Great-West Lifeco (GWO) AI Stock Analysis

• Market Cap: C$49.74B
• Dividend Yield: 4.43%
• Average Volume (3M): 2.20M
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.46
• Revenue Growth: 15.27%
• EPS Growth: 4.72%
• Country: CA
• Employees: 33,250
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 1.24
• Shares Outstanding: 923,925,100
• 10 Day Avg. Volume: 1,582,880
• 30 Day Avg. Volume: 2,201,783
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$56.40
• Price Target Upside: 4.75% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 72 Outperform
• Price Target: C$59.00 ▲(9.58% Upside)

Great-West Lifeco's overall stock score is driven by strong financial performance and strategic growth initiatives, particularly in the U.S. Empower segment. The company's valuation is attractive with a reasonable P/E ratio and a high dividend yield. Technical indicators suggest a neutral trend, with potential momentum weakness. The earnings call reinforced confidence in the company's strategic direction despite some operational challenges.

Positive Factors

Revenue Growth

Consistent revenue and EPS growth indicate strong market demand and effective execution across business segments, supporting long-term expansion.

Market Position

Empower's growth strengthens Great-West Lifeco's market position in the U.S. retirement sector, enhancing its competitive edge and client base.

Product Expansion

New product offerings diversify revenue streams and attract a broader client base, supporting long-term growth and market differentiation.

Negative Factors

Margin Pressure

Decreasing margins and cash flow suggest cost management issues, potentially impacting profitability and financial flexibility over time.

Credit-Related Impacts

Credit issues can lead to financial volatility, affecting earnings stability and requiring careful risk management to mitigate long-term impacts.

Strategic Exit

Exiting a market segment may reduce revenue diversity and growth opportunities, though it could refocus resources on more profitable areas.

Great-West Lifeco Business Overview & Revenue Model

Company Description

Great-West Lifeco Inc., a financial services holding company, engages in the life and health insurance, retirement and investment services, asset management, and reinsurance businesses in Canada, the United States, and Europe. The company offers a portfolio of financial and benefit plan solutions for individuals, families, businesses, and organizations; life, disability, critical illness, accidental death, dismemberment, health and dental protection, and creditor insurance products; and retirement savings and income, annuity, and other specialty products. It also provides employer-sponsored retirement savings plans, individual retirement and taxable brokerage accounts, enrollment services, communication materials, investment options, and education services; and fund management, investment, and advisory services. In addition, the company offers private-label recordkeeping and administrative services; and investment products, including equity, fixed income, absolute return, and alternative strategies. Further, it provides protection and wealth management products, including payout annuity products; pension products; and life, annuity/longevity, mortgage surety, and property catastrophe reinsurance products. The company offers its products under the Canada Life, Irish Life, Empower, Putnam Investments, and PanAgora brand names. It distributes its products through a network of advisors, dealers, brokers, managing general agencies, financial institutions, consultants, third-party administrators, sales force, financial planners, employee benefit consultants, banks, and multi-tied agents. The company was founded in 1891 and is based in Winnipeg, Canada. Great-West Lifeco Inc. operates as a subsidiary of Power Financial Corporation.

How the Company Makes Money

Great-West Lifeco makes money through a diversified revenue model focusing on insurance premiums, investment income, and asset management fees. Insurance premiums are generated from individual and group life insurance, health insurance, and annuity products. The company earns investment income through its management of invested assets, which include bonds, mortgages, and equities, generating returns that are used to pay policyholder benefits and enhance shareholder value. Additionally, Great-West Lifeco collects fees from its asset management services, provided by subsidiaries like Putnam Investments, which manage mutual funds and institutional accounts. The company also benefits from strategic partnerships and acquisitions, which help expand its market reach and enhance its product offerings, contributing to its overall earnings growth.

Great-West Lifeco Financial Statement Overview

Summary

Great-West Lifeco demonstrates solid financial health with strong profitability and efficient equity utilization. The company shows resilience with positive revenue growth. However, declining EBIT and EBITDA margins and a slight decrease in free cash flow require attention to cost management.

Income Statement

Great-West Lifeco shows strong profitability with a TTM gross profit margin of 83.48% and a net profit margin of 17.35%. The company has demonstrated a positive revenue growth rate of 8.22% in the TTM period, indicating a recovery from previous declines. However, the EBIT and EBITDA margins have decreased compared to the previous year, suggesting potential cost management issues.

Balance Sheet

The company's debt-to-equity ratio is stable at 0.32, reflecting a conservative leverage position. Return on equity is healthy at 14.11%, indicating efficient use of equity to generate profits. However, the equity ratio is relatively low, suggesting a high reliance on debt financing.

