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Great-West Lifeco

TSX:GWO.PRT
Snowflake Description

Excellent balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GWO.PRT
TSX
CA$29B
Market Cap
  1. Home
  2. CA
  3. Insurance
Company description

Great-West Lifeco Inc., a financial services holding company, engages in life and health insurance, asset management, investment and retirement savings, and reinsurance businesses in Canada, the United States, and Europe. The last earnings update was 75 days ago. More info.


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GWO.PRT Share Price and Events
7 Day Returns
0%
TSX:GWO.PRT
1.1%
CA Insurance
-0.5%
CA Market
1 Year Returns
3.4%
TSX:GWO.PRT
9.4%
CA Insurance
1.1%
CA Market
GWO.PRT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Great-West Lifeco (GWO.PRT) 0% 3.2% 1.3% 3.4% - -
CA Insurance 1.1% 0% 1.7% 9.4% 11.2% 19.9%
CA Market -0.5% -1.9% -1.6% 1.1% 5.5% 8.6%
1 Year Return vs Industry and Market
  • GWO.PRT underperformed the Insurance industry which returned 9.4% over the past year.
  • GWO.PRT outperformed the Market in Canada which returned 1.1% over the past year.
Price Volatility
GWO.PRT
Industry
5yr Volatility vs Market

GWO.PRT Value

 Is Great-West Lifeco undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Great-West Lifeco to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Great-West Lifeco.

TSX:GWO.PRT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 9 analysts.
= Stable Book Value * Return on Equity
= CA$22.53 * 13.5%
CA$3.04
Book Value of Equity per Share Weighted future Book Value estimates from 7 analysts. CA$22.53
Discount Rate (Cost of Equity) See below 7%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:GWO.PRT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.67
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.671 (1 + (1- 26.5%) (22.21%))
0.853
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.85
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (0.853 * 5.96%)
7.03%

Discounted Cash Flow Calculation for TSX:GWO.PRT using Excess Returns Model Model

The calculations below outline how an intrinsic value for Great-West Lifeco is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

TSX:GWO.PRT Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (13.5% – 7.03%) * CA$22.53)
CA$1.46
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= CA$1.46 / (7.03% - 1.95%)
CA$28.64
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= CA$22.53 + CA$28.64
CA$51.16
TSX:GWO.PRT Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in TSX:GWO.PRT represents 0.78508x of TSX:GWO
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.78508x
Value per Share
(Listing Adjusted, CAD)
= Value per Share (CAD) x Listing Adjustment Factor
= CA$ 51.16 x 0.78508
CA$40.17
Value per share (CAD) From above. CA$40.17
Current discount Discount to share price of CA$24.11
= -1 x (CA$24.11 - CA$40.17) / CA$40.17
40%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Great-West Lifeco is available for.
Intrinsic value
40%
Share price is CA$24.11 vs Future cash flow value of CA$40.17
Current Discount Checks
For Great-West Lifeco to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Great-West Lifeco's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Great-West Lifeco's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Great-West Lifeco's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Great-West Lifeco's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:GWO.PRT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in CAD CA$2.58
TSX:GWO Share Price ** TSX (2019-10-11) in CAD CA$30.71
Canada Insurance Industry PE Ratio Median Figure of 12 Publicly-Listed Insurance Companies 12.79x
Canada Market PE Ratio Median Figure of 535 Publicly-Listed Companies 13.7x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Great-West Lifeco.

TSX:GWO.PRT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:GWO Share Price ÷ EPS (both in CAD)

= 30.71 ÷ 2.58

11.92x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Great-West Lifeco is good value based on earnings compared to the CA Insurance industry average.
  • Great-West Lifeco is good value based on earnings compared to the Canada market.
Price based on expected Growth
Does Great-West Lifeco's expected growth come at a high price?
Raw Data
TSX:GWO.PRT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.92x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
11.9%per year
Canada Insurance Industry PEG Ratio Median Figure of 10 Publicly-Listed Insurance Companies 1.05x
Canada Market PEG Ratio Median Figure of 249 Publicly-Listed Companies 0.87x

*Line of best fit is calculated by linear regression .

