Great-West Lifeco Inc
Great-West Lifeco Inc Fundamental Analysis
Great-West Lifeco Inc (GRWLF) shows moderate financial fundamentals with a PE ratio of 3.96, profit margin of 10.41%, and ROE of 13.98%. The company generates $136.9B in annual revenue with weak year-over-year growth of -31.86%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 21.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GRWLF's fundamental strength across five key dimensions:
Efficiency Score
WeakGRWLF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentGRWLF trades at attractive valuation levels.
Growth Score
ModerateGRWLF shows steady but slowing expansion.
Financial Health Score
ExcellentGRWLF maintains a strong and stable balance sheet.
Profitability Score
WeakGRWLF struggles to sustain strong margins.
Key Financial Metrics
Is GRWLF Expensive or Cheap?
P/E Ratio
GRWLF trades at 3.96 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GRWLF's PEG of 0.79 indicates potential undervaluation.
Price to Book
The market values Great-West Lifeco Inc at 0.55 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.68 times EBITDA. This is generally considered low.
How Well Does GRWLF Make Money?
Net Profit Margin
For every $100 in sales, Great-West Lifeco Inc keeps $10.41 as profit after all expenses.
Operating Margin
Core operations generate 16.66 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.98 in profit for every $100 of shareholder equity.
ROA
Great-West Lifeco Inc generates $0.48 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Great-West Lifeco Inc generates limited operating cash flow of $9.37B, signaling weaker underlying cash strength.
Free Cash Flow
Great-West Lifeco Inc produces free cash flow of $9.37B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $4.08 in free cash annually.
FCF Yield
GRWLF converts 4.79% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
3.96
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.79
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.43
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.45
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.80
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
0.008
vs 25 benchmark
How GRWLF Stacks Against Its Sector Peers
| Metric | GRWLF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 3.96 | 19.11 | Better (Cheaper) |
| ROE | 13.98% | 821.00% | Weak |
| Net Margin | 10.41% | 1655.00% | Weak |
| Debt/Equity | 0.45 | 1.00 | Strong (Low Leverage) |
| Current Ratio | 5.80 | 659.22 | Strong Liquidity |
| ROA | 0.48% | 1976.00% | Weak |
GRWLF outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Great-West Lifeco Inc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-60.91%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
65.76%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-21.08%
Industry Style: Value, Dividend, Cyclical
Declining