Take Care Before Diving Into The Deep End On Restaurant Brands International Limited Partnership (TSE:QSP.UN)
Jul 19
Canadian (TSX) Hospitality Industry Analysis
UpdatedJul 26, 2024
DataAggregated Company Financials
Companies21
- 7D-2.8%
- 3M-5.1%
- 1Y-4.9%
- YTD-6.6%
Over the last 7 days, the Hospitality industry has dropped 2.9%, driven by Restaurant Brands International Limited Partnership declining 3.4%. In contrast, A&W Revenue Royalties Income Fund has gained 21%. However, the industry is down 4.9% over the past year. Looking forward, earnings are forecast to grow by 25% annually.
Industry Valuation and Performance
Has the Canadian Hospitality Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|
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Current Industry PE
- Investors are pessimistic on the Canadian Hospitality industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 13.2x which is lower than its 3-year average PE of 18.0x.
- The industry is trading close to its 3-year average PS ratio of 3.1x.
Past Earnings Growth
- The earnings for companies in the Hospitality industry have grown 26% per year over the last three years.
- Revenues for these companies have grown 10% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Canadian Consumer Discretionary industry?
| CA Market | -0.31% | |
| Consumer Discretionary | -0.40% | |
| Hospitality | -2.76% | |
| Casinos and Gaming | 0.73% | |
| Leisure Facilities | -0.39% | |
| Restaurants | -2.91% | |
| Hotels, Resorts and Cruise Lines | -20.00% | |
Industry PE
- Investors are most optimistic about the Casinos and Gaming industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings growth of 33.2%, which is lower than the prior year's growth of 64.5% per year.
Forecasted Growth
- Analysts are most optimistic on the Casinos and Gaming industry, expecting annual earnings growth of 33% over the next 5 years.
- However this is lower than its past earnings growth rate of 65% per year.
- In contrast, the Restaurants industry is expected to see its earnings grow by 7.3% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| AW.UN A&W Revenue Royalties Income Fund | CA$34.64 | 21.4% +CA$98.2m | 0.3% | PE17.5x | |
| PZA Pizza Pizza Royalty | CA$13.51 | 3.1% +CA$13.2m | -10.5% | PE14.1x | |
| KEG.UN Keg Royalties Income Fund | CA$14.79 | 3.9% +CA$6.4m | -4.2% | PE9.1x | |
| BRAG Bragg Gaming Group | CA$7.84 | 2.8% +CA$5.2m | 21.6% | PS1.4x | |
| PBL Pollard Banknote | CA$27.00 | 0.7% +CA$5.1m | 6.2% | PE21.8x |