TSX:GWO.PRT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.92x ÷ 11.9%

1x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Great-West Lifeco is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Great-West Lifeco's assets?
Raw Data
TSX:GWO.PRT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in CAD CA$20.84
TSX:GWO Share Price * TSX (2019-10-11) in CAD CA$30.71
Canada Insurance Industry PB Ratio Median Figure of 14 Publicly-Listed Insurance Companies 1.11x
Canada Market PB Ratio Median Figure of 2,465 Publicly-Listed Companies 1.35x
TSX:GWO.PRT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:GWO Share Price ÷ Book Value per Share (both in CAD)

= 30.71 ÷ 20.84

1.47x

* Primary Listing of Great-West Lifeco.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Great-West Lifeco is overvalued based on assets compared to the CA Insurance industry average.
X
Value checks
We assess Great-West Lifeco's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. Great-West Lifeco has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

GWO.PRT Future Performance

 How is Great-West Lifeco expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Great-West Lifeco expected to grow at an attractive rate?
  • Great-West Lifeco's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Great-West Lifeco's earnings growth is positive but not above the Canada market average.
  • Great-West Lifeco's revenue growth is expected to exceed the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:GWO.PRT Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:GWO.PRT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 11.9%
TSX:GWO.PRT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 9.8%
Canada Insurance Industry Earnings Growth Rate Market Cap Weighted Average 11.4%
Canada Insurance Industry Revenue Growth Rate Market Cap Weighted Average 3.1%
Canada Market Earnings Growth Rate Market Cap Weighted Average 13.3%
Canada Market Revenue Growth Rate Market Cap Weighted Average 5.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:GWO.PRT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:GWO.PRT Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 60,330 3,152 1
2020-12-31 57,475 2,917 2
2019-12-31 57,746 2,515 1
2019-10-14
TSX:GWO.PRT Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-06-30 43,438 7,724 2,515
2019-03-31 51,298 6,144 2,887
2018-12-31 44,036 6,494 2,961
2018-09-30 45,201 7,216 2,643
2018-06-30 43,395 6,306 2,535
2018-03-31 43,849 6,439 2,289
2017-12-31 47,124 6,757 2,149
2017-09-30 42,033 5,859 2,433
2017-06-30 45,215 5,880 2,526
2017-03-31 46,967 6,365 2,612
2016-12-31 46,416 6,254 2,641
2016-09-30 46,911 5,928 2,648

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Great-West Lifeco's earnings are expected to grow by 11.9% yearly, however this is not considered high growth (20% yearly).
  • Great-West Lifeco's revenue is expected to grow by 9.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:GWO.PRT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Great-West Lifeco Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:GWO.PRT Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 3.24 3.39 3.09 2.00
2020-12-31 3.12 3.33 2.41 9.00
2019-12-31 2.64 2.73 2.59 8.00
2019-10-14
TSX:GWO.PRT Past Financials Data
Date (Data in CAD Millions) EPS *
2019-06-30 2.58
2019-03-31 2.92
2018-12-31 3.00
2018-09-30 2.67
2018-06-30 2.56
2018-03-31 2.31
2017-12-31 2.17
2017-09-30 2.46
2017-06-30 2.56
2017-03-31 2.64
2016-12-31 2.67
2016-09-30 2.67

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Great-West Lifeco is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Great-West Lifeco's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Great-West Lifeco has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

GWO.PRT Past Performance

  How has Great-West Lifeco performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Great-West Lifeco's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Great-West Lifeco's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Great-West Lifeco's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Great-West Lifeco's 1-year earnings growth is negative, it can't be compared to the CA Insurance industry average.
Earnings and Revenue History
Great-West Lifeco's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Great-West Lifeco Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:GWO.PRT Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 43,438.00 2,515.00 5,230.00
2019-03-31 51,298.00 2,887.00 5,097.00
2018-12-31 44,036.00 2,961.00 5,033.00
2018-09-30 45,201.00 2,643.00 4,959.00
2018-06-30 43,395.00 2,535.00 4,824.00
2018-03-31 43,849.00 2,289.00 4,737.00
2017-12-31 47,124.00 2,149.00 4,705.00
2017-09-30 42,033.00 2,433.00 4,718.00
2017-06-30 45,215.00 2,526.00 4,789.00
2017-03-31 46,967.00 2,612.00 4,796.00
2016-12-31 46,416.00 2,641.00 4,799.00
2016-09-30 46,911.00 2,648.00 4,724.00
2016-06-30 42,100.00 2,694.00 4,676.00
2016-03-31 33,501.00 2,682.00 4,596.00
2015-12-31 33,820.00 2,762.00 4,466.00
2015-09-30 36,239.00 2,736.00 4,296.00
2015-06-30 36,097.00 2,703.00 4,052.00
2015-03-31 41,940.00 2,659.00 3,886.00
2014-12-31 39,198.00 2,546.00 3,741.00
2014-09-30 36,490.00 2,606.00 3,665.00
2014-06-30 35,242.00 2,442.00 3,591.00
2014-03-31 28,795.00 2,348.00 3,396.00
2013-12-31 26,410.00 2,278.00 3,159.00
2013-09-30 26,045.00 1,912.00 2,973.00
2013-06-30 27,462.00 1,907.00 2,815.00
2013-03-31 31,639.00 1,874.00 2,737.00
2012-12-31 30,588.00 1,806.00 2,684.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Great-West Lifeco has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Great-West Lifeco used its assets less efficiently than the CA Insurance industry average last year based on Return on Assets.
  • Great-West Lifeco's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Great-West Lifeco's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Great-West Lifeco has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

