Power Corporation of Canada (POW.TO) | Investment Case

1. Company Snapshot

1.a. Company Description

Power Corporation of Canada operates as an international management and holding company in North America, Europe, and Asia.It operates through Lifeco, IGM Financial, and GBL segments.The company offers life, disability, critical illness, accidental death, dismemberment, health and dental protection, and creditor insurance; retirement and investment management; asset management; and reinsurance and retrocession; investment advisory, financial planning, and related services; and fund, protection, and wealth management services.

It also provides employer-sponsored defined contribution plan, individual retirement account and drawdown, enrollment, communication material, investment option, and education services, as well as taxable brokerage accounts; private label recordkeeping and administrative services; payout annuities, equity release mortgages, life bonds, mortgage, securities, pension, private equity, debt and thematic fund, and financial services; and investment products, such as equity, fixed income, absolute return and alternative strategies, exchange traded funds, trust funds, and model-based separately managed accounts and portfolios.In addition, the company holds interests in various businesses, such as mineral-based specialty solutions; testing, inspection, and certification; cement, aggregates, and concrete; wines and spirits; sportswear and sports equipment design and distribution; materials technology and recycling of precious metals; disposable hygiene products; Atlantic salmon; customer experience and business process outsourcing; regional leisure parks; mobile game development and publishing; and bicycle manufacturing.Further, it generates renewable energy through solar and wind facilities; and designs, develops, and manufactures specification-grade LED solutions and zero-emission vehicles.

The company was incorporated in 1925 and is based in Montréal, Canada.Power Corporation of Canada operates as a subsidiary of Pansolo Holding Inc.

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1.b. Last Insights on POW

Power Corporation of Canada's recent performance was driven by strong Q2 2025 earnings, with EPS of CA$1.20, up from CA$1.12 in 2Q 2024. Revenue reached CA$9.50 billion, a 5.4% increase. A significant move by Scotia Canadian Equity Fund, as disclosed on August 29, 2025, also contributed to the positive momentum. Additionally, the company's dividend stock offering, with yields of up to 5.4%, has attracted investors seeking stable income amid economic uncertainty.

1.c. Company Highlights

Last Price	70.44
Change Percentage	0.31%
Open	70.25
Previous Close	70.22
Market Cap ( Millions)	45288
Volume	456763
Year High	72.49
Year Low	41.88
M A 50	65.42
M A 200	56.04

FCF Yield	10.06%
Dividend Yield	3.41%
ROE	11.66%
Debt / Equity	89.20%
Net Debt / EBIDTA	142.36%
Price To Book	1.89
Price Earnings Ratio	16.34
Price To FCF	9.94
Price To sales	0.94
EV / EBITDA	9.31

2. Power Corporation's Q3 2025 Earnings: A Strong Performance

Power Corporation reported adjusted net earnings from continuing operations of $863 million, a 25% year-over-year increase. Earnings per share (EPS) came in at $1.36, beating analyst estimates of $1.34. The company's revenue growth was driven by strong performances from its subsidiaries, Great-West Life and IGM. Great-West's contribution to Power's adjusted net earnings was up 16% year-over-year, while IGM's contribution was up 23%. The company's net asset value per share stood at $72.24 as of September 30, 2025.

Publication Date: Nov -16

                                    📋 Highlights
                                    Adjusted Net Earnings::
                                                Surged to $863 million, a 25% YoY increase, driven by strong performance in Great-West and IGM.
Great-West Contribution::
                                                Rose 16% YoY, supported by six consecutive quarters of over $1 billion in base earnings and double-digit growth in U.S. and European operations.
IGM Growth::
                                                Adjusted earnings up 23% YoY, with record AUM/AUA of $14% YoY growth, fueled by strong client flows at IG Wealth and Mackenzie.
Cash Position & Buybacks::
                                                Ended Q3 with $1.9 billion in cash, $1.5 billion available post-dividends, and repurchased 3 million shares ($170 million) under the NCIB program.
Strategic Investments::
                                                Wealthsimple and Sagard transactions highlighted value creation; Sagard’s stake diluted to 45% post-Baird partnership, while Unigestion acquisition expected to close in early 2026.

