Workday (WDAY:NAS) and Great-West Lifeco (GWO:TSE) Upgraded

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I have used the analysis tools on the website stockcalc.com to generate some of the content of this blog post. These tools and reports are available for free at www.stockcalc.com/toppicks.aspx.

Upgraded Stocks on NYSE, NASDAQ, AMEX, TSE, and TSX

Today we are looking at companies whose share price has been upgraded by at least one analyst in the last few days.

Why Do Companies Get Upgraded?

Companies can get upgraded for a number of reasons, but primarily due to improved future earnings potential due to new contracts, new products, cost savings or restructuring.

In the list below you can see the number of analysts we have in the StockCalc database along with the number of buy-hold-sell on the company.

Today’s Data on NYSE, NASDAQ, AMEX, TSE, and TSX

Below we have today’s data for companies listed on all of the New York Stock Exchange, NASDAQ Stock Exchange, American Stock Exchange, Toronto Stock Exchange, and TSX Venture Exchange.

New York Stock Exchange
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
RJF Raymond James Financial Inc 2 1 2 0 0 0 4.0000 3.7500 Outperform
BEP Brookfield Renewable Partners LP 2 0 7 0 1 0 3.2000 3.1818 Hold
FTCH Farfetch Ltd 3 0 0 1 0 0 4.2500 4.0000 Outperform
IGT International Game Technology PLC 3 0 1 0 0 0 4.5000 4.3333 Outperform
CCO Clear Channel Outdoor Holdings Inc 1 0 0 0 0 0 5.0000 3.0000 Buy
HBM Hudbay Minerals Inc 4 5 6 0 0 0 3.8667 3.7333 Outperform
HTZ Hertz Global Holdings Inc 1 0 0 0 0 0 5.0000 3.0000 Buy
TLYS Tilly’s Inc 2 0 0 0 0 0 5.0000 4.0000 Buy
APRN Blue Apron Holdings Inc 1 0 2 0 0 0 3.6667 3.4000 Outperform
HZN Horizon Global Corp 1 0 0 0 0 0 5.0000 4.0000 Buy
Toronto Stock Exchange
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
GWO Great-West Lifeco Inc 1 0 7 0 0 0 3.2500 3.2222 Hold
PWF Power Financial Corp 1 1 2 0 0 0 3.7500 3.6667 Outperform
BEP.UN Brookfield Renewable Partners LP 2 0 7 0 1 0 3.2000 3.1818 Hold
POW Power Corporation of Canada 1 1 2 0 0 0 3.7500 3.6667 Outperform
WFT West Fraser Timber Co.Ltd 3 1 2 0 0 0 4.1667 3.8333 Outperform
OGC OceanaGold Corp 3 5 3 0 2 0 3.5385 3.4615 Outperform
BYD.UN Boyd Group Income Fund 5 6 1 0 0 0 4.3333 4.2727 Outperform
HBM Hudbay Minerals Inc 4 5 6 0 0 0 3.8667 3.7333 Outperform
CFP Canfor Corp 3 3 2 0 0 0 4.1250 3.8750 Outperform
IFP Interfor Corp 4 2 0 0 0 0 4.6667 4.3333 Buy
AFN Ag Growth International Inc 3 4 0 0 0 0 4.4286 4.3333 Outperform
MAL Magellan Aerospace Corp 2 0 0 0 0 0 5.0000 4.6667 Buy
III Imperial Metals Corp 1 0 3 0 1 0 3.0000 2.6000 Hold
AKT.B Akita Drilling Ltd 1 0 1 0 0 0 4.0000 3.0000 Outperform
AKT.A Akita Drilling Ltd 1 0 1 0 0 0 4.0000 3.0000 Outperform
PHO Photon Control Inc 1 1 0 0 0 0 4.5000 4.3333 Outperform
TOS TSO3 Inc 1 1 1 0 0 0 4.0000 3.7500 Outperform
TSX Venture Exchange
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
TVL Traverse Energy Ltd 0 0 2 0 0 0 3.0000 2.0000 Hold
American Stock Exchange
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
SDPI Superior Drilling Products Inc 1 0 0 0 0 0 5.0000 3.0000 Buy
NASDAQ
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
WDAY Workday Inc 5 1 1 1 2 0 3.6000 3.5556 Outperform
TRHC Tabula Rasa HealthCare Inc 4 0 0 0 0 0 5.0000 4.7500 Buy
UROV Urovant Sciences Ltd 1 0 0 0 0 0 5.0000 0.0000 Buy
PCOM Points International Ltd 1 1 0 0 0 0 4.5000 4.0000 Outperform
IPIC IPic Entertainment Inc 1 0 0 0 0 0 5.0000 3.0000 Buy
CODX Co-Diagnostics Inc 1 0 0 0 0 0 5.0000 0.0000 Buy

