Great-West Lifeco Inc revenue jumped on 37.1% in 2016
09.02.2017 • About Great-West Lifeco Inc (
$GWO) • By InTwits
Great-West Lifeco Inc reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Great-West Lifeco Inc doesn't have a profitable business model yet: 2016 ROIC is 1.9%
- The company has potentially unprofitable business model: ROIC is at 1.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Great-West Lifeco Inc ($GWO) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 30,597 | 26,446 | 39,181 | 33,820 | 46,381 | 37.1% |
| Net Income | 1,921 | 2,408 | 2,668 | 2,888 | 2,764 | -4.3% |
Balance Sheet
|
|---|
| Cash | 1,895 | 2,791 | 2,498 | 2,813 | 3,259 | 15.9% |
| Short Term Debt | 0 | 0 | 0 | | | |
| Long Term Debt | 4,447 | 5,903 | 5,517 | 5,556 | 6,141 | 10.5% |
Cash flow
|
|---|
| Capex | 0 | 0 | 0 | 0 | 0 | |
Ratios
|
|---|
| Revenue growth | 2.3% | -13.6% | 48.2% | -13.7% | 37.1% | |
| Net Income Margin | 6.3% | 9.1% | 6.8% | 8.5% | 6.0% | -2.6% |
| ROIC | 2.1% | 2.1% | 2.2% | 2.1% | 1.9% | -0.1% |
| ROE | 15.1% | 16.8% | 16.0% | 15.1% | 13.4% | -1.7% |
Great-West Lifeco Inc ($GWO) key quoterly financial indicators
| mln. CAD | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 12,352 | 12,807 | 13,408 | 7,814 | -2.6% | 203.2% | 56.0% | -6.1% |
| Net Income | 651 | 701 | 705 | 707 | -11.1% | 1.6% | -6.3% | -1.0% |
Balance Sheet
|
|---|
| Cash | 2,923 | 3,068 | 3,060 | 3,259 | -8.6% | 14.1% | -17.6% | 15.9% |
| Long Term Debt | 5,445 | 5,365 | 5,287 | 6,141 | -1.6% | -1.1% | -2.9% | 10.5% |
Ratios
|
|---|
| Net Income Margin | 5.3% | 5.5% | 5.3% | 9.0% | -0.5% | -10.9% | -3.5% | 0.5% |
Revenue and profitability
Great-West Lifeco Inc's Revenue jumped on 37.1%. Revenue growth showed slow down in 16Q4 - it was -6.1% YoY.
Net Income marign decreased on 2.6 pp from 8.5% to 6.0% in 2016.
Return on investment
The company operates at good ROE (13.40%) while ROIC is low (1.92%). ROIC showed almost no change in 2016. ROE decreased slightly on 1.7 pp from 15.1% to 13.4% in 2016.
Management team
The company's CEO Paul A Mahon has spent 5 years at the company. Great-West Lifeco Inc's CFO is Garry Macnicholas. Garry Macnicholas has 3 years tenure at the company.
Appendix 1: Peers in Financial
Below we provide Great-West Lifeco Inc benchmarking against other companies in Financial industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Grenville Strategic Royalty Corp ($GRC) | | | | 317.2% | |
| StorageVault Canada Inc ($SVI) | | 22.2% | 7.5% | 111.8% | |
| Slate Retail REIT ($SRT.UN) | | 316.8% | 229.7% | 92.5% | 21.6% |
| Mogo Finance Technology Inc ($GO) | | 13.7% | 34.6% | 86.0% | 14.6% |
| Morguard Corp ($MRC) | | 27.2% | 9.2% | 58.8% | 4.6% |
| |
|---|
| Median (53 companies) | | 7.5% | 9.0% | 3.6% | 5.1% |
|---|
| Great-West Lifeco Inc ($GWO) | | -13.6% | 48.2% | -13.7% | 37.1% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Olympia Financial Group Inc ($OLY) | 80.9% | 82.6% | 83.2% | 84.5% | 83.5% |
| Morguard Corp ($MRC) | 74.0% | 69.9% | 68.6% | 76.5% | 75.5% |
| Mogo Finance Technology Inc ($GO) | 70.4% | 64.5% | 63.4% | 62.3% | |
| StorageVault Canada Inc ($SVI) | 18.2% | 22.6% | 18.3% | 52.4% | |
| Clarke Inc ($CKI) | 28.1% | 20.0% | 18.9% | 43.4% | 41.6% |
| |
|---|
| Median (9 companies) | 28.1% | 30.7% | 28.3% | 43.4% | 30.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Firm Capital Mortgage Investment Corp ($FC) | 87.6% | 87.9% | 88.8% | 86.6% | |
| Equitable Group Inc ($EQB) | 88.1% | 87.4% | 86.0% | 84.7% | 83.0% |
| Atrium Mortgage Investment Corp ($AI) | 79.8% | | | 81.9% | 83.2% |
| Trez Capital Mortgage Investment Corp ($TZZ) | | | | 76.2% | |
| First National Financial Corp ($FN) | 67.8% | 76.5% | 77.1% | 74.6% | |
| |
|---|
| Median (37 companies) | 43.7% | 33.5% | 39.8% | 32.5% | 43.1% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dundee Corp ($DC.A) | 10.3% | 14.1% | 88.8% | 123.6% | |
| Gazit-Globe Ltd ($GZT) | 80.2% | 43.3% | 52.1% | 69.3% | 95.5% |
| First Capital Realty Inc ($FCR) | 127.9% | 76.1% | 73.8% | 56.7% | 79.7% |
| Killam Properties Inc ($KMP) | 80.7% | 114.1% | 143.5% | 46.7% | 59.9% |
| StorageVault Canada Inc ($SVI) | 150.5% | 73.3% | 79.1% | 21.4% | |
| |
|---|
| Median (55 companies) | 0.6% | 0.6% | 0.7% | 0.7% | 0.9% |
|---|
| Great-West Lifeco Inc ($GWO) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CI Financial Corp ($CIX) | | | | | 24.1% |
| FirstService Corp ($FSV) | | | | | 17.4% |
| IGM Financial Inc ($IGM) | 14.2% | 14.2% | 13.7% | 13.7% | 13.1% |
| Alaris Royalty Corp ($AD) | 9.5% | 10.1% | 10.7% | 7.3% | 12.3% |
| Genworth MI Canada Inc ($MIC) | 11.9% | 9.6% | 9.7% | 9.5% | 9.4% |
| |
|---|
| Median (55 companies) | 4.8% | 4.3% | 4.3% | 3.5% | 3.2% |
|---|
| Great-West Lifeco Inc ($GWO) | 2.1% | 2.1% | 2.2% | 2.1% | 1.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Element Financial Corp ($EFN) | 140.2x | 31.9x | 37.6x | 79.9x | 22.6x |
| First National Financial Corp ($FN) | 34.3x | 33.7x | 40.9x | 37.4x | |
| StorageVault Canada Inc ($SVI) | 11.2x | 9.7x | 13.6x | 35.7x | |
| Gazit-Globe Ltd ($GZT) | 12.8x | 12.7x | 15.3x | 22.1x | 15.2x |
| Equitable Group Inc ($EQB) | 11.8x | 10.2x | 9.8x | 12.3x | 13.7x |
| |
|---|
| Median (28 companies) | 5.3x | 4.6x | 4.7x | 6.0x | 7.8x |
|---|
