Canadian (TSX) Professional Services Industry Analysis
UpdatedDec 01, 2022
DataAggregated Company Financials
Companies9
- 7D2.5%
- 3M10.5%
- 1Y3.8%
- YTD8.0%
The Professional Services industry is up 2.5% in the last week, with Thomson Reuters up 2.6%. Meanwhile, Deveron actually underperformed within the industry, shrinking 14% in the last week. In the last 12 months, the industry was up 3.8%. Looking forward, earnings are forecast to grow by 8.9% annually.
Industry Valuation and Performance
Has the Canadian Professional Services Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 01 Dec 2022 | CA$79.3b | CA$10.7b | CA$1.4b | 39.5x | 56.4x | 7.4x |
| Sat, 29 Oct 2022 | CA$73.7b | CA$10.7b | CA$723.5m | 55.9x | 101.9x | 6.9x |
| Mon, 26 Sep 2022 | CA$78.3b | CA$14.7b | CA$912.7m | 34.3x | 85.8x | 5.3x |
| Wed, 24 Aug 2022 | CA$81.4b | CA$14.3b | CA$876.6m | 36.9x | 92.8x | 5.7x |
| Fri, 22 Jul 2022 | CA$77.9b | CA$13.9b | CA$2.3b | 28.3x | 33.7x | 5.6x |
| Sun, 19 Jun 2022 | CA$71.4b | CA$14.0b | CA$2.3b | 22.7x | 30.5x | 5.1x |
| Tue, 17 May 2022 | CA$67.6b | CA$13.9b | CA$2.3b | 24.1x | 29.1x | 4.9x |
| Thu, 14 Apr 2022 | CA$75.7b | CA$13.4b | CA$7.3b | 16.9x | 10.3x | 5.6x |
| Sat, 12 Mar 2022 | CA$73.7b | CA$13.6b | CA$7.4b | 17.8x | 10x | 5.4x |
| Mon, 07 Feb 2022 | CA$76.1b | CA$13.4b | CA$8.4b | 20.7x | 9.1x | 5.7x |
| Wed, 05 Jan 2022 | CA$82.7b | CA$13.4b | CA$8.4b | 21.2x | 9.9x | 6.2x |
| Fri, 03 Dec 2021 | CA$86.2b | CA$13.4b | CA$8.4b | 30.4x | 10.2x | 6.4x |
| Sun, 31 Oct 2021 | CA$84.7b | CA$13.0b | CA$8.7b | 21x | 9.7x | 6.5x |
| Tue, 28 Sep 2021 | CA$81.2b | CA$13.1b | CA$8.9b | 19.1x | 9.1x | 6.2x |
| Thu, 26 Aug 2021 | CA$81.8b | CA$12.9b | CA$8.7b | 15.8x | 9.4x | 6.3x |
| Fri, 02 Jul 2021 | CA$70.4b | CA$12.9b | CA$8.7b | 14.3x | 8x | 5.4x |
| Mon, 05 Apr 2021 | CA$63.3b | CA$12.8b | CA$7.8b | 23.3x | 8.2x | 4.9x |
| Thu, 07 Jan 2021 | CA$58.9b | CA$12.9b | CA$1.7b | 29.1x | 34.8x | 4.6x |
| Wed, 30 Sep 2020 | CA$59.5b | CA$13.2b | CA$2.8b | 21.1x | 21.5x | 4.5x |
| Sat, 04 Jul 2020 | CA$52.8b | CA$13.3b | CA$2.4b | 22.4x | 22.2x | 4x |
| Tue, 07 Apr 2020 | CA$53.6b | CA$13.7b | CA$2.6b | 21.4x | 21x | 3.9x |
| Fri, 10 Jan 2020 | CA$53.0b | CA$12.8b | CA$2.2b | 29x | 23.6x | 4.1x |
Price to Earnings Ratio
135.5x
Current Industry PE
- Investors are optimistic on the Canadian Professional Services industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 56.4x which is higher than its 3-year average PE of 26.2x.
- The 3-year average PS ratio of 5.1x is lower than the industry's current PS ratio of 7.4x.
Past Earnings Growth
- The earnings for companies in the Professional Services industry have grown 53% per year over the last three years.
- Meanwhile revenues for these companies have declined 5.7% per year.
- This means that less sales are being generated overall, but since cost of doing business is lower, profits have been increasing.
Industry Trends
Which industries have driven the changes within the Canadian Industrials industry?
| CA Market | 0.70% | |
| Industrials | 1.78% | |
| Professional Services | 2.50% | |
| Research and Consulting Services | 2.59% | |
| HR Services | -0.56% | |
Industry PE
- Investors are most optimistic about the HR Services industry which is trading above its 3-year average PE ratio of 4.5x.
- Analysts are expecting annual earnings growth of 36.4%, which is lower than the prior year's growth of 81.0% per year.
- Investors are most pessimistic about the Research and Consulting Services industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 25.9x.
Forecasted Growth
- Analysts are most optimistic on the HR Services industry, expecting annual earnings growth of 36% over the next 5 years.
- However this is lower than its past earnings growth rate of 81% per year.
- In contrast, the Research and Consulting Services industry is expected to see its earnings grow by 8.1% 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 | |
|---|---|---|---|---|---|
| TRI Thomson Reuters | CA$158.39 | 2.6% +CA$2.0b | 3.9% | PE54.5x | |
| RIWI RIWI | CA$0.76 | 5.6% +CA$720.2k | -44.1% | PS3.8x | |
| GSL Green Scientific Labs Holdings | CA$0.06 | 0% CA$1.5k | -99.1% | PS0.2x |