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Power Corp of Canada
(TSX:POW)
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Rating:73Outperform
Price Target:
C$107.00
â–²(16.75% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by solid but mixed financial performance (improving profitability and leverage, offset by declining TTM revenue and softer cash-flow momentum) and strong technical strength (price above major moving averages with positive MACD). Earnings call commentary was a meaningful positive on record adjusted EPS, strong NAV growth, and ongoing capital returns, while valuation is a modest headwind given the ~23.3 P/E despite a ~2.67% dividend yield.
Positive Factors
Strong NAV and EPS momentum
Sustained NAV appreciation and record adjusted EPS signal durable value creation at the holding level and operating platforms. Large NAV gains expand the balance-sheet buffer, support recurring dividend/buyback capacity, and provide optionality for strategic M&A over a multi-quarter horizon.
Negative Factors
Top-line contraction
A meaningful TTM revenue decline weakens the sustainability of earnings growth and increases reliance on one‑off NAV revaluations and capital returns. If revenue softness persists, it could pressure fee income, underwriting margins and limit organic capital available for reinvestment.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong NAV and EPS momentum
Sustained NAV appreciation and record adjusted EPS signal durable value creation at the holding level and operating platforms. Large NAV gains expand the balance-sheet buffer, support recurring dividend/buyback capacity, and provide optionality for strategic M&A over a multi-quarter horizon.
Read all positive factors
Power Corp of Canada (POW) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$59.33B
Dividend Yield2.69%
Average Volume (3M)1.47M
Price to Earnings (P/E)23.2
Beta (1Y)0.34
Revenue Growth9.74%
EPS Growth-3.94%
CountryCA
Employees41,200
SectorFinancial
Sector Strength70
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)4.11
Shares Outstanding572,866,760
10 Day Avg. Volume1,379,779
30 Day Avg. Volume1,465,639
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$104.00Price Target Upside13.48% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)6.15
Revenue Forecast (FY)C$19.52B
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 Corporation of Canada primarily makes money as a holding company by (1) receiving dividends and other distributions from its operating subsidiaries and publicly traded holdings, (2) recognizing its share of earnings from investments accounte...
Power Corp of Canada Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call presented predominantly positive operational and financial momentum: record adjusted EPS, very strong YoY NAV appreciation (74%), robust performance at Great‑West and IGM (double‑digit EPS growth, Empower crossing $2 trillion AUA, and IGM record quarter), meaningful Wealthsimple and Sagard fair value gains and fundraising, and continued capital returns (H1 buybacks/dividends and $12B returned since 2020). Offsetting items were modest: small losses at some NAV businesses, a $112 million corporate loss, a minor NAV reduction from the LMPG sale, a persistent ~20% NAV discount, and a still‑challenging fundraising/valuation environment for alternatives. Overall, highlights materially outweigh the lowlights, supporting a positive view of the quarter and outlook.Positive Updates
Record Adjusted EPS and Strong Earnings
Adjusted net earnings of $974 million, up 10% year-over-year; record adjusted EPS of $1.55, up 12% year-over-year. Reported net earnings were $690 million and reported EPS was $1.10.
Negative Updates
Small Losses in NAV‑Focused and Sustainable Platforms
GBL and Power Sustainable reported modest losses in the quarter (GBL: ~$5 million loss; Power Sustainable: ~$4 million loss), tempering some NAV-based contributions.
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Q2-2026 Updates
Positive
Negative
Record Adjusted EPS and Strong Earnings
Adjusted net earnings of $974 million, up 10% year-over-year; record adjusted EPS of $1.55, up 12% year-over-year. Reported net earnings were $690 million and reported EPS was $1.10.
