Great-West Lifeco (GWO) AI Stock Analysis

• Market Cap: C$61.90B
• Dividend Yield: 3.62%
• Average Volume (3M): 1.36M
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.28
• 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: 906,331,850
• 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): 1.28
• 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$64.50
• Price Target Upside: -4.33% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: C$76.00 ▲(12.73% Upside)

The score is driven primarily by solid financial performance (strong cash generation, improving ROE, and moderate leverage) and supportive technical strength (price above key moving averages with positive momentum). Valuation is reasonable with an attractive dividend yield, and the latest earnings call reinforced a strong outlook via record base earnings and a larger buyback program, tempered by policy and mortality-related risks.

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

Overall fundamentals are solid, led by strong and improving free cash flow (TTM FCF up ~17% and fully covering net income) and healthy, improving ROE (~14.2% TTM) with moderate leverage (debt-to-equity ~0.35–0.39). Offsetting these strengths, TTM revenue declined (~-9.9%) and operating profit is negative in multiple periods, raising questions about consistency of core operating profitability.

Income Statement

TTM (Trailing-Twelve-Months) revenue declined (-9.9%), extending a choppy multi-year top-line trend, which weighs on the quality of growth. Profitability is still solid for the period, with net margin around 11.6% and EBITDA margin around 15.7%, and net income is slightly higher than 2024. Offsetting this, reported operating profit is negative in multiple periods (including TTM and 2024–2023), suggesting earnings are being supported more by below-the-line items than consistently strong core operations.

Balance Sheet

Leverage looks moderate and stable for a life insurer, with debt-to-equity around 0.35–0.39 across TTM and recent years, indicating reasonable balance-sheet risk. Shareholders’ equity is sizable (~$28.6B TTM), and returns on equity are healthy and improving versus prior years (about 14.2% TTM vs ~10.7% in 2023). The main watch item is the very large asset base typical of the industry, where results can be sensitive to market/credit conditions even if headline leverage appears controlled.

Cash Flow

Cash generation is strong and consistent: operating cash flow is ~$5.0B in TTM (Trailing-Twelve-Months) and free cash flow is equally strong, with TTM free cash flow up ~17.3% versus the prior period. Free cash flow fully covers net income (free cash flow to net income = 1.0), indicating good earnings cash conversion. A caution flag is the TTM operating cash flow coverage ratio shown as 0.0 (while prior years were >1), which likely reflects a data anomaly or a denominator issue and reduces visibility on that specific coverage measure.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.00B	34.72B	36.73B	-2.69B	64.45B	60.60B
Gross Profit	15.54B	13.39B	11.12B	11.06B	12.93B	11.22B
EBITDA	5.75B	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: 67.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

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 67.42 is above the 20-day moving average (MA) of 66.89, above the 50-day MA of 63.66, and above the 200-day MA of 55.11, indicating a bullish trend. The MACD of 1.25 indicates Positive momentum. The RSI at 72.32 is Negative, neither overbought nor oversold. The STOCH value of 77.54 is Neutral, 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
FFH	81 Outperform	$59.72B	8.52	18.65%	0.84%	10.08%	24.18%
MFC	79 Outperform	$85.45B	16.39	11.23%	3.49%	5.46%	10.52%
GWO	78 Outperform	C$61.90B	15.54	15.09%	3.62%	-20.64%	14.88%
POW	76 Outperform	C$46.73B	15.03	13.24%	3.28%	-9.03%	44.14%
IFC	73 Outperform	C$49.44B	16.70	16.27%	1.86%	2.51%	44.44%
SLF	68 Neutral	C$48.48B	16.47	11.96%	4.11%	-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 Announces Conversion Results for Series N Preferred Shares

Great-West Lifeco Inc. announced the result of a conversion election for its Non-Cumulative 5-Year Rate Reset First Preferred Shares, Series N. Holders of 6,425 Series N Shares opted to convert their shares into Series O Shares on a one-for-one basis by December 31, 2025. However, due to insufficient conversions to meet the threshold for outstanding Series O Shares, no Series N Shares will be converted to Series O Shares, and written notice will be issued to stakeholders accordingly. This decision underscores operational clarity in managing share conversions and may affect stakeholders holding Series N Shares.

The most recent analyst rating on (TSE:GWO) stock is a Buy with a C$67.00 price target. To see the full list of analyst forecasts on Great-West Lifeco stock, see the TSE:GWO Stock Forecast page.

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.

The most recent analyst rating on (TSE:GWO) stock is a Buy with a C$67.00 price target. To see the full list of analyst forecasts on Great-West Lifeco stock, see the TSE:GWO Stock Forecast page.

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.

The most recent analyst rating on (TSE:GWO) stock is a Buy with a C$67.00 price target. To see the full list of analyst forecasts on Great-West Lifeco stock, see the TSE:GWO Stock Forecast page.

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.

The most recent analyst rating on (TSE:GWO) stock is a Buy with a C$65.00 price target. To see the full list of analyst forecasts on Great-West Lifeco stock, see the TSE:GWO Stock Forecast page.

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.

The most recent analyst rating on (TSE:GWO) stock is a Hold with a C$53.00 price target. To see the full list of analyst forecasts on Great-West Lifeco stock, see the TSE:GWO Stock Forecast page.