POWER CORP OF CANADA (POW.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:POW - CA7392391016 - Common Stock
69.97 CAD
-0.78 (-1.1%)
Overall POW gets a fundamental rating of 4 out of 10. We evaluated POW against 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 on the other hand it scores bad on growth. 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.
- POW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 0.34%, POW is not doing good in the industry: 78.75% of the companies in the same industry are doing better.
- Looking at the Return On Equity, with a value of 12.56%, POW is in the better half of the industry, outperforming 66.25% 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
- With a Profit Margin value of 8.30%, POW is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
- In the last couple of years the Profit Margin of POW has grown nicely.
- With a Operating Margin value of 17.65%, POW perfoms like the industry average, 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.
- The number of shares outstanding for POW has been reduced compared to 1 year ago.
- The number of shares outstanding for POW has been increased compared to 5 years ago.
- Compared to 1 year ago, POW has an improved debt to assets ratio.
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 has a Debt to FCF ratio of 3.94. This is in the lower half of the industry: POW underperforms 78.75% of its industry peers.
- POW has a Debt/Equity ratio of 0.85. This is a neutral value indicating POW is somewhat dependend on debt financing.
- POW has a worse Debt to Equity ratio (0.85) than 77.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC6.94%
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.
- Looking at the Current ratio, with a value of 1.10, POW belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
- A Quick Ratio of 1.10 indicates that POW should not have too much problems paying its short term obligations.
- The Quick ratio of POW (1.10) is better than 90.00% of its industry peers.
| 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.
- 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 11.51%.
- The Revenue has been decreasing by -6.36% on average over the past years.
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
- Based on estimates for the next years, POW will show a small growth in Earnings Per Share. The EPS will grow by 7.65% on average per year.
- Based on estimates for the next years, POW will show a decrease in Revenue. The Revenue will decrease by -7.70% on average per year.
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- POW is valuated correctly with a Price/Earnings ratio of 13.38.
- 73.75% of the companies in the same industry are cheaper than POW, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, POW is valued rather cheaply.
- The Price/Forward Earnings ratio is 11.59, which indicates a very decent valuation of POW.
- Based on the Price/Forward Earnings ratio, POW is valued a bit more expensive than 63.75% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, POW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.38 | ||
| Fwd PE | 11.59 |
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 | 7.69 | ||
| 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.
- A more expensive valuation may be justified as POW's earnings are expected to grow with 14.62% in the coming years.
PEG (NY)0.61
PEG (5Y)1.69
EPS Next 2Y17.02%
EPS Next 3Y14.62%
5. Dividend
5.1 Amount
- POW has a Yearly Dividend Yield of 5.60%, which is a nice return.
- POW's Dividend Yield is rather good when compared to the industry average which is at 4.42. POW pays more dividend than 91.25% of the companies in the same industry.
- POW's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.6% |
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 13.38 and the Price/Book (PB) ratio is 1.65.
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.