Power Corp of Canada (POW) AI Stock Analysis

• Market Cap: C$32.12B
• Dividend Yield: 4.6%
• Average Volume (3M): 2.69M
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.83
• Revenue Growth: 7.63%
• EPS Growth: 8.84%
• Country: CA
• Employees: 30,000
• Sector: Financial
• Sector Strength: 87
• Industry: Insurance - Life
• EPS (TTM): 1.22
• Shares Outstanding: 587,237,600
• 10 Day Avg. Volume: 1,619,765
• 30 Day Avg. Volume: 2,693,900
• PEG Ratio: -24.35
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.10
• 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$55.14
• Price Target Upside: 10.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

Power Corp of Canada shows resilience with robust cash flow management, stable financials, and an attractive dividend yield. The earnings call underscores growth in net earnings and strategic initiatives. However, challenges in revenue growth and operational efficiency, coupled with recent share price volatility, temper the outlook. The stock's technical indicators suggest caution in the short term, though long-term valuation remains appealing.

Positive Factors

Earnings Contribution

GBLB's estimated contribution to POW's adjusted earnings was better than expected, at C$20mm versus previous C$11mm estimate.

Target Price Increase

The target price has been increased to $52 from $49, reflecting recently increased GWO and IGM targets.

Negative Factors

Earnings Estimate

Modestly lower 2025E adjusted EPS to $5.42 from $5.47, incorporating new estimates for modestly negative impact of 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.

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 shows mixed financial performance. While there's a decline in revenue, the company has improved its net profit margin. The balance sheet reflects financial stability with controlled leverage and a strong equity position. Cash flow remains robust, with effective cash conversion and solid free cash flow generation.

Income Statement

Power Corp of Canada showed a decline in total revenue from 2023 to 2024, impacting its growth trajectory. The gross profit margin remains consistent due to the nature of the business, with gross profit equaling total revenue. The net profit margin increased from 4.84% in 2023 to 7.02% in 2024, indicating improved profitability despite lower revenue. The decline in EBIT and EBITDA margins in 2024 compared to 2023 signals challenges in operational efficiency.

Balance Sheet

The company maintains a strong equity position, with a debt-to-equity ratio of 0.95 in 2024, reflecting moderate leverage. Return on equity (ROE) improved to 11.70% in 2024, demonstrating effective use of equity to generate profit. The equity ratio remained stable at 2.80%, indicating a balanced capital structure. Overall, the balance sheet suggests financial stability with controlled leverage.

Cash Flow

Despite a slight decrease in operating cash flow from 2023, the company maintains a robust free cash flow, with a growth rate of 6.63%. The operating cash flow to net income ratio was 2.13 in 2024, highlighting efficient cash conversion. Free cash flow to net income ratio of 1.82 indicates strong cash generation relative to net income. Overall, cash flow statements reflect solid cash management and sustainability.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
34.90B	39.80B	46.43B	48.74B	69.56B	64.62B
	Gross Profit
35.58B	39.80B	46.43B	48.74B	69.56B	64.62B
	EBIT
-2.54B	5.53B	6.97B	3.09B	3.04B	1.59B
	EBITDA
5.54B	5.97B	4.90B	5.89B	5.96B	4.67B
	Net Income Common Stockholders
2.73B	2.79B	2.25B	3.54B	4.67B	3.53B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
28.63B	27.69B	21.88B	22.25B	8.16B	9.48B
	Total Assets
854.84B	851.36B	749.48B	733.65B	661.63B	629.10B
	Total Debt
21.64B	22.80B	20.94B	21.17B	19.53B	21.54B
	Net Debt
9.06B	10.25B	11.80B	12.31B	11.37B	12.06B
	Total Liabilities
810.39B	807.37B	708.21B	689.55B	617.90B	590.37B
	Stockholders Equity
24.15B	23.88B	22.14B	24.02B	24.34B	22.21B
Cash Flow		Free Cash Flow
4.46B	5.08B	4.76B	6.70B	10.49B	9.71B
	Operating Cash Flow
5.31B	5.95B	5.93B	7.50B	11.05B	10.10B
	Investing Cash Flow
-1.44B	-1.76B	-2.62B	-6.50B	-10.58B	-8.41B
	Financing Cash Flow
-1.99B	-1.32B	-2.80B	-948.00M	-962.00M	1.64B

Power Corp of Canada Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 49.99
• 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:POW, the sentiment is Neutral. The current price of 49.99 is below the 20-day moving average (MA) of 50.76, above the 50-day MA of 49.97, and above the 200-day MA of 44.76, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 47.47 is Neutral, neither overbought nor oversold. The STOCH value of 38.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
MFC	78 Outperform	$77.15B	16.83	10.17%	3.68%	5.24%	13.68%
NA	78 Outperform	$50.32B	11.71	15.64%	3.50%	17.13%	14.73%
IAG	77 Outperform	C$13.22B	14.99	12.54%	2.42%	-7.31%	28.65%
SLF	74 Outperform	$50.38B	16.05	13.18%	3.77%	0.94%	3.50%
POW	72 Outperform	C$32.12B	11.86	11.92%	4.60%	7.63%	8.84%
Sector *	64 Neutral	$12.82B	9.87	7.67%	17000.34%	12.39%	-5.85%
GWO	63 Neutral	C$47.74B	12.45	14.65%	4.43%	17.48%	25.54%

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.

Spark’s Take on TSE:POW Stock

According to Spark, TipRanks’ AI Analyst, TSE:POW is a Outperform.

Power Corp of Canada demonstrates a solid overall performance with strengths in cash flow management and valuation. The company’s strategic initiatives and dividend increase highlight management’s commitment to shareholder value, yet challenges in revenue growth and operational efficiency remain. The moderate technical indicators and attractive dividend yield further bolster the stock’s investment appeal.

To see Spark’s full report on TSE:POW stock, click here.

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.

Spark’s Take on TSE:POW Stock

According to Spark, TipRanks’ AI Analyst, TSE:POW is a Outperform.

Power Corp of Canada demonstrates a solid overall performance with strengths in cash flow management and valuation. The company’s strategic initiatives and dividend increase highlight management’s commitment to shareholder value, yet challenges in revenue growth and operational efficiency remain. The moderate technical indicators and attractive dividend yield further bolster the stock’s investment appeal.

To see Spark’s full report on TSE:POW stock, click here.

Power Corporation Reports Strong 2024 Financial Results and Dividend Increase

Power Corporation of Canada reported strong financial results for the fourth quarter and full year of 2024, with significant increases in net earnings and adjusted net earnings compared to the previous year. The company also announced a 9% dividend increase and highlighted strategic initiatives such as share buybacks and partnerships, which are expected to bolster its market position and enhance shareholder value.

Power Corporation to Release Year-End 2024 Financial Results

Power Corporation of Canada is set to release its fourth quarter and year-end 2024 financial results on March 19, 2025, after market close. The announcement will be followed by a conference call and webcast on March 20, 2025, where the company’s executives will discuss the results, providing stakeholders with insights into the company’s financial performance and strategic direction.