Great-West Lifeco Inc. Fundamental Analysis
Great-West Lifeco Inc. (GWO.TO) shows moderate financial fundamentals with a PE ratio of 19.41, profit margin of 12.86%, and ROE of 15.17%. The company generates $34.8B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 75.2/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze GWO.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakGWO.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentGWO.TO trades at attractive valuation levels.
Growth Score
ModerateGWO.TO shows steady but slowing expansion.
Financial Health Score
ExcellentGWO.TO maintains a strong and stable balance sheet.
Profitability Score
ModerateGWO.TO maintains healthy but balanced margins.
Key Financial Metrics
Is GWO.TO Expensive or Cheap?
P/E Ratio
GWO.TO trades at 19.41 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, GWO.TO's PEG of 1.43 indicates fair valuation.
Price to Book
The market values Great-West Lifeco Inc. at 2.74 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.51 times EBITDA. This signals the market has high growth expectations.
How Well Does GWO.TO Make Money?
Net Profit Margin
For every $100 in sales, Great-West Lifeco Inc. keeps $12.86 as profit after all expenses.
Operating Margin
Core operations generate 20.49 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.17 in profit for every $100 of shareholder equity.
ROA
Great-West Lifeco Inc. generates $0.52 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Great-West Lifeco Inc. produces operating cash flow of $4.99B, showing steady but balanced cash generation.
Free Cash Flow
Great-West Lifeco Inc. generates strong free cash flow of $4.99B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.52 in free cash annually.
FCF Yield
GWO.TO converts 6.06% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.41
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.43
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.74
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.36
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.30
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.57
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
0.008
vs 25 benchmark
How GWO.TO Stacks Against Its Sector Peers
| Metric | GWO.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.41 | 21.31 | Neutral |
| ROE | 15.17% | 637.00% | Weak |
| Net Margin | 12.86% | -930.00% (disorted) | Strong |
| Debt/Equity | 0.30 | 1.50 | Strong (Low Leverage) |
| Current Ratio | 6.57 | 918.84 | Strong Liquidity |
| ROA | 0.52% | -868.00% (disorted) | Weak |
GWO.TO outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, 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
N/A
Industry Style: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical