POWER CORP OF CANADA (POW.CA) Stock Fundamental Analysis
TSX:POW - Toronto Stock Exchange - CA7392391016 - Common Stock - Currency: CAD
POW gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 85 industry peers in the Insurance industry. While POW seems to be doing ok healthwise, there are quite some concerns on its profitability. POW is valued expensive and it does not seem to be growing.
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
POW has a Return On Assets of 0.27%. This is amonst the worse of the industry: POW underperforms 95.35% of its industry peers.
POW has a Return On Equity of 9.67%. This is amonst the worse of the industry: POW underperforms 93.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.27% | ||
| ROE | 9.67% | ||
| ROIC | N/A |
ROA(3y)0.34%
ROA(5y)0.31%
ROE(3y)10.21%
ROE(5y)9.49%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
POW has a Profit Margin of 6.62%. This is amonst the worse of the industry: POW underperforms 93.02% of its industry peers.
In the last couple of years the Profit Margin of POW has grown nicely.
POW has a Operating Margin (15.82%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of POW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.82% | ||
| PM (TTM) | 6.62% | ||
| GM | N/A |
OM growth 3Y31.4%
OM growth 5Y9.45%
PM growth 3Y30.95%
PM growth 5Y20.96%
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
The number of shares outstanding for POW has been increased compared to 5 years ago.
The debt/assets ratio for POW has been reduced compared to a year ago.
2.2 Solvency
POW has a debt to FCF ratio of 2.62. This is a good value and a sign of high solvency as POW would need 2.62 years to pay back of all of its debts.
POW's Debt to FCF ratio of 2.62 is in line compared to the rest of the industry. POW outperforms 44.19% of its industry peers.
POW has a Debt/Equity ratio of 0.89. This is a neutral value indicating POW is somewhat dependend on debt financing.
POW has a Debt to Equity ratio of 0.89. This is in the lower half of the industry: POW underperforms 76.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 2.62 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC6.23%
2.3 Liquidity
A Current Ratio of 1.23 indicates that POW should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.23, POW belongs to the best of the industry, outperforming 93.02% of the companies in the same industry.
A Quick Ratio of 1.23 indicates that POW should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.23, POW belongs to the best of the industry, outperforming 93.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The earnings per share for POW have decreased by -3.13% in the last year.
The Earnings Per Share has been growing slightly by 7.57% on average over the past years.
Looking at the last year, POW shows a decrease in Revenue. The Revenue has decreased by -1.99% in the last year.
The Revenue has been decreasing by -8.01% on average over the past years.
EPS 1Y (TTM)-3.13%
EPS 3Y14.17%
EPS 5Y7.57%
EPS Q2Q%-44.74%
Revenue 1Y (TTM)-1.99%
Revenue growth 3Y-21.15%
Revenue growth 5Y-8.01%
Sales Q2Q%-43.88%
3.2 Future
The Earnings Per Share is expected to grow by 8.85% on average over the next years. This is quite good.
POW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.61% yearly.
EPS Next Y2.27%
EPS Next 2Y7.36%
EPS Next 3Y7.08%
EPS Next 5Y8.85%
Revenue Next Year2.88%
Revenue Next 2Y3.52%
Revenue Next 3Y3.7%
Revenue Next 5Y2.61%
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
POW is valuated correctly with a Price/Earnings ratio of 12.50.
Based on the Price/Earnings ratio, POW is valued expensively inside the industry as 88.37% of the companies are valued cheaper.
When comparing the Price/Earnings ratio of POW to the average of the S&P500 Index (29.35), we can say POW is valued rather cheaply.
A Price/Forward Earnings ratio of 9.79 indicates a reasonable valuation of POW.
POW's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. POW is more expensive than 62.79% of the companies in the same industry.
POW is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.5 | ||
| Fwd PE | 9.79 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of POW is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.8 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)5.51
PEG (5Y)1.65
EPS Next 2Y7.36%
EPS Next 3Y7.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.44%, POW is a good candidate for dividend investing.
POW's Dividend Yield is comparable with the industry average which is at 4.24.
POW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
5.2 History
The dividend of POW has a limited annual growth rate of 5.98%.
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)5.98%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
66.38% of the earnings are spent on dividend by POW. This is not a sustainable payout ratio.
The dividend of POW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP66.38%
EPS Next 2Y7.36%
EPS Next 3Y7.08%
TSX:POW (3/7/2025, 7:00:00 PM)
50.23
-0.46 (-0.91%)
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 Cap29.55B
Analysts76.67
Price Target53.33 (6.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
Yearly Dividend2.16
Dividend Growth(5Y)5.98%
DP66.38%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-11.89%
Min EPS beat(2)-26.72%
Max EPS beat(2)2.94%
EPS beat(4)1
Avg EPS beat(4)-10.25%
Min EPS beat(4)-26.72%
Max EPS beat(4)2.94%
EPS beat(8)3
Avg EPS beat(8)-3.03%
EPS beat(12)3
Avg EPS beat(12)-6.91%
EPS beat(16)7
Avg EPS beat(16)3.96%
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)3.1%
PT rev (3m)3.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.31%
EPS NY rev (1m)0.38%
EPS NY rev (3m)0.48%
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 | 12.5 | ||
| Fwd PE | 9.79 | ||
| P/S | 0.88 | ||
| P/FCF | 3.8 | ||
| P/OCF | 3.38 | ||
| P/B | 1.29 | ||
| P/tB | 19.48 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.02
EY8%
EPS(NY)5.13
Fwd EY10.21%
FCF(TTM)13.21
FCFY26.3%
OCF(TTM)14.85
OCFY29.57%
SpS56.91
BVpS38.97
TBVpS2.58
PEG (NY)5.51
PEG (5Y)1.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.27% | ||
| ROE | 9.67% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 15.82% | ||
| PM (TTM) | 6.62% | ||
| GM | N/A | ||
| FCFM | 23.21% |
ROA(3y)0.34%
ROA(5y)0.31%
ROE(3y)10.21%
ROE(5y)9.49%
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)0.71%
ROCE(5y)0.73%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y31.4%
OM growth 5Y9.45%
PM growth 3Y30.95%
PM growth 5Y20.96%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 2.62 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 2.89% | ||
| Interest Coverage | 4.04 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 350.68% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | N/A |
F-Score5
WACC6.23%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)2.05%
Cap/Sales(5y)N/A
Profit Quality(3y)308.86%
Profit Quality(5y)406.15%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.13%
EPS 3Y14.17%
EPS 5Y7.57%
EPS Q2Q%-44.74%
EPS Next Y2.27%
EPS Next 2Y7.36%
EPS Next 3Y7.08%
EPS Next 5Y8.85%
Revenue 1Y (TTM)-1.99%
Revenue growth 3Y-21.15%
Revenue growth 5Y-8.01%
Sales Q2Q%-43.88%
Revenue Next Year2.88%
Revenue Next 2Y3.52%
Revenue Next 3Y3.7%
Revenue Next 5Y2.61%
EBIT growth 1Y1106.83%
EBIT growth 3Y3.61%
EBIT growth 5Y0.68%
EBIT Next Year45.99%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y8.08%
FCF growth 3Y-22.17%
FCF growth 5Y-7.72%
OCF growth 1Y11%
OCF growth 3Y-16.25%
OCF growth 5Y-3.57%