GREAT-WEST LIFECO INC (GWO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:GWO - CA39138C1068 - Common Stock
64.39 CAD
-0.13 (-0.2%)
We assign a fundamental rating of 4 out of 10 to GWO. GWO was compared to 80 industry peers in the Insurance industry. GWO has a medium profitability rating, but doesn't score so well on its financial health evaluation. GWO does not seem to be growing, but still is valued expensively. Finally GWO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- GWO had positive earnings in the past year.
- In the past year GWO had a positive cash flow from operations.
- In the past 5 years GWO has always been profitable.
- GWO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- GWO has a worse Return On Assets (0.47%) than 70.00% of its industry peers.
- GWO has a Return On Equity of 12.15%. This is comparable to the rest of the industry: GWO outperforms 47.50% of its industry peers.
- GWO has a Return On Invested Capital (0.46%) which is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for GWO is below the industry average of 3.04%.
- The 3 year average ROIC (0.46%) for GWO is below the current ROIC(0.46%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.47% | ||
| ROE | 12.15% | ||
| 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
- Looking at the Profit Margin, with a value of 12.02%, GWO is in the better half of the industry, outperforming 63.75% of the companies in the same industry.
- In the last couple of years the Profit Margin of GWO has grown nicely.
- Looking at the Operating Margin, with a value of 16.34%, GWO is doing worse than 61.25% 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 | 16.34% | ||
| PM (TTM) | 12.02% | ||
| 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
- GWO has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, GWO has more shares outstanding
- GWO has a better debt/assets ratio than last year.
2.2 Solvency
- GWO has a debt to FCF ratio of 1.74. This is a very positive value and a sign of high solvency as it would only need 1.74 years to pay back of all of its debts.
- The Debt to FCF ratio of GWO (1.74) is comparable to the rest of the industry.
- GWO has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
- GWO's Debt to Equity ratio of 0.26 is in line compared to the rest of the industry. GWO outperforms 58.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.74 | ||
| 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's Current ratio of 0.21 is fine compared to the rest of the industry. GWO outperforms 66.25% 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 has a better Quick ratio (0.21) than 66.25% 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 11.19% 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 decreased by -7.48% in the past year.
- The Revenue has been decreasing by -6.19% on average over the past years.
EPS 1Y (TTM)11.19%
EPS 3Y8.87%
EPS 5Y8.95%
EPS Q2Q%16.67%
Revenue 1Y (TTM)-7.48%
Revenue growth 3Y-20.55%
Revenue growth 5Y-6.19%
Sales Q2Q%66.19%
3.2 Future
- GWO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.72% yearly.
- The Revenue is expected to decrease by -8.23% on average over the next years.
EPS Next Y10.36%
EPS Next 2Y9.25%
EPS Next 3Y8.94%
EPS Next 5Y3.72%
Revenue Next Year-76.24%
Revenue Next 2Y-50.4%
Revenue Next 3Y-36.35%
Revenue Next 5Y-8.23%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 13.22, GWO is valued correctly.
- Based on the Price/Earnings ratio, GWO is valued a bit more expensive than 73.75% of the companies in the same industry.
- When comparing the Price/Earnings ratio of GWO to the average of the S&P500 Index (27.25), we can say GWO is valued rather cheaply.
- The Price/Forward Earnings ratio is 11.91, which indicates a very decent valuation of GWO.
- 67.50% of the companies in the same industry are cheaper than GWO, based on the Price/Forward Earnings ratio.
- GWO is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.22 | ||
| Fwd PE | 11.91 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, GWO is valued a bit more expensive than 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.72 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.28
PEG (5Y)1.48
EPS Next 2Y9.25%
EPS Next 3Y8.94%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.34%, GWO is a good candidate for dividend investing.
- GWO's Dividend Yield is comparable with the industry average which is at 4.42.
- Compared to an average S&P500 Dividend Yield of 1.82, GWO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.34% |
5.2 History
- The dividend of GWO has a limited annual growth rate of 5.95%.
- GWO has paid a dividend for at least 10 years, which is 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
- 58.22% of the earnings are spent on dividend by GWO. This is a bit on the high side, but may be sustainable.
- GWO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP58.22%
EPS Next 2Y9.25%
EPS Next 3Y8.94%
GREAT-WEST LIFECO INC / GWO.CA FAQ
Can you provide the ChartMill fundamental rating for GREAT-WEST LIFECO INC?
ChartMill assigns a fundamental rating of 4 / 10 to GWO.CA.
What is the valuation status of GREAT-WEST LIFECO INC (GWO.CA) stock?
ChartMill assigns a valuation rating of 3 / 10 to GREAT-WEST LIFECO INC (GWO.CA). This can be considered as Overvalued.
What is the profitability of GWO stock?
GREAT-WEST LIFECO INC (GWO.CA) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for GWO stock?
The Price/Earnings (PE) ratio for GREAT-WEST LIFECO INC (GWO.CA) is 13.22 and the Price/Book (PB) ratio is 1.78.
What is the earnings growth outlook for GREAT-WEST LIFECO INC?
The Earnings per Share (EPS) of GREAT-WEST LIFECO INC (GWO.CA) is expected to grow by 10.36% in the next year.