GREAT-WEST LIFECO INC (GWO.CA) Stock Fundamental Analysis
TSX:GWO - Toronto Stock Exchange - CA39138C1068 - Common Stock - Currency: CAD
Taking everything into account, GWO scores 4 out of 10 in our fundamental rating. GWO was compared to 82 industry peers in the Insurance industry. There are concerns on the financial health of GWO while its profitability can be described as average. While showing a medium growth rate, GWO is valued expensive at the moment. Finally GWO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
GWO had positive earnings in the past year.
GWO had a positive operating cash flow in the past year.
Each year in the past 5 years GWO has been profitable.
GWO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GWO has a Return On Assets of 0.48%. This is in the lower half of the industry: GWO underperforms 67.07% of its industry peers.
GWO has a Return On Equity of 11.63%. This is comparable to the rest of the industry: GWO outperforms 50.00% of its industry peers.
GWO has a Return On Invested Capital (0.47%) which is in line with its industry peers.
GWO had an Average Return On Invested Capital over the past 3 years of 0.46%. This is below the industry average of 2.70%.
The 3 year average ROIC (0.46%) for GWO is below the current ROIC(0.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 11.63% | ||
| ROIC | 0.47% |
ROA(3y)0.47%
ROA(5y)0.48%
ROE(3y)11.29%
ROE(5y)11.02%
ROIC(3y)0.46%
ROIC(5y)0.45%
1.3 Margins
With a decent Profit Margin value of 11.36%, GWO is doing good in the industry, outperforming 65.85% of the companies in the same industry.
GWO's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 15.60%, GWO perfoms like the industry average, outperforming 42.68% of the companies in the same industry.
GWO's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.6% | ||
| PM (TTM) | 11.36% | ||
| GM | N/A |
OM growth 3Y37.97%
OM growth 5Y21.31%
PM growth 3Y35.92%
PM growth 5Y18.11%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
Compared to 1 year ago, GWO has about the same amount of shares outstanding.
GWO has more shares outstanding than it did 5 years ago.
GWO has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of GWO is 2.20, which is a good value as it means it would take GWO, 2.20 years of fcf income to pay off all of its debts.
GWO has a Debt to FCF ratio of 2.20. This is comparable to the rest of the industry: GWO outperforms 40.24% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that GWO is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.29, GWO perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.2 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.21 indicates that GWO may have some problems paying its short term obligations.
GWO has a better Current ratio (0.21) than 63.41% of its industry peers.
A Quick Ratio of 0.21 indicates that GWO may have some problems paying its short term obligations.
The Quick ratio of GWO (0.21) is better than 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.21 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.90% over the past year.
GWO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.95% yearly.
The Revenue has grown by 11.74% in the past year. This is quite good.
The Revenue has been decreasing by -6.19% on average over the past years.
EPS 1Y (TTM)9.9%
EPS 3Y8.87%
EPS 5Y8.95%
EPS Q2Q%1.83%
Revenue 1Y (TTM)11.74%
Revenue growth 3Y-20.55%
Revenue growth 5Y-6.19%
Sales Q2Q%20.48%
3.2 Future
Based on estimates for the next years, GWO will show a small growth in Earnings Per Share. The EPS will grow by 4.37% on average per year.
The Revenue is expected to grow by 2.59% on average over the next years.
EPS Next Y8.26%
EPS Next 2Y7.68%
EPS Next 3Y4.95%
EPS Next 5Y4.37%
Revenue Next Year0.27%
Revenue Next 2Y1.97%
Revenue Next 3Y2.44%
Revenue Next 5Y2.59%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.25, the valuation of GWO can be described as very reasonable.
Based on the Price/Earnings ratio, GWO is valued more expensive than 85.37% of the companies in the same industry.
GWO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.57.
A Price/Forward Earnings ratio of 9.75 indicates a reasonable valuation of GWO.
Based on the Price/Forward Earnings ratio, GWO is valued a bit more expensive than 62.20% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.41, GWO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.25 | ||
| Fwd PE | 9.75 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, GWO is valued more expensive than 90.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
GWO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.36
PEG (5Y)1.26
EPS Next 2Y7.68%
EPS Next 3Y4.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.88%, GWO is a good candidate for dividend investing.
GWO's Dividend Yield is comparable with the industry average which is at 5.17.
GWO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.88% |
5.2 History
The dividend of GWO has a limited annual growth rate of 5.95%.