Let’s look at a few companies…

Lets look at a couple of the companies on this list to get a better understanding of them.

WDAY:NAS Workday

http://www.workday.com
Workday has 10200 employees and is headquartered in United States.
Workday Inc is a SaaS provider offering enterprise resource planning, or ERP, software for medium and large enterprises. The company’s product portfolio is built around human capital and financial management software.

GWO:TSE Great-West Lifeco

http://www.greatwestlifeco.com
Great-West Lifeco has 24200 employees and is headquartered in Canada.
Great-West Lifeco Inc is a life insurance company that also offers health insurance, retirement and investment services, asset management and reinsurance businesses. It operates in Canada, U.S. and Europe.

Free Valuation

Run a valuation on any of the companies listed above at www.stockcalc.com/valureport.aspx or subscribe at our Stockcalc Facebook Page to receive this list each day Stockcalc Reports.

The content presented here is in part from the website stockcalc.com and is provided on an as is or as available basis with all faults and may not be current in all cases. You should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment decision.

Phillips 66 (PSX:NYS) and Valero Energy (VLO:NYS) Upgraded

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I have used the analysis tools on the website stockcalc.com to generate some of the content of this blog post. These tools and reports are available for free at www.stockcalc.com/toppicks.aspx.

Upgraded Stocks on NYSE, NASDAQ, AMEX, TSE, and TSX

Today we are looking at companies whose share price has been upgraded by at least one analyst in the last few days.

Why Do Companies Get Upgraded?

Companies can get upgraded for a number of reasons, but primarily due to improved future earnings potential due to new contracts, new products, cost savings or restructuring.

In the list below you can see the number of analysts we have in the StockCalc database along with the number of buy-hold-sell on the company.

Today’s Data on NYSE, NASDAQ, AMEX, TSE, and TSX

Below we have today’s data for companies listed on all of the New York Stock Exchange, NASDAQ Stock Exchange, American Stock Exchange, Toronto Stock Exchange, and TSX Venture Exchange.

