GREAT-WEST LIFECO INC (GWO.CA)
CA39138C1068 - Common Stock
We assign a fundamental rating of 4 out of 10 to GWO. GWO was compared to 85 industry peers in the Insurance industry. GWO has only an average score on both its financial health and profitability. GWO has a valuation in line with the averages, but on the other hand it scores bad on growth. 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.
In the past 5 years GWO always reported a positive cash flow from operatings.
1.2 Ratios
GWO has a Return On Assets of 0.48%. This is comparable to the rest of the industry: GWO outperforms 41.67% of its industry peers.
GWO's Return On Equity of 11.72% is in line compared to the rest of the industry. GWO outperforms 46.43% of its industry peers.
With a Return On Invested Capital value of 0.48%, GWO is not doing good in the industry: 63.10% of the companies in the same industry are doing better.
GWO had an Average Return On Invested Capital over the past 3 years of 0.45%. This is below the industry average of 2.65%.
The last Return On Invested Capital (0.48%) for GWO is above the 3 year average (0.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 11.72% | ||
| ROIC | 0.48% |
ROA(3y)0.47%
ROA(5y)0.49%
ROE(3y)10.69%
ROE(5y)10.46%
ROIC(3y)0.45%
ROIC(5y)0.44%
1.3 Margins
Looking at the Profit Margin, with a value of 11.28%, GWO is in line with its industry, outperforming 57.14% of the companies in the same industry.
In the last couple of years the Profit Margin of GWO has grown nicely.
GWO has a Operating Margin of 15.59%. This is in the better half of the industry: GWO outperforms 63.10% of its industry peers.
GWO's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.59% | ||
| PM (TTM) | 11.28% | ||
| GM | N/A |
OM growth 3Y31.55%
OM growth 5Y7.78%
PM growth 3Y21.75%
PM growth 5Y5.5%
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.
GWO has less shares outstanding than it did 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 1.24. This is a very positive value and a sign of high solvency as it would only need 1.24 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.24, GWO is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
A Debt/Equity ratio of 0.30 indicates that GWO is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.30, GWO perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.24 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
GWO has a Current Ratio of 0.18. 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 Current ratio of 0.18 is fine compared to the rest of the industry. GWO outperforms 60.71% of its industry peers.
GWO has a Quick Ratio of 0.18. 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 Quick ratio of 0.18. This is in the better half of the industry: GWO outperforms 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.76% over the past year.
Measured over the past 5 years, GWO shows a small growth in Earnings Per Share. The EPS has been growing by 5.57% on average per year.
GWO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -21.82%.
The Revenue has been decreasing by -6.69% on average over the past years.
EPS 1Y (TTM)19.76%
EPS 3Y10.81%
EPS 5Y5.57%
EPS Q2Q%12.12%
Revenue 1Y (TTM)-21.82%
Revenue growth 3Y-19.82%
Revenue growth 5Y-6.69%
Sales Q2Q%-0.57%
3.2 Future
GWO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.88% yearly.
GWO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.86% yearly.
EPS Next Y12.06%
EPS Next 2Y8.02%
EPS Next 3Y6.25%
EPS Next 5Y4.88%
Revenue Next Year0.56%
Revenue Next 2Y1.89%
Revenue Next 3Y2.38%
Revenue Next 5Y2.86%
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 stable.
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
The Price/Earnings ratio is 10.72, which indicates a very decent valuation of GWO.
Based on the Price/Earnings ratio, GWO is valued more expensive than 88.10% of the companies in the same industry.
GWO is valuated cheaply when we compare the Price/Earnings ratio to 30.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.99, the valuation of GWO can be described as very reasonable.
Based on the Price/Forward Earnings ratio, GWO is valued a bit more expensive than 67.86% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GWO to the average of the S&P500 Index (21.99), we can say GWO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.72 | ||
| Fwd PE | 9.99 |
4.2 Price Multiples
GWO's Price/Free Cash Flow ratio is rather expensive when compared to the industry. GWO is more expensive than 86.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.75 | ||
| 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)0.89
PEG (5Y)1.93
EPS Next 2Y8.02%
EPS Next 3Y6.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.89%, GWO is a good candidate for dividend investing.
GWO's Dividend Yield is a higher than the industry average which is at 4.45.
GWO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
5.2 History
The dividend of GWO has a limited annual growth rate of 5.58%.
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)5.58%
Div Incr Years9
Div Non Decr Years32
5.3 Sustainability
GWO pays out 59.09% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of GWO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP59.09%
EPS Next 2Y8.02%
EPS Next 3Y6.25%
GREAT-WEST LIFECO INC
TSX:GWO (9/18/2024, 7:00:00 PM)
45.67
+0.15 (+0.33%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap42.56B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.72 | ||
| Fwd PE | 9.99 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.89
PEG (5Y)1.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 11.72% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.59% | ||
| PM (TTM) | 11.28% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)19.76%
EPS 3Y10.81%
EPS 5Y
EPS Q2Q%
EPS Next Y12.06%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-21.82%
Revenue growth 3Y-19.82%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y