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Canadian (TSX) Financials Sector Analysis

UpdatedFeb 25, 2024
DataAggregated Company Financials
Companies269
  • 7D1.1%
  • 3M10.8%
  • 1Y3.9%
  • YTD2.5%

Over the last 7 days, the Financials industry has risen 1.1%, driven by gains in Brookfield and Royal Bank of Canada of 2.4% and 1.0%, respectively. This takes the industry's 12 month performance to a gain of 3.9%. Looking forward, earnings are forecast to grow by 9.1% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 25 Feb 2024CA$1.0tCA$586.0bCA$75.0b11.3x13.8x1.8x
Tue, 23 Jan 2024CA$1.0tCA$585.7bCA$80.9b10.3x12.5x1.7x
Thu, 21 Dec 2023CA$1.0tCA$584.2bCA$80.8b9.7x12.5x1.7x
Sat, 18 Nov 2023CA$949.1bCA$584.9bCA$88.4b9.7x10.7x1.6x
Mon, 16 Oct 2023CA$909.3bCA$588.1bCA$84.5b9.7x10.8x1.5x
Wed, 13 Sep 2023CA$949.1bCA$603.7bCA$84.5b10.2x11.2x1.6x
Fri, 11 Aug 2023CA$983.8bCA$614.8bCA$82.2b10x12x1.6x
Sun, 09 Jul 2023CA$950.5bCA$587.3bCA$82.1b10.5x11.6x1.6x
Tue, 06 Jun 2023CA$945.6bCA$584.1bCA$82.5b10.5x11.5x1.6x
Thu, 04 May 2023CA$948.5bCA$553.5bCA$86.5b10.7x11x1.7x
Sat, 01 Apr 2023CA$951.7bCA$552.5bCA$85.7b10.4x11.1x1.7x
Mon, 27 Feb 2023CA$1.0tCA$556.9bCA$93.3b11x10.7x1.8x
Wed, 25 Jan 2023CA$987.7bCA$559.5bCA$95.3b10.2x10.4x1.8x
Fri, 23 Dec 2022CA$927.6bCA$562.8bCA$95.6b10.1x9.7x1.6x
Sun, 20 Nov 2022CA$961.3bCA$548.2bCA$88.3b10.5x10.9x1.8x
Tue, 18 Oct 2022CA$887.7bCA$567.1bCA$92.4b8.8x9.6x1.6x
Thu, 15 Sep 2022CA$955.9bCA$558.7bCA$92.0b9.4x10.4x1.7x
Sat, 13 Aug 2022CA$987.7bCA$559.4bCA$93.6b9.7x10.6x1.8x
Mon, 11 Jul 2022CA$938.9bCA$621.1bCA$99.8b8.9x9.4x1.5x
Wed, 08 Jun 2022CA$1.0tCA$616.0bCA$99.3b9.6x10.3x1.7x
Fri, 06 May 2022CA$1.0tCA$615.9bCA$95.6b9.7x10.6x1.6x
Sun, 03 Apr 2022CA$1.1tCA$612.1bCA$96.0b10x11.3x1.8x
Tue, 01 Mar 2022CA$1.1tCA$607.8bCA$95.0b11.1x11.6x1.8x
Thu, 27 Jan 2022CA$1.1tCA$589.8bCA$93.3b10.9x11.7x1.9x
Sat, 25 Dec 2021CA$1.1tCA$592.0bCA$93.5b10.6x11.6x1.8x
Mon, 22 Nov 2021CA$1.1tCA$584.7bCA$92.2b10.8x11.6x1.8x
Wed, 20 Oct 2021CA$1.0tCA$561.1bCA$90.3b9.8x11.5x1.9x
Fri, 17 Sep 2021CA$1.0tCA$564.4bCA$90.6b9.8x11.2x1.8x
Sun, 15 Aug 2021CA$1.0tCA$561.4bCA$90.0b10.1x11.4x1.8x
Thu, 10 Jun 2021CA$971.4bCA$553.1bCA$79.7b9.1x12.2x1.8x
Wed, 03 Mar 2021CA$852.1bCA$556.8bCA$61.1b11.4x14x1.5x
Price to Earnings Ratio

14x


Total Market Cap: CA$852.1bTotal Earnings: CA$61.1bTotal Revenue: CA$556.8bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian Financials Sector Price to Earnings3Y Average 11.2x202220232024
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 13.8x 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
  • The earnings for companies in the Financials industry have grown 7.1% per year over the last three years, while revenues have remained mostly flat.
  • This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.

Industry Trends

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

CA Market0.97%
Financials1.15%
Capital Markets1.39%
Insurance1.30%
Banks1.07%
Diversified Financial0.58%
Mortgage Finance0%
Mortgage REITs0%
Consumer Finance-5.47%
Industry PE
  • Investors are most optimistic about the Diversified Financial industry which is trading above its 3-year average PE ratio of 24.6x.
    • Analysts are expecting annual earnings growth of 54.0%, which is higher than its past year's earnings decline of 31.1% 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 9.1x.
Forecasted Growth
  • Analysts are most optimistic on the Diversified Financial industry, expecting annual earnings growth of 54% over the next 5 years.
  • This is better than its past earnings decline of 31% per year.
  • In contrast, the Banks 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
BN BrookfieldCA$55.722.4%
+CA$2.0b
21.3%PE66.6x
RY Royal Bank of CanadaCA$133.221.0%
+CA$1.8b
-2.9%PB1.7x
CM Canadian Imperial Bank of CommerceCA$63.382.3%
+CA$1.4b
0.8%PB1.2x
TD Toronto-Dominion BankCA$81.620.9%
+CA$1.3b
-10.4%PB1.4x
IFC Intact FinancialCA$234.552.6%
+CA$1.0b
18.4%PE40.4x
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Latest News

IAG

CA$86.05

iA Financial

7D

-7.1%

1Y

-3.7%

ONEX

CA$101.80

Onex

7D

-0.9%

1Y

47.2%

GSY

CA$164.35

goeasy

7D

-7.1%

1Y

31.5%

ELF

CA$1,020.00

E-L Financial

7D

-1.2%

1Y

10.6%

POW

CA$39.90

Power Corporation of Canada

7D

4.1%

1Y

11.4%

BN

CA$55.72

Brookfield

7D

2.4%

1Y

21.3%

MFC

CA$32.81

Manulife Financial

7D

-1.5%

1Y

22.7%

FFH

CA$1,410.00

Fairfax Financial Holdings

7D

2.5%

1Y

51.4%

CM

CA$63.38

Canadian Imperial Bank of Commerce

7D

2.3%

1Y

0.8%

TD

CA$81.62

Toronto-Dominion Bank

7D

0.9%

1Y

-10.4%

GLXY

CA$12.66

Galaxy Digital Holdings

7D

-4.4%

1Y

163.2%

RY

CA$133.22

Royal Bank of Canada

7D

1.0%

1Y

-2.9%

SLF

CA$74.43

Sun Life Financial

7D

2.3%

1Y

12.9%

CF

CA$7.95

Canaccord Genuity Group

7D

-8.3%

1Y

-30.4%

BMO

CA$128.14

Bank of Montreal

7D

0.9%

1Y

-2.1%