Cash Flow

Operating cash flow to net income ratio is strong at 1.49, indicating good cash generation relative to net income. However, free cash flow has declined slightly, with a negative growth rate of -1.15% in the TTM period. The free cash flow to net income ratio remains stable at 1.0, showing consistent cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	41.10B	17.22B	25.27B	44.70B	64.45B	60.60B
Gross Profit	23.35B	17.22B	25.27B	44.70B	64.45B	60.60B
EBITDA	5.22B	5.93B	4.00B	3.72B	4.74B	3.82B
Net Income	3.86B	4.07B	2.87B	3.73B	3.26B	3.08B
Balance Sheet
Total Assets	814.84B	802.16B	713.23B	701.46B	630.49B	600.49B
Cash, Cash Equivalents and Short-Term Investments	25.54B	24.71B	19.38B	18.84B	17.23B	7.95B
Total Debt	9.29B	10.23B	9.65B	11.29B	9.73B	10.71B
Total Liabilities	782.15B	771.01B	683.38B	669.14B	600.00B	573.48B
Stockholders Equity	29.54B	29.54B	26.84B	29.01B	27.22B	24.03B
Cash Flow
Free Cash Flow	4.28B	4.75B	5.20B	7.05B	10.37B	9.61B
Operating Cash Flow	4.28B	4.75B	5.20B	7.05B	10.37B	9.61B
Investing Cash Flow	-103.00M	-408.00M	-786.00M	-5.49B	-11.21B	-8.20B
Financing Cash Flow	-2.71B	-2.29B	-3.55B	-620.00M	-992.00M	2.01B

Great-West Lifeco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 53.84
• 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:GWO, the sentiment is Positive. The current price of 53.84 is below the 20-day moving average (MA) of 54.23, above the 50-day MA of 53.04, and above the 200-day MA of 50.33, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 50.83 is Neutral, neither overbought nor oversold. The STOCH value of 34.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:GWO.

Great-West Lifeco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FFH	80 Outperform	59.26B	8.45	16.10%	0.87%	16.79%	20.82%
MFC	76 Outperform	74.01B	13.97	12.14%	3.95%	9.37%	32.06%
IAG	75 Outperform	14.46B	14.47	12.86%	2.36%	-4.55%	42.41%
SLF	75 Outperform	46.68B	14.73	12.17%	4.14%	-0.61%	6.69%
POW	73 Outperform	37.34B	13.68	11.54%	5.10%	11.56%	1.15%
GWO	72 Outperform	C$49.74B	13.44	14.19%	4.43%	15.27%	4.72%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Great-West Lifeco Corporate Events

Great-West Lifeco Launches C$150 Million Preferred Shares Offering

Great-West Lifeco announced an agreement with a syndicate of underwriters to issue 6,000,000 Non-Cumulative First Preferred Shares, Series Z, at C$25.00 per share, raising C$150 million. The offering, which may increase to C$200 million if an option to purchase additional shares is exercised, is intended for general corporate purposes and is expected to close on or about September 24, 2025. This move is part of Lifeco’s strategy to strengthen its financial position and enhance its market presence in the financial services industry.

The most recent analyst rating on (TSE:GWO) stock is a Hold with a C$56.00 price target. To see the full list of analyst forecasts on Great-West Lifeco stock, see the TSE:GWO Stock Forecast page.

Great-West Lifeco’s CEO to Engage in Virtual Fireside Chat

Great-West Lifeco Inc. announced that Edmund F. Murphy, President and CEO of Empower, will participate in a virtual fireside chat with TD Cowen’s Senior Equity Analyst, William Katz, on September 15, 2025. This event highlights the company’s engagement with financial analysts and stakeholders, potentially impacting its market visibility and investor relations.

The most recent analyst rating on (TSE:GWO) stock is a Buy with a C$62.00 price target. To see the full list of analyst forecasts on Great-West Lifeco stock, see the TSE:GWO Stock Forecast page.

Great-West Lifeco Appoints New Chief Investment Officer

Great-West Lifeco has appointed John Melvin as Chief Investment Officer, effective October 1, 2025. With over 30 years of investment experience, Melvin will focus on enhancing investment capabilities and identifying new growth opportunities, reflecting the company’s commitment to strengthening its leadership and supporting strategic objectives.

The most recent analyst rating on (TSE:GWO) stock is a Buy with a C$62.00 price target. To see the full list of analyst forecasts on Great-West Lifeco stock, see the TSE:GWO Stock Forecast page.

Great-West Lifeco Doubles Share Repurchase Limit in Strategic Move

Great-West Lifeco Inc. announced amendments to its normal course issuer bid (NCIB), increasing the maximum number of common shares that can be repurchased from 20 million to 40 million. The Toronto Stock Exchange approved an amendment allowing Lifeco to purchase shares from Power Financial Corporation to maintain its proportionate interest. This move supports Lifeco’s strategic plan to repurchase an additional $500 million in shares in 2025, enhancing shareholder value and maintaining market stability.

The most recent analyst rating on (TSE:GWO) stock is a Buy with a C$62.00 price target. To see the full list of analyst forecasts on Great-West Lifeco stock, see the TSE:GWO Stock Forecast page.

Great-West Lifeco CFO to Present at Barclays Conference

Great-West Lifeco announced that its Executive Vice President and Chief Financial Officer, Jon Nielsen, will present at the Barclays Global Financial Services Conference on September 8, 2025. This participation highlights the company’s active engagement in the financial services industry and may provide insights into its strategic direction and financial outlook.

The most recent analyst rating on (TSE:GWO) stock is a Buy with a C$62.00 price target. To see the full list of analyst forecasts on Great-West Lifeco stock, see the TSE:GWO Stock Forecast page.

Great-West Lifeco CEO to Present at Scotiabank Financials Summit

Great-West Lifeco announced that its President and CEO, David Harney, will speak at the Scotiabank Financials Summit on September 4, 2025. This engagement highlights the company’s active participation in industry events, potentially enhancing its visibility and influence within the financial sector.

The most recent analyst rating on (TSE:GWO) stock is a Buy with a C$62.00 price target. To see the full list of analyst forecasts on Great-West Lifeco stock, see the TSE:GWO Stock Forecast page.