                                

Segment Performance

Great-West Life continued to meet or exceed its medium-term objectives, with strong earnings growth driven by its U.S. business, Europe, and Capital and Risk Solutions. IGM also reported strong AUA and AUM growth, driven by net flows in IG Wealth and Mackenzie. The company's strategic investment portfolio, including Wealthsimple and Sagard, demonstrated significant value creation, with two transactions announced during the quarter.

Cash Flow and Capital Allocation

Power Corporation generated strong cash flow during the quarter, ending with a cash balance of $1.9 billion. The company remained active in its NCIB program, repurchasing 3 million shares worth about $170 million. The company's capital allocation priorities remain focused on the U.S. market, particularly Empower, and growing its wealth management business. Management is open to exploring new areas within the financial services sector but prioritizes building around its existing franchises.

Valuation and Outlook

Using the Price-to-Book Ratio (P/B) of 1.86 and the Dividend Yield of 3.44%, we can assess that the company's valuation is reasonable considering its strong earnings growth and cash flow generation. The company's ROE of 11.66% indicates a decent return on equity. As the company continues to create value through its strategic investments, including Wealthsimple and Sagard, it is well-positioned to achieve mid-teen returns over time. With a strong track record of cash flow generation and a solid capital allocation strategy, Power Corporation is an attractive investment opportunity in the financial sector.

3. NewsRoom

TSX Dividend Stocks Including Canadian Imperial Bank of Commerce And 2 More Income Generators

Nov -28

Source:

Power Corporation Announces Closing of Preferred Share Issue

Nov -20

Source:

TSX Dividend Stocks Including Olympia Financial Group And Two More

Nov -20

Source:

Power Corp of Canada Price Target Raised to $68 at RBC

Nov -19

Source:

Four Canadian public institutions welcome proposed donation of Hudson's Bay Company Royal Charter through shared public custodianship model

Nov -15

Source:

Power Corporation of Canada (TSX:POW) Is Up 5.7% After Dividend Hike and Buyback Amid Strong Earnings – Has The Bull Case Changed?

Nov -14

Source:

Power Corp. of Canada Downgraded to Hold at TD

Nov -14

Source:

Power Corporation of Canada (PWCDF) Q3 2025 Earnings Call Highlights: Strong Earnings Growth ...

Nov -13

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.82%)

6. Segments

Lifeco

Expected Growth: 5.4%

Lifeco's 5.4% growth is driven by increasing demand for insurance products, expansion into Asian markets, and strategic acquisitions. Additionally, the company's diversified portfolio, strong brand recognition, and effective cost management contribute to its growth momentum.

IGM Financial

Expected Growth: 7.88%

IGM Financial's 7.88% growth is driven by its diversified wealth management business, strong investment performance, and strategic acquisitions. The company's scale and market presence in Canada, coupled with its ability to attract and retain high-net-worth clients, contribute to its growth momentum.

Alternative Asset Investment Platforms and Other

Expected Growth: 9.72%

Power Corporation of Canada's 9.72% growth in Alternative Asset Investment Platforms and Other is driven by increasing demand for diversification, low interest rates, and rising allocations to alternative assets. Additionally, the growth of wealth management and pension funds, as well as the expansion of digital platforms, have contributed to this segment's growth.

Reconciling Items

Expected Growth: 10.27%

Power Corporation of Canada's 10.27% growth is driven by strong investment returns from its diversified portfolio, particularly in the insurance and wealth management segments. Additionally, the company's strategic acquisitions and partnerships have expanded its reach and improved operational efficiency, contributing to its robust growth.

Holding Company

Expected Growth: 4.77%

Power Corporation of Canada's holding company growth of 4.77% is driven by its diversified portfolio of subsidiaries, including insurance companies, wealth management firms, and investment platforms. Strong brand recognition, strategic acquisitions, and effective cost management also contribute to its growth. Additionally, the company's focus on digital transformation and innovation enables it to stay competitive in the market.

7. Detailed Products

Wealth Management

Power Corporation of Canada offers wealth management services through its subsidiary, Great-West Lifeco Inc. This segment provides a range of investment and wealth management products and services to individuals, families, and businesses.

