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Power Corporation of Canada

TSX:POW.PRE
Snowflake Description

Established dividend payer with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
POW.PRE
TSX
CA$13B
Market Cap
  1. Home
  2. CA
  3. Insurance
Company description

Power Corporation of Canada operates as diversified international management and holding company with interests in the financial services, sustainable and renewable energy, asset management, and other business sectors in North America, Europe, and Asia. The last earnings update was 73 days ago. More info.


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POW.PRE Share Price and Events
7 Day Returns
0%
TSX:POW.PRE
1.1%
CA Insurance
-0.5%
CA Market
1 Year Returns
-4%
TSX:POW.PRE
9.4%
CA Insurance
1.1%
CA Market
POW.PRE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Power Corporation of Canada (POW.PRE) 0% -0.3% - -4% 5.3% -
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
  • POW.PRE underperformed the Insurance industry which returned 9.4% over the past year.
  • POW.PRE underperformed the Market in Canada which returned 1.1% over the past year.
Price Volatility
POW.PRE
Industry
5yr Volatility vs Market

Value

 Is Power Corporation of Canada 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 Power Corporation of Canada 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 Power Corporation of Canada.

TSX:POW.PRE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= CA$32.38 * 8.9%
CA$2.90
Book Value of Equity per Share Weighted future Book Value estimates from 3 analysts. CA$32.38
Discount Rate (Cost of Equity) See below 9.3%
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:POW.PRE
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%) (136.1%))
1.229
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.23
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.229 * 5.96%)
9.27%

Discounted Cash Flow Calculation for TSX:POW.PRE using Excess Returns Model Model

The calculations below outline how an intrinsic value for Power Corporation of Canada 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:POW.PRE Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (8.9% – 9.27%) * CA$32.38)
CA$-0.11
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= CA$-0.11 / (9.27% - 1.95%)
CA$-1.45
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= CA$32.38 + CA$-1.45
CA$30.92
TSX:POW.PRE Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in TSX:POW.PRE represents 0.99371x of TSX:POW
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.99371x
Value per Share
(Listing Adjusted, CAD)
= Value per Share (CAD) x Listing Adjustment Factor
= CA$ 30.92 x 0.99371
CA$30.73
Value per share (CAD) From above. CA$30.73
Current discount Discount to share price of CA$30.00
= -1 x (CA$30.00 - CA$30.73) / CA$30.73
2.4%

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

Current Discount
Amount off the current price Power Corporation of Canada is available for.
Intrinsic value
2%
Share price is CA$30 vs Future cash flow value of CA$30.73
Current Discount Checks
For Power Corporation of Canada to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Power Corporation of Canada's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Power Corporation of Canada'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 Power Corporation of Canada's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Power Corporation of Canada's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:POW.PRE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in CAD CA$2.15
TSX:POW Share Price ** TSX (2019-10-07) in CAD CA$30.19
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 Power Corporation of Canada.

TSX:POW.PRE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

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

= 30.19 ÷ 2.15

14.03x

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

  • Power Corporation of Canada is overvalued based on earnings compared to the CA Insurance industry average.
  • Power Corporation of Canada is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does Power Corporation of Canada's expected growth come at a high price?
Raw Data
TSX:POW.PRE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.03x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
23.8%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:POW.PRE PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.03x ÷ 23.8%

0.59x

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

  • Power Corporation of Canada is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Power Corporation of Canada's assets?
Raw Data
TSX:POW.PRE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in CAD CA$30.18
TSX:POW Share Price * TSX (2019-10-07) in CAD CA$30.19
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:POW.PRE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 30.19 ÷ 30.18

1x

* Primary Listing of Power Corporation of Canada.

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

  • Power Corporation of Canada is good value based on assets compared to the CA Insurance industry average.
X
Value checks
We assess Power Corporation of Canada'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. Power Corporation of Canada has a total score of 2/6, 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.

