Great-West Lifeco logo

Great-West Lifeco

GWO-PI.TO
57
Insurance - Life · Financial Services
Price
C$20.98
-0.02 (-0.10%)
Market Cap
C$28.45B
Exchange
Toronto Stock Exchange
Winston Score
57
Winston looking curious
Winston is curious
A decent business — some strong pillars, some weaker.

Winston Score between 40 and 70. The stock passes some quality checks but not all.

Great-West Lifeco Inc. is a prominent financial services company with operations spanning Canada, the United States, and Europe. Its core business activities encompass life and health insurance, a wide range of retirement and investment solutions, comprehensive asset management, and reinsurance services. The company delivers an extensive portfolio of insurance products, including coverage for life, accidental death and dismemberment, disability, critical illness, health and dental protection, and creditor insurance. For individuals, families, businesses, and organizations, it provides wealth accumulation services, featuring savings plans, income-generating annuities, and other specialized financial offerings. In addition to individual solutions, Great-West Lifeco offers employer-sponsored retirement savings programs that include saving, investment, and advisory components. Its wealth management capabilities extend to payout annuities, equity release mortgages, various pension products, and investment opportunities. The firm also specializes in bulk and individual payout annuities, life bonds, and retirement drawdown options. Furthermore, the company offers extensive asset management services, catering to a diverse clientele such as pension schemes, insurance companies, wealth managers, fiduciary managers, sovereign wealth funds, and other institutional clients. Its reinsurance arm covers life, annuity/longevity, mortgage surety, and property catastrophe risks. Great-West Lifeco markets its solutions under recognized brands like Canada Life, Irish Life, and Empower. Distribution is facilitated through a broad network comprising sales forces, brokers, consultants, financial advisors, third-party administrators, financial institutions, dealers, managing general agencies, employee benefit consultants, banks, and multi-tied agents. Established in Winnipeg, Canada, in 1891, Great-West Lifeco Inc. functions as a subsidiary of Power Financial Corporation.

Winston Score History

Score breakdown

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Quality

Gross Margin
46.9%
Healthy — 46.9% gross margin
Operating Margin
20.8%
Excellent — 20.8% operating margin
ROCE
4.1%
Weak — 4.1% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-8.0%
Shrinking sales (-8.0% YoY)
EPS YoY
+13.6%
Earnings growing (13.6% YoY)

Healthy double-digit earnings growth — what compounders look like.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
111%
Turns 111% of profit into real cash
FCF Margin
14.3%
Converts sales into free cash efficiently (14.3%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity
0.30
Conservative — low debt load (0.30)
Interest Cover
19.62x
Comfortably covers interest (19.6x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio
14.6x
Attractive valuation — P/E 14.6

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward
N/A
not available
Data not available

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Dividends

Dividend Yield
3.07%
Moderate income — 3.07% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth
+0.0%
Dividend flat

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