Great-West Lifeco (GWO) AI Stock Analysis

• Market Cap: C$61.43B
• Dividend Yield: 3.67%
• Average Volume (3M): 1.36M
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.26
• Revenue Growth: -20.64%
• EPS Growth: 14.88%
• Country: CA
• Employees: 33,250
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 1.33
• Shares Outstanding: 910,078,740
• 10 Day Avg. Volume: 1,022,622
• 30 Day Avg. Volume: 1,362,098
• PEG Ratio: 0.25
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 2.58
• P/FCF Ratio: 9.35
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$61.67
• Price Target Upside: -7.36% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: C$67.00 ▲(0.65% Upside)

Great-West Lifeco's overall stock score of 76 reflects its solid financial performance, positive technical indicators, and strategic corporate actions. The company's strong earnings growth and share buyback plans are significant positives, while the reasonable valuation and attractive dividend yield provide a balanced investment proposition. However, attention to cost management and operational efficiency remains important.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Strong Segment Performance

Diverse segment growth enhances resilience and reduces reliance on any single market, strengthening the company's competitive position.

Cash Flow and Buybacks

Increasing share buybacks reflects strong cash flow and financial flexibility, indicating confidence in future earnings and shareholder value.

Negative Factors

Declining Margins

Decreasing margins suggest potential inefficiencies or rising costs, which could pressure profitability if not addressed.

Volatility in Mortality Experience

Volatility in mortality experience can lead to unpredictable insurance results, impacting earnings stability and forecasting accuracy.

Potential Regulatory Impact

Regulatory changes increasing tax rates could reduce net earnings, affecting profitability and strategic financial planning.

Great-West Lifeco Business Overview & Revenue Model

Company Description

Great-West Lifeco Inc., a financial services holding company, engages in the life and health insurance, retirement and investment services, asset management, and reinsurance businesses in Canada, the United States, and Europe. The company offers a portfolio of financial and benefit plan solutions for individuals, families, businesses, and organizations; life, disability, critical illness, accidental death, dismemberment, health and dental protection, and creditor insurance products; and retirement savings and income, annuity, and other specialty products. It also provides employer-sponsored retirement savings plans, individual retirement and taxable brokerage accounts, enrollment services, communication materials, investment options, and education services; and fund management, investment, and advisory services. In addition, the company offers private-label recordkeeping and administrative services; and investment products, including equity, fixed income, absolute return, and alternative strategies. Further, it provides protection and wealth management products, including payout annuity products; pension products; and life, annuity/longevity, mortgage surety, and property catastrophe reinsurance products. The company offers its products under the Canada Life, Irish Life, Empower, Putnam Investments, and PanAgora brand names. It distributes its products through a network of advisors, dealers, brokers, managing general agencies, financial institutions, consultants, third-party administrators, sales force, financial planners, employee benefit consultants, banks, and multi-tied agents. The company was founded in 1891 and is based in Winnipeg, Canada. Great-West Lifeco Inc. operates as a subsidiary of Power Financial Corporation.

How the Company Makes Money

Great-West Lifeco generates revenue through several key streams, primarily from premiums collected on insurance products, fees from asset management services, and investment income. The company offers various life and health insurance policies, which provide a steady inflow of premium revenues. Additionally, it manages mutual funds and other investment products, earning management fees based on assets under management. Significant partnerships with financial advisors, brokerages, and institutional clients enhance its distribution capabilities and contribute to its earnings. Investment income, derived from the company's portfolio of bonds, stocks, and other financial instruments, further bolsters its revenue, especially in favorable market conditions.

Great-West Lifeco Financial Statement Overview

Summary

Great-West Lifeco demonstrates solid financial health with strong profitability and efficient equity utilization. The company has shown resilience with a positive revenue growth trajectory in the TTM period. However, there are concerns regarding declining EBIT and EBITDA margins and a slight decrease in free cash flow, which may require attention to cost management and operational efficiency.

Income Statement

Great-West Lifeco shows strong profitability with a TTM gross profit margin of 83.48% and a net profit margin of 17.35%. The company has demonstrated a positive revenue growth rate of 8.22% in the TTM period, indicating a recovery from previous declines. However, the EBIT and EBITDA margins have decreased compared to the previous year, suggesting potential cost management issues.

Balance Sheet

The company's debt-to-equity ratio is stable at 0.32, reflecting a conservative leverage position. Return on equity is healthy at 14.11%, indicating efficient use of equity to generate profits. However, the equity ratio is relatively low, suggesting a high reliance on debt financing.

