Power Corp of Canada (POW) AI Stock Analysis

• Market Cap: C$42.38B
• Dividend Yield: 3.6%
• Average Volume (3M): 2.71M
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.65
• Revenue Growth: 11.56%
• EPS Growth: 1.15%
• Country: CA
• Employees: 30,000
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 1.38
• Shares Outstanding: 584,765,700
• 10 Day Avg. Volume: 2,525,716
• 30 Day Avg. Volume: 2,709,339
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$62.86
• Price Target Upside: -5.79% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: C$71.00 ▲(6.41% Upside)

Power Corp of Canada scores well due to strong earnings growth, robust technical indicators, and a solid valuation with an attractive dividend yield. The positive sentiment from the earnings call further boosts the score, despite some challenges in specific areas like GBL's contribution and foreign exchange impacts.

Positive Factors

Strong Earnings Growth

The significant growth in earnings indicates robust financial health and effective operational strategies, enhancing long-term shareholder value.

Robust Performance from Subsidiaries

Strong performance from key subsidiaries highlights the company's effective management and strategic positioning in the financial services sector.

Increased Net Asset Value

A significant increase in net asset value per share reflects successful investment strategies and enhances the company's financial stability.

Negative Factors

Decline in GBL's Contribution

The decline in GBL's contribution could impact overall profitability, indicating potential challenges in certain investment areas.

Negative Impact of Foreign Exchange

Foreign exchange losses can affect financial results, highlighting the need for effective currency risk management strategies.

Limited Scale in Alternative Platforms

Negative fee-related earnings suggest a need for scaling alternative platforms to achieve sustainable profitability in these areas.

Power Corp of Canada Business Overview & Revenue Model

Company Description

Power Corporation of Canada (POW) is a diversified international management and holding company with interests in the financial services, communications, and energy sectors. The company operates through its subsidiaries, which include companies in insurance, asset management, and investment services, as well as stakes in telecommunications and renewable energy firms. Power Corp focuses on creating long-term value for its shareholders by leveraging its diverse portfolio and strategic partnerships across various industries.

How the Company Makes Money

Power Corporation generates revenue primarily through its subsidiaries, which operate in various sectors. The company's key revenue streams include premiums from insurance products, management fees from asset management services, and profits from investments in public and private equity. Additionally, the company benefits from dividends received from its holdings in major companies, such as Great-West Lifeco, IGM Financial, and others. Significant partnerships with financial institutions and investment firms further enhance its earnings potential, as does its active management of investment portfolios that capitalize on market opportunities.

Power Corp of Canada Financial Statement Overview

Summary

Power Corp of Canada demonstrates solid financial health with strong revenue growth and profitability margins. The balance sheet reflects a balanced leverage position, though there is room for improvement in equity financing. Cash flow generation is strong, but growth has slowed, which could be a potential risk if not addressed.

Income Statement

Power Corp of Canada shows a solid revenue growth rate of 6.56% in the TTM, indicating a positive trajectory. The gross profit margin is strong at 57.09%, and the net profit margin is stable at 6.26%. However, the EBIT margin has slightly decreased compared to the previous year, suggesting some pressure on operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is manageable at 0.90, reflecting a balanced approach to leveraging. Return on equity is healthy at 11.64%, indicating effective use of shareholder funds. The equity ratio is relatively low, which may suggest a higher reliance on debt financing.

Cash Flow

Operating cash flow to net income ratio is strong at 1.33, indicating good cash generation relative to net income. Free cash flow growth is modest at 2.13%, and the free cash flow to net income ratio is robust at 0.84, showing efficient cash utilization. However, the growth in free cash flow is not as high as in previous years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	48.07B	39.80B	46.43B	48.74B	69.56B	64.62B
Gross Profit	27.44B	39.80B	46.43B	48.74B	69.56B	64.62B
EBITDA	5.74B	5.97B	4.90B	5.89B	5.96B	4.67B
Net Income	2.77B	2.79B	2.25B	3.54B	4.67B	3.53B
Balance Sheet
Total Assets	867.84B	851.36B	749.48B	733.65B	661.63B	629.10B
Cash, Cash Equivalents and Short-Term Investments	28.55B	27.69B	21.88B	22.25B	8.16B	9.48B
Total Debt	21.40B	22.80B	20.94B	21.17B	19.53B	21.54B
Total Liabilities	823.81B	807.37B	708.21B	689.55B	617.90B	590.37B
Stockholders Equity	23.99B	23.88B	22.14B	24.02B	24.34B	22.21B
Cash Flow
Free Cash Flow	4.56B	5.08B	4.76B	6.70B	10.49B	9.71B
Operating Cash Flow	5.40B	5.95B	5.93B	7.50B	11.05B	10.10B
Investing Cash Flow	-1.15B	-1.76B	-2.62B	-6.50B	-10.58B	-8.41B
Financing Cash Flow	-2.12B	-1.32B	-2.80B	-948.00M	-962.00M	1.64B

Power Corp of Canada Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 66.72
• 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:POW, the sentiment is Positive. The current price of 66.72 is above the 20-day moving average (MA) of 63.62, above the 50-day MA of 60.45, and above the 200-day MA of 52.67, indicating a bullish trend. The MACD of 1.78 indicates Negative momentum. The RSI at 79.06 is Negative, neither overbought nor oversold. The STOCH value of 86.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:POW.

