Power Corporation of Canada (POW.TO) stock analysis

In our weekly check, Power Corporation of Canada is graded B (A to F). Of 24 checks on debt, profit, cash flow and trend: 18 pass, warnings: 2, red flags: 4.

About Power Corporation of Canada

Power Corporation of Canada is a Financial Services company (Insurance - Diversified) based in Canada, listed on TSX as POW.TO.

What our checks show for POW.TO

Red flags

• Analysts expect revenue to shrink about 18.5% a year.
• The stock has fallen as much as 64% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 12.1 years.
• Return on capital (ROCE) is only 1.6%.

Warning signs

• Earnings per share fell 8% a year over the last 3 years.
• The net margin is only 7.7%: little room if costs rise.

Strengths

• The net margin rose by 3.5 points over 5 years, to 7.7%.
• The gross margin is 89.6% and has risen by 65.5 points: pricing power is holding.
• Operating cash flow is 2.09x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 29.7% a year over the next years.
• Analysts expect the net margin to improve by 16.7 points from today's 7.7%.
• Free cash flow is 14.4% of revenue: cash for dividends, buybacks or growth.

Next earnings report: 2026-11-11

Similar companies

SLF.TO · G.MI · PHOE.TA · AIG · BBSE3.SA

Questions

What grade does Power Corporation of Canada (POW.TO) have?

In our weekly check, Power Corporation of Canada is graded B (A to F). Of 24 checks on debt, profit, cash flow and trend: 18 pass, warnings: 2, red flags: 4. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of POW.TO stock?

This week's biggest flags for Power Corporation of Canada: Weak revenue forecast, Deep past fall, Slow recovery after falls. In total 6 of 24 checks show a warning or a red flag.

What does Power Corporation of Canada do?

Power Corporation of Canada is a Financial Services company (Insurance - Diversified) based in Canada, listed on TSX as POW.TO.

When does Power Corporation of Canada report earnings next?

The next earnings report is expected on 2026-11-11. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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