Power Corp of Canada (POW) AI Stock Analysis

• Market Cap: C$46.13B
• Dividend Yield: 3.33%
• Average Volume (3M): 2.71M
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.48
• 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: 582,371,400
• 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: -6.39% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: C$82.00 ▲(13.72% Upside)

Power Corp of Canada scores well due to strong earnings growth and strategic investments, supported by positive technical indicators and a reasonable valuation. The company's financial resilience and operational efficiency are key strengths, though attention to debt levels and specific segment challenges is necessary.

Positive Factors

Earnings Growth

The significant increase in adjusted net earnings indicates robust financial health and effective business strategies, supporting long-term growth.

Strategic Investments

Strategic investments in Wealthsimple and Rockefeller enhance competitive positioning and diversify revenue streams, fostering sustainable growth.

Cash Flow Growth

Strong cash flow growth supports operational flexibility and investment capacity, ensuring the company can capitalize on future opportunities.

Negative Factors

Revenue Decline

A decline in revenue suggests potential market challenges that could impact future growth and profitability if not addressed.

Increased Debt Levels

Rising debt levels could strain financial resources and limit strategic flexibility, posing risks if not managed effectively.

Segment Challenges

Losses in specific segments like Sagard highlight operational challenges that may require strategic adjustments to improve performance.

Power Corp of Canada Business Overview & Revenue Model

Company Description

Power Corporation of Canada operates as an international management and holding company in North America, Europe, and Asia. It operates through Lifeco, IGM Financial, and GBL segments. The company offers life, disability, critical illness, accidental death, dismemberment, health and dental protection, and creditor insurance; retirement and investment management; asset management; and reinsurance and retrocession; investment advisory, financial planning, and related services; and fund, protection, and wealth management services. It also provides employer-sponsored defined contribution plan, individual retirement account and drawdown, enrollment, communication material, investment option, and education services, as well as taxable brokerage accounts; private label recordkeeping and administrative services; payout annuities, equity release mortgages, life bonds, mortgage, securities, pension, private equity, debt and thematic fund, and financial services; and investment products, such as equity, fixed income, absolute return and alternative strategies, exchange traded funds, trust funds, and model-based separately managed accounts and portfolios. In addition, the company holds interests in various businesses, such as mineral-based specialty solutions; testing, inspection, and certification; cement, aggregates, and concrete; wines and spirits; sportswear and sports equipment design and distribution; materials technology and recycling of precious metals; disposable hygiene products; Atlantic salmon; customer experience and business process outsourcing; regional leisure parks; mobile game development and publishing; and bicycle manufacturing. Further, it generates renewable energy through solar and wind facilities; and designs, develops, and manufactures specification-grade LED solutions and zero-emission vehicles. The company was incorporated in 1925 and is based in Montréal, Canada. Power Corporation of Canada operates as a subsidiary of Pansolo Holding Inc.

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	31.86B	32.97B	46.43B	-5.71B	69.59B	64.62B
Gross Profit	11.64B	18.42B	46.43B	10.86B	16.83B	14.19B
EBITDA	6.56B	6.32B	4.90B	5.88B	6.67B	4.81B
Net Income	3.10B	2.79B	2.25B	2.25B	2.97B	2.05B
Balance Sheet
Total Assets	916.88B	851.36B	749.48B	733.65B	661.63B	629.10B
Cash, Cash Equivalents and Short-Term Investments	29.20B	27.69B	21.88B	22.25B	8.16B	9.48B
Total Debt	20.88B	22.80B	20.94B	21.17B	19.53B	21.54B
Total Liabilities	871.71B	807.37B	708.21B	689.55B	617.90B	590.37B
Stockholders Equity	24.65B	23.88B	22.14B	24.02B	24.34B	22.21B
Cash Flow
Free Cash Flow	5.30B	5.08B	4.76B	6.70B	10.49B	9.71B
Operating Cash Flow	6.25B	5.95B	5.93B	7.50B	11.05B	10.10B
Investing Cash Flow	-965.00M	-1.76B	-2.62B	-6.50B	-10.58B	-8.41B
Financing Cash Flow	-2.66B	-1.32B	-2.80B	-948.00M	-962.00M	1.64B

Power Corp of Canada Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 72.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 72.11 is above the 20-day moving average (MA) of 71.45, above the 50-day MA of 67.66, and above the 200-day MA of 56.42, indicating a bullish trend. The MACD of 1.45 indicates Positive momentum. The RSI at 60.61 is Neutral, neither overbought nor oversold. The STOCH value of 63.62 is Neutral, 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	C$83.31B	15.74	11.23%	3.58%	5.46%	10.52%
NA	78 Outperform	C$67.94B	17.11	13.53%	2.69%	7.50%	-5.28%
POW	76 Outperform	C$46.13B	15.13	13.24%	3.33%	-9.03%	44.14%
GWO	76 Outperform	C$61.43B	15.56	15.09%	3.67%	-20.64%	14.88%
IAG	71 Outperform	C$16.25B	15.10	14.34%	2.15%	-25.13%	16.40%
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%

Power Corp of Canada Corporate Events

Power Corporation Closes $200 Million Preferred Share Offering

Power Corporation of Canada has successfully closed its offering of 8,000,000 Non-Cumulative First Preferred Shares, Series I, generating gross proceeds of $200 million. The shares, priced at $25.00 each, were bought by a syndicate of underwriters and will be listed on the Toronto Stock Exchange. The proceeds from this offering will be utilized for general corporate purposes, potentially strengthening the company’s financial position and operational capabilities.

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.

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.

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.