GWO.PRT Health

 How is Great-West Lifeco's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Great-West Lifeco's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Great-West Lifeco is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Great-West Lifeco's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Great-West Lifeco's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 20x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Great-West Lifeco Company Filings, last reported 3 months ago.

TSX:GWO.PRT Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 24,955.00 6,331.00 98,470.00
2019-03-31 27,400.00 6,381.00 108,735.00
2018-12-31 27,398.00 6,916.00 105,392.00
2018-09-30 26,624.00 6,086.00 103,657.00
2018-06-30 26,620.00 6,191.00 103,753.00
2018-03-31 26,435.00 6,085.00 105,173.00
2017-12-31 25,536.00 6,212.00 102,200.00
2017-09-30 25,386.00 5,552.00 98,311.00
2017-06-30 25,428.00 5,691.00 99,709.00
2017-03-31 25,372.00 5,849.00 99,332.00
2016-12-31 25,008.00 6,588.00 99,783.00
2016-09-30 24,256.00 5,287.00 99,968.00
2016-06-30 24,201.00 5,365.00 96,579.00
2016-03-31 24,531.00 5,445.00 96,493.00
2015-12-31 25,260.00 6,035.00 96,622.00
2015-09-30 24,534.00 5,445.00 93,389.00
2015-06-30 23,470.00 5,427.00 89,607.00
2015-03-31 22,888.00 5,532.00 93,127.00
2014-12-31 21,897.00 5,964.00 89,817.00
2014-09-30 21,627.00 5,703.00 84,627.00
2014-06-30 21,122.00 5,770.00 82,767.00
2014-03-31 20,964.00 5,941.00 82,579.00
2013-12-31 19,830.00 6,283.00 80,692.00
2013-09-30 19,435.00 7,673.00 78,377.00
2013-06-30 17,843.00 7,318.00 74,005.00
2013-03-31 17,268.00 6,594.00 74,169.00
2012-12-31 17,011.00 4,895.00 73,195.00
  • Great-West Lifeco's level of debt (25.4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (27.3% vs 25.4% today).
  • Debt is well covered by operating cash flow (122%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 12.5x coverage).
X
Financial health checks
We assess Great-West Lifeco's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Great-West Lifeco has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

GWO.PRT Dividends

 What is Great-West Lifeco's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.38%
Current annual income from Great-West Lifeco dividends. Estimated to be 5.4% next year.
If you bought CA$2,000 of Great-West Lifeco shares you are expected to receive CA$108 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Great-West Lifeco's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.03%).
  • Great-West Lifeco's dividend is below the markets top 25% of dividend payers in Canada (5.98%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:GWO.PRT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
Canada Insurance Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 4.1%
Canada Market Average Dividend Yield Market Cap Weighted Average of 335 Stocks 3.6%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2%
Canada Top 25% Dividend Yield 75th Percentile 6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:GWO.PRT Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.84 1.00
2020-12-31 1.64 6.00
2019-12-31 1.65 5.00
2019-10-14
TSX:GWO.PRT Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-07-31 1.652 5.616
2019-05-02 1.652 5.407
2019-02-07 1.556 4.898
2018-10-31 1.556 5.345
2018-08-01 1.556 4.981
2018-05-03 1.556 4.731
2017-11-02 1.468 4.268
2017-08-02 1.468 4.152
2017-05-04 1.468 4.238
2017-02-09 1.468 3.985
2016-11-03 1.384 3.920
2016-08-03 1.384 4.287
2016-02-11 1.384 3.968
2015-11-05 1.304 3.786
2015-05-07 1.304 3.732
2015-02-12 1.304 3.587
2014-11-06 1.230 3.743
2014-08-07 1.230 3.875
2014-05-08 1.230 4.059
2013-11-07 1.230 3.932
2013-07-31 1.230 4.035
2013-05-02 1.230 4.228
2012-11-08 1.230 4.827
2012-08-01 1.230 5.521
2012-05-03 1.230 5.682
2012-02-09 1.230 5.122
2011-11-10 1.230 5.930
2011-08-03 1.230 5.736
2011-05-05 1.230 4.872
2011-02-10 1.230 4.613
2010-11-10 1.230 4.708
2010-08-04 1.230 4.866
2010-05-06 1.230 4.925
2010-02-11 1.230 4.438
2009-11-05 1.230 4.844
2009-08-06 1.230 4.848
2009-05-07 1.230 5.439
2009-02-12 1.230 7.196
2008-10-30 1.230 5.761

