POWER CORP OF CANADA (POW.CA) Stock Fundamental Analysis
TSX:POW - Toronto Stock Exchange - CA7392391016 - Common Stock - Currency: CAD
Overall POW gets a fundamental rating of 4 out of 10. We evaluated POW against 80 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
POW had positive earnings in the past year.
In the past year POW had a positive cash flow from operations.
In the past 5 years POW has always been profitable.
Each year in the past 5 years POW had a positive operating cash flow.
1.2 Ratios
The Return On Assets of POW (0.32%) is worse than 77.50% of its industry peers.
POW's Return On Equity of 11.49% is in line compared to the rest of the industry. POW outperforms 41.25% 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
Looking at the Profit Margin, with a value of 7.80%, POW is doing worse than 73.75% of the companies in the same industry.
In the last couple of years the Profit Margin of POW has grown nicely.
POW's Operating Margin of 18.03% is fine compared to the rest of the industry. POW outperforms 70.00% 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.
Compared to 1 year ago, POW has less shares outstanding
POW has more shares outstanding than it did 5 years ago.
POW has a better debt/assets ratio than last year.
2.2 Solvency
POW has a debt to FCF ratio of 4.25. This is a neutral value as POW would need 4.25 years to pay back of all of its debts.
POW has a worse Debt to FCF ratio (4.25) than 95.00% of its industry peers.
POW has a Debt/Equity ratio of 0.90. This is a neutral value indicating POW is somewhat dependend on debt financing.
POW has a worse Debt to Equity ratio (0.90) than 95.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 4.25 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC6.77%
2.3 Liquidity
A Current Ratio of 1.10 indicates that POW should not have too much problems paying its short term obligations.
POW has a Current ratio of 1.10. This is amongst the best in the industry. POW outperforms 93.75% of its industry peers.
POW has a Quick 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 Quick ratio of 1.10. This is amongst the best in the industry. POW outperforms 93.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
POW shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.90%.
POW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.94% yearly.
The Revenue has grown by 31.16% in the past year. This is a very strong growth!
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)-0.9%
EPS 3Y-2.58%
EPS 5Y7.94%
EPS Q2Q%43.82%
Revenue 1Y (TTM)31.16%
Revenue growth 3Y-20.33%
Revenue growth 5Y-6.36%
Sales Q2Q%965.06%
3.2 Future
Based on estimates for the next years, POW will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.15% on average per year.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.70, the valuation of POW can be described as reasonable.
Based on the Price/Earnings ratio, POW is valued expensively inside the industry as 88.75% of the companies are valued cheaper.
POW's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.75.
The Price/Forward Earnings ratio is 9.69, which indicates a very decent valuation of POW.
POW's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. POW is more expensive than 61.25% of the companies in the same industry.
POW is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.49, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.7 | ||
| Fwd PE | 9.69 |
4.2 Price Multiples
POW's Price/Free Cash Flow ratio is rather expensive when compared to the industry. POW is more expensive than 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.97 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
POW's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.56
PEG (5Y)1.47
EPS Next 2Y14.69%
EPS Next 3Y9.87%
5. Dividend
5.1 Amount
POW has a Yearly Dividend Yield of 4.81%, which is a nice return.
POW's Dividend Yield is a higher than the industry average which is at 4.51.
POW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.81% |
5.2 History
The dividend of POW is nicely growing with an annual growth rate of 6.51%!
POW has been paying a dividend for at least 10 years, so it has 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.
The dividend of POW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP54.28%
EPS Next 2Y14.69%
EPS Next 3Y9.87%
TSX:POW (5/1/2025, 7:00:00 PM)
51.58
-0.6 (-1.15%)
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 Cap30.32B
Analysts76.67
Price Target56.39 (9.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.81% |
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)5.74%
PT rev (3m)9.01%
EPS NQ rev (1m)3.59%
EPS NQ rev (3m)5.65%
EPS NY rev (1m)0%
EPS NY rev (3m)4.71%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)5.87%
Revenue NY rev (3m)5.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.7 | ||
| Fwd PE | 9.69 | ||
| P/S | 0.86 | ||
| P/FCF | 5.97 | ||
| P/OCF | 5.09 | ||
| P/B | 1.27 | ||
| P/tB | 13.6 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.41
EY8.55%
EPS(NY)5.32
Fwd EY10.32%
FCF(TTM)8.64
FCFY16.75%
OCF(TTM)10.13
OCFY19.63%
SpS59.84
BVpS40.63
TBVpS3.79
PEG (NY)0.56
PEG (5Y)1.47
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
WACC6.77%
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)-0.9%
EPS 3Y-2.58%
EPS 5Y7.94%
EPS Q2Q%43.82%
EPS Next Y20.7%
EPS Next 2Y14.69%
EPS Next 3Y9.87%
EPS Next 5Y10.15%
Revenue 1Y (TTM)31.16%
Revenue growth 3Y-20.33%
Revenue growth 5Y-6.36%
Sales Q2Q%965.06%
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%