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Canadian (TSX) Financials Sector Analysis
UpdatedDec 21, 2024
DataAggregated Company Financials
Companies251
- 7D-1.9%
- 3M6.5%
- 1Y26.0%
- YTD25.7%
Over the last 7 days, the Financials industry has dropped 2.5%, driven by pullbacks in Royal Bank of Canada and Brookfield of 2.9% and 5.2%, respectively. Over the past 12 months, the industry was up 26%. As for the next few years, earnings are expected to grow by 8.9% per annum.
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 |
|---|---|---|---|---|---|---|
| Sat, 21 Dec 2024 | CA$1.3t | CA$582.0b | CA$82.9b | 12.7x | 15.2x | 2.2x |
| Mon, 18 Nov 2024 | CA$1.3t | CA$588.2b | CA$80.2b | 12.8x | 15.7x | 2.1x |
| Wed, 16 Oct 2024 | CA$1.2t | CA$587.1b | CA$78.2b | 12.4x | 15.6x | 2.1x |
| Fri, 13 Sep 2024 | CA$1.2t | CA$584.3b | CA$78.0b | 12.1x | 14.9x | 2x |
| Sun, 11 Aug 2024 | CA$1.1t | CA$580.8b | CA$80.1b | 11.7x | 13.3x | 1.8x |
| Tue, 09 Jul 2024 | CA$1.0t | CA$574.7b | CA$78.5b | 11.3x | 13.3x | 1.8x |
| Thu, 06 Jun 2024 | CA$1.1t | CA$575.4b | CA$78.5b | 11.4x | 13.5x | 1.8x |
| Sat, 04 May 2024 | CA$1.0t | CA$578.8b | CA$79.4b | 11.7x | 13x | 1.8x |
| Mon, 01 Apr 2024 | CA$1.1t | CA$575.8b | CA$79.9b | 11.2x | 13.3x | 1.8x |
| Wed, 28 Feb 2024 | CA$1.0t | CA$593.9b | CA$76.8b | 11.4x | 13.4x | 1.7x |
| Fri, 26 Jan 2024 | CA$1.0t | CA$585.6b | CA$80.9b | 10.6x | 12.6x | 1.7x |
| Sun, 24 Dec 2023 | CA$1.0t | CA$582.7b | CA$80.8b | 9.7x | 12.6x | 1.7x |
| Tue, 21 Nov 2023 | CA$954.1b | CA$592.9b | CA$88.2b | 9.7x | 10.8x | 1.6x |
| Thu, 19 Oct 2023 | CA$904.0b | CA$588.8b | CA$84.5b | 9.7x | 10.7x | 1.5x |
| Sat, 16 Sep 2023 | CA$956.5b | CA$603.1b | CA$84.5b | 10.3x | 11.3x | 1.6x |
| Mon, 14 Aug 2023 | CA$981.7b | CA$595.9b | CA$86.1b | 9.8x | 11.4x | 1.6x |
| Wed, 12 Jul 2023 | CA$950.1b | CA$586.8b | CA$82.1b | 10.5x | 11.6x | 1.6x |
| Fri, 09 Jun 2023 | CA$943.6b | CA$582.9b | CA$82.5b | 10.4x | 11.4x | 1.6x |
| Sun, 07 May 2023 | CA$951.1b | CA$550.5b | CA$86.5b | 10.8x | 11x | 1.7x |
| Tue, 04 Apr 2023 | CA$957.4b | CA$552.7b | CA$87.0b | 10.3x | 11x | 1.7x |
| Thu, 02 Mar 2023 | CA$993.7b | CA$555.2b | CA$88.7b | 11.2x | 11.2x | 1.8x |
| Sat, 28 Jan 2023 | CA$996.4b | CA$558.7b | CA$95.3b | 10.3x | 10.5x | 1.8x |
| Mon, 26 Dec 2022 | CA$932.0b | CA$562.2b | CA$95.6b | 10.3x | 9.8x | 1.7x |
| Wed, 23 Nov 2022 | CA$971.8b | CA$548.7b | CA$88.3b | 10.9x | 11x | 1.8x |
| Fri, 21 Oct 2022 | CA$887.3b | CA$565.2b | CA$92.3b | 9x | 9.6x | 1.6x |
| Sun, 18 Sep 2022 | CA$950.0b | CA$560.1b | CA$92.1b | 9.5x | 10.3x | 1.7x |
| Tue, 16 Aug 2022 | CA$988.1b | CA$558.7b | CA$93.7b | 9.7x | 10.5x | 1.8x |
| Thu, 14 Jul 2022 | CA$921.1b | CA$621.4b | CA$99.8b | 8.8x | 9.2x | 1.5x |
| Sat, 11 Jun 2022 | CA$979.4b | CA$618.9b | CA$99.5b | 9.3x | 9.8x | 1.6x |
| Mon, 09 May 2022 | CA$1.0t | CA$614.4b | CA$95.7b | 9.5x | 10.5x | 1.6x |
| Wed, 06 Apr 2022 | CA$1.1t | CA$611.6b | CA$96.0b | 10x | 11.4x | 1.8x |
| Fri, 04 Mar 2022 | CA$1.1t | CA$609.7b | CA$96.5b | 11x | 11.3x | 1.8x |
| Sun, 30 Jan 2022 | CA$1.1t | CA$591.5b | CA$93.3b | 11.1x | 11.8x | 1.9x |
| Tue, 28 Dec 2021 | CA$1.1t | CA$591.7b | CA$93.4b | 10.6x | 11.6x | 1.8x |
Price to Earnings Ratio
11.6x
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 15.2x which is higher than its 3-year average PE of 11.8x.
- The 3-year average PS ratio of 1.7x is lower than the industry's current PS ratio of 2.2x.
Past Earnings Growth
- The earnings for companies in the Financials industry have declined 3.9% per year over the last three years.
- Meanwhile revenues have remained mostly flat.
- This means that although sales have remained flat, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the Canadian Financials sector?
| CA Market | -2.58% | |
| Financials | -1.86% | |
| Consumer Finance | 0.17% | |
| Mortgage Finance | 0% | |
| Mortgage REITs | 0% | |
| Insurance | -0.81% | |
| Diversified Financial | -1.07% | |
| Banks | -1.81% | |
| Capital Markets | -3.51% | |
Industry PE
- Investors are most optimistic about the Capital Markets industry which is trading above its 3-year average PE ratio of 21.9x.
- Analysts are expecting annual earnings growth of 43.1%, which is higher than its past year's earnings growth of 7.2% 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 9.8x.
Forecasted Growth
- Analysts are most optimistic on the Diversified Financial industry, expecting annual earnings growth of 45% over the next 5 years.
- This is better than its past earnings growth rate of 30% per year.
- In contrast, the Insurance industry is expected to see its earnings grow by 5.0% 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 | |
|---|---|---|---|---|---|
| GWO Great-West Lifeco | CA$47.14 | 0.8% +CA$344.8m | 10.0% | PE12.1x | |
| FFH Fairfax Financial Holdings | CA$2.00k | 0.3% +CA$126.5m | 67.2% | PE7.6x | |
| ECN ECN Capital | CA$3.12 | 6.8% +CA$56.2m | 11.0% | PS4.7x | |
| CWB Canadian Western Bank | CA$58.53 | 0.9% +CA$49.3m | 89.0% | PB1.4x | |
| GSY goeasy | CA$163.82 | 1.2% +CA$32.8m | 2.0% | PE9.7x |