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Canadian (TSX) Financials Sector Analysis

UpdatedDec 25, 2025
DataAggregated Company Financials
Companies208
  • 7D2.2%
  • 3M9.5%
  • 1Y27.5%
  • YTD28.3%

The Financials industry is up 1.2% in the last week, with Royal Bank of Canada up 2.3%. This means that the industry has gained 27% over the past year. Looking forward, earnings are forecast to grow by 5.1% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 25 Dec 2025CA$1.7tCA$599.6bCA$103.8b12.7x16.4x2.8x
Sat, 22 Nov 2025CA$1.6tCA$600.3bCA$102.4b12.4x15.5x2.6x
Mon, 20 Oct 2025CA$1.6tCA$600.8bCA$100.6b13.1x15.6x2.6x
Wed, 17 Sep 2025CA$1.6tCA$597.6bCA$100.4b13.2x15.6x2.6x
Fri, 15 Aug 2025CA$1.5tCA$590.5bCA$94.7b13.3x15.8x2.5x
Sun, 13 Jul 2025CA$1.5tCA$589.1bCA$92.0b12.6x15.8x2.5x
Tue, 10 Jun 2025CA$1.4tCA$589.1bCA$92.0b12.3x15.4x2.4x
Thu, 08 May 2025CA$1.3tCA$580.5bCA$82.0b12.6x16.4x2.3x
Sat, 05 Apr 2025CA$1.3tCA$583.1bCA$81.7b12.2x16x2.2x
Mon, 03 Mar 2025CA$1.4tCA$585.3bCA$82.9b13.4x16.7x2.4x
Wed, 29 Jan 2025CA$1.3tCA$590.4bCA$82.4b12.7x15.7x2.2x
Fri, 27 Dec 2024CA$1.3tCA$590.6bCA$82.4b12.8x15.5x2.2x
Sun, 24 Nov 2024CA$1.3tCA$587.7bCA$80.1b12.8x15.9x2.2x
Tue, 22 Oct 2024CA$1.2tCA$587.8bCA$78.2b12.5x15.8x2.1x
Thu, 19 Sep 2024CA$1.2tCA$584.9bCA$78.0b12.3x15.2x2x
Sat, 17 Aug 2024CA$1.1tCA$582.0bCA$80.1b11.5x13.7x1.9x
Mon, 15 Jul 2024CA$1.1tCA$574.6bCA$78.5b11.4x13.8x1.9x
Wed, 12 Jun 2024CA$1.1tCA$576.3bCA$78.6b11.2x13.4x1.8x
Fri, 10 May 2024CA$1.1tCA$574.7bCA$79.5b11.7x13.3x1.8x
Sun, 07 Apr 2024CA$1.1tCA$576.5bCA$79.9b10.9x13.2x1.8x
Tue, 05 Mar 2024CA$1.0tCA$595.6bCA$79.8b11.3x13x1.7x
Thu, 01 Feb 2024CA$1.0tCA$585.2bCA$80.9b10.8x12.7x1.8x
Sat, 30 Dec 2023CA$1.0tCA$582.5bCA$80.8b9.7x12.6x1.8x
Mon, 27 Nov 2023CA$950.0bCA$591.7bCA$88.2b9.6x10.8x1.6x
Wed, 25 Oct 2023CA$880.5bCA$589.8bCA$85.7b9.4x10.3x1.5x
Fri, 22 Sep 2023CA$944.7bCA$585.8bCA$84.5b9.9x11.2x1.6x
Sun, 20 Aug 2023CA$946.6bCA$601.4bCA$86.1b10.1x11x1.6x
Tue, 18 Jul 2023CA$974.0bCA$586.2bCA$82.2b10.7x11.9x1.7x
Thu, 15 Jun 2023CA$955.1bCA$588.4bCA$82.4b10.5x11.6x1.6x
Sat, 13 May 2023CA$954.6bCA$598.8bCA$87.6b10.6x10.9x1.6x
Mon, 10 Apr 2023CA$947.1bCA$553.7bCA$86.9b10.5x10.9x1.7x
Wed, 08 Mar 2023CA$990.4bCA$558.8bCA$86.5b10.7x11.4x1.8x
Fri, 03 Feb 2023CA$1.0tCA$558.7bCA$95.3b10.7x10.6x1.8x
Sun, 01 Jan 2023CA$934.9bCA$561.6bCA$95.5b10.3x9.8x1.7x
Price to Earnings Ratio

9.8x


Total Market Cap: CA$934.9bTotal Earnings: CA$95.5bTotal Revenue: CA$561.6bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian Financials Sector Price to Earnings3Y Average 13.6x202320242025
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 16.4x which is higher than its 3-year average PE of 13.6x.
  • The 3-year average PS ratio of 2.0x is lower than the industry's current PS ratio of 2.8x.
Past Earnings Growth
  • The earnings for companies in the Financials industry have grown 2.8% per year over the last three years.
  • Revenues for these companies have grown 2.2% 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 Financials sector?

