POWER CORP OF CANADA (POW.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:POW - CA7392391016 - Common Stock
70.43 CAD
-0.72 (-1.01%)
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 an average financial health and profitability rating. POW is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year POW was profitable.
POW had a positive operating cash flow in the past year.
POW had positive earnings in each of the past 5 years.
Each year in the past 5 years POW had a positive operating cash flow.
1.2 Ratios
POW has a Return On Assets of 0.34%. This is in the lower half of the industry: POW underperforms 79.01% of its industry peers.
POW has a Return On Equity of 12.56%. This is in the better half of the industry: POW outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.34% | ||
| ROE | 12.56% | ||
| 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
POW has a worse Profit Margin (8.30%) than 75.31% of its industry peers.
In the last couple of years the Profit Margin of POW has grown nicely.
POW has a Operating Margin (17.65%) which is comparable to the rest of the industry.
POW's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.65% | ||
| PM (TTM) | 8.3% | ||
| 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.
The number of shares outstanding for POW has been reduced compared to 1 year ago.
Compared to 5 years ago, POW has more shares outstanding
Compared to 1 year ago, POW has an improved debt to assets ratio.
2.2 Solvency
POW has a debt to FCF ratio of 3.94. This is a good value and a sign of high solvency as POW would need 3.94 years to pay back of all of its debts.
POW has a Debt to FCF ratio of 3.94. This is in the lower half of the industry: POW underperforms 79.01% of its industry peers.
POW has a Debt/Equity ratio of 0.85. This is a neutral value indicating POW is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.85, POW is doing worse than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC6.78%
2.3 Liquidity
A Current Ratio of 1.10 indicates that POW should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.10, POW belongs to the top of the industry, outperforming 91.36% of the companies in the same industry.
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.
With an excellent Quick ratio value of 1.10, POW belongs to the best of the industry, outperforming 91.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
POW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.10%, which is quite impressive.
POW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.94% yearly.
Looking at the last year, POW shows a quite strong growth in Revenue. The Revenue has grown by 11.51% in the last year.
The Revenue has been decreasing by -6.36% on average over the past years.
EPS 1Y (TTM)30.1%
EPS 3Y-2.58%
EPS 5Y7.94%
EPS Q2Q%60.71%
Revenue 1Y (TTM)11.51%
Revenue growth 3Y-20.33%
Revenue growth 5Y-6.36%
Sales Q2Q%-80.98%
3.2 Future
The Earnings Per Share is expected to grow by 8.16% on average over the next years. This is quite good.
POW is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -7.27% yearly.
EPS Next Y20.3%
EPS Next 2Y14.66%
EPS Next 3Y12.51%
EPS Next 5Y8.16%
Revenue Next Year-15.64%
Revenue Next 2Y-6.18%
Revenue Next 3Y-2.86%
Revenue Next 5Y-7.27%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.47, POW is valued correctly.
Based on the Price/Earnings ratio, POW is valued more expensive than 92.59% of the companies in the same industry.
POW's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.15.
Based on the Price/Forward Earnings ratio of 12.15, the valuation of POW can be described as correct.
POW's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. POW is more expensive than 66.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of POW to the average of the S&P500 Index (36.22), we can say POW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.47 | ||
| Fwd PE | 12.15 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, POW is valued expensively inside the industry as 83.95% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.74 | ||
| 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.
POW's earnings are expected to grow with 12.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.66
PEG (5Y)1.7
EPS Next 2Y14.66%
EPS Next 3Y12.51%
5. Dividend
5.1 Amount
POW has a Yearly Dividend Yield of 3.41%.
POW's Dividend Yield is slightly below the industry average, which is at 4.32.
Compared to an average S&P500 Dividend Yield of 2.32, POW pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
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
50.53% of the earnings are spent on dividend by POW. 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.
DP50.53%
EPS Next 2Y14.66%
EPS Next 3Y12.51%
TSX:POW (12/2/2025, 7:00:00 PM)
70.43
-0.72 (-1.01%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners31.02%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap41.03B
Revenue(TTM)37.33B
Net Income(TTM)3.10B
Analysts71.67
Price Target71.4 (1.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
Yearly Dividend2.3
Dividend Growth(5Y)6.51%
DP50.53%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.3%
Min EPS beat(2)0.64%
Max EPS beat(2)5.96%
EPS beat(4)2
Avg EPS beat(4)-1.54%
Min EPS beat(4)-8.81%
Max EPS beat(4)5.96%
EPS beat(8)3
Avg EPS beat(8)-5.89%
EPS beat(12)5
Avg EPS beat(12)-2.53%
EPS beat(16)5
Avg EPS beat(16)-5.57%
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)15.84%
PT rev (3m)15.84%
EPS NQ rev (1m)5.05%
EPS NQ rev (3m)6.66%
EPS NY rev (1m)0.38%
EPS NY rev (3m)0.82%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.47 | ||
| Fwd PE | 12.15 | ||
| P/S | 1.1 | ||
| P/FCF | 7.74 | ||
| P/OCF | 6.56 | ||
| P/B | 1.66 | ||
| P/tB | 14.47 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.23
EY7.43%
EPS(NY)5.8
Fwd EY8.23%
FCF(TTM)9.1
FCFY12.92%
OCF(TTM)10.74
OCFY15.24%
SpS64.08
BVpS42.31
TBVpS4.87
PEG (NY)0.66
PEG (5Y)1.7
Graham Number70.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.34% | ||
| ROE | 12.56% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 17.65% | ||
| PM (TTM) | 8.3% | ||
| GM | N/A | ||
| FCFM | 14.2% |
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%
ROICexgc growth 3YN/A
ROICexgc 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-Score8
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 3.94 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 2.56% | ||
| Interest Coverage | 5.54 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 171.17% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | N/A |
F-Score8
WACC6.78%
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)30.1%
EPS 3Y-2.58%
EPS 5Y7.94%
EPS Q2Q%60.71%
EPS Next Y20.3%
EPS Next 2Y14.66%
EPS Next 3Y12.51%
EPS Next 5Y8.16%
Revenue 1Y (TTM)11.51%
Revenue growth 3Y-20.33%
Revenue growth 5Y-6.36%
Sales Q2Q%-80.98%
Revenue Next Year-15.64%
Revenue Next 2Y-6.18%
Revenue Next 3Y-2.86%
Revenue Next 5Y-7.27%
EBIT growth 1Y24.39%
EBIT growth 3Y6.3%
EBIT growth 5Y9.79%
EBIT Next Year39.15%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y310.61%
FCF growth 3Y-21.47%
FCF growth 5Y-5.17%
OCF growth 1Y160.41%
OCF growth 3Y-18.64%
OCF growth 5Y-2.11%
POWER CORP OF CANADA / POW.CA FAQ
Can you provide the ChartMill fundamental rating for POWER CORP OF CANADA?
ChartMill assigns a fundamental rating of 4 / 10 to POW.CA.
What is the valuation status for POW stock?
ChartMill assigns a valuation rating of 3 / 10 to POWER CORP OF CANADA (POW.CA). This can be considered as Overvalued.
What is the profitability of POW stock?
POWER CORP OF CANADA (POW.CA) has a profitability rating of 4 / 10.
Can you provide the financial health for POW stock?
The financial health rating of POWER CORP OF CANADA (POW.CA) is 4 / 10.
Is the dividend of POWER CORP OF CANADA sustainable?
The dividend rating of POWER CORP OF CANADA (POW.CA) is 5 / 10 and the dividend payout ratio is 50.53%.