New York Stock Exchange
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
PSX Phillips 66 3 0 3 0 0 0 4.0000 3.8571 Outperform
VLO Valero Energy Corp 4 0 1 1 0 0 4.1667 4.0000 Outperform
MPC Marathon Petroleum Corp 4 0 1 0 0 0 4.6000 4.3333 Buy
RMD ResMed Inc 0 0 3 1 0 0 2.7500 2.5000 Hold
EFX Equifax Inc 8 3 2 0 0 0 4.4615 3.6667 Outperform
AJG Arthur J. Gallagher & Co 1 0 2 0 0 0 3.6667 3.0000 Outperform
JEC Jacobs Engineering Group Inc 5 0 0 1 0 0 4.5000 4.3333 Outperform
WRB WR Berkley Corp 0 0 5 0 1 0 2.6667 2.6000 Hold
HBI Hanesbrands Inc 3 0 2 0 0 0 4.2000 4.0000 Outperform
CVRR CVR Refining LP 0 0 1 0 0 0 3.0000 2.0000 Hold
NBR Nabors Industries Ltd 6 0 2 0 0 0 4.5000 4.2500 Outperform
CLS Celestica Inc 3 0 8 0 0 0 3.5455 3.5000 Outperform
EURN Euronav NV 4 0 0 0 0 0 5.0000 4.6000 Buy
RFP Resolute Forest Products Inc 1 0 4 0 0 0 3.4000 3.0000 Hold
DHT DHT Holdings Inc 2 0 0 0 0 0 5.0000 4.3333 Buy
SALT Scorpio Bulkers Inc 3 0 0 0 0 0 5.0000 4.0000 Buy
DSX Diana Shipping Inc 0 0 3 0 0 0 3.0000 2.5000 Hold
TNK Teekay Tankers Ltd 2 0 1 0 0 0 4.3333 4.0000 Outperform
TNP Tsakos Energy Navigation Ltd 2 0 0 0 0 0 5.0000 4.3333 Buy
Toronto Stock Exchange
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
PWF Power Financial Corp 1 0 5 0 0 0 3.3333 3.0000 Hold
POW Power Corporation of Canada 2 1 3 0 0 0 3.8333 3.5000 Outperform
SRU.UN SmartCentres Real Estate Investment Trust 3 3 2 0 0 0 4.1250 4.0000 Outperform
CHP.UN Choice Properties Real Estate Investment Trust 1 0 7 0 0 0 3.2500 3.2222 Hold
CRT.UN CT Real Estate Investment Trust 0 1 6 0 0 0 3.1429 3.1250 Hold
CLS Celestica Inc 3 0 8 0 0 0 3.5455 3.5000 Outperform
CRR.UN Crombie Real Estate Investment Trust 3 1 4 0 0 0 3.8750 3.7778 Outperform
AX.UN Artis Real Estate Investment Trust 2 0 7 0 0 0 3.4444 3.2000 Hold
CGX Cineplex Inc 3 3 3 0 0 0 4.0000 3.8889 Outperform
GTE Gran Tierra Energy Inc 4 4 4 0 0 0 4.0000 3.0000 Outperform
D.UN Dream Office Real Estate Investment Trust 1 0 5 0 0 0 3.3333 3.2857 Hold
RFP Resolute Forest Products Inc 1 0 4 0 0 0 3.4000 3.0000 Hold
AIM Aimia Inc 0 2 4 0 1 0 3.0000 2.8333 Hold
SRT.UN Slate Retail REIT 1 2 2 0 0 0 3.8000 3.6667 Outperform
SOT.UN Slate Office REIT 3 1 2 0 0 0 4.1667 4.0000 Outperform
PGF Pengrowth Energy Corp 0 0 5 0 7 0 1.8333 1.7273 Underperform
PLZ.UN Plaza Retail REIT 0 1 4 0 0 0 3.2000 3.1667 Hold
TSX Venture Exchange
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
PRV.UN PRO Real Estate Investment Trust 2 0 0 0 0 0 5.0000 4.3333 Buy
American Stock Exchange
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
GTE Gran Tierra Energy Inc 4 4 4 0 0 0 4.0000 3.0000 Outperform
NASDAQ
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
MAR Marriott International Inc 3 0 4 0 0 0 3.8571 3.4286 Outperform
ANSS Ansys Inc 0 0 4 1 0 0 2.8000 2.6000 Hold
ZS Zscaler Inc 2 0 2 0 1 0 3.4000 3.0000 Hold

Let’s look at a few companies…

Lets look at a couple of the companies on this list to get a better understanding of them.

PSX:NYS Phillips 66

http://www.phillips66.com
Phillips 66 has 14600 employees and is headquartered in United States.
Phillips 66 is an oil and gas company that purchases for resale and markets refined petroleum products. Its joint venture operates facilities in the United States and the Middle East and primarily produces olefins and polyolefins.

VLO:NYS Valero Energy

http://www.valero.com
Valero Energy has 10015 employees and is headquartered in United States.
Valero Energy Corp is a petroleum refining and marketing company. The company produces conventional gasolines, distillates, jet fuel, asphalt, petrochemicals, lubricants, and other refined products as well as a slate of premium products.

Free Valuation

Run a valuation on any of the companies listed above at www.stockcalc.com/valureport.aspx or subscribe at our Stockcalc Facebook Page to receive this list each day Stockcalc Reports.

The content presented here is in part from the website stockcalc.com and is provided on an as is or as available basis with all faults and may not be current in all cases. You should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment decision.

Manulife Financial (MFC:TSE) Fundamental Valuation Report


This Report was generated using the tools available on StockCalc.com. Patchell Brook Equity Analytics Inc. emphasizes that the user assumes all risks associated with the use of this report or the Stockcalc website including, but not limited to, all terms and conditions mentioned in the legal disclaimer.
To access all of the tools on Stockcalc, including more detailed valuation reports and the models used to generate these valuations, please subscribe for a free 30 day trial of Stockcalc here.

