Power Corp of Canada (POW) AI Stock Analysis

• Market Cap: C$36.43B
• Dividend Yield: 5.3%
• Average Volume (3M): 2.28M
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.83
• 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: 586,463,300
• 10 Day Avg. Volume: 1,852,982
• 30 Day Avg. Volume: 2,275,288
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$60.25
• Price Target Upside: 6.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 74 Outperform
• Price Target: C$64.00 ▲(13.09% Upside)

Power Corp of Canada shows strong earnings growth and strategic financial management, as highlighted in the earnings call. Despite operational challenges affecting margins, the company's solid balance sheet and effective cash flow management provide stability. The technical indicators suggest strong bullish momentum, while the valuation remains attractive with a reasonable P/E ratio and high dividend yield.

Positive Factors

Earnings

POW's investment platforms recorded a meaningful positive earnings contribution with a significant improvement from a loss reported in the same period last year.

Earnings Growth

GWO reported base earnings that were 11% higher than the same period last year, with strong earnings growth in Canada, Europe and CRS segments.

Target Price

Target increases to $52 from $49, reflecting increased GWO/IGM targets post their respective Q4/24 results.

Negative Factors

Earnings Estimate

Modestly lower 2025E adjusted EPS to $5.42 from $5.47, partially due to consolidation adjustments.

NAV Growth

Heavier reliance on GWO/IGM makes it difficult to get constructive on NAV growth given Market Perform ratings on GWO and IGM.

Valuation

The discount to Power's net asset value (NAV) has narrowed, and now represents 0.4% downside potential in a reversion-to-the-mean scenario.

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, sustainable and renewable energy, asset management, and other business sectors. The company primarily operates through its subsidiaries, including Power Financial Corporation, which holds significant interests in Lifeco and IGM Financial, and other entities involved in various industries. Power Corp is known for its strategic long-term investments and partnerships, focusing on delivering shareholder value through a diversified portfolio.

How the Company Makes Money

Power Corp of Canada generates revenue primarily through its financial services segment, which includes insurance, retirement, and wealth management products via its subsidiaries Great-West Lifeco and IGM Financial. These subsidiaries contribute significantly to the company's income through premiums, fees, and asset management revenues. Additionally, Power Corp earns income from its investments in renewable energy through Power Sustainable Energy, which focuses on sustainable and renewable energy projects. The company also benefits from its strategic holdings and partnerships, which provide dividends and capital appreciation, further enhancing its earnings.

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: 56.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 56.59 is above the 20-day moving average (MA) of 55.60, above the 50-day MA of 53.66, and above the 200-day MA of 48.30, indicating a bullish trend. The MACD of 1.03 indicates Negative momentum. The RSI at 63.51 is Neutral, neither overbought nor oversold. The STOCH value of 38.79 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
NA	78 Outperform	$58.03B	13.97	13.42%	3.06%	13.80%	9.06%
IAG	75 Outperform	C$13.49B	13.48	13.43%	2.39%	-4.55%	42.41%
GWO	74 Outperform	C$49.40B	13.34	14.19%	4.36%	15.27%	4.72%
POW	74 Outperform	C$36.43B	13.29	12.07%	5.30%	11.56%	1.15%
MFC	72 Outperform	$71.16B	13.32	11.57%	4.00%	9.37%	32.06%
SLF	70 Outperform	$44.88B	14.09	13.38%	4.22%	-0.61%	6.69%
Sector *	58 Neutral	HK$111.68B	6.58	-4.20%	3.95%	9.04%	-46.99%

Power Corp of Canada Corporate Events

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.

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.