial Inc. since April 27, 2001 and serves as a Member of Executive and MSP Maxxum Trust. Mr. Orr had been with BMO Nesbitt Burns Inc. and predecessor companies since 1981. He is a director of Investors Group, Mackenzie Inc. He has been a Director of Great-west Life & Annuity Insurance Co. since June 20, 2005. He serves as a Director of GWL&A of Great-West Lifeco Inc. He serves as a Member of Board of Governors of Finance Montréal. He served as director of Mackenzie Financial Corporation. Mr. Orr is active in a number of community and business organizations and is a member of the Canadian Council of Chief Executives. Mr. Orr is Chair of the Board of the Mackenzie Inc. He holds a Bachelor of Arts - Honors Business Administration (HBA) degree from the Richard Ivey School of Business in London, Ontario.

CEO Compensation
  • Robert's compensation has been consistent with company performance over the past year.
  • Robert's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Power Financial management team in years:

6.6
Average Tenure
59
Average Age
  • The average tenure for the Power Financial management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Robert Orr

TITLE
President
COMPENSATION
CA$12M
AGE
59
TENURE
13.8 yrs

Greg Tretiak

TITLE
Executive VP & CFO
COMPENSATION
CA$3M
AGE
62
TENURE
6.8 yrs

Claude Généreux

TITLE
Executive Vice President
COMPENSATION
CA$4M
AGE
56
TENURE
4 yrs

Richard Pan

TITLE
Head of Corporate Finance & VP

Stéphane Lemay

TITLE
VP, General Counsel & Secretary
AGE
50
TENURE
6.6 yrs

Michel Plessis-Bélair

TITLE
Vice-Chairman
COMPENSATION
CA$58K
AGE
75
TENURE
6.8 yrs

Jocelyn Lefebvre

TITLE
Managing Director of Power Financial Europe BV & Parjointco N.V.
AGE
61
TENURE
0.9 yrs

Amaury-Daniel de Seze

TITLE
Vice-Chairman
COMPENSATION
CA$683K
AGE
72
TENURE
8.8 yrs

Olivier Desmarais

TITLE
Senior Vice-President
AGE
35
TENURE
2.2 yrs

Paul Desmarais

TITLE
Senior Vice-President
AGE
36
TENURE
2.2 yrs
Board of Directors Tenure

Average tenure and age of the Power Financial board of directors in years:

11
Average Tenure
65.5
Average Age
  • The average tenure for the Power Financial board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

André Desmarais

TITLE
Executive Co-Chairman of the Board
COMPENSATION
CA$2M
AGE
61
TENURE
10.8 yrs

Paul Desmarais

TITLE
Executive Co-Chairman of the Board
COMPENSATION
CA$3M
AGE
64
TENURE
11.2 yrs

Robert Orr

TITLE
President
COMPENSATION
CA$12M
AGE
59
TENURE
13.8 yrs

Tim Ryan

TITLE
Director
COMPENSATION
CA$135K
AGE
72
TENURE
4.8 yrs

Gary Doer

TITLE
Director
COMPENSATION
CA$163K
AGE
69
TENURE
2.8 yrs

John David Jackson

TITLE
Lead Director
COMPENSATION
CA$112K
AGE
71
TENURE
1.2 yrs

Gérald Frère

TITLE
Director
COMPENSATION
CA$122K
AGE
67
TENURE
28.8 yrs

Tony Graham

TITLE
Director
COMPENSATION
CA$119K
AGE
61
TENURE
17.8 yrs

Emoke Jolan Szathmáry

TITLE
Director
COMPENSATION
CA$128K
AGE
74
TENURE
19.8 yrs

Marc Bibeau

TITLE
Director
COMPENSATION
CA$126K
AGE
59
TENURE
9.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
14. Nov 18 Buy Pierre Beaudoin Individual 14. Nov 18 14. Nov 18 17,500 CA$28.48 CA$498,009
X
Management checks
We assess Power Financial's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Power Financial 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

Those Who Purchased Power Financial (TSE:PWF) Shares Five Years Ago Have A 12% Loss To Show For It

Power Financial Corporation (TSE:PWF) shareholders should be happy to see the share price up 15% in the last quarter. … In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. … During the unfortunate half decade during which the share price slipped, Power Financial actually saw its earnings per share (EPS) improve by 4.6% per year.

Simply Wall St -

A Spotlight On Power Financial Corporation's (TSE:PWF) Fundamentals

Today I've chosen to put the spotlight on Power Financial Corporation (TSE:PWF) due to its excellent fundamentals in more than one area. … that has been able to sustain great financial health over the past … Below, I've touched on some key aspects you should know on a high level

Simply Wall St -

Is Power Financial Corporation's (TSE:PWF) CEO Salary Justified?

