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Canadian (TSX) Energy Sector Analysis

UpdatedMar 26, 2026
DataAggregated Company Financials
Companies205
  • 7D2.8%
  • 3M31.3%
  • 1Y45.1%
  • YTD27.1%

The Energy industry has gained 2.8% in the last week and Cenovus Energy up 9.0%. In the last 12 months, the industry was up 45%. As for the next few years, earnings are expected to grow by 7.8% per annum.

Sector Valuation and Performance

Has the Canadian Energy Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 26 Mar 2026CA$982.9bCA$363.0bCA$42.2b17.1x23.3x2.7x
Sat, 21 Feb 2026CA$914.8bCA$373.4bCA$41.3b16.5x22.1x2.5x
Mon, 19 Jan 2026CA$816.3bCA$377.4bCA$39.4b14.9x20.7x2.2x
Wed, 17 Dec 2025CA$767.8bCA$379.2bCA$39.6b13.7x19.4x2x
Fri, 14 Nov 2025CA$789.4bCA$383.0bCA$39.2b13.7x20.1x2.1x
Sun, 12 Oct 2025CA$765.9bCA$411.0bCA$44.9b11.9x17.1x1.9x
Tue, 09 Sep 2025CA$738.6bCA$410.8bCA$44.9b11.5x16.5x1.8x
Thu, 07 Aug 2025CA$720.3bCA$411.3bCA$44.2b11.7x16.3x1.8x
Sat, 05 Jul 2025CA$698.5bCA$414.1bCA$43.8b12.1x16x1.7x
Mon, 02 Jun 2025CA$675.5bCA$414.2bCA$43.8b11.6x15.4x1.6x
Wed, 30 Apr 2025CA$658.4bCA$406.4bCA$39.8b10.2x16.5x1.6x
Fri, 28 Mar 2025CA$700.5bCA$406.9bCA$39.5b12.8x17.7x1.7x
Sun, 23 Feb 2025CA$672.0bCA$408.2bCA$40.9b10.9x16.4x1.6x
Tue, 21 Jan 2025CA$714.8bCA$408.1bCA$46.2b11.2x15.5x1.8x
Thu, 19 Dec 2024CA$679.5bCA$408.2bCA$46.2b10.1x14.7x1.7x
Sat, 16 Nov 2024CA$716.2bCA$408.1bCA$47.1b10.5x15.2x1.8x
Mon, 14 Oct 2024CA$712.8bCA$405.7bCA$44.9b10.6x15.9x1.8x
Wed, 11 Sep 2024CA$648.3bCA$405.9bCA$45.0b10.2x14.4x1.6x
Fri, 09 Aug 2024CA$651.5bCA$405.1bCA$45.9b10x14.2x1.6x
Sun, 07 Jul 2024CA$659.3bCA$394.4bCA$45.2b11x14.6x1.7x
Tue, 04 Jun 2024CA$691.5bCA$394.4bCA$45.2b10.7x15.3x1.8x
Thu, 02 May 2024CA$676.0bCA$398.6bCA$50.4b8.9x13.4x1.7x
Sat, 30 Mar 2024CA$664.9bCA$395.4bCA$50.0b9.8x13.3x1.7x
Mon, 26 Feb 2024CA$613.2bCA$394.8bCA$50.9b7.8x12x1.6x
Wed, 24 Jan 2024CA$605.6bCA$414.4bCA$48.9b6.7x12.4x1.5x
Fri, 22 Dec 2023CA$607.0bCA$414.1bCA$48.9b6.6x12.4x1.5x
Sun, 19 Nov 2023CA$622.4bCA$415.3bCA$49.1b6.8x12.7x1.5x
Tue, 17 Oct 2023CA$645.8bCA$428.4bCA$56.8b6.7x11.4x1.5x
Thu, 14 Sep 2023CA$638.0bCA$428.3bCA$56.8b6.7x11.2x1.5x
Sat, 12 Aug 2023CA$617.0bCA$432.4bCA$58.6b6.5x10.5x1.4x
Mon, 10 Jul 2023CA$568.5bCA$463.1bCA$68.6b5.6x8.3x1.2x
Wed, 07 Jun 2023CA$575.3bCA$463.4bCA$68.7b5x8.4x1.2x
Fri, 05 May 2023CA$562.0bCA$469.0bCA$69.3b5.1x8.1x1.2x
Sun, 02 Apr 2023CA$576.4bCA$474.1bCA$70.7b5.2x8.2x1.2x
Price to Earnings Ratio

8.2x


Total Market Cap: CA$576.4bTotal Earnings: CA$70.7bTotal Revenue: CA$474.1bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian Energy Sector Price to Earnings3Y Average 18.4x202420252026
Current Industry PE
  • Investors are optimistic on the Canadian Energy industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 23.3x which is higher than its 3-year average PE of 18.4x.
  • The 3-year average PS ratio of 2.1x is lower than the industry's current PS ratio of 2.7x.
Past Earnings Growth
  • The earnings for companies in the Energy industry have declined 16% per year over the last three years,
  • Revenues have also declined 8.5% per year.
  • This means overall sales from these companies are declining and profits are subsequently falling as well.

Industry Trends

Which industries have driven the changes within the Canadian Energy sector?