Cash Flow

Operating cash flow to net income ratio is strong at 1.49, indicating good cash generation relative to net income. However, free cash flow has declined slightly, with a negative growth rate of -1.15% in the TTM period. The free cash flow to net income ratio remains stable at 1.0, showing consistent cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	35.99B	34.72B	36.73B	-2.69B	64.45B	60.60B
Gross Profit	12.00B	13.39B	11.12B	11.06B	12.93B	11.22B
EBITDA	5.64B	5.93B	3.98B	4.96B	4.72B	3.80B
Net Income	4.17B	4.07B	2.87B	3.73B	3.26B	3.08B
Balance Sheet
Total Assets	858.68B	802.16B	713.23B	701.46B	630.49B	600.49B
Cash, Cash Equivalents and Short-Term Investments	0.00	24.71B	19.38B	18.84B	17.23B	7.95B
Total Debt	10.24B	10.23B	9.65B	11.29B	9.73B	10.71B
Total Liabilities	826.96B	771.01B	683.38B	669.14B	600.00B	573.48B
Stockholders Equity	28.56B	29.54B	26.84B	29.01B	27.22B	24.03B
Cash Flow
Free Cash Flow	5.02B	4.75B	5.20B	7.05B	10.37B	9.61B
Operating Cash Flow	5.02B	4.75B	5.20B	7.05B	10.37B	9.61B
Investing Cash Flow	-20.00M	-408.00M	-786.00M	-5.49B	-11.21B	-8.20B
Financing Cash Flow	-3.45B	-2.29B	-3.55B	-620.00M	-992.00M	2.01B

Great-West Lifeco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 66.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GWO, the sentiment is Positive. The current price of 66.57 is above the 20-day moving average (MA) of 64.54, above the 50-day MA of 61.35, and above the 200-day MA of 54.10, indicating a bullish trend. The MACD of 1.61 indicates Negative momentum. The RSI at 72.01 is Negative, neither overbought nor oversold. The STOCH value of 81.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:GWO.

Great-West Lifeco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MFC	79 Outperform	C$83.31B	15.74	11.23%	3.58%	5.46%	10.52%
FFH	79 Outperform	$58.52B	8.24	18.65%	0.87%	10.08%	24.18%
GWO	76 Outperform	C$61.43B	15.56	15.09%	3.67%	-20.64%	14.88%
POW	76 Outperform	C$46.13B	15.13	13.24%	3.33%	-9.03%	44.14%
IFC	73 Outperform	C$50.01B	16.77	16.27%	1.89%	2.51%	44.44%
SLF	68 Neutral	C$46.95B	15.97	11.96%	4.17%	-19.88%	-13.92%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Great-West Lifeco Corporate Events

Great-West Lifeco Sets Dividend Rates for Preferred Shares

Great-West Lifeco Inc. announced the dividend rates for its Non-Cumulative 5-Year Rate Reset First Preferred Shares, Series N, and Non-Cumulative Floating Rate First Preferred Shares, Series O. The fixed dividend rate for Series N Shares is set at 4.090% per annum for the five-year period starting December 31, 2025, while the floating rate for Series O Shares is 3.518% per annum for the period starting on the same date. This announcement provides clarity on the financial returns for investors holding these shares and underscores the company’s commitment to offering competitive financial products, potentially impacting its market positioning and attractiveness to investors.

Great-West Lifeco Offers Conversion Option for Series N Shares

Great-West Lifeco announced that it will not redeem its Non-Cumulative 5-Year Rate Reset First Preferred Shares, Series N, on December 31, 2025. Instead, holders of these shares have the option to convert them into Non-Cumulative Floating Rate First Preferred Shares, Series O, subject to certain conditions. This decision provides shareholders with flexibility in managing their investments, potentially impacting the company’s financial structuring and market positioning.

Great-West Lifeco Reports Strong Q3 2025 Earnings and Expands Share Buybacks

Great-West Lifeco Inc. reported significant financial growth in Q3 2025, with base earnings rising by 15% to $1.23 billion and net earnings increasing by 35% to $1.16 billion compared to the previous year. This performance was driven by strong growth in its U.S., Europe, and Capital and Risk Solutions businesses, supported by favorable market conditions and strategic business transformations. The company plans to increase share buybacks to $1.5 billion for the year, highlighting its robust capital generation and financial flexibility.

Great-West Lifeco to Announce Q3 2025 Financial Results

Great-West Lifeco Inc. will release its third quarter 2025 financial results after market close on November 5, with a conference call scheduled for November 6 to discuss the results. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic positioning in the financial services industry.

Great-West Lifeco Completes $200 Million Series Z Preferred Shares Offering

Great-West Lifeco has successfully completed its offering of 8 million Series Z Preferred Shares, raising $200 million in gross proceeds. The shares, which will trade on the Toronto Stock Exchange under the symbol GWO.PR.Z, were offered through a syndicate of underwriters led by BMO Capital Markets, RBC Capital Markets, and Scotiabank. This move is expected to strengthen Great-West Lifeco’s financial position and enhance its market presence.

Great-West Lifeco Launches C$150 Million Preferred Shares Offering

Great-West Lifeco announced an agreement with a syndicate of underwriters to issue 6,000,000 Non-Cumulative First Preferred Shares, Series Z, at C$25.00 per share, raising C$150 million. The offering, which may increase to C$200 million if an option to purchase additional shares is exercised, is intended for general corporate purposes and is expected to close on or about September 24, 2025. This move is part of Lifeco’s strategy to strengthen its financial position and enhance its market presence in the financial services industry.

Great-West Lifeco’s CEO to Engage in Virtual Fireside Chat

Great-West Lifeco Inc. announced that Edmund F. Murphy, President and CEO of Empower, will participate in a virtual fireside chat with TD Cowen’s Senior Equity Analyst, William Katz, on September 15, 2025. This event highlights the company’s engagement with financial analysts and stakeholders, potentially impacting its market visibility and investor relations.