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Canadian (TSX) Banks Industry Analysis

UpdatedMay 02, 2024
DataAggregated Company Financials
Companies10
  • 7D-0.4%
  • 3M1.1%
  • 1Y2.9%
  • YTD-1.6%

The Banks industry has been flat over the last week, but Bank of Montreal has lost 3.1%. In line with that, the industry has also been flat over the past 12 months. Earnings are forecast to grow by 5.8% annually.

Industry Valuation and Performance

Has the Canadian Banks Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 02 May 2024CA$604.2bCA$199.0bCA$49.4b10.3x12.2x3x
Sat, 30 Mar 2024CA$630.2bCA$199.0bCA$49.4b11.1x12.8x3.2x
Mon, 26 Feb 2024CA$605.8bCA$195.5bCA$44.8b11.1x13.5x3.1x
Wed, 24 Jan 2024CA$600.7bCA$195.5bCA$44.8b10.7x13.4x3.1x
Fri, 22 Dec 2023CA$603.3bCA$195.5bCA$44.8b10.7x13.5x3.1x
Sun, 19 Nov 2023CA$559.9bCA$197.4bCA$51.6b9.7x10.8x2.8x
Tue, 17 Oct 2023CA$546.6bCA$197.4bCA$51.6b9.4x10.6x2.8x
Thu, 14 Sep 2023CA$572.7bCA$197.4bCA$51.6b10.1x11.1x2.9x
Sat, 12 Aug 2023CA$593.0bCA$192.8bCA$52.2b10.3x11.4x3.1x
Mon, 10 Jul 2023CA$575.4bCA$192.7bCA$52.1b9.9x11x3x
Wed, 07 Jun 2023CA$570.0bCA$192.7bCA$52.1b10x10.9x3x
Fri, 05 May 2023CA$577.0bCA$192.7bCA$57.6b9.1x10x3x
Sun, 02 Apr 2023CA$584.6bCA$192.7bCA$57.6b9.6x10.2x3x
Tue, 28 Feb 2023CA$627.7bCA$192.0bCA$64.1b9.6x9.8x3.3x
Thu, 26 Jan 2023CA$616.0bCA$191.8bCA$65.6b8.7x9.4x3.2x
Sat, 24 Dec 2022CA$587.5bCA$191.8bCA$65.6b8.2x9x3.1x
Mon, 21 Nov 2022CA$611.5bCA$185.3bCA$61.0b9.9x10x3.3x
Wed, 19 Oct 2022CA$579.9bCA$185.3bCA$61.0b9x9.5x3.1x
Fri, 16 Sep 2022CA$601.5bCA$185.3bCA$61.0b9.3x9.9x3.2x
Sun, 14 Aug 2022CA$617.1bCA$188.4bCA$63.0b9.6x9.8x3.3x
Tue, 12 Jul 2022CA$591.4bCA$188.4bCA$63.0b9x9.4x3.1x
Thu, 09 Jun 2022CA$655.2bCA$188.7bCA$63.0b10.2x10.4x3.5x
Sat, 07 May 2022CA$642.0bCA$184.0bCA$58.9b10.7x10.9x3.5x
Mon, 04 Apr 2022CA$685.3bCA$184.0bCA$58.9b11.7x11.6x3.7x
Wed, 02 Mar 2022CA$686.3bCA$181.7bCA$57.1b12.1x12x3.8x
Fri, 28 Jan 2022CA$700.5bCA$180.6bCA$56.4b12.5x12.4x3.9x
Sun, 26 Dec 2021CA$668.0bCA$180.6bCA$56.4b11.7x11.8x3.7x
Tue, 23 Nov 2021CA$652.2bCA$175.2bCA$55.3b11.5x11.8x3.7x
Thu, 21 Oct 2021CA$577.2bCA$156.0bCA$49.5b11.9x11.7x3.7x
Sat, 18 Sep 2021CA$613.9bCA$175.2bCA$55.3b11.2x11.1x3.5x
Mon, 16 Aug 2021CA$629.9bCA$175.2bCA$55.3b11.4x11.4x3.6x
Mon, 31 May 2021CA$615.8bCA$167.1bCA$49.9b12.6x12.3x3.7x
Price to Earnings Ratio

11.7x


Total Market Cap: CA$582.6bTotal Earnings: CA$49.9bTotal Revenue: CA$167.1bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian Banks Industry Price to Earnings3Y Average 11.1x202220232024
Current Industry PE
  • Investors are optimistic on the Canadian Banks industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 12.2x which is higher than its 3-year average PE of 11.1x.
  • The industry is trading close to its 3-year average PS ratio of 3.3x.
Past Earnings Growth
  • The earnings for companies in the Banks industry have remained mostly flat over the last three years.
  • Meanwhile revenues for these companies have grown 6.0% per year.
  • This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.

Industry Trends

Which industries have driven the changes within the Canadian Financials industry?

CA Market-0.54%
Financials0.18%
Banks-0.42%
Diversified Banks-0.40%
Regional Banks-2.31%
Industry PE
  • Investors are most optimistic about the Diversified Banks industry which is trading above its 3-year average PE ratio of 11.1x.
    • Analysts are expecting annual earnings growth of 5.8%, which is higher than its past year's earnings decline of 14.2% per year.
  • Investors are most pessimistic about the Regional Banks industry, which is trading below its 3-year average of 9.0x.
Forecasted Growth
  • Analysts are most optimistic on the Regional Banks industry, expecting annual earnings growth of 9.1% over the next 5 years.
  • However this is lower than its past earnings growth rate of 52% per year.
  • In contrast, the Diversified Banks industry is expected to see its earnings grow by 5.8% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
RY Royal Bank of CanadaCA$133.970.5%
+CA$943.7m		2.2%PB1.7x
TD Toronto-Dominion BankCA$80.760.5%
+CA$687.6m		-0.9%PB1.3x
CWB Canadian Western BankCA$27.000.6%
+CA$15.4m		11.8%PB0.7x
LB Laurentian Bank of CanadaCA$26.221.0%
+CA$10.9m		-17.4%PB0.4x
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LB

CA$26.22

Laurentian Bank of Canada

7D

1.0%

1Y

-17.4%

BNS

CA$63.68

Bank of Nova Scotia

7D

-0.7%

1Y

-3.7%

EQB

CA$84.82

EQB

7D

-4.7%

1Y

36.0%

BMO

CA$123.34

Bank of Montreal

7D

-3.1%

1Y

4.3%

NA

CA$111.64

National Bank of Canada

7D

-0.1%

1Y

11.6%

TD

CA$80.76

Toronto-Dominion Bank

7D

0.5%

1Y

-0.9%

RY

CA$133.97

Royal Bank of Canada

7D

0.5%

1Y

2.2%

CWB

CA$27.00

Canadian Western Bank

7D

0.6%

1Y

11.8%

CM

CA$64.51

Canadian Imperial Bank of Commerce

7D

-1.0%

1Y

16.9%

VBNK

CA$13.54

VersaBank

7D

-0.7%

1Y

39.3%