Future Performance

 How is Power Corporation of Canada expected to perform in the next 1 to 3 years based on estimates from 4 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
23.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Power Corporation of Canada expected to grow at an attractive rate?
  • Power Corporation of Canada's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Power Corporation of Canada's earnings growth is expected to exceed the Canada market average.
  • Power Corporation of Canada's revenue growth is expected to exceed the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:POW.PRE Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:POW.PRE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 23.8%
TSX:POW.PRE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 9.9%
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:POW.PRE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:POW.PRE Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,562
2020-12-31 55,305 1,999 1
2019-12-31 51,569 1,267 1
2019-10-14
TSX:POW.PRE Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-06-30 47,327 8,332 985
2019-03-31 55,112 6,694 1,054
2018-12-31 48,102 7,116 1,287
2018-09-30 49,378 7,555 1,266
2018-06-30 47,916 6,650 1,550
2018-03-31 48,416 6,611 1,553
2017-12-31 51,369 6,892 1,286
2017-09-30 46,442 6,092 1,537
2017-06-30 49,544 6,226 1,370
2017-03-31 51,314 6,919 1,292
2016-12-31 50,785 6,742 1,082
2016-09-30 51,041 6,508 932

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Power Corporation of Canada's earnings are expected to grow significantly at over 20% yearly.
  • Power Corporation of Canada's revenue is expected to grow by 9.9% 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:POW.PRE 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 4 Analyst Estimates (S&P Global) See Below

All data from Power Corporation of Canada Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:POW.PRE Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 3.67 3.67 3.67 1.00
2020-12-31 3.39 3.42 3.32 3.00
2019-12-31 2.88 2.88 2.88 3.00
2019-10-14
TSX:POW.PRE Past Financials Data
Date (Data in CAD Millions) EPS *
2019-06-30 2.15
2019-03-31 2.26
2018-12-31 2.77
2018-09-30 2.72
2018-06-30 3.34
2018-03-31 3.35
2017-12-31 2.77
2017-09-30 3.32
2017-06-30 2.96
2017-03-31 2.79
2016-12-31 2.34
2016-09-30 2.01

*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.
  • Power Corporation of Canada is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Power Corporation of Canada'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.
Power Corporation of Canada has a total score of 4/6, 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.

Past Performance

  How has Power Corporation of Canada 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 Power Corporation of Canada'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.
  • Power Corporation of Canada's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Power Corporation of Canada's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Power Corporation of Canada's 1-year earnings growth is negative, it can't be compared to the CA Insurance industry average.
Earnings and Revenue History
Power Corporation of Canada'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 Power Corporation of Canada Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:POW.PRE 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 47,327.00 985.00 7,824.00
2019-03-31 55,112.00 1,054.00 7,666.00
2018-12-31 48,102.00 1,287.00 7,572.00
2018-09-30 49,378.00 1,266.00 7,772.00
2018-06-30 47,916.00 1,550.00 7,199.00
2018-03-31 48,416.00 1,553.00 7,253.00
2017-12-31 51,369.00 1,286.00 7,219.00
2017-09-30 46,442.00 1,537.00 7,102.00
2017-06-30 49,544.00 1,370.00 7,527.00
2017-03-31 51,314.00 1,292.00 7,467.00
2016-12-31 50,785.00 1,082.00 7,549.00
2016-09-30 51,041.00 932.00 7,474.00
2016-06-30 46,377.00 1,137.00 7,359.00
2016-03-31 37,913.00 1,480.00 7,110.00
2015-12-31 38,265.00 1,786.00 6,819.00
2015-09-30 40,503.00 1,846.00 6,522.00
2015-06-30 40,002.00 1,688.00 6,093.00
2015-03-31 45,521.00 1,387.00 5,879.00
2014-12-31 42,646.00 1,275.00 5,664.00
2014-09-30 39,904.00 1,206.00 5,498.00
2014-06-30 38,555.00 1,062.00 5,482.00
2014-03-31 32,038.00 994.00 5,237.00
2013-12-31 29,644.00 977.00 4,971.00
2013-09-30 29,176.00 756.00 5,133.00
2013-06-30 30,458.00 750.00 4,774.00
2013-03-31 34,569.00 781.00 4,582.00
2012-12-31 33,434.00 816.00 4,427.00

*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.
  • Power Corporation of Canada has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Power Corporation of Canada used its assets less efficiently than the CA Insurance industry average last year based on Return on Assets.
  • Power Corporation of Canada's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Power Corporation of Canada'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.
Power Corporation of Canada 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.

Health

 How is Power Corporation of Canada'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 Power Corporation of Canada's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Power Corporation of Canada is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Power Corporation of Canada's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Power Corporation of Canada'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 7x 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 Power Corporation of Canada Company Filings, last reported 3 months ago.