In 2005 Robert Orr was appointed CEO of Power Financial Corporation (TSE:PWF). … First, this article will compare CEO compensation with compensation at other large companies. … How Does Robert Orr's Compensation Compare With Similar Sized Companies?

Simply Wall St -

How Good Is Power Financial Corporation (TSE:PWF), When It Comes To ROE?

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. … One way to conceptualize this, is that for each CA$1 of shareholders' equity it has, the company made CA$0.093 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Power Financial Corporation (TSE:PWF) Is Trading At A 20.83% Discount

One of the most difficult industry to value is insurance, given that they adhere to different rules compared to other companies. … Industry-specific factors, such as gross written premiums are crucial in understanding how insurance companies make money.

Simply Wall St -

Power Financial Corporation (TSE:PWF): 2 Days To Buy Before The Ex-Dividend Date

Have you been keeping an eye on Power Financial Corporation's (TSE:PWF) upcoming dividend of CA$0.43 per share payable on the 01 February 2019? … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Power Financial's latest financial data to analyse its dividend attributes. … See our latest analysis for Power Financial?

Simply Wall St -

What Is Power Financial Corporation's (TSE:PWF) Share Price Doing?

Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price? … A question to answer is whether Power Financial's current trading price of CA$26.24 reflective of the actual value of the? … Let’s take a look at Power Financial’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 -

Did Power Financial Corporation (TSE:PWF) Insiders Buy Up More Shares?

So we'll take a look at whether insiders have been buying or selling shares in Power Financial Corporation (TSE:PWF). … However, rules govern insider transactions, including certain disclosures. … The Last 12 Months Of Insider Transactions At Power Financial.

Simply Wall St -

Dividend Hunters Should Consider Power Financial Corporation (TSE:PWF), With A 6.2% Yield

Over the past 10 years Power Financial Corporation (TSE:PWF) has grown its dividend payouts from CA$1.4 to CA$1.73. … With a market cap of CA$20b, Power Financial pays out 61% of its earnings, leading to a 6.2% yield. … It consistently pays out dividend without missing a payment or significantly cutting payout

Simply Wall St -

A Look At Power Financial Corporation's (TSE:PWF) Exceptional Fundamentals

I've been keeping an eye on Power Financial Corporation (TSE:PWF) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe PWF has a lot to offer. … that has been able to sustain great financial health over the past

Simply Wall St -

Company Info

Description

Power Financial Corporation provides financial services in Canada, the United States, Europe, and Asia. It offers life, disability, critical illness, accidental death and dismemberment, health and dental protection, creditor, and direct marketing insurance products, as well as specialty products; and wealth accumulation and annuity products. The company also provides financial security products, including employer-sponsored defined contribution plans, administrative and recordkeeping services, individual retirement accounts, enrollment services, communication materials, investment options and education services, fund management services, and investment and advisory services; and executive benefits products. In addition, it offers protection and wealth management products, such as payout annuity products; reinsurance products; and sub-advisory services. Further, the company provides mutual funds, pooled funds, segregated funds, separate accounts, and other investment vehicles; securities, mortgages, and other financial services; and investment management services. It offers its products through retail and wholesale sales force, banks, brokers, consultants, advisors, financial planners, third-party administrators, broker dealers and investment advisors, and financial institutions. The company was founded in 1940 and is headquartered in Montréal, Canada. Power Financial Corporation is a subsidiary of Power Corporation of Canada.

Details
Name: Power Financial Corporation
PWF
Exchange: TSX
Founded: 1940
CA$21,594,278,160
714,096,500
Website: http://www.powerfinancial.com
Address: Power Financial Corporation
751 Victoria Square,
Montréal,
Quebec, H2Y 2J3,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX PWF Common Shares The Toronto Stock Exchange CA CAD 10. Oct 1984
OTCPK POFN.F Common Shares Pink Sheets LLC US USD 10. Oct 1984
DB PWF Common Shares Deutsche Boerse AG DE EUR 10. Oct 1984
TSX PWF.PRL PFD 1ST L 5.10 The Toronto Stock Exchange CA CAD 04. Aug 2006
TSX PWF.PRP 1ST PFD P 4.4% The Toronto Stock Exchange CA CAD 29. Jun 2010
TSX PWF.PRQ PFD SHS SER Q The Toronto Stock Exchange CA CAD 02. Feb 2016
TSX PWF.PRS 1ST PFD SER 4.8% The Toronto Stock Exchange CA CAD 28. Feb 2013
TSX PWF.PRT 1ST PFD 4.2%-T The Toronto Stock Exchange CA CAD 12. Dec 2013
TSX PWF.PRZ 1ST PFD SER V The Toronto Stock Exchange CA CAD 26. May 2017
Number of employees
Current staff
Staff numbers
26,808
Power Financial employees.
Industry
Life and Health Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/17 23:41
End of day share price update: 2019/03/15 00:00
Last estimates confirmation: 2019/03/11
Last earnings filing: 2018/11/08
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


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.