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 an average financial health and profitability rating. POW has a correct valuation and a medium growth rate. Finally POW also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year POW was profitable.
POW had a positive operating cash flow in the past year.
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
POW's Return On Assets of 0.32% is on the low side compared to the rest of the industry. POW is outperformed by 76.54% of its industry peers.
POW has a Return On Equity of 11.28%. This is comparable to the rest of the industry: POW outperforms 43.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.32% | ||
| ROE | 11.28% | ||
| 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 (7.66%) than 70.37% of its industry peers.
POW's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 17.43%, POW is doing good in the industry, outperforming 70.37% of the companies in the same industry.
POW's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.43% | ||
| PM (TTM) | 7.66% | ||
| 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
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 4.63. This is a neutral value as POW would need 4.63 years to pay back of all of its debts.
With a Debt to FCF ratio value of 4.63, POW is not doing good in the industry: 92.59% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.90 indicates that POW is somewhat dependend on debt financing.
POW's Debt to Equity ratio of 0.90 is on the low side compared to the rest of the industry. POW is outperformed by 75.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 4.63 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC6.66%
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.
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 92.59% of its industry peers.
| 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 17.80%.
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)17.8%
Revenue growth 3Y-20.33%
Revenue growth 5Y-6.36%
Sales Q2Q%21.49%
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 9.03% on average per year.
Based on estimates for the next years, POW will show a small growth in Revenue. The Revenue will grow by 1.47% on average per year.
EPS Next Y20.7%
EPS Next 2Y14.69%
EPS Next 3Y9.87%
EPS Next 5Y9.03%
Revenue Next Year10.29%
Revenue Next 2Y7.61%
Revenue Next 3Y1.61%
Revenue Next 5Y1.47%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.04, which indicates a correct valuation of POW.
Based on the Price/Earnings ratio, POW is valued expensively inside the industry as 86.42% of the companies are valued cheaper.
POW is valuated cheaply when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
POW is valuated reasonably with a Price/Forward Earnings ratio of 9.36.
POW's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.44. POW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.04 | ||
| Fwd PE | 9.36 |
4.2 Price Multiples
80.25% of the companies in the same industry are cheaper than POW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.82 | ||
| 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)0.58
PEG (5Y)1.52
EPS Next 2Y14.69%
EPS Next 3Y9.87%
5. Dividend
5.1 Amount
POW has a Yearly Dividend Yield of 4.61%, which is a nice return.
Compared to an average industry Dividend Yield of 5.18, POW's dividend is way lower than its industry peers. On top of this 80.25% of the companies listed in the same industry pay a better dividend than POW!
Compared to an average S&P500 Dividend Yield of 2.35, POW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.61% |
5.2 History
On average, the dividend of POW grows each year by 6.51%, which is quite nice.
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 55.42% 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.
DP55.42%
EPS Next 2Y14.69%
EPS Next 3Y9.87%
TSX:POW (7/18/2025, 7:00:00 PM)
54.3
+0.86 (+1.61%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners30.8%
Inst Owner ChangeN/A
Ins Owners0.56%
Ins Owner ChangeN/A
Market Cap31.87B
Analysts76.67
Price Target56.83 (4.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.61% |
Yearly Dividend2.3
Dividend Growth(5Y)6.51%
DP55.42%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.38%
Min EPS beat(2)-8.81%
Max EPS beat(2)-3.96%
EPS beat(4)1
Avg EPS beat(4)-9.14%
Min EPS beat(4)-26.72%
Max EPS beat(4)2.94%
EPS beat(8)3
Avg EPS beat(8)2.73%
EPS beat(12)3
Avg EPS beat(12)-6.2%
EPS beat(16)5
Avg EPS beat(16)-1.48%
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)0.52%
PT rev (3m)1.04%
EPS NQ rev (1m)0.26%
EPS NQ rev (3m)-2.35%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
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 | 12.04 | ||
| Fwd PE | 9.36 | ||
| P/S | 0.9 | ||
| P/FCF | 6.82 | ||
| P/OCF | 6 | ||
| P/B | 1.32 | ||
| P/tB | 13 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.51
EY8.31%
EPS(NY)5.8
Fwd EY10.68%
FCF(TTM)7.96
FCFY14.66%
OCF(TTM)9.05
OCFY16.66%
SpS60.6
BVpS41.14
TBVpS4.18
PEG (NY)0.58
PEG (5Y)1.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.32% | ||
| ROE | 11.28% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 17.43% | ||
| PM (TTM) | 7.66% | ||
| GM | N/A | ||
| FCFM | 13.14% |
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 | 4.63 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 1.79% | ||
| Interest Coverage | 4.89 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 171.61% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | N/A |
F-Score6
WACC6.66%
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 5Y9.03%
Revenue 1Y (TTM)17.8%
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 5Y1.47%
EBIT growth 1Y116.41%
EBIT growth 3Y6.3%
EBIT growth 5Y9.79%
EBIT Next Year39.15%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y13.86%
FCF growth 3Y-21.47%
FCF growth 5Y-5.17%
OCF growth 1Y2.49%
OCF growth 3Y-18.64%
OCF growth 5Y-2.11%