TSX:POW.PRE Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 35,729.00 17,470.00 99,624.00
2019-03-31 38,246.00 17,620.00 110,053.00
2018-12-31 38,046.00 17,804.00 107,639.00
2018-09-30 37,579.00 16,757.00 104,877.00
2018-06-30 37,798.00 17,148.00 105,133.00
2018-03-31 37,622.00 17,143.00 106,614.00
2017-12-31 36,816.00 17,542.00 104,535.00
2017-09-30 36,489.00 16,183.00 99,561.00
2017-06-30 36,350.00 16,551.00 101,735.00
2017-03-31 35,690.00 16,680.00 101,412.00
2016-12-31 35,061.00 16,747.00 101,666.00
2016-09-30 34,396.00 15,306.00 101,426.00
2016-06-30 33,846.00 15,379.00 97,796.00
2016-03-31 34,266.00 15,111.00 97,758.00
2015-12-31 35,385.00 15,767.00 98,823.00
2015-09-30 34,514.00 14,834.00 94,913.00
2015-06-30 33,556.00 14,613.00 91,144.00
2015-03-31 32,870.00 14,329.00 5,258.00
2014-12-31 31,485.00 14,921.00 91,701.00
2014-09-30 31,200.00 14,192.00 86,047.00
2014-06-30 30,609.00 13,727.00 84,084.00
2014-03-31 30,463.00 13,705.00 83,970.00
2013-12-31 29,217.00 13,882.00 82,645.00
2013-09-30 28,498.00 12,817.00 79,444.00
2013-06-30 27,112.00 12,362.00 75,272.00
2013-03-31 26,404.00 11,472.00 75,635.00
2012-12-31 25,804.00 11,848.00 75,082.00
  • Power Corporation of Canada's level of debt (48.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (44.9% vs 48.9% today).
  • Debt is well covered by operating cash flow (47.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.9x coverage).
X
Financial health checks
We assess Power Corporation of Canada'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. Power Corporation of Canada has a total score of 3/6, 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.

Dividends

 What is Power Corporation of Canada'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
5.37%
Current annual income from Power Corporation of Canada dividends. Estimated to be 5.36% next year.
If you bought CA$2,000 of Power Corporation of Canada shares you are expected to receive CA$107 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?
  • Power Corporation of Canada's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.03%).
  • Power Corporation of Canada'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:POW.PRE 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 4 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:POW.PRE Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.68 1.00
2020-12-31 1.62 5.00
2019-12-31 1.60 4.00
2019-10-14
TSX:POW.PRE Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-08-02 1.620 5.666
2019-03-20 1.528 5.206
2018-11-08 1.528 5.792
2018-05-11 1.528 5.276
2018-02-14 1.434 4.814
2017-11-10 1.434 4.474
2017-08-04 1.434 4.549
2017-02-15 1.340 4.391
2016-11-11 1.340 4.423
2016-08-05 1.340 4.793
2016-02-17 1.245 4.287
2015-11-13 1.245 4.269
2015-08-07 1.245 4.330
2015-05-15 1.160 3.624
2015-03-18 1.160 3.464
2014-08-11 1.160 3.710
2014-08-08 1.160 3.654
2014-03-06 1.160 3.826
2013-12-06 1.160 3.754
2013-11-14 1.160 3.622
2013-08-02 1.160 3.927
2013-03-14 1.160 4.169
2013-03-13 1.160 4.317
2012-11-14 1.160 4.493
2012-10-15 1.160 4.800
2012-05-15 1.160 4.921
2012-03-14 1.160 4.397
2011-11-11 1.160 4.853
2011-08-05 1.160 4.959
2011-03-10 1.160 4.265
2010-11-12 1.160 4.167
2010-08-06 1.160 4.290
2010-05-13 1.160 4.356
2010-03-11 1.160 3.941
2009-11-12 1.160 4.131
2009-08-07 1.160 4.140
2009-05-13 1.160 4.452
2009-03-11 1.160 5.538
2008-11-11 1.160 5.618

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 Power Corporation of Canada's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).
X
Income/ dividend checks
We assess Power Corporation of Canada'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 Power Corporation of Canada afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Power Corporation of Canada 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.

