An analyst at Scotiabank, Phil Hardie, has revised the price target for Power Corporation (PWCDF, Financial), reducing it from C$61 to C$57. Despite this adjustment, the analyst maintains an Outperform rating on the stock. This decision reflects ongoing assessments of Power Corporation's financial outlook and market position.
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.
