Power Corp of Canada (POW) AI Stock Analysis

• Market Cap: C$37.34B
• Dividend Yield: 5.1%
• Average Volume (3M): 1.74M
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.78
• 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: 586,091,400
• 10 Day Avg. Volume: 2,114,492
• 30 Day Avg. Volume: 1,737,362
• 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$59.71
• Price Target Upside: 1.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 73 Outperform
• Price Target: C$64.00 ▲(8.95% Upside)

Power Corp of Canada has a strong overall stock score driven by robust earnings growth and strategic initiatives highlighted in the earnings call. The company's solid financial performance and attractive valuation further support its position. However, technical indicators suggest caution due to potential overbought conditions.

Positive Factors

Strong Earnings Growth

The significant increase in earnings demonstrates the company's effective business model and strategic execution, enhancing its long-term financial stability and shareholder value.

Increased Net Asset Value

A significant increase in NAV per share reflects the company's successful investment strategy and enhances its ability to generate shareholder returns over the long term.

Robust Performance from Subsidiaries

Strong performance from key subsidiaries like Great-West Lifeco and IGM Financial underscores the company's competitive advantage in financial services, supporting sustained revenue growth.

Negative Factors

Limited Scale in Alternative Platforms

Negative fee-related earnings suggest scalability issues in alternative platforms, which could hinder growth in this segment if not strategically addressed.

Negative Impact of Foreign Exchange

Foreign exchange losses can erode profitability, affecting the company's financial performance and highlighting the need for effective currency risk management.

Decline in GBL's Contribution

The decline in GBL's contribution may indicate challenges in specific investment areas, potentially impacting overall earnings growth if not addressed.

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 solid financial health with strong revenue growth and profitability margins. The balance sheet reflects a balanced leverage position, though there is room for improvement in equity financing. Cash flow generation is strong, but growth has slowed, which could be a potential risk if not addressed.

Income Statement

Power Corp of Canada shows a solid revenue growth rate of 6.56% in the TTM, indicating a positive trajectory. The gross profit margin is strong at 57.09%, and the net profit margin is stable at 6.26%. However, the EBIT margin has slightly decreased compared to the previous year, suggesting some pressure on operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is manageable at 0.90, reflecting a balanced approach to leveraging. Return on equity is healthy at 11.64%, indicating effective use of shareholder funds. The equity ratio is relatively low, which may suggest a higher reliance on debt financing.

Cash Flow

Operating cash flow to net income ratio is strong at 1.33, indicating good cash generation relative to net income. Free cash flow growth is modest at 2.13%, and the free cash flow to net income ratio is robust at 0.84, showing efficient cash utilization. However, the growth in free cash flow is not as high as in previous years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	48.07B	39.80B	46.43B	48.74B	69.56B	64.62B
Gross Profit	27.44B	39.80B	46.43B	48.74B	69.56B	64.62B
EBITDA	5.74B	5.97B	4.90B	5.89B	5.96B	4.67B
Net Income	2.77B	2.79B	2.25B	3.54B	4.67B	3.53B
Balance Sheet
Total Assets	867.84B	851.36B	749.48B	733.65B	661.63B	629.10B
Cash, Cash Equivalents and Short-Term Investments	28.55B	27.69B	21.88B	22.25B	8.16B	9.48B
Total Debt	21.40B	22.80B	20.94B	21.17B	19.53B	21.54B
Total Liabilities	823.81B	807.37B	708.21B	689.55B	617.90B	590.37B
Stockholders Equity	23.99B	23.88B	22.14B	24.02B	24.34B	22.21B
Cash Flow
Free Cash Flow	4.56B	5.08B	4.76B	6.70B	10.49B	9.71B
Operating Cash Flow	5.40B	5.95B	5.93B	7.50B	11.05B	10.10B
Investing Cash Flow	-1.15B	-1.76B	-2.62B	-6.50B	-10.58B	-8.41B
Financing Cash Flow	-2.12B	-1.32B	-2.80B	-948.00M	-962.00M	1.64B

Power Corp of Canada Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 58.74
• 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 Positive. The current price of 58.74 is above the 20-day moving average (MA) of 58.17, above the 50-day MA of 56.69, and above the 200-day MA of 50.09, indicating a bullish trend. The MACD of 0.43 indicates Positive momentum. The RSI at 59.07 is Neutral, neither overbought nor oversold. The STOCH value of 42.73 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	59.60B	14.76	0.00%	3.00%	9.25%	0.34%
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	C$37.34B	13.68	12.07%	5.10%	11.56%	1.15%
GWO	72 Outperform	49.74B	13.44	13.06%	4.43%	15.27%	4.72%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

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.