Management

 What is the CEO of Power Corporation of Canada'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 Desmarais
COMPENSATION CA$3,481,329
AGE 65
TENURE AS CEO 23.8 years
CEO Bio

Mr. Paul Guy Desmarais Jr., O.C., O.Q., III, serves as Chairman at Diagram. He is the Chairman of the Board of Groupe Bruxelles Lambert since April 23, 2019. He is the Executive Chairman of Sagard Holdings. He is also a Senior Vice-President of Power Financial and Power Corporation, as well as Co-Founder & Executive Chairman of Portag3 Ventures L.P. and Chairman of Wealthsimple and Peak Achievement Athletics. He was Vice-Chairman of Imerys until 2008. He was GDF Suez until 2014. He is Chairman and Co-Chief Executive Officer of Power Corporation of Canada since 1996 and Executive Co-Chairman of Power Financial Corporation. He has been Director of Power Corporation of Canada since May, 1988. He joined Power Corporation of Canada in 1981 and assumed the position of Vice-President the following year. In 1984, he led the creation of Power Financial Corporation to consolidate Power Corporation of Canada’s major financial holdings, as well as Pargesa Holding SA, under a single corporate entity. Mr. Desmarais served as Vice-President of Power Financial Corporation from 1984 to 1986, as President and Chief Operating Officer from 1986 to 1989, as Executive Vice-Chairman from 1989 to 1990, as Executive Chairman from 1990 to 2005 and as Executive Co-Chairman since 2008. He also served as Vice-Chairman of Power Corporation of Canada from 1991 to 1996. He was a Member of the Board of Directors of Lafarge?S.A. from 2008 to 2015. After Power Financial Corporation and the Frère Group of Belgium took control of Pargesa in 1990, Mr. Desmarais moved to Europe from 1991 to 1994, to develop the partnership with the Frère Group and to restructure the Pargesa group (“Pargesa”). In 2003, he was Co-Chief Executive Officer and in 2013 named Chairman of the Board of Pargesa. He has been a Director of Pargesa since 1992. He has been Director of London Life Insurance Company since November 13, 1997, Great-West Life Assurance Company since July 24, 1984 and Canada Life Assurance Company since July 10, 2003. He is a director of many Power group companies, including Power Financial, Great-West Life & Annuity, Canada Life Financial, Canada Life, Putnam Investments, IGM Financial, Investors Group and Mackenzie. He has been a Director at Great-West Lifeco Inc since May 15, 1986. Previously, he was Assistant Vice-President in the Risk Management Group of Great-West Lifeco beginning in 2012. He worked in project management and corporate strategy at Imerys. He served as Vice-Chairman of the Board of Groupe Bruxelles Lambert until April 23, 2019 and a director of LafargeHolcim since 2015 and SGS. He was a director of Total until 2017. Mr. Desmarais is Chairman of the Board of Governors of The International Economic Forum of the Americas, a Trustee of The Brookings Institution, Co-Chair of the Brookings International Advisory Council, a member of The Business Council and immediate Past Chairman and a member of The Business Council of Canada. He is also active on a number of philanthropic advisory councils. In 1994, he received the Insigne d’Officier de l’Ordre de la Couronne of Belgium. In 2005, he was named an Officer of the Order of Canada and he received the Executive of the Year Award from the Academy of International Business. He is a director of Great-West Financial. He was named an Officer of the National Order of Quebec in 2009 and Chevalier de la Légion d’honneur in France in 2012. Mr. Desmarais is a trustee of the Desmarais Family Residuary Trust. He began his career in 2004, working for five years with Goldman Sachs, in the Investment Banking and Investment Strategy Groups, as well as in the Special Situations Group. He holds honorary doctorates from McGill University, Université Laval and Universite De Montrea. He obtained a Bachelor of Commerce degree in Business from McGill University, a Bachelor of Arts in Economics from Harvard College (graduating cum laude) and an MBA from the European Institute of Business Administration (INSEAD) in 1980.

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

Average tenure and age of the Power Corporation of Canada management team in years:

7.3
Average Tenure
60
Average Age
  • The average tenure for the Power Corporation of Canada management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Paul Desmarais