Power Corp of Canada Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SLF	78 Outperform	$48.94B	16.50	11.96%	3.95%	-19.88%	-13.92%
NA	78 Outperform	$61.80B	15.30	13.25%	2.96%	9.25%	0.34%
POW	76 Outperform	C$42.38B	15.45	12.07%	3.60%	11.56%	1.15%
GWO	76 Outperform	C$54.79B	14.86	15.09%	3.92%	-20.64%	14.88%
IAG	73 Outperform	C$15.47B	15.51	14.34%	2.28%	-25.13%	16.40%
MFC	72 Outperform	$79.87B	15.07	11.57%	3.67%	9.37%	32.06%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Power Corp of Canada Corporate Events

Power Corporation Completes $200 Million Preferred Share Offering

Power Corporation of Canada announced the successful closing of its offering of 8,000,000 5.75% Non-Cumulative First Preferred Shares, Series H, raising $200 million. The shares, priced at $25.00 each, were bought by a syndicate of underwriters led by BMO Capital Markets, RBC Capital Markets, and Scotiabank, and will be listed on the Toronto Stock Exchange under the symbol ‘POW.PR.H’. The proceeds will be used for general corporate purposes, enhancing the company’s financial flexibility and positioning in the market.

The most recent analyst rating on (TSE:POW) stock is a Buy with a C$64.00 price target. To see the full list of analyst forecasts on Power Corp of Canada stock, see the TSE:POW Stock Forecast page.

Power Corporation to Issue Preferred Shares Raising Up to $200 Million

Power Corporation of Canada announced the issuance of 6,000,000 Non-Cumulative First Preferred Shares, Series H, priced at $25.00 per share, with an annual dividend yield of 5.75%, aiming to raise $150 million in gross proceeds. The offering, underwritten by a syndicate led by BMO Capital Markets, RBC Capital Markets, and Scotiabank, could increase to $200 million if an additional 2,000,000 shares are purchased. The proceeds will be used for general corporate purposes, and the shares will be offered in Canadian provinces and territories.

The most recent analyst rating on (TSE:POW) stock is a Buy with a C$64.00 price target. To see the full list of analyst forecasts on Power Corp of Canada stock, see the TSE:POW Stock Forecast page.

Power Corp Of Canada Reports Strong Earnings Growth

The recent earnings call of Power Corp Of Canada showcased a robust performance, highlighting significant earnings growth driven by key subsidiaries like Great-West Lifeco and IGM Financial. The sentiment was overwhelmingly positive, with achievements in share buybacks and alternative investments contributing to the optimistic outlook. Despite facing some challenges, such as a decline in GBL’s earnings contribution and foreign exchange impacts, the positives clearly outweighed the negatives.

Power Corporation of Canada Reports Strong Q2 2025 Financial Results

Power Corporation of Canada reported strong financial results for the second quarter of 2025, with net earnings from continuing operations reaching $772 million, an increase from the previous year. The company saw significant growth in its adjusted net earnings and net asset value per share, driven by strong performances from its subsidiaries, including Wealthsimple and IGM Financial. The corporation also made strategic investments and share buybacks, enhancing its market position and shareholder value. Additionally, Sagard Holdings raised substantial new commitments, and Power Sustainable Capital sold wind projects, reflecting the company’s ongoing commitment to sustainable energy initiatives.

The most recent analyst rating on (TSE:POW) stock is a Hold with a C$52.00 price target. To see the full list of analyst forecasts on Power Corp of Canada stock, see the TSE:POW Stock Forecast page.

Power Corporation of Canada Reports Strong Q2 2025 Financial Results

Power Corporation of Canada reported strong financial results for the second quarter of 2025, with net earnings from continuing operations reaching $772 million, an increase from the previous year. The company saw a significant rise in its adjusted net asset value per share and continued to invest in its subsidiaries, including Wealthsimple and IGM Financial, which reported record high assets under management. Additionally, Power Corporation made strategic moves such as share buybacks and the sale of wind projects, reflecting its focus on enhancing shareholder value and expanding its renewable energy portfolio.

The most recent analyst rating on (TSE:POW) stock is a Hold with a C$52.00 price target. To see the full list of analyst forecasts on Power Corp of Canada stock, see the TSE:POW Stock Forecast page.