POWER CORP OF CANADA (POW.CA) Stock Fundamental Analysis
TSX:POW - Toronto Stock Exchange - CA7392391016 - Common Stock - Currency: CAD
Overall POW gets a fundamental rating of 4 out of 10. We evaluated POW against 81 industry peers in the Insurance industry. POW has only an average score on both its financial health and profitability. 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.
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
The Return On Assets of POW (0.32%) is worse than 77.78% of its industry peers.
POW's Return On Equity of 11.28% is in line compared to the rest of the industry. POW outperforms 41.98% 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 71.60% of its industry peers.
In the last couple of years the Profit Margin of POW has grown nicely.
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.
The number of shares outstanding for POW has been reduced compared to 1 year ago.
POW has more shares outstanding than it did 5 years ago.
POW has a better debt/assets ratio than last year.
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.
Looking at the Debt to FCF ratio, with a value of 4.63, POW is doing worse than 93.83% of the companies in the same industry.
A Debt/Equity ratio of 0.90 indicates that POW is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.90, POW is not doing good in the industry: 76.54% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 4.63 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC6.65%
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.
A Quick Ratio of 1.10 indicates that POW should not have too much problems paying 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.
The Earnings Per Share has been growing slightly by 7.94% on average over the past years.
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.
The Revenue is expected to grow by 1.47% on average over the next years.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.79, the valuation of POW can be described as reasonable.
87.65% of the companies in the same industry are cheaper than POW, based on the Price/Earnings ratio.
POW's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.29.
With a Price/Forward Earnings ratio of 9.17, the valuation of POW can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of POW indicates a slightly more expensive valuation: POW is more expensive than 60.49% of the companies listed in the same industry.
POW is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.79 | ||
| Fwd PE | 9.17 |
4.2 Price Multiples
POW's Price/Free Cash Flow ratio is rather expensive when compared to the industry. POW is more expensive than 86.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.68 | ||
| 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)0.57
PEG (5Y)1.49
EPS Next 2Y14.69%
EPS Next 3Y9.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.67%, POW is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.24, POW's dividend is way lower than its industry peers. On top of this 81.48% of the companies listed in the same industry pay a better dividend than POW!
Compared to an average S&P500 Dividend Yield of 2.37, POW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.67% |
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
55.42% 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.
DP55.42%
EPS Next 2Y14.69%
EPS Next 3Y9.87%
TSX:POW (7/7/2025, 7:00:00 PM)
53.19
+0.39 (+0.74%)
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 Cap31.24B
Analysts76.67
Price Target56.83 (6.84%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.67% |
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)0.26%
PT rev (3m)1.04%
EPS NQ rev (1m)0.26%
EPS NQ rev (3m)2.62%
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 | 11.79 | ||
| Fwd PE | 9.17 | ||
| P/S | 0.88 | ||
| P/FCF | 6.68 | ||
| P/OCF | 5.88 | ||
| P/B | 1.29 | ||
| P/tB | 12.74 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.51
EY8.48%
EPS(NY)5.8
Fwd EY10.91%
FCF(TTM)7.96
FCFY14.96%
OCF(TTM)9.04
OCFY17%
SpS60.57
BVpS41.12
TBVpS4.17
PEG (NY)0.57
PEG (5Y)1.49
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
WACC6.65%
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%