TITLE
Chairman & Co-CEO
COMPENSATION
CA$3M
AGE
65
TENURE
23.8 yrs

André Desmarais

TITLE
Deputy Chairman
COMPENSATION
CA$4M
AGE
62
TENURE
23.8 yrs

Greg Tretiak

TITLE
Executive VP & CFO
COMPENSATION
CA$2M
AGE
63
TENURE
7.4 yrs

Claude Généreux

TITLE
Executive Vice-President
COMPENSATION
CA$1M
AGE
57
TENURE
4.6 yrs

Robert Orr

TITLE
Director
COMPENSATION
CA$137K
AGE
60
TENURE
14.4 yrs

Richard Pan

TITLE
Head of Corporate Finance & VP

Stéphane Lemay

TITLE
VP, General Counsel & Secretary
AGE
51
TENURE
7.2 yrs

Michel Plessis-Bélair

TITLE
Vice Chairman
COMPENSATION
CA$753K
AGE
76

Olivier Desmarais

TITLE
Senior Vice-President
AGE
36
TENURE
2.8 yrs

Paul Desmarais

TITLE
Senior Vice-President
AGE
37
TENURE
2.8 yrs
Board of Directors Tenure

Average tenure and age of the Power Corporation of Canada board of directors in years:

10.6
Average Tenure
63.5
Average Age
  • The average tenure for the Power Corporation of Canada board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Paul Desmarais

TITLE
Chairman & Co-CEO
COMPENSATION
CA$3M
AGE
65

André Desmarais

TITLE
Deputy Chairman
COMPENSATION
CA$4M
AGE
62
TENURE
11.8 yrs

Robert Gratton

TITLE
Honorary Deputy Chairman
COMPENSATION
CA$112K
AGE
76

Robert Orr

TITLE
Director
COMPENSATION
CA$137K
AGE
60
TENURE
14.4 yrs

Emoke Jolan Szathmáry

TITLE
Director
COMPENSATION
CA$176K
AGE
75
TENURE
20.4 yrs

Tony Graham

TITLE
Lead Director
COMPENSATION
CA$202K
AGE
62
TENURE
1.6 yrs

John David Jackson

TITLE
Director
COMPENSATION
CA$175K
AGE
72
TENURE
6.4 yrs

Pierre Beaudoin

TITLE
Director
COMPENSATION
CA$148K
AGE
56
TENURE
14.4 yrs

Isabelle Marcoux

TITLE
Director
COMPENSATION
CA$162K
AGE
49
TENURE
9.4 yrs

Marcel Coutu

TITLE
Director
COMPENSATION
CA$169K
AGE
65
TENURE
8.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
X
Management checks
We assess Power Corporation of Canada'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. Power Corporation of Canada 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.

News

Simply Wall St News

Company Info

Description

Power Corporation of Canada operates as diversified international management and holding company with interests in the financial services, sustainable and renewable energy, asset management, and other business sectors in North America, Europe, and Asia. The company operates through Lifeco, IGM Financial, and Pargesa segments. It offers life, disability and critical illness, and reinsurance products; annuities, securities, and mortgage products; retirement and estate planning; and investment, protection, and wealth management services. The company also manages and distributes mutual funds and other managed asset products; and offers investment products, including equity, fixed income, and absolute return and alternative strategies, as well as investment advisory and related services. In addition, it generates renewable energy through solar and wind facilities; manufactures specification-grade LED lighting solutions and zero-emission vehicles; and operates equity investment funds. Further, it holds interests in various businesses, such as mineral-based specialty solutions for industry; testing, inspection and certification; cement, aggregates and concrete; wines and spirits; design and distribution of sportswear; materials technology and recycling of precious metals; disposable hygiene products; and regional leisure parks, as well as in oil and gas, chemical, and food and beverage sectors. The company was founded in 1925 and is headquartered in Montréal, Canada. Power Corporation of Canada is a subsidiary of Pansolo Holding Inc.

Details
Name: Power Corporation of Canada
POW.PRE
Exchange: TSX
Founded: 1925
CA$12,835,886,910
425,477,619
Website: http://www.powercorporation.com
Address: Power Corporation of Canada
751 Victoria Square,
Montréal,
Quebec, H2Y 2J3,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX POW Subordinate Voting Shares The Toronto Stock Exchange CA CAD 14. Dec 1972
OTCPK PWCD.F Subordinate Voting Shares Pink Sheets LLC US USD 14. Dec 1972
DB PCR Subordinate Voting Shares Deutsche Boerse AG DE EUR 14. Dec 1972
TSX POW.PRE Participating Preferred Shares The Toronto Stock Exchange CA CAD 05. Mar 1993
Number of employees
Current staff
Staff numbers
30,000
Power Corporation of Canada employees.
Industry
Life and Health Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/10/14 01:27
End of day share price update: 2019/10/07 00:00
Last estimates confirmation: 2019/08/07
Last earnings filing: 2019/08/02
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.