Manulife Financial $25.08 (CAD) Close Price as of 09/02/2018

Based on the analysis conducted in this report, Manulife Financial, (MFC:TSE) is found to be  Fairly valued to slightly Undervalued.

Company Manulife Financial
Symbol:Exchange MFC:TSE
Industry Financial Services:Insurance-Life
Close Price/Date $25.08 (CAD) 09/02/2018
Weighted Average Valuation $25.84 (CAD)
Summary MFC:TSE is found to be  Fairly valued to slightly Undervalued by 3.0% using the 3 valuation models shown below.
Valuation Models Used Analyst Consensus: $30.44 (CAD)
(in order of importance) Adjusted Book Value: $23.63 (CAD)
Comparables: $16.45 (CAD)
Valuation Methods Analysis This company is:
Cash Flow Basis: Overvalued on a Cash Flow Valuation basis
Comparable Company Basis: Overvalued on a Comparable Valuation basis
Asset Basis: Overvalued on an Asset Valuation basis

Valuation Details

Manulife Financial Valuations

Summary chart

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for MFC:TSE

Using a discounted cash flow model we generated an intrinsic value of $13.40 (CAD) for MFC:TSE

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

MFC:TSE Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $13.40 1% 5% 1% 5%
WACC (or Ke) 10.27 $15.75 $11.62
Terminal Growth Rate 3.00 $11.85 $15.45
Tax Rate 0.10 $14.23 $12.57
Cash Flow 2,562,442,688 $12.65 $14.15
Capital Expenditures 0 $13.40 $13.40
Long Term Debt 0 $13.40 $13.40

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $16.45 (CAD) for MFC:TSE. We also generated a valuation of $22.07 (CAD) using other metrics and comparables.
The comparable companies were Great-West Lifeco (GWO:TSE) and Power Financial (PWF:TSE)

Company MFC:TSE End Date Value
Earnings/Share $0.98 (CAD)
Book Value/Share $19.00 (CAD)
Sales/Share $29.37 (CAD)
Cash Flow/Share $8.96 (CAD)
EBITDA/Share $1.83 (CAD)
Price Based on Comps Adjustment Factor (%)
$13.10 (CAD) 13.8
$28.68 (CAD) -26.2
$18.16 (CAD) 11.7
$38.62 (CAD) -75.6
($2.41) (CAD) 0.0
MFC:TSE Ratios Used Average Values GWO:TSE PWF:TSE
25.59 PE Ratio 13.37 15.65 11.10
1.32 PB Ratio 1.51 1.69 1.33
0.85 PS Ratio 0.62 0.72 0.52
2.80 PCF Ratio 4.31 4.98 3.64
0.00 EV to EBITDA 0.00 0.00 0.00

Multiples

Using a multiples approach we generated a valuation of  $20.71 (CAD) for MFC:TSE

Company MFC:TSE End Date Value
Earnings/Share $0.98 (CAD)
Book Value/Share $19.00 (CAD)
Sales/Share $29.37 (CAD)
Cash Flow/Share $8.96 (CAD)
EBITDA/Share $1.83 (CAD)
Price Based on Comps Adjustment Factor
$14.35 (CAD) 0
$23.49 (CAD) 0
$26.92 (CAD) 0
$29.78 (CAD) 0
$8.97 (CAD) 0
Ratios Ratio Average
PE Ratio 14.65
PB Ratio 1.24
PS Ratio 0.92
PCF Ratio 3.32
EV to EBITDA 4.90

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  MFC:TSE for the last 10 years was  1.24

We ran the Adjusted Book Value for  MFC:TSE and generated a book value of  $19.00 (CAD)
By multiplying these we get an adjusted valuation of  $23.63 (CAD)

Analyst Data

In the Stockcalc database there are 9 analysts that provide a valuation for MFC:TSE. The 9 analysts have a concensus valuation for MFC:TSE for 2018 of $30.44 (CAD).

Company Overview (MFC:TSE CAD)

Price 25.08
Range 24.59 – 25.40
52 week 22.69 – 27.48
Open 25.20
Vol / Avg. 6.46M/3.64M
Mkt cap 49.61B
P/E 25.59
Div/yield 0.88/0.03
EPS 0.98
Shares 1.98B
Beta 1.43
Summary chart

Detailed Company Description

Manulife Financial Corp together with its subsidiaries provides individual life insurance and individual and group long-term care insurance services. Its business segments are Asia Division, Canadian Division, U.S. Division, and Corporate and Other.

