Power Corp of Canada (POW) AI Stock Analysis

• Market Cap: C$34.98B
• Dividend Yield: 5.5%
• Average Volume (3M): 2.97M
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.82
• Revenue Growth: 7.63%
• EPS Growth: 8.84%
• Country: CA
• Employees: 30,000
• Sector: Financial
• Sector Strength: 76
• Industry: Insurance - Life
• EPS (TTM): 1.22
• Shares Outstanding: 586,973,600
• 10 Day Avg. Volume: 2,876,532
• 30 Day Avg. Volume: 2,967,882
• PEG Ratio: -26.04
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.65
• 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$56.80
• Price Target Upside: 4.16% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 74 Outperform
• Price Target: C$58.00 ▲(6.36%Upside)

The overall stock score reflects a balanced assessment of strong earnings growth, positive technical indicators, and effective shareholder return strategies. While there are some operational challenges, the company's solid balance sheet and favorable valuation metrics contribute positively to its outlook.

Positive Factors

Earnings Contribution

GBLB's contribution to POW's adjusted earnings surpassed expectations, reaching C$20 million compared to the previous estimate of C$11 million.

Target Price

Target price is raised to $52 from $49, indicating increased confidence in GWO and IGM performance.

Negative Factors

Earnings Estimate

Adjusted EPS for 2025 is slightly reduced to $5.42 from $5.47 due to consolidation adjustments.

NAV Growth Challenges

A heavier reliance on GWO and IGM poses challenges for NAV growth, given their Market Perform ratings.

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 primarily in the financial services, sustainable and renewable energy sectors. Headquartered in Montreal, Canada, the company operates through its subsidiaries and affiliates, including Power Financial Corporation, Great-West Lifeco, IGM Financial, and Groupe Bruxelles Lambert. These entities provide a range of financial products and services, including life insurance, retirement savings, investment management, and wealth management solutions.

How the Company Makes Money

Power Corporation of Canada generates revenue through its diversified portfolio of subsidiaries primarily in the financial services sector. Key revenue streams include premiums and fees from insurance products offered by Great-West Lifeco, management fees, and investment income from IGM Financial's mutual funds and investment services. Additionally, Power Corp benefits from dividend income and capital appreciation through its investment in Groupe Bruxelles Lambert, a holding company with stakes in European blue-chip companies. The company also seeks to enhance its earnings through strategic partnerships and investments in the renewable energy sector, aiming to capitalize on the growing demand for sustainable energy solutions. This diversified approach helps Power Corp maintain a stable and growing income stream.

Power Corp of Canada Financial Statement Overview

Summary

Power Corp of Canada demonstrates strong core operations with robust gross profits. However, revenue declines and operational challenges are affecting margins. The balance sheet remains solid with a healthy asset base and manageable leverage, while cash flow management is effective despite a decrease in operating cash flow.

Income Statement

The income statement reveals a challenging year with a notable decline in revenue from previous years and a negative EBIT for the TTM period due to one-time expenses or operational challenges. While gross profit remains high, indicating strong core operations, the net profit margin is under pressure due to decreasing revenues and operational inefficiencies.

Balance Sheet

The balance sheet remains strong with a manageable debt-to-equity ratio and a stable equity ratio. However, the company's ROE has slightly declined, reflecting challenges in generating returns on shareholder equity. The overall financial position is stable, supported by significant cash reserves and a solid asset base.

Cash Flow

Cash flow analysis indicates a decrease in operating cash flow compared to previous periods, yet the company maintains positive free cash flow. The slight decrease in free cash flow growth rate highlights operational pressures, but the cash flow to net income ratios demonstrate efficient cash management amidst revenue challenges.

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

Power Corp of Canada Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 54.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 54.53 is above the 20-day moving average (MA) of 53.32, above the 50-day MA of 52.02, and above the 200-day MA of 47.34, indicating a bullish trend. The MACD of 0.65 indicates Negative momentum. The RSI at 67.29 is Neutral, neither overbought nor oversold. The STOCH value of 86.16 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
IAG	81 Outperform	C$13.28B	15.11	12.54%	2.46%	-7.31%	28.65%
NA	78 Outperform	$55.95B	13.47	13.42%	3.19%	17.13%	14.73%
GWO	77 Outperform	C$48.59B	12.71	14.65%	4.45%	17.48%	25.54%
SLF	75 Outperform	C$48.12B	15.53	13.18%	3.96%	0.94%	3.50%
POW	74 Outperform	C$34.98B	12.93	11.92%	5.50%	7.63%	8.84%
MFC	67 Neutral	$71.75B	15.75	10.17%	4.01%	5.24%	13.68%
Sector *	61 Neutral	C$14.89B	6.40	22.28%	5.40%	30.07%	-22.51%

Power Corp of Canada Corporate Events

Power Corporation Elects Board of Directors with Strong Shareholder Support

Power Corporation of Canada announced the election of its board of directors, with all nominees proposed by management successfully elected. The election results, disclosed in accordance with the Toronto Stock Exchange Company Manual, reflect strong shareholder support for the nominees, which may reinforce the company’s strategic direction and stability in its financial services operations across North America, Europe, and Asia.

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 Reports Q1 2025 Financial Results Amid Strategic Growth Initiatives

Power Corporation of Canada reported a decrease in net earnings for the first quarter of 2025 compared to the previous year, with net earnings from continuing operations at $689 million. However, adjusted net earnings increased to $787 million, highlighting strong performance in its subsidiaries, particularly in the Retirement and Wealth businesses. The company also saw a rise in adjusted net asset value per share and continued its share buyback program, indicating a focus on enhancing shareholder value. The strategic partnership between Sagard and GBL, along with the launch of Power Sustainable’s new investment strategy, underscores Power Corporation’s commitment to expanding its investment capabilities and strengthening its market position.

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.