POWER CORP OF CANADA (POW.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:POW • CA7392391016
69.18 CAD
+0.46 (+0.67%)
Last: Feb 2, 2026, 07:00 PM
Taking everything into account, POW scores 4 out of 10 in our fundamental rating. POW was compared to 80 industry peers in the Insurance industry. Both the profitability and the financial health of POW get a neutral evaluation. Nothing too spectacular is happening here. POW has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year POW was profitable.
- POW had a positive operating cash flow in the past year.
- Each year in the past 5 years POW has been profitable.
- In the past 5 years POW always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of POW (0.34%) is worse than 78.75% of its industry peers.
- With a decent Return On Equity value of 12.56%, POW is doing good in the industry, outperforming 65.00% of the companies in the same industry.
| 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 Profit Margin of 8.30%. This is in the lower half of the industry: POW underperforms 75.00% of its industry peers.
- In the last couple of years the Profit Margin of POW has grown nicely.
- Looking at the Operating Margin, with a value of 17.65%, POW is in line with its industry, outperforming 56.25% of the companies in the same industry.
- In the last couple of years the Operating Margin of POW has grown nicely.
| 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.
- POW has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, POW has more shares outstanding
- The debt/assets ratio for POW has been reduced compared to a year ago.
2.2 Solvency
- The Debt to FCF ratio of POW is 3.94, which is a good value as it means it would take POW, 3.94 years of fcf income to pay off all of its debts.
- POW's Debt to FCF ratio of 3.94 is on the low side compared to the rest of the industry. POW is outperformed by 78.75% of its industry peers.
- A Debt/Equity ratio of 0.85 indicates that POW is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.85, POW is not doing good in the industry: 77.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC6.93%
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's Current ratio of 1.10 is amongst the best of the industry. POW outperforms 88.75% of its industry peers.
- A Quick Ratio of 1.10 indicates that POW should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.10, POW belongs to the top of the industry, outperforming 88.75% 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.
- Measured over the past 5 years, POW shows a small growth in Earnings Per Share. The EPS has been growing by 7.94% on average per year.
- The Revenue has grown by 11.51% in the past year. This is quite good.
- POW shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -6.36% yearly.
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
- POW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.65% yearly.
- POW is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -7.70% yearly.
EPS Next Y21.91%
EPS Next 2Y17.02%
EPS Next 3Y14.62%
EPS Next 5Y7.65%
Revenue Next Year-14.76%
Revenue Next 2Y-6.03%
Revenue Next 3Y-2.59%
Revenue Next 5Y-7.7%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- POW is valuated correctly with a Price/Earnings ratio of 13.23.
- Based on the Price/Earnings ratio, POW is valued a bit more expensive than the industry average as 73.75% of the companies are valued more cheaply.
- POW is valuated cheaply when we compare the Price/Earnings ratio to 28.41, which is the current average of the S&P500 Index.
- POW is valuated reasonably with a Price/Forward Earnings ratio of 11.45.
- 63.75% of the companies in the same industry are cheaper than POW, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of POW to the average of the S&P500 Index (25.64), we can say POW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.23 | ||
| Fwd PE | 11.45 |
4.2 Price Multiples
- 65.00% 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 | 7.6 | ||
| 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.
- POW's earnings are expected to grow with 14.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.6
PEG (5Y)1.67
EPS Next 2Y17.02%
EPS Next 3Y14.62%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.57%, POW has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 3.50, POW has a dividend in line with its industry peers.
- POW's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.57% |
5.2 History
- The dividend of POW is nicely growing with an annual growth rate of 8.41%!
- 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)8.41%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- POW pays out 50.53% of its income as dividend. This is a bit on the high side, but may be sustainable.
- POW's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP50.53%
EPS Next 2Y17.02%
EPS Next 3Y14.62%
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 of POWER CORP OF CANADA (POW.CA) stock?
ChartMill assigns a valuation rating of 4 / 10 to POWER CORP OF CANADA (POW.CA). This can be considered as Fairly Valued.
What is the profitability of POW stock?
POWER CORP OF CANADA (POW.CA) has a profitability rating of 4 / 10.
What are the PE and PB ratios of POWER CORP OF CANADA (POW.CA) stock?
The Price/Earnings (PE) ratio for POWER CORP OF CANADA (POW.CA) is 13.23 and the Price/Book (PB) ratio is 1.64.
Can you provide the expected EPS growth for POW stock?
The Earnings per Share (EPS) of POWER CORP OF CANADA (POW.CA) is expected to grow by 21.91% in the next year.