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.
The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).
The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.
We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.
Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.
With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.
If we have Analyst coverage for the company we use the consensus target price here.

Notice to User


The contents of this report and the Stockcalc website are provided on an ‘‘as is’’ or ‘‘as available’’ basis with all faults and may not be current in all cases. The information in this report or on the website is subject to continuous change and Patchell Brook Equity Analytics Inc. assumes no responsibility to update or amend such information or that the information will be current. Patchell Brook Equity Analytics Inc. does not claim that all information, calculations or opinions presented in this report or on its website are true, reliable, or complete. Accordingly, you should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment or other decision. Any information, data, opinions, calculations or recommendations provided by third parties through links to other websites or otherwise made available through this report or website are solely those of the third party and not of Patchell Brook Equity Analytics Inc. Please refer to the Terms of Use on www.stockcalc.com for further information.
To access all of the tools on Stockcalc, including more detailed valuation reports and the models used to generate these valuations, please subscribe for a free 30 day trial of Stockcalc here.

Manulife Financial (MFC:NYS) Fundamental Valuation Report


This Report was generated using the tools available on StockCalc.com. Patchell Brook Equity Analytics Inc. emphasizes that the user assumes all risks associated with the use of this report or the Stockcalc website including, but not limited to, all terms and conditions mentioned in the legal disclaimer.
To access all of the tools on Stockcalc, including more detailed valuation reports and the models used to generate these valuations, please subscribe for a free 30 day trial of Stockcalc here.

Manulife Financial $25.09 (CAD) / $19.92 (USD) Close Price as of 09/02/2018

Based on the analysis conducted in this report, Manulife Financial, (MFC:NYS) is found to be  Fairly valued to slightly Undervalued. Use a conversion rate of 0.79406989 from CAD to USD.

Company Manulife Financial
Symbol:Exchange MFC:NYS
Industry Financial Services:Insurance-Life
Close Price/Date $25.09 (CAD) / $19.92 (USD) 09/02/2018
Weighted Average Valuation $25.83 (CAD) / $20.51 (USD)
Summary MFC:NYS is found to be  Fairly valued to slightly Undervalued by 3.0% using the 3 valuation models shown below.
Valuation Models Used Analyst Consensus: $30.44 (CAD) / $24.17 (USD)
(in order of importance) Adjusted Book Value: $23.59 (CAD) / $18.73 (USD)
Comparables: $16.44 (CAD) / $13.06 (USD)
Valuation Methods Analysis This company is:
Cash Flow Basis: Overvalued on a Cash Flow Valuation basis
Comparable Company Basis: Overvalued on a Comparable Valuation basis
Asset Basis: Overvalued on an Asset Valuation basis

Valuation Details

Manulife Financial Valuations

Summary chart

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for MFC:NYS

Using a discounted cash flow model we generated an intrinsic value of $10.62 (CAD) / $8.44 (USD) for MFC:NYS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

MFC:NYS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $10.62 1% 5% 1% 5%
WACC (or Ke) 11.96 $12.13 $9.42
Terminal Growth Rate 3.00 $9.61 $11.89
Tax Rate 0.10 $11.30 $9.95
Cash Flow 2,562,442,688 $10.02 $11.23
Capital Expenditures 0 $10.62 $10.62
Long Term Debt 0 $10.62 $10.62

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $16.44 (CAD) / $13.06 (USD) for MFC:NYS. We also generated a valuation of $23.06 (CAD) / $18.31 (USD) using other metrics and comparables.
The comparable companies were Great-West Lifeco (GWO:TSE) and Power Financial (PWF:TSE)