CA Market2.21%
Financials2.19%
Consumer Finance3.93%
Capital Markets2.80%
Banks2.12%
Insurance1.84%
Diversified Financial0.63%
Mortgage Finance0%0
Industry PE
  • Investors are most optimistic about the Diversified Financial industry even though it's trading below its 3-year average PE ratio of 96.3x.
    • Analysts are expecting annual earnings growth of 28.8%, which is higher than its past year's earnings decline of 11.6% per year.
  • Investors are most pessimistic about the Consumer Finance industry, which is trading below its 3-year average of 12.4x.
Forecasted Growth
  • Analysts are most optimistic on the Diversified Financial industry, expecting annual earnings growth of 29% over the next 5 years.
  • This is better than its past earnings decline of 12% per year.
  • In contrast, the Banks industry is expected to see its earnings grow by 3.9% 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$233.852.6%
+CA$8.4b		34.8%PB2.6x
TD Toronto-Dominion BankCA$129.162.7%
+CA$5.7b		69.5%PB1.7x
BN BrookfieldCA$63.753.9%
+CA$5.4b		15.5%PE125.9x
BNS Bank of Nova ScotiaCA$101.312.8%
+CA$3.5b		31.5%PB1.4x
BAM Brookfield Asset ManagementCA$73.132.6%
+CA$3.0b		-8.3%PE33x

Latest News

NA
CA$176.10
National Bank of Canada
7D
2.2%
1Y
32.7%

National Bank of Canada (TSE:NA) Is Increasing Its Dividend To CA$1.24

Dec 25
National Bank of Canada (TSE:NA) Is Increasing Its Dividend To CA$1.24
RY
CA$233.85
Royal Bank of Canada
7D
2.6%
1Y
34.8%

RY: Future Returns Will Depend On Diversified Mix Amid Measured Upgrade Momentum

The analyst price target for Royal Bank of Canada has been modestly increased from about C$229 to roughly C$233, as analysts factor in stronger expected revenue growth, slightly higher profit margins, and the bank’s resilient positioning relative to peers. Analyst Commentary Bullish analysts highlight that the recent uptick in the consensus price target reflects growing confidence in Royal Bank of Canada’s earnings trajectory and its ability to outgrow peers on a risk adjusted basis.
BNS
CA$101.31
Bank of Nova Scotia
7D
2.8%
1Y
31.5%

BNS: New Leadership And Improving ROE Will Drive A Gradual Re Rating

The analyst price target for Bank of Nova Scotia has been modestly increased to around C$106 from approximately C$94, as analysts point to improving return on equity under new management and room for valuation multiple expansion relative to peers. Analyst Commentary Bullish analysts highlight that the recent price target increases reflect growing confidence in Bank of Nova Scotia's strategic reset and earnings trajectory, with upside tied to both execution on its new plan and normalization of valuation versus peers.
TD
CA$129.16
Toronto-Dominion Bank
7D
2.7%
1Y
69.5%
ONEX
CA$110.43
Onex
7D
-0.8%
1Y
0.07%
NFD.A
CA$5.25
Northfield Capital
7D
-4.2%
1Y
31.3%
MFC
CA$50.12
Manulife Financial
7D
2.1%
1Y
13.8%

MFC: Core Insurance And Asia Execution Will Support Balanced Medium Term Outlook

Analysts have nudged their price targets on Manulife Financial higher, with recent revisions in both U.S. dollar and Canadian dollar terms reflecting stronger than expected life insurance earnings and solid core insurance and Asia growth. This has resulted in a modest increase in our fair value estimate to about $51.94.
FFH
CA$2,584.28
Fairfax Financial Holdings
7D
4.0%
1Y
28.6%

FFH Will Face Mounting Execution Risks At Current Elevated Share Price

Analysts have moderately trimmed their price target on Fairfax Financial Holdings, lowering it to C$2,900 from C$3,050. This reflects the incorporation of slightly softer long term revenue growth, profit margin expectations, and a lower future P/E multiple into their valuation models, while still maintaining a broadly positive outlook.
DEFI
CA$1.26
DeFi Technologies
7D
-9.4%
1Y
-70.2%

DEFI: Execution Will Improve As Delays Ease And Shares Recover

Analysts cut their price target on DeFi Technologies by half, to approximately $2.50 from about $5.00. They cited project delays and a slightly higher perceived risk profile that modestly raises the discount rate and future valuation multiple in their models.
OLY
CA$110.50
Olympia Financial Group
7D
-5.4%
1Y
1.4%

Olympia Financial Group (TSE:OLY) Is Paying Out A Dividend Of CA$0.60

Dec 11
Olympia Financial Group (TSE:OLY) Is Paying Out A Dividend Of CA$0.60
BN
CA$63.75
Brookfield
7D
3.9%
1Y
15.5%
BAM
CA$73.13
Brookfield Asset Management
7D
2.6%
1Y
-8.3%
SEC
CA$371.50
Senvest Capital
7D
-3.0%
1Y
6.1%
CF
CA$11.38
Canaccord Genuity Group
7D
-1.0%
1Y
13.5%

Canaccord Genuity Group (TSE:CF) Is Due To Pay A Dividend Of CA$0.085

Nov 18
Canaccord Genuity Group (TSE:CF) Is Due To Pay A Dividend Of CA$0.085
WNDR
CA$0.29
WonderFi Technologies
7D
-3.3%
1Y
-3.3%
CKI
CA$21.25
Clarke
7D
-3.4%
1Y
-10.0%