GREAT-WEST LIFECO INC (GWO.CA) Stock Fundamental Analysis
Canada - TSX:GWO - CA39138C1068 - Common Stock
58.2 CAD
-0.53 (-0.9%)
GWO gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 80 industry peers in the Insurance industry. There are concerns on the financial health of GWO while its profitability can be described as average. GWO has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year GWO was profitable.
GWO had a positive operating cash flow in the past year.
In the past 5 years GWO has always been profitable.
Each year in the past 5 years GWO had a positive operating cash flow.
1.2 Ratios
GWO's Return On Assets of 0.46% is on the low side compared to the rest of the industry. GWO is outperformed by 68.75% of its industry peers.
The Return On Equity of GWO (11.43%) is comparable to the rest of the industry.
GWO has a Return On Invested Capital (0.46%) 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 in line with the industry average of 2.18%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.46% | ||
| ROE | 11.43% | ||
| ROIC | 0.46% |
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
GWO has a Profit Margin (10.77%) which is comparable to the rest of the industry.
GWO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 14.86%, GWO is doing worse than 83.75% of the companies in the same industry.
In the last couple of years the Operating Margin of GWO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.86% | ||
| PM (TTM) | 10.77% | ||
| 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
The number of shares outstanding for GWO remains at a similar level compared to 1 year ago.
The number of shares outstanding for GWO has been increased compared to 5 years ago.
The debt/assets ratio for GWO has been reduced compared to a year ago.
2.2 Solvency
GWO has a debt to FCF ratio of 2.17. This is a good value and a sign of high solvency as GWO would need 2.17 years to pay back of all of its debts.
The Debt to FCF ratio of GWO (2.17) is worse than 62.50% of its industry peers.
GWO has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
GWO has a Debt to Equity ratio of 0.28. This is in the lower half of the industry: GWO underperforms 61.25% of its industry peers.
Although GWO does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 2.17 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
GWO has a Current Ratio of 0.21. This is a bad value and indicates that GWO is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of GWO (0.21) is better than 63.75% of its industry peers.
GWO has a Quick Ratio of 0.21. This is a bad value and indicates that GWO is not financially healthy enough and could expect problems in meeting its short term obligations.
GWO's Quick ratio of 0.21 is fine compared to the rest of the industry. GWO outperforms 63.75% 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 9.86% over the past year.
The Earnings Per Share has been growing by 8.95% on average over the past years. This is quite good.
The Revenue has grown by 8.22% in the past year. This is quite good.
GWO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -6.19% yearly.
EPS 1Y (TTM)9.86%
EPS 3Y8.87%
EPS 5Y8.95%
EPS Q2Q%11.71%
Revenue 1Y (TTM)8.22%
Revenue growth 3Y-20.55%
Revenue growth 5Y-6.19%
Sales Q2Q%-0.34%
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 3.58% on average per year.
Based on estimates for the next years, GWO will show a decrease in Revenue. The Revenue will decrease by -8.04% on average per year.
EPS Next Y6.05%
EPS Next 2Y6.62%
EPS Next 3Y6.95%
EPS Next 5Y3.58%
Revenue Next Year-94.66%
Revenue Next 2Y-76.06%
Revenue Next 3Y-15.5%
Revenue Next 5Y-8.04%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
GWO is valuated correctly with a Price/Earnings ratio of 12.44.
Based on the Price/Earnings ratio, GWO is valued more expensive than 90.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of GWO to the average of the S&P500 Index (27.53), we can say GWO is valued rather cheaply.
GWO is valuated reasonably with a Price/Forward Earnings ratio of 11.30.
Based on the Price/Forward Earnings ratio, GWO is valued a bit more expensive than 66.25% of the companies in the same industry.
GWO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.44 | ||
| Fwd PE | 11.3 |
4.2 Price Multiples
GWO's Price/Free Cash Flow ratio is rather expensive when compared to the industry. GWO is more expensive than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.56 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GWO does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.06
PEG (5Y)1.39
EPS Next 2Y6.62%
EPS Next 3Y6.95%
5. Dividend
5.1 Amount
GWO has a Yearly Dividend Yield of 4.20%, which is a nice return.