Insurance

Power Corporation of Canada offers a range of insurance products and services through its subsidiaries, including Great-West Lifeco Inc. and IGM Financial Inc. This segment provides life insurance, health insurance, and other insurance products to individuals and groups.

Investment Management

Power Corporation of Canada offers investment management services through its subsidiaries, including Great-West Lifeco Inc. and IGM Financial Inc. This segment provides a range of investment products and services to individuals, institutions, and pension funds.

Retirement Services

Power Corporation of Canada offers retirement services through its subsidiaries, including Great-West Lifeco Inc. This segment provides a range of retirement savings and income products and services to individuals and employers.

Specialty Finance

Power Corporation of Canada offers specialty finance services through its subsidiaries, including Great-West Lifeco Inc. This segment provides financing solutions for businesses and individuals.

8. Power Corporation of Canada's Porter Forces

Forces Ranking

Threat Of Substitutes

Power Corporation of Canada operates in a diversified industry with various business segments, including wealth management, insurance, and investment management. The threat of substitutes is moderate, as customers have alternative options for investment and wealth management services.

Bargaining Power Of Customers

Power Corporation of Canada's customers are largely institutional investors and high-net-worth individuals, who have limited bargaining power due to their reliance on the company's expertise and services.

Bargaining Power Of Suppliers

Power Corporation of Canada has a diversified supplier base, and its suppliers have limited bargaining power due to the company's scale and negotiating power.

Threat Of New Entrants

The financial services industry has high barriers to entry, including regulatory hurdles and significant capital requirements, making it difficult for new entrants to compete with established players like Power Corporation of Canada.

Intensity Of Rivalry

The financial services industry is highly competitive, with many established players competing for market share. Power Corporation of Canada faces intense rivalry from other financial institutions, wealth management firms, and investment companies.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	48.01%
Debt Cost	3.95%
Equity Weight	51.99%
Equity Cost	9.41%
WACC	6.79%
Leverage	92.34%

11. Quality Control: Power Corporation of Canada passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Power Corp

A-Score: 6.9/10

Value: 6.4

Growth: 2.2

Quality: 5.4

Yield: 9.0

Momentum: 8.5

Volatility: 10.0

1-Year Total Return ->

Unum

A-Score: 6.8/10

Value: 7.4

Growth: 5.7

Quality: 6.4

Yield: 5.0

Momentum: 8.5

Volatility: 8.0

1-Year Total Return ->

CNO Financial Group

A-Score: 6.3/10

Value: 6.7

Growth: 6.4

Quality: 5.1

Yield: 4.0

Momentum: 7.0

Volatility: 8.3

1-Year Total Return ->

Primerica

A-Score: 6.2/10

Value: 5.6

Growth: 7.3

Quality: 7.4

Yield: 3.0

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

F&G Annuities & Life

A-Score: 5.9/10

Value: 8.4

Growth: 8.4

Quality: 6.2

Yield: 5.0

Momentum: 1.5

Volatility: 6.0

1-Year Total Return ->

Jackson Financial

A-Score: 5.9/10

Value: 5.3

Growth: 4.3

Quality: 7.1

Yield: 8.0

Momentum: 5.0

Volatility: 5.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-5.40%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.79%

Power Corporation of Canada - CA7392391016

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on POW

1.c. Company Highlights

Higher Yield

Lower Growth

Less Volatile

Revenues Beats

Earnings Miss

Earnings Beats

Cheaper

Lower Quality

Strong Momentum

2. Power Corporation's Q3 2025 Earnings: A Strong Performance

Segment Performance

Cash Flow and Capital Allocation

Valuation and Outlook

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.82%)

6. Segments

Lifeco

Expected Growth: 5.4%

IGM Financial

Expected Growth: 7.88%

Alternative Asset Investment Platforms and Other

Expected Growth: 9.72%

Reconciling Items

Expected Growth: 10.27%

Holding Company

Expected Growth: 4.77%

7. Detailed Products

Wealth Management

Insurance

Investment Management

Retirement Services

Specialty Finance

8. Power Corporation of Canada's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Power Corporation of Canada passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

70.44$

Current Price

70.44$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA