Great-West Lifeco, Inc. (GWO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Great-West Lifeco, Inc.

Sun Life Financial, Inc.

Manulife Financial Corp.

Power Corp. of Canada

Sagicor Financial Co. Ltd.

Brookfield Reinsurance Ltd.

Why is Great-West Lifeco, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 13.80%

With a growth in Net Profit of 39.24%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 4 consecutive quarters
INTEREST COVERAGE RATIO(Q) Highest at 128.74
ROCE(HY) Highest at 15.73%
DIVIDEND PER SHARE(HY) Highest at CAD 0

With ROE of 17.35%, it has a fair valuation with a 2.65 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 76.54%, its profits have risen by 19.7% ; the PEG ratio of the company is 0.7

Majority shareholders : FIIs

Market Beating performance in long term as well as near term

Along with generating 76.54% returns in the last 1 year, the stock has outperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Great-West Lifeco, Inc. should be less than 10%
Overall Portfolio exposure to Insurance should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Insurance)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Great-West Lifeco, Inc. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Great-West Lifeco, Inc.

76.54%

15.06

17.30%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.76%

EBIT Growth (5y)

EBIT to Interest (avg)

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

15.10%

Dividend Payout Ratio

56.94%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

ROE (avg)

13.80%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.65

EV to EBIT

EV to EBITDA

171.68

EV to Capital Employed

2.62

EV to Sales

1.64

PEG Ratio

0.65

Dividend Yield

ROCE (Latest)

ROE (Latest)

17.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 128.74

ROCE(HY)

Highest at 15.73%

DIVIDEND PER SHARE(HY)

Highest at CAD 0

PRE-TAX PROFIT(Q)

Highest at CAD 1,600 MM

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 18.28 %

EPS(Q)

Highest at CAD 1.31

-3What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 50.72%

NET SALES(Q)

Lowest at CAD 8,151 MM

Here's what is working for Great-West Lifeco, Inc.

Interest Coverage Ratio

Highest at 128.74 and Grown

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

Highest at CAD 1,600 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Dividend per share

Highest at CAD 0 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Operating Profit Margin

Highest at 18.28 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

EPS

Highest at CAD 1.31

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Raw Material Cost

Fallen by 0% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Great-West Lifeco, Inc.

Net Sales

Lowest at CAD 8,151 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Net Sales

Fallen at -26.01%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Dividend Payout Ratio

Lowest at 50.72%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)