POWER CORP OF CANADA (POW.CA) Stock Fundamental Analysis
TSX:POW - Toronto Stock Exchange - CA7392391016 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to POW. POW was compared to 81 industry peers in the Insurance industry. POW has only an average score on both its financial health and profitability. POW has a decent growth rate and is not valued too expensively. Finally POW also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year POW was profitable.
In the past year POW had a positive cash flow from operations.
POW had positive earnings in each of the past 5 years.
In the past 5 years POW always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.32%, POW is doing worse than 77.78% of the companies in the same industry.
POW has a Return On Equity of 11.49%. This is comparable to the rest of the industry: POW outperforms 40.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.32% | ||
| ROE | 11.49% | ||
| ROIC | N/A |
ROA(3y)0.3%
ROA(5y)0.33%
ROE(3y)10.05%
ROE(5y)10.22%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 7.80%, POW is not doing good in the industry: 74.07% of the companies in the same industry are doing better.
POW's Profit Margin has improved in the last couple of years.
The Operating Margin of POW (18.03%) is better than 69.14% of its industry peers.
POW's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.03% | ||
| PM (TTM) | 7.8% | ||
| GM | N/A |
OM growth 3Y33.43%
OM growth 5Y17.24%
PM growth 3Y22.98%
PM growth 5Y28.01%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
POW does not have a ROIC to compare to the WACC, probably because it is not profitable.
POW has less shares outstanding than it did 1 year ago.
The number of shares outstanding for POW has been increased compared to 5 years ago.
Compared to 1 year ago, POW has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of POW is 4.25, which is a neutral value as it means it would take POW, 4.25 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 4.25, POW is not doing good in the industry: 93.83% of the companies in the same industry are doing better.
POW has a Debt/Equity ratio of 0.90. This is a neutral value indicating POW is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.90, POW is doing worse than 95.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 4.25 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC6.85%
2.3 Liquidity
POW has a Current Ratio of 1.10. This is a normal value and indicates that POW is financially healthy and should not expect problems in meeting its short term obligations.
POW has a better Current ratio (1.10) than 92.59% of its industry peers.
A Quick Ratio of 1.10 indicates that POW should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.10, POW belongs to the top of the industry, outperforming 92.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The earnings per share for POW have decreased by -6.04% in the last year.
POW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.94% yearly.
POW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.03%.
Measured over the past years, POW shows a decrease in Revenue. The Revenue has been decreasing by -6.36% on average per year.
EPS 1Y (TTM)-6.04%
EPS 3Y-2.58%
EPS 5Y7.94%
EPS Q2Q%8.93%
Revenue 1Y (TTM)11.03%
Revenue growth 3Y-20.33%
Revenue growth 5Y-6.36%
Sales Q2Q%21.49%
3.2 Future
The Earnings Per Share is expected to grow by 10.15% on average over the next years. This is quite good.
Based on estimates for the next years, POW will show a small growth in Revenue. The Revenue will grow by 1.36% on average per year.
EPS Next Y20.7%
EPS Next 2Y14.69%
EPS Next 3Y9.87%
EPS Next 5Y10.15%
Revenue Next Year10.29%
Revenue Next 2Y7.61%
Revenue Next 3Y1.61%
Revenue Next 5Y1.36%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
Based on the Price/Earnings ratio of 11.28, the valuation of POW can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of POW indicates a rather expensive valuation: POW more expensive than 87.65% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.82, POW is valued rather cheaply.
A Price/Forward Earnings ratio of 8.77 indicates a reasonable valuation of POW.
Based on the Price/Forward Earnings ratio, POW is valued a bit more expensive than 60.49% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. POW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.28 | ||
| Fwd PE | 8.77 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, POW is valued more expensive than 85.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.89 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.55
PEG (5Y)1.42
EPS Next 2Y14.69%
EPS Next 3Y9.87%
5. Dividend
5.1 Amount
POW has a Yearly Dividend Yield of 4.76%, which is a nice return.
Compared to an average industry Dividend Yield of 4.33, POW pays a bit more dividend than its industry peers.
POW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.76% |
5.2 History
On average, the dividend of POW grows each year by 6.51%, which is quite nice.
POW has paid a dividend for at least 10 years, which is a reliable track record.
POW has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)6.51%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
POW pays out 54.28% of its income as dividend. This is a bit on the high side, but may be sustainable.
POW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP54.28%
EPS Next 2Y14.69%
EPS Next 3Y9.87%
TSX:POW (5/23/2025, 7:00:00 PM)
50.89
-0.06 (-0.12%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners32.12%
Inst Owner ChangeN/A
Ins Owners5.23%
Ins Owner ChangeN/A
Market Cap29.88B
Analysts76.67
Price Target56.68 (11.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.76% |
Yearly Dividend2.3
Dividend Growth(5Y)6.51%
DP54.28%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-17.77%
Min EPS beat(2)-26.72%
Max EPS beat(2)-8.81%
EPS beat(4)1
Avg EPS beat(4)-8.15%
Min EPS beat(4)-26.72%
Max EPS beat(4)2.94%
EPS beat(8)3
Avg EPS beat(8)0.93%
EPS beat(12)3
Avg EPS beat(12)-7.53%
EPS beat(16)6
Avg EPS beat(16)2.65%
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)0.78%
PT rev (3m)6.87%
EPS NQ rev (1m)-1.93%
EPS NQ rev (3m)3.79%
EPS NY rev (1m)0%
EPS NY rev (3m)3.77%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.28 | ||
| Fwd PE | 8.77 | ||
| P/S | 0.85 | ||
| P/FCF | 5.89 | ||
| P/OCF | 5.02 | ||
| P/B | 1.25 | ||
| P/tB | 13.41 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.51
EY8.86%
EPS(NY)5.8
Fwd EY11.4%
FCF(TTM)8.65
FCFY16.99%
OCF(TTM)10.14
OCFY19.92%
SpS59.89
BVpS40.66
TBVpS3.8
PEG (NY)0.55
PEG (5Y)1.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.32% | ||
| ROE | 11.49% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 18.03% | ||
| PM (TTM) | 7.8% | ||
| GM | N/A | ||
| FCFM | 14.44% |
ROA(3y)0.3%
ROA(5y)0.33%
ROE(3y)10.05%
ROE(5y)10.22%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)0.7%
ROCE(5y)0.71%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y33.43%
OM growth 5Y17.24%
PM growth 3Y22.98%
PM growth 5Y28.01%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 4.25 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 2.48% | ||
| Interest Coverage | 5.21 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 185.13% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | N/A |
F-Score6
WACC6.85%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)2.61%
Cap/Sales(5y)N/A
Profit Quality(3y)250.74%
Profit Quality(5y)323.66%
High Growth Momentum
Growth
EPS 1Y (TTM)-6.04%
EPS 3Y-2.58%
EPS 5Y7.94%
EPS Q2Q%8.93%
EPS Next Y20.7%
EPS Next 2Y14.69%
EPS Next 3Y9.87%
EPS Next 5Y10.15%
Revenue 1Y (TTM)11.03%
Revenue growth 3Y-20.33%
Revenue growth 5Y-6.36%
Sales Q2Q%21.49%
Revenue Next Year10.29%
Revenue Next 2Y7.61%
Revenue Next 3Y1.61%
Revenue Next 5Y1.36%
EBIT growth 1Y3724%
EBIT growth 3Y6.3%
EBIT growth 5Y9.79%
EBIT Next Year39.15%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y6.64%
FCF growth 3Y-21.47%
FCF growth 5Y-5.17%
OCF growth 1Y0.32%
OCF growth 3Y-18.64%
OCF growth 5Y-2.11%