Power Financial Corporation (PWF-PZ.TO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+103.7%

CA$45.26

vs CA$22.22 price

Levered DCF

CA$1,188.81

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

1.13

Distress zone

Rating

—

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2019	FY2018	FY2017	FY2016	FY2015	FY2014	FY2013	FY2012
P/E	0×	8.12×	11.76×	10.7×	8.94×	0×	0×	0×
P/B	0×	0.9×	1.06×	1.12×	1.12×	0×	0×	0×
P/S	0×	0.41×	0.44×	0.45×	0.6×	0×	0×	0×
EV / EBITDA	0.65×	6.16×	8×	7.74×	6.69×	0.71×	0.78×	0.74×
Gross margin	26.8%	100.0%	100.0%	100.0%	100.0%	26.6%	34.0%	27.1%
Operating margin	7.9%	7.0%	5.7%	6.1%	9.6%	10.4%	12.8%	10.6%
Net margin	4.4%	5.1%	3.7%	4.2%	6.7%	5.4%	7.0%	5.3%
Current ratio	0×	63.68×	73.8×	83.14×	91.18×	2.81×	2.75×	2.21×
Debt / equity	0.45×	0.41×	0.42×	0.42×	0.39×	0.44×	0.48×	0.45×
Interest coverage	9.06×	10.3×	7.15×	7.92×	9.21×	11.3×	9.84×	9.13×
Dividend yield	0.0%	7.0%	5.9%	5.6%	5.4%	0.0%	0.0%	0.0%
Payout ratio	65.5%	57.1%	69.9%	60.3%	48.0%	49.7%	55.4%	63.7%

Key metrics by fiscal year

Metric	FY2019	FY2018	FY2017	FY2016	FY2015	FY2014	FY2013	FY2012
Return on equity	10.1%	11.0%	9.0%	10.5%	12.5%	13.3%	12.6%	12.4%
Return on invested capital	2.0%	0.6%	0.5%	0.6%	0.7%	2.6%	2.5%	2.6%
Return on assets	0.4%	0.5%	0.4%	0.5%	0.6%	0.6%	0.6%	0.6%
Free cash flow yield	0.0%	27.3%	33.3%	31.6%	26.1%	0.0%	0.0%	0.0%
Earnings yield	0.0%	12.3%	8.5%	9.3%	11.2%	0.0%	0.0%	0.0%
Enterprise value	CA$3B	CA$22.7B	CA$25B	CA$25.6B	CA$25.2B	CA$3.5B	CA$3.3B	CA$3B
Net debt / EBITDA	0.65×	0.9×	1.04×	1.13×	0.9×	0.71×	0.78×	0.74×
Cash conversion cycle (days)	153	53	44	40	45	12	9	10