Compared to an average industry Dividend Yield of 5.02, GWO's dividend is way lower than its industry peers. On top of this 80.00% of the companies listed in the same industry pay a better dividend than GWO!
Compared to an average S&P500 Dividend Yield of 2.40, GWO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.95%
Div Incr Years10
Div Non Decr Years33
5.3 Sustainability
61.63% of the earnings are spent on dividend by GWO. This is not a sustainable payout ratio.
The dividend of GWO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP61.63%
EPS Next 2Y6.62%
EPS Next 3Y6.95%
TSX:GWO (10/15/2025, 7:00:00 PM)
58.2
-0.53 (-0.9%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners9.25%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap53.77B
Analysts72.86
Price Target57.94 (-0.45%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
Yearly Dividend2.36
Dividend Growth(5Y)5.95%
DP61.63%
Div Incr Years10
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.43%
Min EPS beat(2)-5.18%
Max EPS beat(2)4.32%
EPS beat(4)3
Avg EPS beat(4)1.98%
Min EPS beat(4)-5.18%
Max EPS beat(4)4.6%
EPS beat(8)7
Avg EPS beat(8)3.18%
EPS beat(12)9
Avg EPS beat(12)2.67%
EPS beat(16)12
Avg EPS beat(16)3.15%
Revenue beat(2)2
Avg Revenue beat(2)65.64%
Min Revenue beat(2)64.71%
Max Revenue beat(2)66.56%
Revenue beat(4)3
Avg Revenue beat(4)25.28%
Min Revenue beat(4)-32.89%
Max Revenue beat(4)66.56%
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)1.23%
PT rev (3m)5.43%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)0.43%
EPS NY rev (1m)0.27%
EPS NY rev (3m)-2.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-94.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.44 | ||
| Fwd PE | 11.3 | ||
| P/S | 1.55 | ||
| P/FCF | 12.56 | ||
| P/OCF | 12.56 | ||
| P/B | 1.65 | ||
| P/tB | 3.25 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.68
EY8.04%
EPS(NY)5.15
Fwd EY8.85%
FCF(TTM)4.63
FCFY7.96%
OCF(TTM)4.63
OCFY7.96%
SpS37.48
BVpS35.32
TBVpS17.91
PEG (NY)2.06
PEG (5Y)1.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.46% | ||
| ROE | 11.43% | ||
| ROCE | 0.63% | ||
| ROIC | 0.46% | ||
| ROICexc | 0.46% | ||
| ROICexgc | 1.54% | ||
| OM | 14.86% | ||
| PM (TTM) | 10.77% | ||
| GM | N/A | ||
| FCFM | 12.36% |
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-Score5
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 2.17 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 11.75 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 114.8% | ||
| Current Ratio | 0.21 | ||
| Quick Ratio | 0.21 | ||
| Altman-Z | N/A |
F-Score5
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)9.86%
EPS 3Y8.87%
EPS 5Y8.95%
EPS Q2Q%11.71%
EPS Next Y6.05%
EPS Next 2Y6.62%
EPS Next 3Y6.95%
EPS Next 5Y3.58%
Revenue 1Y (TTM)8.22%
Revenue growth 3Y-20.55%
Revenue growth 5Y-6.19%
Sales Q2Q%-0.34%
Revenue Next Year-94.66%
Revenue Next 2Y-76.06%
Revenue Next 3Y-15.5%
Revenue Next 5Y-8.04%
EBIT growth 1Y3.17%
EBIT growth 3Y9.62%
EBIT growth 5Y13.8%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y59.68%
FCF growth 3Y-22.92%
FCF growth 5Y-4.91%
OCF growth 1Y59.68%
OCF growth 3Y-22.92%
OCF growth 5Y-4.91%