Power Corporation of Canada Shs Subord.Voting
POW: XTSE (CAN)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| CAD 69.00 | Kgtzd | Kyhzmbkk |
Power Corp. Derives the Majority of Its Value From Great-West Life
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Business Strategy and Outlook
Power Corp. of Canada is a holding company that derives the bulk of its underlying value from its ownership stakes in no-moat Great-West Life and narrow-moat IGM Financial. In December 2019, Power Corp. announced that it would acquire all the shares of Power Financial (which house its stakes in Great-West Life and IGM Financial). This was completed by February 2020 and, in our view, simplified Power’s ownership structure and reduced costs. Rather than diversifying across industries, Power Corp. will focus on financial services.