Power Corp of Canada (TSE:POW)
TSX:POW
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Power Corp of Canada
(TSX:POW)
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Rating:65Neutral
Price Target:
C$80.00
▲(9.05% Upside)
Action:DowngradedDate:04/17/26
The score is driven primarily by solid financial performance (stable earnings and generally decent cash conversion) but is capped by variability in revenue/margins, weaker recent cash flow coverage, and higher leverage. Technicals are supportive due to a clear uptrend, though overbought momentum readings raise near-term risk, while valuation is fair rather than compelling.
Positive Factors
Large asset scale
A near-$1T asset base gives Power Corp substantial scale to back insurance liabilities, diversify investments and absorb market shocks. Large balance sheet enables meaningful underwriting capacity, asset-liability management and steady investment income over multi-year horizons.
Negative Factors
Revenue volatility
Meaningful year-to-year swings in revenue complicate forward earnings visibility and strategic planning. For a holding company reliant on subsidiary results, volatile top-line trends can create earnings abrasion, stress margin predictability and impair steady dividend/distribution guidance.
Read all positive and negative factors
Positive Factors
Negative Factors
Large asset scale
A near-$1T asset base gives Power Corp substantial scale to back insurance liabilities, diversify investments and absorb market shocks. Large balance sheet enables meaningful underwriting capacity, asset-liability management and steady investment income over multi-year horizons.
Read all positive factors
Power Corp of Canada (POW) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$46.10B
Dividend Yield3.28%
Average Volume (3M)2.71M
Price to Earnings (P/E)17.8
Beta (1Y)0.53
Revenue Growth19.07%
EPS Growth-3.74%
CountryCA
Employees30,000
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)1.36
Shares Outstanding577,955,200
10 Day Avg. Volume2,525,716
30 Day Avg. Volume2,709,339
Financial Highlights & Ratios
PEG Ratio-3.58
Price to Book (P/B)1.91
Price to Sales (P/S)1.24
P/FCF Ratio11.25
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$74.86Price Target Upside2.04% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)5.99
Revenue Forecast (FY)C$17.83B
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, acciden...
How the Company Makes Money
Power Corp primarily makes money as a holding company by owning stakes in operating businesses and investment platforms and receiving returns from those holdings. Its main earnings sources are: (1) dividends and distributions received from subsidi...
Power Corp of Canada Earnings Call Summary
Earnings Call Date:Nov 12, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance and strategic investments yielding significant value creation. Positive trends in earnings growth, asset management, and cash flow were noted, with some challenges in specific segments like GBL and Sagard. Overall, the positives outweighed the negatives, indicating a robust financial position and promising future outlook.Positive Updates
Strong Earnings Growth
Adjusted net earnings from continuing operations were $863 million, an increase of 25% year-over-year. Q3 adjusted net earnings per share were $1.35, up 26% from last year.
Negative Updates
Losses in GBL's Contribution
GBL's contribution to Power's adjusted net earnings was a loss of $11 million due to a fair value loss of GBL Capital and higher operating expenses.
Read all updates
Q3-2025 Updates
Positive
Negative
Strong Earnings Growth
Adjusted net earnings from continuing operations were $863 million, an increase of 25% year-over-year. Q3 adjusted net earnings per share were $1.35, up 26% from last year.