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Great-West Lifeco's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess Great-West Lifeco's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Great-West Lifeco afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Great-West Lifeco has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

GWO.PRT Management

 What is the CEO of Great-West Lifeco's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Paul Mahon
COMPENSATION CA$7,116,415
AGE 55
TENURE AS CEO 6.4 years
CEO Bio

Mr. Paul Anthony Mahon has been the Chief Executive Officer and President of London Life Insurance Company, Canada Life Financial Corporation, Great-West Lifeco Inc. and Canada Life Limited since May 3, 2013. Mr. Mahon has been the Chief Executive Officer and President of The Great-West Life Assurance Company since 2013. He serves as the President of Canada Operations and Chief Operating Officer of Canada Operations at Great-West Life Capital Trust. He has been the Chief Executive Officer and President of The Canada Life Assurance Company since May, 2013 and also serves its Director since May 2, 2013. He has been associated with Great-West Life for 27 years in increasingly senior roles. He served as the President of Canada Operations at Great-West Lifeco Inc. since 2008 and its Chief Operating Officer of Canada. He served as the Chief Operating Officer of Canada of Canada Life Financial Corporation of Canada Life Capital Trust since May 2008. He served as the President of Canada Operations and Chief Operating Officer of Canada Operations at The Canada Life Assurance Company since May 2008. He served as the President and Chief Operating Officer of Canada at The Great-West Life Assurance Company. Mr. Mahon served as an Executive Vice President of Individual Distribution & Corporate Strategy from 2005 to 2008. He served as Senior Vice President of Strategic Planning, Canada and International from 2003 to 2005. He served as Senior Vice President of Group Strategy & Financial Management from 2000 to 2003. Mr. Mahon served as Senior Vice President of Individual Distribution Planning & Operations, Individual Insurance & Investment Products from 1998 to 2000. He served as Vice President of Distribution Research & Development from 1994 to 1998. He served as Manager of Agency Group Sales from 1988 to 1993. He has been a Director of Great-West Life & Annuity Insurance Co. since 2013; London Life Insurance Company since May 2, 2013; The Canada Life Group (U.K.) Limited since 2015; and Great-West Lifeco Inc., since August 2013. He has been a Director of The Great-West Life Assurance Company since May 02, 2013. He served as a Director of Agencies from 1993 to 1994. Mr. Mahon received Bachelor of Commerce from University of Manitoba in 1986 and hold Chartered Life Underwriter designation in 1992.

CEO Compensation
  • Paul's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Paul's remuneration is about average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the Great-West Lifeco management team in years:

4.2
Average Tenure
  • The tenure for the Great-West Lifeco management team is about average.
Management Team

Paul Mahon

TITLE
President
COMPENSATION
CA$7M
AGE
55
TENURE
6.4 yrs

Garry MacNicholas

TITLE
Executive VP & CFO
COMPENSATION
CA$2M
TENURE
4.6 yrs

Raman Srivastava

TITLE
Executive VP & Global Chief Investment Officer
COMPENSATION
CA$3M
TENURE
2.2 yrs

Sharon Geraghty

TITLE
Executive VP & General Counsel
COMPENSATION
CA$4M
TENURE
1.7 yrs

Graham Bird

TITLE
Executive VP & Chief Risk Officer
COMPENSATION
CA$3M
TENURE
4.6 yrs

Gordon Menzie

TITLE
Senior Vice-President of Corporate Finance & Treasury

Philip Armstrong

TITLE
Executive VP & Global Chief Information Officer
COMPENSATION
CA$3M
TENURE
3.8 yrs