Company MFC:NYS End Date Value
Earnings/Share $0.98 (CAD) / $0.78 (USD)
Book Value/Share $19.00 (CAD) / $15.09 (USD)
Sales/Share $29.37 (CAD) / $23.32 (USD)
Cash Flow/Share $8.96 (CAD) / $7.11 (USD)
EBITDA/Share $1.83 (CAD) / $1.46 (USD)
Price Based on Comps Adjustment Factor (%)
$13.10 (CAD) / $10.41 (USD) 13.6
$28.69 (CAD) / $22.78 (USD) -26.2
$18.16 (CAD) / $14.42 (USD) 11.8
$38.62 (CAD) / $30.67 (USD) -75.6
($2.41) (CAD) / ($1.91) (USD) 0.0
MFC:NYS Ratios Used Average Values GWO:TSE PWF:TSE
25.59 PE Ratio 13.37 15.65 11.10
1.32 PB Ratio 1.51 1.69 1.33
0.85 PS Ratio 0.62 0.72 0.52
2.80 PCF Ratio 4.31 4.98 3.64
0.00 EV to EBITDA 0.00 0.00 0.00

Multiples

Using a multiples approach we generated a valuation of  $20.72 (CAD) / $16.46 (USD) for MFC:NYS

Company MFC:NYS End Date Value
Earnings/Share $0.98 (CAD) / $0.78 (USD)
Book Value/Share $19.00 (CAD) / $15.09 (USD)
Sales/Share $29.37 (CAD) / $23.32 (USD)
Cash Flow/Share $8.96 (CAD) / $7.11 (USD)
EBITDA/Share $1.83 (CAD) / $1.46 (USD)
Price Based on Comps Adjustment Factor
$14.37 (CAD) / $11.41 (USD) 0
$23.47 (CAD) / $18.64 (USD) 0
$26.95 (CAD) / $21.40 (USD) 0
$29.83 (CAD) / $23.68 (USD) 0
$9.00 (CAD) / $7.14 (USD) 0
Ratios Ratio Average
PE Ratio 14.67
PB Ratio 1.24
PS Ratio 0.92
PCF Ratio 3.33
EV to EBITDA 4.91

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  MFC:NYS for the last 10 years was  1.24

We ran the Adjusted Book Value for  MFC:NYS and generated a book value of  $19.00 (CAD) / $15.09 (USD)
By multiplying these we get an adjusted valuation of  $23.59 (CAD) / $18.73 (USD)

Analyst Data

In the Stockcalc database there are 9 analysts that provide a valuation for MFC:NYS. The 9 analysts have a concensus valuation for MFC:NYS for 2018 of $30.44 (CAD) / $24.17 (USD).

Company Overview (MFC:NYS USD)

Price 19.92
Range 19.47 – 20.14
52 week 16.67 – 21.99
Open 19.96
Vol / Avg. 5.71M/1.59M
Mkt cap 39.4B
P/E 25.59
Div/yield 0.70/0.03
EPS 0.98
Shares 1.98B
Beta 1.93
Summary chart

Detailed Company Description

Manulife Financial Corp together with its subsidiaries provides individual life insurance and individual and group long-term care insurance services. Its business segments are Asia Division, Canadian Division, U.S. Division, and Corporate and Other.

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.
The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).
The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.
We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.
Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.
With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.
If we have Analyst coverage for the company we use the consensus target price here.

Notice to User


The contents of this report and the Stockcalc website are provided on an ‘‘as is’’ or ‘‘as available’’ basis with all faults and may not be current in all cases. The information in this report or on the website is subject to continuous change and Patchell Brook Equity Analytics Inc. assumes no responsibility to update or amend such information or that the information will be current. Patchell Brook Equity Analytics Inc. does not claim that all information, calculations or opinions presented in this report or on its website are true, reliable, or complete. Accordingly, you should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment or other decision. Any information, data, opinions, calculations or recommendations provided by third parties through links to other websites or otherwise made available through this report or website are solely those of the third party and not of Patchell Brook Equity Analytics Inc. Please refer to the Terms of Use on www.stockcalc.com for further information.
To access all of the tools on Stockcalc, including more detailed valuation reports and the models used to generate these valuations, please subscribe for a free 30 day trial of Stockcalc here.

Great-West Lifeco (GWO:TSE) Fundamental Valuation Report


This Report was generated using the tools available on StockCalc.com. Patchell Brook Equity Analytics Inc. emphasizes that the user assumes all risks associated with the use of this report or the Stockcalc website including, but not limited to, all terms and conditions mentioned in the legal disclaimer.
To access all of the tools on Stockcalc, including more detailed valuation reports and the models used to generate these valuations, please subscribe for a free 30 day trial of Stockcalc here.