CA Market0.31%
Energy2.76%
Oil and Gas2.77%
Energy Services2.53%
Industry PE
  • Investors are most optimistic about the Oil and Gas industry which is trading above its 3-year average PE ratio of 18.5x.
    • Analysts are expecting annual earnings growth of 7.5%, which is lower than the prior year's growth of 15.6% per year.
  • Investors are most pessimistic about the Energy Services industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 12.4x.
Forecasted Growth
  • Analysts are most optimistic on the Energy Services industry, expecting annual earnings growth of 25% over the next 5 years.
  • This is better than its past earnings growth rate of 7.1% per year.
  • In contrast, the Oil and Gas industry is expected to see its earnings grow by 7.5% 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
CVE Cenovus EnergyCA$35.859.0%
+CA$5.6b		76.4%PE17.1x
SU Suncor EnergyCA$89.425.0%
+CA$5.1b		61.1%PE17.9x
ENB EnbridgeCA$75.293.0%
+CA$4.8b		18.4%PE23.3x
IMO Imperial OilCA$180.134.5%
+CA$3.7b		72.4%PE26.7x
PPL Pembina PipelineCA$63.054.9%
+CA$1.7b		10.1%PE23.6x

Latest News

ARX
CA$29.42
ARC Resources
7D
5.2%
1Y
1.9%
PPL
CA$63.05
Pembina Pipeline
7D
4.9%
1Y
10.1%
TRP
CA$88.76
TC Energy
7D
1.3%
1Y
28.3%

TRP: Backlog Certainty And Dividend Policy Will Shape Future Return Balance

Narrative Update The analyst price target for TC Energy has been revised from CA$86.00 to CA$87.32 as analysts update models for the Q4 report, reflect reiterated FY26 EBITDA guidance, and factor in a series of higher Street targets, which are partly tempered by recent share price appreciation. Analyst Commentary Recent research updates on TC Energy show a mix of optimism on growth and asset quality, balanced against concerns about valuation after the recent share price move.
PXT
CA$26.09
Parex Resources
7D
-2.1%
1Y
88.9%
TPZ
CA$31.05
Topaz Energy
7D
-2.4%
1Y
28.4%
IMO
CA$180.13
Imperial Oil
7D
4.5%
1Y
72.4%

IMO: Limited Margin For Error Will Pressure Returns After Outperformance

Analysts have raised the fair value estimate for Imperial Oil by CA$6 to CA$98, citing recent target moves around CA$110 to CA$116, a shift to an Underperform view from some firms, updated assumptions for a higher discount rate, softer revenue growth, improved profit margin, and a slightly lower future P/E. Analyst Commentary Recent research on Imperial Oil highlights a mix of higher price targets and more cautious ratings, with some firms flagging valuation and return risks even as target prices cluster in the CA$110 to CA$116 range.
CNQ
CA$68.00
Canadian Natural Resources
7D
0.8%
1Y
52.2%

CNQ: Elevated Capital Spending Will Constrain Cash Returns Despite Rising Street Optimism

Analysts have raised the fair value estimate for Canadian Natural Resources from CA$54.90 to CA$58.60, citing updated price targets across the Street, as well as support from slightly higher margin assumptions and modestly better revenue trends, even as views on future P/E and ratings remain mixed. Analyst Commentary Recent research views on Canadian Natural Resources are mixed, with several bullish analysts lifting price targets while a smaller group has turned more cautious on execution and capital allocation.
CVE
CA$35.85
Cenovus Energy
7D
9.0%
1Y
76.4%

CVE: Cash Returns And Portfolio Integration Will Shape Future Risk Reward Balance

Cenovus Energy's analyst fair value estimate has been revised higher from CA$32.12 to CA$33.19, reflecting a series of recent target price increases from multiple firms as analysts factor in updated views on revenue, profit margins and sector conditions. Analyst Commentary Recent Street research on Cenovus Energy points to an active debate around upside potential versus execution and commodity related risks, with several firms adjusting their price targets and ratings in quick succession.
SCR
CA$37.47
Strathcona Resources
7D
-4.6%
1Y
25.7%
ISO
CA$15.00
IsoEnergy
7D
-6.9%
1Y
66.3%
IPCO
CA$35.73
International Petroleum
7D
-3.1%
1Y
62.2%

IPCO: Overvaluation Risk Will Depend On Delivering Blackrod Phase 1 Plateau

Analysts have lifted their price target on International Petroleum by CA$2, reflecting updated assumptions around fair value, revenue growth, profit margins and forward P/E expectations. Analyst Commentary Bullish Takeaways Bullish analysts see the CA$2 price target lift as consistent with updated fair value work that reflects the current forward P/E assumptions.
ENB
CA$75.29
Enbridge
7D
3.0%
1Y
18.4%

ENB: Future Returns Will Rely On Utility Execution And Rich Market Pricing

Analysts have nudged the fair value estimate for Enbridge higher, with the implied price target moving roughly CA$1.48 to CA$75.29. This change is supported by a slightly lower discount rate, steady revenue growth and margin assumptions, and a modestly higher future P/E multiple after a series of recent CA$72 to CA$77 Street price target revisions.
SGQ
CA$0.29
SouthGobi Resources
7D
-34.4%
1Y
-46.4%
SU
CA$89.42
Suncor Energy
7D
5.0%
1Y
61.1%

SU: Investor Day And Buybacks Will Shape Oil Sands Resource Reassessment

The analyst fair value estimate for Suncor Energy has been lifted from CA$75.45 to CA$77.50, reflecting higher Street price targets and updated analyst views on sector conditions and relative valuation. Analyst Commentary Recent Street research on Suncor Energy shows a mix of optimism and caution, with several firms adjusting their price targets and ratings in response to sector conditions and company specific factors.
DML
CA$4.93
Denison Mines
7D
-1.4%
1Y
140.5%
SNM
CA$0.18
ShaMaran Petroleum
7D
-11.9%
1Y
-22.9%