Read all positive updates
Company Guidance
The guidance reiterated continuity of Power’s value-creation strategy—focus on organic investment, selective M&A, simplification, and returning capital via dividends and buybacks—backed by a strong balance sheet and three pillars (earnings-focused businesses, NAV-based businesses, alternatives), with many quantitative markers: record adjusted EPS $1.55 (+12% Y/Y) and adjusted net earnings $974M (+10% Y/Y), reported net earnings $690M (EPS $1.10), NAV per share $112.94 (up 74% Y/Y, +34% Q/Q) and adjusted NAV/share $116.01 at last close, gross asset value $77.4B (91% public companies; 94% incl. cash), cash/Cash equivalents $2.2B (available cash ~$1.8B), Power returned $1.5B in H1 and >$12B to shareholders since 2020, and trades at ~20% NAV discount; operating-company targets include Great‑West base ROE 19.3% (surpassing its 19%+ midterm objective), Great‑West base EPS $1.42 (+15% Y/Y) with $925M repurchased YTD and total capital deployment expected ≥$1.6B, Empower client assets >$2T and the Milliman deal adding ~1.5M participants and ~$130B AUM, IGM adjusted EPS $1.41 (+32% Y/Y) with a $211M contribution (+34% Y/Y), IGM net flows $2.2B and AUM&A ~ $622B and $386M returned YTD, Wealthsimple momentum (Power’s position FV $1.7B, Power/IGM/Great‑West collective interest $4.4B, +15% Q/Q; +$30.8B AUA and ~$17B net flows in Q2), Sagard FV +11% (including $15.1B AUM from Unigestion) and Sagard Credit Fund III initial $1B of ~$2B target—management expects Great‑West/IGM to deliver low‑to‑mid‑teens returns, GBL medium‑term double‑digit TSR, and reiterated that buybacks/dividends and simplification will remain levers to grow NAV and narrow the discount.Power Corp of Canada Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
71
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 34.83B | 37.65B | 32.97B | 46.43B | -5.71B | 69.59B |
| Gross Profit | 31.22B | 29.92B | 18.42B | 46.43B | 10.86B | 16.83B |
| EBITDA | 6.59B | 6.08B | 6.32B | 4.90B | 5.88B | 6.67B |
| Net Income | 2.69B | 2.63B | 2.79B | 2.25B | 2.25B | 2.97B |
Balance Sheet | ||||||
| Total Assets | 1.02T | 925.74B | 851.36B | 749.48B | 733.65B | 661.63B |
| Cash, Cash Equivalents and Short-Term Investments | 32.03B | 34.13B | 27.69B | 21.88B | 22.25B | 8.16B |
| Total Debt | 21.98B | 25.88B | 22.80B | 20.94B | 21.17B | 19.53B |
| Total Liabilities | 972.84B | 880.69B | 807.37B | 708.21B | 689.55B | 617.90B |
| Stockholders Equity | 25.11B | 24.43B | 23.88B | 22.14B | 24.02B | 24.34B |
Cash Flow | ||||||
| Free Cash Flow | 5.02B | 4.16B | 5.08B | 4.76B | 6.70B | 10.49B |
| Operating Cash Flow | 5.62B | 4.78B | 5.95B | 5.93B | 7.50B | 11.05B |
| Investing Cash Flow | -1.23B | -348.00M | -1.76B | -2.62B | -6.50B | -10.58B |
| Financing Cash Flow | -2.71B | -3.67B | -1.32B | -2.80B | -948.00M | -962.00M |
Power Corp of Canada Technical Analysis
Positive
91.65
Price Trends
91.90
Positive
85.92
Positive
76.93
Positive
Market Momentum
0.24
Negative
61.12
Neutral
81.37
Negative
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 91.65 is below the 20-day moving average (MA) of 92.93, below the 50-day MA of 91.90, and above the 200-day MA of 76.93, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 61.12 is Neutral, neither overbought nor oversold. The STOCH value of 81.37 is Negative, 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | C$17.90B | 17.39 | 13.70% | 2.05% | 13.06% | 8.42% | |
78 Outperform | C$101.78B | 16.53 | 12.98% | 3.09% | 18.31% | 18.90% | |
78 Outperform | C$20.18B | 17.60 | 12.91% | 2.70% | 19.92% | 20.90% | |
74 Outperform | C$62.42B | 18.90 | 13.89% | 3.35% | -0.59% | 5.22% | |
74 Outperform | C$82.82B | 18.97 | 15.48% | 2.83% | 4.29% | 21.91% | |
73 Outperform | C$59.33B | 23.18 | 10.91% | 2.69% | 9.74% | -3.94% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
TSE:POW
Power Corp of Canada
93.13
36.94
65.73%
TSE:MFC
Manulife Financial
59.82
18.56
44.98%
TSE:SLF
Sun Life Financial
109.72
31.82
40.85%
TSE:IGM
IGM Financial
85.79
37.87
79.02%
TSE:GWO
Great-West Lifeco
91.51
38.74
73.40%
TSE:IAG
iA Financial Corporation Inc
201.88
52.89
35.50%
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.