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Canadian (TSX) Financials Sector Analysis

UpdatedDec 07, 2021
DataAggregated Company Financials
Companies227
  • 7D-0.3%
  • 3M2.9%
  • 1Y28.5%
  • YTD29.5%

Over the last 7 days, the Financials industry has remained flat, although notably Bank of Nova Scotia gained 4.1%. The past year has been better, since the industry has gained 28% in that time.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPE
Tue, 07 Dec 2021CA$1.1tCA$591.7bCA$93.6b10.1x
Thu, 04 Nov 2021CA$1.1tCA$561.9bCA$90.2b10.6x
Sat, 02 Oct 2021CA$997.4bCA$564.3bCA$90.5b9.6x
Mon, 30 Aug 2021CA$1.0tCA$561.4bCA$90.0b9.7x
Tue, 06 Jul 2021CA$982.3bCA$553.3bCA$84.6b9.9x
Fri, 09 Apr 2021CA$906.3bCA$540.1bCA$71.6b8.3x
Thu, 31 Dec 2020CA$803.4bCA$554.5bCA$59.4b10.8x
Sun, 04 Oct 2020CA$694.9bCA$532.4bCA$54.1b10.3x
Wed, 08 Jul 2020CA$675.3bCA$547.4bCA$54.7b10.5x
Tue, 31 Mar 2020CA$636.9bCA$524.2bCA$62.0b9.9x
Fri, 03 Jan 2020CA$818.8bCA$540.7bCA$73.1b11.6x
Mon, 07 Oct 2019CA$816.1bCA$542.1bCA$72.8b11.3x
Sun, 30 Jun 2019CA$781.4bCA$514.9bCA$70.8b10.7x
Wed, 03 Apr 2019CA$769.2bCA$516.1bCA$69.9b10.1x
Sat, 05 Jan 2019CA$702.5bCA$481.1bCA$63.6b9.5x
PE Ratio

9.5x

Total Market Cap: CA$702.5bTotal Earnings: CA$63.6bTotal Revenue: CA$481.1b0%0%0%3 Year10 Year
20202021

Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 10.5x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: The earnings for companies in the Financials industry have grown 14% per year over the last three years, and revenues for these companies have grown 7.1% 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?

Diversified Financial1.82%
Banks0.28%
Insurance0.11%
Capital Markets-2.61%
Consumer Finance-3.18%
Mortgage Finance-4.16%

Industry PE: Investors are most optimistic about the Consumer Finance industry which is trading above its 3-year average PE ratio of 18.9x. However analysts are expecting annual earnings growth of 9.1%, which is lower than the prior year's growth of 197% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Capital Markets industry, which is trading close to its 3-year average of 8.6x.

Forecasted Growth: Analysts are most optimistic on the Diversified Financial industry, expecting annual earnings growth of 17% over the next 5 years. Meanwhile, the Insurance industry is expected to see its earnings growth to stay flat over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

Company7D1YValuation
BNS Bank of Nova Scotia4.1%+CA$4.0b26.1%PB1.5x
TD Toronto-Dominion Bank0.9%+CA$1.6b33.0%PB1.8x
BMO Bank of Montreal0.6%+CA$569.8m41.6%PB1.7x
FFH Fairfax Financial Holdings3.1%+CA$506.8m28.0%PE3.9x
IFC Intact Financial0.7%+CA$186.6m5.5%PE16.8x
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