Power Corp of Canada (TSE:POW)
TSX:POW
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Power Corp of Canada
(TSX:POW)
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Rating:76Outperform
Price Target:
C$102.00
â–²(39.04% Upside)
Action:Reiterated
Date:05/22/26
The score is driven primarily by solid financial performance (strong free cash flow and improving leverage) and a positive earnings update (double-digit earnings/EPS growth, rising NAV, and active buybacks/capital returns). Technicals are supportive due to a strong uptrend, though overbought indicators temper the near-term outlook. Valuation is also supportive with a moderate P/E and a ~3% dividend yield.
Positive Factors
Strong free cash flow generation
Sustained FCF strength (TTM +50.9%, FCF ≈0.9x net income) underpins durable capital flexibility: funds buybacks, dividends, M&A and support earnings quality across cycles, reducing reliance on volatile mark-to-market gains for cash-driven returns.
Negative Factors
NAV-based earnings volatility and limited visibility
Heavy exposure to NAV-style holdings creates structural earnings volatility and forecasting uncertainty. Mark-to-market swings can mask underlying operating trends, complicate capital allocation and make stable earnings growth harder to project for investors and management over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Sustained FCF strength (TTM +50.9%, FCF ≈0.9x net income) underpins durable capital flexibility: funds buybacks, dividends, M&A and support earnings quality across cycles, reducing reliance on volatile mark-to-market gains for cash-driven returns.
Read all positive factors
Power Corp of Canada (POW) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$54.87B
Dividend Yield3.28%
Average Volume (3M)2.71M
Price to Earnings (P/E)20.6
Beta (1Y)0.50
Revenue Growth7.10%
EPS Growth0.39%
CountryCA
Employees38,850
SectorFinancial
Sector Strength70
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)4.21
Shares Outstanding575,322,700
10 Day Avg. Volume2,525,716
30 Day Avg. Volume2,709,339
Financial Highlights & Ratios
PEG Ratio-3.66
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$85.29Price Target Upside16.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)6.03
Revenue Forecast (FY)C$18.38B
Power Corp of Canada Business Overview & Revenue Model
Company Description
Power Corporation of Canada, an international management and holding company, provides financial services in North America, Europe, and Asia. The company operates through Lifeco, IGM Financial, and GBL segments. It offers life, health and dental, ...
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:May 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed strong, broad‑based operating momentum: robust adjusted earnings and EPS growth, double‑digit contributions from Great‑West and IGM, substantial NAV appreciation, a larger cash balance, active buybacks and meaningful alternative platform expansions (Sagard, Northleaf, Power Sustainable). The principal negatives were concentrated in NAV‑style volatility (GBL), weaker near‑term contributions from some alternative platforms (Sagard, Power Sustainable), fundraising headwinds in parts of private credit, and structural/earnings complexities around nascent assets like Wealthsimple. Overall, the positives — consistent earnings growth, substantial NAV and cash increases, capital returns and strategic M&A — materially outweigh the lowlights, which are mostly manageable or episodic.Positive Updates
Strong Group Earnings and EPS Growth
Adjusted net earnings of $905 million, up 15% year‑over‑year; net EPS $1.43, up 17% YoY and the second‑highest quarterly EPS since the 2019 reorganization.
Negative Updates
Sagard Earnings Decline
Sagard's contribution to group earnings swung to a loss of $5 million in the quarter versus a positive $37 million a year ago (a negative swing of ~$42 million), driven primarily by lower private equity gains reported in investing activities.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Group Earnings and EPS Growth
Adjusted net earnings of $905 million, up 15% year‑over‑year; net EPS $1.43, up 17% YoY and the second‑highest quarterly EPS since the 2019 reorganization.
