Power Corp of Canada (POW) AI Stock Analysis

• Market Cap: C$42.38B
• Dividend Yield: 3.33%
• Average Volume (3M): 2.71M
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.65
• Revenue Growth: -9.03%
• EPS Growth: 44.14%
• Country: CA
• Employees: 30,000
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 1.35
• Shares Outstanding: 584,765,700
• 10 Day Avg. Volume: 2,525,716
• 30 Day Avg. Volume: 2,709,339
• PEG Ratio: 0.38
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 0.73
• P/FCF Ratio: 5.72
• 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$67.50
• Price Target Upside: -6.44% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: C$79.00 ▲(9.49% Upside)

Power Corp of Canada shows strong financial performance and strategic investments, leading to robust earnings growth. The technical indicators suggest a strong upward trend, though caution is advised due to potential overbought conditions. The valuation is reasonable, with an attractive dividend yield. Overall, the company is well-positioned in the life insurance industry with a promising outlook.

Positive Factors

Strategic Investments

Strategic investments in Wealthsimple and Rockefeller have driven substantial value creation, enhancing long-term growth potential and market positioning.

Earnings Growth

Strong earnings growth reflects effective business operations and strategic execution, supporting sustainable profitability and shareholder value.

Cash Flow and Share Repurchases

Robust cash flow and share repurchases demonstrate financial strength and commitment to returning value to shareholders, enhancing long-term investment appeal.

Negative Factors

Revenue Growth Slowdown

Slowing revenue growth may indicate challenges in market expansion or competitive pressures, potentially impacting future earnings and market share.

Losses in GBL's Contribution

Losses in GBL's contribution highlight operational challenges and could strain overall profitability if not mitigated, affecting long-term financial health.

Sagard's Decreased Contribution

Sagard's decreased contribution suggests volatility in earnings from this segment, potentially impacting overall financial stability and strategic goals.

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	35.91B	32.97B	46.43B	-5.71B	69.59B	64.62B
Gross Profit	10.89B	18.42B	46.43B	10.86B	16.83B	14.19B
EBITDA	5.96B	6.32B	4.90B	5.88B	6.67B	4.81B
Net Income	2.77B	2.79B	2.25B	2.25B	2.97B	2.05B
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: 72.15
• 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 72.15 is above the 20-day moving average (MA) of 68.52, above the 50-day MA of 63.79, and above the 200-day MA of 54.54, indicating a bullish trend. The MACD of 2.15 indicates Negative momentum. The RSI at 78.35 is Negative, neither overbought nor oversold. The STOCH value of 84.94 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
MFC	79 Outperform	$82.24B	15.54	11.23%	3.61%	5.46%	10.52%
NA	78 Outperform	$61.80B	15.30	13.25%	2.77%	9.25%	0.34%
GWO	76 Outperform	C$54.79B	14.86	15.09%	3.69%	-20.64%	14.88%
POW	73 Outperform	C$42.38B	15.45	13.24%	3.33%	-9.03%	44.14%
IAG	73 Outperform	C$15.47B	15.51	14.34%	2.29%	-25.13%	16.40%
SLF	70 Outperform	$45.94B	15.63	11.96%	4.27%	-19.88%	-13.92%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Power Corp of Canada Corporate Events

Power Corporation of Canada Issues Preferred Shares to Raise Capital

Power Corporation of Canada announced the issuance of 6,000,000 Non-Cumulative First Preferred Shares, Series I, priced at $25.00 per share with an annual dividend yield of 5.65%, expected to close on November 20, 2025. The offering, underwritten by a syndicate led by BMO Capital Markets, RBC Capital Markets, and Scotiabank, could raise up to $200 million if an additional 2,000,000 shares are purchased. The proceeds will be used for general corporate purposes, potentially impacting the company’s financial flexibility and market positioning.

The most recent analyst rating on (TSE:POW) stock is a Hold with a C$71.00 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 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.