Great-West Lifeco $33.95 (CAD) Close Price as of 09/02/2018

Based on the analysis conducted in this report, Great-West Lifeco, (GWO:TSE) is found to be  Undervalued.

Company Great-West Lifeco
Symbol:Exchange GWO:TSE
Industry Financial Services:Insurance-Life
Close Price/Date $33.95 (CAD) 09/02/2018
Weighted Average Valuation $36.16 (CAD)
Summary GWO:TSE is found to be  Undervalued by 6.5% using the 3 valuation models shown below.
Valuation Models Used Analyst Consensus: $37.88 (CAD)
(in order of importance) Adjusted Book Value: $36.50 (CAD)
Discounted Cash Flow: $30.33 (CAD)
Valuation Methods Analysis This company is:
Cash Flow Basis: Overvalued on a Cash Flow Valuation basis
Comparable Company Basis: Overvalued on a Comparable Valuation basis
Asset Basis: Undervalued on an Asset Valuation basis

Valuation Details

Great-West Lifeco Valuations

Summary chart

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for GWO:TSE

Using a discounted cash flow model we generated an intrinsic value of $30.33 (CAD) for GWO:TSE

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

GWO:TSE Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $30.33 1% 5% 1% 5%
WACC (or Ke) 9.77 $35.94 $26.16
Terminal Growth Rate 3.00 $26.66 $35.26
Tax Rate 0.15 $32.27 $28.38
Cash Flow 2,797,068,588 $28.68 $31.97
Capital Expenditures 0 $30.33 $30.33
Long Term Debt 0 $30.33 $30.33

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $25.15 (CAD) for GWO:TSE. We also generated a valuation of $29.62 (CAD) using other metrics and comparables.
The comparable companies were Manulife Financial (MFC:NYS) and Power Financial (PWF:TSE)

Company GWO:TSE End Date Value
Earnings/Share $2.17 (CAD)
Book Value/Share $19.94 (CAD)
Sales/Share $42.36 (CAD)
Cash Flow/Share $5.92 (CAD)
EBITDA/Share $3.23 (CAD)
Price Based on Comps Adjustment Factor (%)
$39.78 (CAD) -15.3
$26.49 (CAD) 16.5
$29.14 (CAD) -4.3
$19.12 (CAD) -57.3
($5.67) (CAD) 41.3
GWO:TSE Ratios Used Average Values MFC:NYS PWF:TSE
13.78 PE Ratio 18.33 25.47 11.19
1.70 PB Ratio 1.33 1.31 1.34
0.80 PS Ratio 0.69 0.85 0.53
5.72 PCF Ratio 3.23 2.79 3.67
0.00 EV to EBITDA 0.00 0.00 0.00

Multiples

Using a multiples approach we generated a valuation of  $34.22 (CAD) for GWO:TSE

Company GWO:TSE End Date Value
Earnings/Share $2.17 (CAD)
Book Value/Share $19.94 (CAD)
Sales/Share $42.36 (CAD)
Cash Flow/Share $5.92 (CAD)
EBITDA/Share $3.23 (CAD)
Price Based on Comps Adjustment Factor
$28.54 (CAD) 0
$36.12 (CAD) 0
$36.84 (CAD) 0
$35.74 (CAD) 0
$33.86 (CAD) 0
Ratios Ratio Average
PE Ratio 13.15
PB Ratio 1.81
PS Ratio 0.87
PCF Ratio 6.04
EV to EBITDA 10.49

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  GWO:TSE for the last 10 years was  1.81

We ran the Adjusted Book Value for  GWO:TSE and generated a book value of  $20.11 (CAD)
By multiplying these we get an adjusted valuation of  $36.50 (CAD)

Analyst Data

In the Stockcalc database there are 8 analysts that provide a valuation for GWO:TSE. The 8 analysts have a concensus valuation for GWO:TSE for 2018 of $37.88 (CAD).

Company Overview (GWO:TSE CAD)

Price 33.95
Range 33.53 – 34.38
52 week 33.32 – 37.74
Open 34.24
Vol / Avg. 1.36M/411070
Mkt cap 33.6B
P/E 13.78
Div/yield 1.47/0.04
EPS 2.17
Shares 989.57M
Beta 0.99