Anne Sonnen

TITLE
Senior VP & Chief Compliance Officer
TENURE
1.8 yrs

Marlene Klassen

TITLE
Assistant Vice President of Communications

Grace Palombo

TITLE
Executive VP & Chief HR Officer
AGE
55
TENURE
4.9 yrs
Board of Directors Tenure

Average tenure and age of the Great-West Lifeco board of directors in years:

6.9
Average Tenure
62.5
Average Age
  • The tenure for the Great-West Lifeco board of directors is about average.
Board of Directors

Robert Orr

TITLE
Chairman of the Board
COMPENSATION
CA$428K
AGE
60
TENURE
6.4 yrs

Paul Mahon

TITLE
President
COMPENSATION
CA$7M
AGE
55
TENURE
6.2 yrs

Bob Reynolds

TITLE
President & CEO of Putnam Investments LLC and Chair of Great West Lifeco U.S. LLC
AGE
67
TENURE
0.6 yrs

Greg Tretiak

TITLE
Director
COMPENSATION
CA$360K
AGE
63
TENURE
7.4 yrs

Siim Vanaselja

TITLE
Director
COMPENSATION
CA$534K
AGE
62
TENURE
5.4 yrs

Donald Raymond

TITLE
Director
COMPENSATION
CA$208K
AGE
58
TENURE
2.4 yrs

André Desmarais

TITLE
Director
COMPENSATION
CA$53K
AGE
62
TENURE
27.5 yrs

Paul Desmarais

TITLE
Director
COMPENSATION
CA$292K
AGE
65
TENURE
33.4 yrs

Marcel Coutu

TITLE
Director
COMPENSATION
CA$326K
AGE
65
TENURE
12.4 yrs

Brian Walsh

TITLE
Director
COMPENSATION
CA$408K
AGE
65
TENURE
10.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
X
Management checks
We assess Great-West Lifeco's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Great-West Lifeco has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

GWO.PRT News

Simply Wall St News

GWO.PRT Company Info

Description

Great-West Lifeco Inc., a financial services holding company, engages in life and health insurance, asset management, investment and retirement savings, 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, dental protection, direct marketing, health, and creditor insurance products; and wealth savings and income, accumulation, and annuity products. It also provides employer-sponsored retirement savings plans, individual retirement 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; executive benefits products; and investment products, including equity, fixed income, absolute return, and alternative strategies. Further, it provides protection and wealth management products; payout annuity, and property and casualty reinsurance and retrocession products; and pension products. The company offers its products under the under various brand names, including the Great-West Life, London Life, the Canada Life, the Freedom 55 Financial, the Irish Life, the Great-West Financial, the Empower Retirement, the Putnam Investments, and PanAgora. It distributes its products through a network of advisors, dealers, brokers, managing general agencies, financial institutions, consultants, third-party administrators, wholesale and retail 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. is a subsidiary of Power Financial Corporation.

Details
Name: Great-West Lifeco Inc.
GWO.PRT
Exchange: TSX
Founded: 1891
CA$28,500,385,834
928,049,034
Website: http://www.greatwestlifeco.com
Address: Great-West Lifeco Inc.
100 Osborne Street North,
Winnipeg,
Manitoba, R3C 1V3,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX GWO Common Shares The Toronto Stock Exchange CA CAD 26. Jun 1986
OTCPK GWLI.F Common Shares Pink Sheets LLC US USD 26. Jun 1986
DB GWS Common Shares Deutsche Boerse AG DE EUR 26. Jun 1986
LSE 0AH3 Common Shares London Stock Exchange GB CAD 26. Jun 1986
TSX GWO.PRI PFD 1ST SER I The Toronto Stock Exchange CA CAD 12. Apr 2006
TSX GWO.PRN 5YR RATE PFD-N The Toronto Stock Exchange CA CAD 23. Nov 2010
TSX GWO.PRQ 1ST PFD SER Q % The Toronto Stock Exchange CA CAD 09. Jul 2012
TSX GWO.PRS 1ST PFD SER S The Toronto Stock Exchange CA CAD 22. May 2014
TSX GWO.PRT 5.15 FST PFD T The Toronto Stock Exchange CA CAD 18. May 2017
Number of employees
Current staff
Staff numbers
24,200
Great-West Lifeco employees.
Industry
Life and Health Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/10/14 03:23
End of day share price update: 2019/10/11 00:00
Last estimates confirmation: 2019/10/10
Last earnings filing: 2019/07/31
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.