TD Securities has increased its price target for Power Corporation (PWCDF, Financial) from C$54 to C$56, maintaining a Buy rating on the stock. This adjustment reflects a positive outlook on the company's potential and performance in the market.
PWCDF Key Business Developments
Release Date: March 20, 2025
- Adjusted Net Earnings (Q4 2024): $829 million, up 20% year-over-year.
- Adjusted Net Earnings Per Share (Q4 2024): $1.28, up 21% year-over-year.
- Net Asset Value (NAV) (End of Q4 2024): $60.44, up 4% from Q3 2024.
- Net Asset Value (NAV) (Early 2025): $65.10, up 8% from end of Q4 2024.
- Dividend Increase: 9%, resulting in $0.6125 per share.
- Great-West Lifeco Base Earnings (Q4 2024): Exceeded $1.1 billion, up 15% year-over-year.
- IGM Financial Shareholder Earnings (Q4 2024): Up 23% year-over-year.
- Share Buybacks (2024): Over 400 million shares, including 120 million in Q4.
- Cash Balance (End of 2024): $1.6 billion, with $1.3 billion available after dividends.
- Return on Equity (ROE) for Great-West Lifeco (2024): 18%.
- Great-West Lifeco Dividend Increase: 10% announced in Q4 2024.
- IGM Financial Assets Under Management (AUM) and Assets Under Administration (AUA): Record high levels reported.
- Wealthsimple AUA Growth (Year-over-Year): Over 100%.
- Rockefeller Client Assets Growth (Year-over-Year): 24%.
- China AMC AUM Growth: Despite fee reductions, strong asset growth reported.
- Northleaf New Commitments (2024): $4.9 billion.
- GBL Dividend Increase: 80% for 2025.
- Power Corporation Cash Returned to Shareholders (2024): $2 billion.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Power Corporation of Canada (PWCDF, Financial) reported strong earnings growth, with adjusted net earnings from continuing operations up 20% year-over-year in Q4 2024.
- The company announced a 9% dividend increase, reflecting strong financial performance and confidence in future growth.
- Great-West Life achieved a 15% year-over-year increase in base earnings, marking the sixth consecutive quarter of growth.
- IGM Financial reported a 23% increase in shareholder earnings, driven by record quarter-end assets at IG Wealth and Mackenzie.
- Power Corporation of Canada (PWCDF) successfully executed a share buyback program, purchasing over 400 million shares in 2024, which contributed to an increase in net asset value (NAV).
Negative Points
- Power Sustainable reported fee-related losses and continued to face challenges in achieving profitability at the asset management level.
- GBL's contribution to adjusted net earnings declined year-over-year due to increased share losses from portfolio companies.
- The company faced a non-cash impairment charge of $87 million at LNPG due to an uncertain business and macroeconomic environment.
- Power Corporation of Canada (PWCDF) acknowledged that its alternative asset management platforms are not yet contributing significantly to earnings.
- The company continues to face a 24% discount to net asset value, which has not narrowed since the reorganization five years ago.
