goeasy Ltd. (TSE:GSY) Might Not Be As Mispriced As It Looks
Apr 22
Canadian (TSX) Financials Sector Analysis
UpdatedApr 22, 2024
DataAggregated Company Financials
Companies285
- 7D-0.4%
- 3M1.8%
- 1Y6.1%
- YTD1.4%
Over the last 7 days, the Financials industry has remained flat. As for the the longer term, the industry is up 6.1% over the past 12 months. Earnings are forecast to grow by 7.2% annually.
Sector Valuation and Performance
Has the Canadian Financials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 22 Apr 2024 | CA$1.0t | CA$578.7b | CA$80.0b | 11.1x | 12.8x | 1.8x |
| Wed, 20 Mar 2024 | CA$1.0t | CA$597.2b | CA$79.8b | 11.6x | 13.2x | 1.8x |
| Fri, 16 Feb 2024 | CA$1.0t | CA$587.8b | CA$82.3b | 10.4x | 12.3x | 1.7x |
| Sun, 14 Jan 2024 | CA$1.0t | CA$584.7b | CA$80.9b | 9.8x | 12.4x | 1.7x |
| Tue, 12 Dec 2023 | CA$973.6b | CA$586.9b | CA$80.9b | 9.6x | 12x | 1.7x |
| Thu, 09 Nov 2023 | CA$912.0b | CA$589.9b | CA$85.6b | 10x | 10.7x | 1.5x |
| Sat, 07 Oct 2023 | CA$908.0b | CA$588.2b | CA$84.5b | 9.6x | 10.7x | 1.5x |
| Mon, 04 Sep 2023 | CA$960.4b | CA$604.2b | CA$84.5b | 10.3x | 11.4x | 1.6x |
| Wed, 02 Aug 2023 | CA$990.3b | CA$587.5b | CA$82.2b | 10.6x | 12x | 1.7x |
| Fri, 30 Jun 2023 | CA$953.0b | CA$586.9b | CA$82.1b | 10.5x | 11.6x | 1.6x |
| Sun, 28 May 2023 | CA$945.0b | CA$586.2b | CA$82.6b | 10.4x | 11.4x | 1.6x |
| Tue, 25 Apr 2023 | CA$973.4b | CA$554.0b | CA$87.0b | 10.6x | 11.2x | 1.8x |
| Thu, 23 Mar 2023 | CA$918.9b | CA$553.9b | CA$86.3b | 10.2x | 10.7x | 1.7x |
| Sat, 18 Feb 2023 | CA$1.0t | CA$554.8b | CA$94.5b | 10.6x | 10.8x | 1.8x |
| Mon, 16 Jan 2023 | CA$977.3b | CA$559.7b | CA$95.3b | 10.5x | 10.3x | 1.7x |
| Wed, 14 Dec 2022 | CA$943.3b | CA$557.8b | CA$92.8b | 10.2x | 10.2x | 1.7x |
| Fri, 11 Nov 2022 | CA$955.4b | CA$557.3b | CA$90.3b | 10x | 10.6x | 1.7x |
| Sun, 09 Oct 2022 | CA$886.2b | CA$564.9b | CA$92.3b | 8.9x | 9.6x | 1.6x |
| Tue, 06 Sep 2022 | CA$929.1b | CA$558.4b | CA$92.0b | 9.2x | 10.1x | 1.7x |
| Thu, 04 Aug 2022 | CA$959.2b | CA$615.4b | CA$97.6b | 9x | 9.8x | 1.6x |
| Sat, 02 Jul 2022 | CA$926.1b | CA$620.9b | CA$99.7b | 8.7x | 9.3x | 1.5x |
| Mon, 30 May 2022 | CA$1.0t | CA$618.5b | CA$99.6b | 9.7x | 10.2x | 1.6x |
| Wed, 27 Apr 2022 | CA$1.0t | CA$615.4b | CA$96.3b | 9.5x | 10.6x | 1.7x |
| Fri, 25 Mar 2022 | CA$1.1t | CA$610.0b | CA$96.3b | 10.5x | 11.4x | 1.8x |
| Sun, 20 Feb 2022 | CA$1.1t | CA$607.7b | CA$94.8b | 11x | 11.8x | 1.8x |
| Tue, 18 Jan 2022 | CA$1.1t | CA$588.9b | CA$93.2b | 11.1x | 12.2x | 1.9x |
| Thu, 16 Dec 2021 | CA$1.1t | CA$593.0b | CA$93.6b | 10.4x | 11.4x | 1.8x |
| Sat, 13 Nov 2021 | CA$1.1t | CA$579.8b | CA$91.5b | 10.5x | 11.8x | 1.9x |
| Mon, 11 Oct 2021 | CA$1.0t | CA$562.2b | CA$90.4b | 9.8x | 11.3x | 1.8x |
| Wed, 08 Sep 2021 | CA$1.0t | CA$561.5b | CA$90.3b | 9.6x | 11.2x | 1.8x |
| Fri, 06 Aug 2021 | CA$1.0t | CA$561.4b | CA$90.0b | 9.9x | 11.2x | 1.8x |
| Mon, 10 May 2021 | CA$930.0b | CA$553.1b | CA$79.6b | 8.6x | 11.7x | 1.7x |
Price to Earnings Ratio
11.7x
Current Industry PE
- Investors are optimistic on the Canadian Financials industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 12.8x which is higher than its 3-year average PE of 11.2x.
- The industry is trading close to its 3-year average PS ratio of 1.7x.
Past Earnings Growth
- Both revenue and earnings for companies in the Financials industry have remained mostly flat over the last three years.
- This means that sales and the cost of doing business have remained relatively consistent over this period and subsequently, so have profits.
Industry Trends
Which industries have driven the changes within the Canadian Financials sector?
| CA Market | -0.60% | |
| Financials | -0.41% | |
| Consumer Finance | 1.12% | |
| Insurance | 0.50% | |
| Mortgage Finance | 0% | |
| Mortgage REITs | 0% | |
| Banks | -0.55% | |
| Diversified Financial | -1.32% | |
| Capital Markets | -1.35% | |
Industry PE
- Investors are most optimistic about the Diversified Financial industry which is trading above its 3-year average PE ratio of 32.3x.
- Analysts are expecting annual earnings growth of 60.4%, which is higher than its past year's earnings growth of 18.8% per year.
- Investors are most pessimistic about the Insurance industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 9.2x.
Forecasted Growth
- Analysts are most optimistic on the Diversified Financial industry, expecting annual earnings growth of 60% over the next 5 years.
- This is better than its past earnings growth rate of 19% per year.
- In contrast, the Banks industry is expected to see its earnings grow by 5.9% 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 | |
|---|---|---|---|---|---|
| TD Toronto-Dominion Bank | CA$79.88 | 2.5% +CA$3.4b | -3.4% | PB1.3x | |
| FFH Fairfax Financial Holdings | CA$1.51k | 3.5% +CA$1.2b | 64.5% | PE5.8x | |
| POW Power Corporation of Canada | CA$36.84 | 1.5% +CA$359.0m | 2.8% | PE10.3x | |
| IFC Intact Financial | CA$221.95 | 0.9% +CA$346.1m | 8.5% | PE32.1x | |
| SLF Sun Life Financial | CA$70.30 | 0.5% +CA$203.9m | 7.6% | PE13.3x |