Read all positive updates
Company Guidance
During the Power Corporation's Third Quarter 2025 Earnings Conference Call, several key financial metrics and strategic developments were highlighted. The company reported adjusted net earnings from continuing operations of $863 million, marking a 25% increase year-over-year. Earnings per share for Q3 were $1.35, up 26% from the previous year. Power Corporation's net asset value (NAV) per share stood at $72.24 as of September 30, 2025, reflecting a 25% increase over the same period last year. The company ended the quarter with a cash balance of $1.9 billion. Significant value creation was noted in strategic investments, especially with Wealthsimple and Rockefeller, while Great-West Life and IGM Financial contributed strongly to the adjusted net earnings, with year-over-year increases of 16% and 23%, respectively. Additionally, Power Corporation has been active in share repurchases, having repurchased 3 million shares worth approximately $170 million during the quarter. The company emphasized its focus on strategic investments and alternative asset platforms, with ongoing developments at Sagard and a strong overall financial performance across its business operations.Power Corp of Canada Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
68
Positive
Cash Flow
64
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 37.65B | 32.97B | 46.43B | -5.71B | 69.59B |
| Gross Profit | 29.92B | 18.42B | 46.43B | 10.86B | 16.83B |
| EBITDA | 6.08B | 6.32B | 4.90B | 5.88B | 6.67B |
| Net Income | 2.63B | 2.79B | 2.25B | 2.25B | 2.97B |
Balance Sheet | |||||
| Total Assets | 925.74B | 851.36B | 749.48B | 733.65B | 661.63B |
| Cash, Cash Equivalents and Short-Term Investments | 34.13B | 27.69B | 21.88B | 22.25B | 8.16B |
| Total Debt | 25.88B | 22.80B | 20.94B | 21.17B | 19.53B |
| Total Liabilities | 880.69B | 807.37B | 708.21B | 689.55B | 617.90B |
| Stockholders Equity | 24.43B | 23.88B | 22.14B | 24.02B | 24.34B |
Cash Flow | |||||
| Free Cash Flow | 4.16B | 5.08B | 4.76B | 6.70B | 10.49B |
| Operating Cash Flow | 4.78B | 5.95B | 5.93B | 7.50B | 11.05B |
| Investing Cash Flow | -348.00M | -1.76B | -2.62B | -6.50B | -10.58B |
| Financing Cash Flow | -3.67B | -1.32B | -2.80B | -948.00M | -962.00M |
Power Corp of Canada Technical Analysis
Positive
73.36
Price Trends
66.69
Positive
68.63
Positive
63.37
Positive
Market Momentum
1.85
Negative
67.95
Neutral
81.41
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 73.36 is above the 20-day moving average (MA) of 68.60, above the 50-day MA of 66.69, and above the 200-day MA of 63.37, indicating a bullish trend. The MACD of 1.85 indicates Negative momentum. The RSI at 67.95 is Neutral, neither overbought nor oversold. The STOCH value of 81.41 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | C$88.73B | 14.68 | 11.34% | 3.49% | 13.21% | 8.02% | |
72 Outperform | C$54.14B | 12.88 | 14.68% | 4.11% | 1.37% | 17.16% | |
72 Outperform | C$15.81B | 15.09 | 13.62% | 2.11% | 3.39% | 15.42% | |
71 Outperform | C$17.36B | 13.28 | 13.03% | 3.59% | 18.39% | 18.55% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | C$46.10B | 17.80 | 10.81% | 3.28% | 19.07% | -3.74% | |
65 Neutral | C$64.47B | 14.06 | 13.98% | 3.62% | 18.88% | 2.62% |
* Financial Sector Average
TSE:POW
Power Corp of Canada
73.73
25.08
51.55%
TSE:MFC
Manulife Financial
52.63
12.11
29.90%
TSE:SLF
Sun Life Financial
96.41
18.61
23.92%
TSE:IGM
IGM Financial
73.57
32.44
78.87%
TSE:GWO
Great-West Lifeco
71.41
20.73
40.90%
TSE:IAG
iA Financial Corporation Inc
174.03
45.28
35.17%
Power Corp of Canada Corporate Events
Business Operations and StrategyExecutive/Board Changes
Power Corporation Names James O’Sullivan as Next CEO in Planned Leadership Transition
Positive
Feb 18, 2026
Power Corporation of Canada has announced a planned leadership transition in which long-time executive R. Jeffrey Orr will move from President and Chief Executive Officer to Vice-Chair of the corporation, effective July 1, 2026. He has spent 25 ye...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.