GWO has been paying a dividend for at least 10 years, so it has a reliable track record.
GWO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.95%
Div Incr Years10
Div Non Decr Years33
5.3 Sustainability
GWO pays out 58.57% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of GWO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP58.57%
EPS Next 2Y7.68%
EPS Next 3Y4.95%
TSX:GWO (6/13/2025, 7:00:00 PM)
51.19
+0.37 (+0.73%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners11.18%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap47.64B
Analysts68.33
Price Target54.95 (7.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.88% |
Yearly Dividend2.36
Dividend Growth(5Y)5.95%
DP58.57%
Div Incr Years10
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.29%
Min EPS beat(2)-5.18%
Max EPS beat(2)4.6%
EPS beat(4)3
Avg EPS beat(4)2.22%
Min EPS beat(4)-5.18%
Max EPS beat(4)5.28%
EPS beat(8)7
Avg EPS beat(8)3.75%
EPS beat(12)9
Avg EPS beat(12)2.58%
EPS beat(16)12
Avg EPS beat(16)3.61%
Revenue beat(2)2
Avg Revenue beat(2)34.66%
Min Revenue beat(2)2.76%
Max Revenue beat(2)66.56%
Revenue beat(4)3
Avg Revenue beat(4)27.51%
Min Revenue beat(4)-32.89%
Max Revenue beat(4)73.62%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.64%
PT rev (3m)-0.03%
EPS NQ rev (1m)-2.76%
EPS NQ rev (3m)1.74%
EPS NY rev (1m)0%
EPS NY rev (3m)0.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.25 | ||
| Fwd PE | 9.75 | ||
| P/S | 1.41 | ||
| P/FCF | 11 | ||
| P/OCF | 11 | ||
| P/B | 1.44 | ||
| P/tB | 2.87 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.55
EY8.89%
EPS(NY)5.25
Fwd EY10.26%
FCF(TTM)4.65
FCFY9.09%
OCF(TTM)4.65
OCFY9.09%
SpS36.32
BVpS35.48
TBVpS17.81
PEG (NY)1.36
PEG (5Y)1.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 11.63% | ||
| ROCE | 0.66% | ||
| ROIC | 0.47% | ||
| ROICexc | 0.48% | ||
| ROICexgc | 1.55% | ||
| OM | 15.6% | ||
| PM (TTM) | 11.36% | ||
| GM | N/A | ||
| FCFM | 12.81% |
ROA(3y)0.47%
ROA(5y)0.48%
ROE(3y)11.29%
ROE(5y)11.02%
ROIC(3y)0.46%
ROIC(5y)0.45%
ROICexc(3y)0.46%
ROICexc(5y)0.45%
ROICexgc(3y)1.35%
ROICexgc(5y)1.32%
ROCE(3y)0.64%
ROCE(5y)0.62%
ROICexcg growth 3Y2.54%
ROICexcg growth 5Y4.99%
ROICexc growth 3Y1.18%
ROICexc growth 5Y1.35%
OM growth 3Y37.97%
OM growth 5Y21.31%
PM growth 3Y35.92%
PM growth 5Y18.11%
GM growth 3YN/A
GM growth 5YN/A
F-Score9
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.2 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 12.86 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 112.79% | ||
| Current Ratio | 0.21 | ||
| Quick Ratio | 0.21 | ||
| Altman-Z | N/A |
F-Score9
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)138.5%
Profit Quality(5y)214.73%
High Growth Momentum
Growth
EPS 1Y (TTM)9.9%
EPS 3Y8.87%
EPS 5Y8.95%
EPS Q2Q%1.83%
EPS Next Y8.26%
EPS Next 2Y7.68%
EPS Next 3Y4.95%
EPS Next 5Y4.37%
Revenue 1Y (TTM)11.74%
Revenue growth 3Y-20.55%
Revenue growth 5Y-6.19%
Sales Q2Q%20.48%
Revenue Next Year0.27%
Revenue Next 2Y1.97%
Revenue Next 3Y2.44%
Revenue Next 5Y2.59%
EBIT growth 1Y21.14%
EBIT growth 3Y9.62%
EBIT growth 5Y13.8%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-5.79%
FCF growth 3Y-22.92%
FCF growth 5Y-4.91%
OCF growth 1Y-5.79%
OCF growth 3Y-22.92%
OCF growth 5Y-4.91%