TSX:PWF

Stock Analysis Report

Executive Summary

Power Financial Corporation provides financial services in Canada, the United States, Europe, and Asia.

Snowflake

Fundamentals

Established dividend payer and good value.

Share Price & News

How has Power Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.2%

PWF

0.8%

CA Insurance

-0.2%

CA Market


1 Year Return

7.7%

PWF

10.0%

CA Insurance

1.5%

CA Market

Return vs Industry: PWF underperformed the Canadian Insurance industry which returned 10% over the past year.

Return vs Market: PWF exceeded the Canadian Market which returned 1.5% over the past year.


Shareholder returns

PWFIndustryMarket
7 Day1.2%0.8%-0.2%
30 Day-0.6%-0.9%-3.5%
90 Day4.5%2.4%-1.8%
1 Year14.5%7.7%14.8%10.0%5.1%1.5%
3 Year15.2%-2.1%24.3%10.8%13.3%3.2%
5 Year22.3%-5.2%42.3%18.2%25.2%7.2%

Price Volatility Vs. Market

How volatile is Power Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Power Financial undervalued compared to its fair value and its price relative to the market?

13.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PWF (CA$30.75) is trading below our estimate of fair value (CA$35.47)

Significantly Below Fair Value: PWF is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PWF is good value based on its PE Ratio (10.9x) compared to the Insurance industry average (12.7x).

PE vs Market: PWF is good value based on its PE Ratio (10.9x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

PEG Ratio: PWF is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: PWF is overvalued based on its PB Ratio (1.2x) compared to the CA Insurance industry average (1.1x).


Next Steps

Future Growth

How is Power Financial forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

23.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PWF's forecast earnings growth (23.2% per year) is above the savings rate (1.9%).

Earnings vs Market: PWF's earnings (23.2% per year) are forecast to grow faster than the Canadian market (13.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PWF's revenue (11% per year) is forecast to grow faster than the Canadian market (5.7% per year).

High Growth Revenue: PWF's revenue (11% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PWF's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Power Financial performed over the past 5 years?

-1.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PWF's earnings have declined by -1.9% per year over the past 5 years.

Accelerating Growth: PWF's earnings growth over the past year (2.5%) exceeds its 5-year average (-1.9% per year).

Earnings vs Industry: PWF earnings growth over the past year (2.5%) exceeded the Insurance industry -0.8%.


Return on Equity

High ROE: PWF's Return on Equity (9.7%) is considered low.


Return on Assets

ROA vs Industry: PWF's Return on Assets is below or equal to the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: PWF's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Power Financial'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: PWF has a low level of unsold assets or inventory.

Debt Coverage by Assets: PWF's debt is covered by short term assets (assets are 1.985210x debt).


Financial Institutions Analysis

Asset Level: PWF's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if PWF has a sufficient allowance for bad loans.

Low Risk Liabilities: PWF reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if PWF has an acceptable proportion of non-loan assets held.

Low Risk Deposits: PWF has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if PWF has an appropriate level of bad loans.


Next Steps

Dividend

What is Power Financial's current dividend yield, its reliability and sustainability?

5.93%

Current Dividend Yield


Dividend Yield vs Market

company5.9%marketbottom25%2.0%markettop25%6.0%industryaverage4.1%forecastin3Years6.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: PWF's dividend (5.93%) is higher than the bottom 25% of dividend payers in the Canadian market (2.04%).

High Dividend: PWF's dividend (5.93%) is low compared to the top 25% of dividend payers in the Canadian market (6.03%).

Stable Dividend: PWF's dividends per share have been stable in the past 10 years.

Growing Dividend: PWF's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (63.2%), PWF's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PWF's dividends in 3 years are forecast to be covered by earnings (51.5% payout ratio).


Next Steps

Management

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

7.4yrs

Average management tenure


CEO

Robert Orr (60yo)

14.4yrs

Tenure

CA$12,600,072

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 served as the President and Chief Executive Officer ...


CEO Compensation Analysis

Compensation vs. Market: Robert's total compensation ($USD9.59M) is about average for companies of similar size in the Canadian market ($USD7.04M).

Compensation vs Earnings: Robert's compensation has been consistent with company performance over the past year.


Management Age and Tenure

7.4yrs

Average Tenure

62yo

Average Age

Experienced Management: PWF's management team is seasoned and experienced (7.4 years average tenure).


Board Age and Tenure

11.6yrs

Average Tenure

66.5yo

Average Age

Experienced Board: PWF's board of directors are seasoned and experienced ( 11.6 years average tenure).