Read all positive updates
Company Guidance
Management guided to "continued momentum into Q2," pointing to Q1 results that included adjusted net earnings of $905 million (+15% YoY) and net EPS of $1.43 (+17% YoY), with Great‑West and IGM each up 21% in contribution; Great‑West posted its eighth straight quarter of base earnings >$1.0 billion and base ROE above 19%. They reported NAV per share of $84.54 (NAV +23% YoY — IGM +51%, GBL +22%, Great‑West +12%, Wealthsimple ≈+90%), a cash balance of $2.1 billion (up 50% YoY) with about $1.7 billion available after dividends, and returned $650 million of capital in Q1 versus $500 million a year ago. Management reiterated medium‑term earnings guidance of roughly 9% at Great‑West and IGM (which they said would imply ~12.5–13% TSR if achieved with no multiple change), confirmed buybacks remain a high‑priority to capture an ~18% discount to NAV, and highlighted continued alternatives growth and fundraising (Sagard AUM ≈US$46 billion; a Sagard private credit fund targeting ~US$2 billion).Power Corp of Canada Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
72
Positive
Cash Flow
77
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 34.88B | 37.65B | 32.97B | 46.43B | -5.71B | 69.59B |
| Gross Profit | 30.59B | 29.92B | 18.42B | 46.43B | 10.86B | 16.83B |
| EBITDA | 6.51B | 6.08B | 6.32B | 4.90B | 5.88B | 6.67B |
| Net Income | 2.77B | 2.63B | 2.79B | 2.25B | 2.25B | 2.97B |
Balance Sheet | ||||||
| Total Assets | 930.28B | 925.74B | 851.36B | 749.48B | 733.65B | 661.63B |
| Cash, Cash Equivalents and Short-Term Investments | 31.71B | 34.13B | 27.69B | 21.88B | 22.25B | 8.16B |
| Total Debt | 21.25B | 25.88B | 22.80B | 20.94B | 21.17B | 19.53B |
| Total Liabilities | 885.10B | 880.69B | 807.37B | 708.21B | 689.55B | 617.90B |
| Stockholders Equity | 24.43B | 24.43B | 23.88B | 22.14B | 24.02B | 24.34B |
Cash Flow | ||||||
| Free Cash Flow | 6.27B | 4.16B | 5.08B | 4.76B | 6.70B | 10.49B |
| Operating Cash Flow | 6.93B | 4.78B | 5.95B | 5.93B | 7.50B | 11.05B |
| Investing Cash Flow | -1.01B | -348.00M | -1.76B | -2.62B | -6.50B | -10.58B |
| Financing Cash Flow | -3.33B | -3.67B | -1.32B | -2.80B | -948.00M | -962.00M |
Power Corp of Canada Technical Analysis
Positive
73.36
Price Trends
80.57
Positive
73.44
Positive
69.66
Positive
Market Momentum
2.33
Positive
58.74
Neutral
49.60
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 73.36 is below the 20-day moving average (MA) of 85.66, below the 50-day MA of 80.57, and above the 200-day MA of 69.66, indicating a bullish trend. The MACD of 2.33 indicates Positive momentum. The RSI at 58.74 is Neutral, neither overbought nor oversold. The STOCH value of 49.60 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | C$18.25B | 15.90 | 13.19% | 3.59% | 17.16% | 22.85% | |
80 Outperform | C$79.21B | 18.99 | 15.17% | 3.62% | 4.22% | 13.75% | |
76 Outperform | C$54.87B | 20.60 | 11.34% | 3.28% | 7.10% | 0.39% | |
76 Outperform | C$16.61B | 17.60 | 12.80% | 2.11% | -1.40% | 14.51% | |
75 Outperform | C$95.21B | 16.16 | 12.65% | 3.49% | 15.84% | 31.26% | |
71 Outperform | C$61.10B | 20.45 | 12.98% | 4.11% | -10.77% | -1.88% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
TSE:POW
Power Corp of Canada
86.71
34.87
67.26%
TSE:MFC
Manulife Financial
56.55
15.23
36.87%
TSE:SLF
Sun Life Financial
110.02
24.58
28.77%
TSE:IGM
IGM Financial
77.58
36.09
86.96%
TSE:GWO
Great-West Lifeco
88.89
39.37
79.51%
TSE:IAG
iA Financial Corporation Inc
191.12
49.23
34.69%
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.