Here's Why We Think Imperial Oil (TSE:IMO) Is Well Worth Watching
Dec 04
Canadian (TSX) Energy Sector Analysis
UpdatedDec 06, 2022
DataAggregated Company Financials
Companies217
- 7D-3.5%
- 3M3.2%
- 1Y31.7%
- YTD26.1%
Over the last 7 days, the Energy industry has dropped 3.5%, and Suncor Energy contributed the most with a 9.9% decline. This takes the industry's 12 month performance to a gain of 32%. As for the next few years, earnings are forecast to decline by 2.3% per annum.
Sector Valuation and Performance
Has the Canadian Energy Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Wed, 07 Dec 2022 | CA$623.9b | CA$459.4b | CA$75.0b | 6.1x | 8.3x | 1.4x |
| Fri, 04 Nov 2022 | CA$646.2b | CA$433.0b | CA$65.5b | 7.2x | 9.9x | 1.5x |
| Sun, 02 Oct 2022 | CA$561.4b | CA$426.0b | CA$64.9b | 6.2x | 8.7x | 1.3x |
| Tue, 30 Aug 2022 | CA$647.9b | CA$424.5b | CA$64.5b | 7.5x | 10x | 1.5x |
| Thu, 28 Jul 2022 | CA$614.1b | CA$369.4b | CA$52.4b | 8.8x | 11.7x | 1.7x |
| Sat, 25 Jun 2022 | CA$581.1b | CA$369.2b | CA$52.4b | 8.3x | 11.1x | 1.6x |
| Mon, 23 May 2022 | CA$662.8b | CA$368.8b | CA$52.2b | 9.7x | 12.7x | 1.8x |
| Wed, 20 Apr 2022 | CA$658.8b | CA$326.0b | CA$41.9b | 10.4x | 15.7x | 2x |
| Fri, 18 Mar 2022 | CA$588.8b | CA$326.1b | CA$41.8b | 8.3x | 14.1x | 1.8x |
| Sun, 13 Feb 2022 | CA$576.9b | CA$306.7b | CA$33.0b | 9.5x | 17.5x | 1.9x |
| Tue, 11 Jan 2022 | CA$520.3b | CA$282.0b | CA$28.9b | 8.6x | 18x | 1.8x |
| Thu, 09 Dec 2021 | CA$488.8b | CA$281.9b | CA$28.9b | 9.4x | 16.9x | 1.7x |
| Sat, 06 Nov 2021 | CA$515.9b | CA$272.7b | CA$25.7b | 12.3x | 20.1x | 1.9x |
| Mon, 04 Oct 2021 | CA$475.4b | CA$248.0b | CA$18.6b | 11.2x | 25.5x | 1.9x |
| Wed, 01 Sep 2021 | CA$422.0b | CA$245.1b | CA$18.3b | 8.8x | 23.1x | 1.7x |
| Thu, 08 Jul 2021 | CA$449.7b | CA$245.1b | CA$18.3b | 9.6x | 24.6x | 1.8x |
| Wed, 31 Mar 2021 | CA$386.1b | CA$207.7b | CA$1.4b | 10.5x | 275.1x | 1.9x |
| Sat, 02 Jan 2021 | CA$309.5b | CA$196.5b | -CA$26,250,399,286.25 | 9.8x | -11.8x | 1.6x |
| Tue, 06 Oct 2020 | CA$264.3b | CA$211.2b | -CA$30,434,730,216.15 | 14.5x | -8.7x | 1.3x |
| Fri, 10 Jul 2020 | CA$292.7b | CA$228.7b | -CA$25,501,516,894.22 | 13.6x | -11.5x | 1.3x |
| Thu, 02 Apr 2020 | CA$263.0b | CA$265.7b | -CA$6,193,412,913.45 | 7.2x | -42.5x | 1x |
| Sun, 05 Jan 2020 | CA$435.3b | CA$273.1b | CA$22.6b | 12.9x | 19.3x | 1.6x |
Price to Earnings Ratio
19.3x
Current Industry PE
- Investors are pessimistic on the Canadian Energy 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 8.3x which is lower than its 3-year average PE of 27.1x.
- The 3-year average PS ratio of 1.6x is higher than the industry's current PS ratio of 1.4x.
Past Earnings Growth
- The earnings for companies in the Energy industry have grown 49% per year over the last three years.
- Revenues for these companies have grown 19% 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 Energy sector?
| CA Market | 0.18% | |
| Energy | -3.50% | |
| Energy Services | 1.09% | |
| Oil and Gas | -3.59% | |
Industry PE
- Investors are most optimistic about the Energy Services industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings growth of 54.4%, which is higher than its past year's earnings growth of 21.9% per year.
- Investors are most pessimistic about the Oil and Gas industry, which is trading below its 3-year average of 16.6x.
Forecasted Growth
- Analysts are most optimistic on the Energy Services industry, expecting annual earnings growth of 54% over the next 5 years.
- This is better than its past earnings growth rate of 22% per year.
- In contrast, the Oil and Gas industry is expected to see its earnings decline by 3.5% 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 | |
|---|---|---|---|---|---|
| KEY Keyera | CA$31.33 | 5.5% +CA$362.5m | 12.9% | PE13.8x | |
| PKI Parkland | CA$28.48 | 5.0% +CA$216.3m | -16.7% | PE19.1x | |
| PPL Pembina Pipeline | CA$47.85 | 0.5% +CA$142.9m | 26.3% | PE9.8x | |
| SDE Spartan Delta | CA$15.10 | 5.9% +CA$130.9m | 171.6% | PE3.6x | |
| SCL Shawcor | CA$12.93 | 10.4% +CA$86.0m | 166.6% | PS0.8x |