Insider Trading

Insider Buying: PWF insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$100,01505 Sep 19
Susan McArthur
EntityIndividual
Shares3,480
Max PriceCA$28.74
BuyCA$498,00914 Nov 18
Pierre Beaudoin
EntityIndividual
Shares17,500
Max PriceCA$28.48

Ownership Breakdown


Management Team

  • Amaury-Daniel de Seze (73yo)

    Vice-Chairman

    • Tenure: 9.4yrs
    • Compensation: CA$683.35k
  • André Desmarais (62yo)

    Executive Co-Chairman of the Board

    • Tenure: 11.4yrs
    • Compensation: CA$4.02m
  • Paul Desmarais (65yo)

    Executive Co-Chairman of the Board

    • Tenure: 11.8yrs
    • Compensation: CA$3.39m
  • Michel Plessis-Bélair (76yo)

    Vice-Chairman

    • Tenure: 7.4yrs
    • Compensation: CA$58.00k
  • Greg Tretiak (63yo)

    Executive VP & CFO

    • Tenure: 7.4yrs
    • Compensation: CA$2.58m
  • Jocelyn Lefebvre (62yo)

    Managing Director of Power Financial Europe BV & Parjointco N.V.

    • Tenure: 1.5yrs
  • Robert Orr (60yo)

    President

    • Tenure: 14.4yrs
    • Compensation: CA$12.60m
  • Stéphane Lemay (51yo)

    VP, General Counsel & Secretary

    • Tenure: 7.2yrs
  • Richard Pan

    Head of Corporate Finance & VP

    • Tenure: 0yrs
  • Claude Généreux (57yo)

    Executive Vice President

    • Tenure: 4.6yrs
    • Compensation: CA$4.34m

Board Members

  • André Desmarais (62yo)

    Executive Co-Chairman of the Board

    • Tenure: 11.4yrs
    • Compensation: CA$4.02m
  • Tony Graham (62yo)

    Independent Director

    • Tenure: 18.4yrs
    • Compensation: CA$142.00k
  • Paul Desmarais (65yo)

    Executive Co-Chairman of the Board

    • Tenure: 11.8yrs
    • Compensation: CA$3.39m
  • John David Jackson (72yo)

    Lead Director

    • Tenure: 1.8yrs
    • Compensation: CA$172.75k
  • Gérald Frère (68yo)

    Independent Director

    • Tenure: 29.4yrs
    • Compensation: CA$149.00k
  • Marc Bibeau (60yo)

    Independent Director

    • Tenure: 10.4yrs
    • Compensation: CA$148.50k
  • Emoke Jolan Szathmáry (75yo)

    Independent Director

    • Tenure: 20.4yrs
    • Compensation: CA$150.50k
  • Robert Orr (60yo)

    President

    • Tenure: 14.4yrs
    • Compensation: CA$12.60m
  • Tim Ryan (73yo)

    Director

    • Tenure: 5.4yrs
    • Compensation: CA$172.75k
  • Gary Doer (70yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: CA$203.75k

Company Information

Power Financial Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Power Financial Corporation
  • Ticker: PWF
  • Exchange: TSX
  • Founded: 1984
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: CA$20.421b
  • Shares outstanding: 664.10m
  • Website: https://www.powerfinancial.com

Number of Employees


Location

  • Power Financial Corporation
  • 751 Victoria Square
  • Montréal
  • Quebec
  • H2Y 2J3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PWFTSX (The Toronto Stock Exchange)YesCommon SharesCACADOct 1984
PWFDB (Deutsche Boerse AG)YesCommon SharesDEEUROct 1984
POFN.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDOct 1984
PWF.PRLTSX (The Toronto Stock Exchange)PFD 1ST L 5.10CACADAug 2006
PWF.PRPTSX (The Toronto Stock Exchange)1ST PFD P 4.4%CACADJun 2010
PWF.PRSTSX (The Toronto Stock Exchange)1ST PFD SER 4.8%CACADFeb 2013
PWF.PRTTSX (The Toronto Stock Exchange)1ST PFD 4.2%-TCACADDec 2013
PWF.PRQTSX (The Toronto Stock Exchange)PFD SHS SER QCACADFeb 2016
PWF.PRZTSX (The Toronto Stock Exchange)1ST PFD SER VCACADMay 2017

Biography

Power Financial Corporation provides financial services in Canada, the United States, Europe, and Asia. It offers life, disability, critical illness, and health insurance products, as well as wealth saving ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:41
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.