Canadian (TSX) Packaging Industry Analysis

Industry Valuation and Performance

Has the Canadian Packaging Industry valuation changed over the past few years?

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 17.4x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: The earnings for companies in the Packaging industry have remained mostly flat over the last three years, while revenues for these companies have grown 3.6% per year.This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.

Industry Trends

Which industries have driven the changes within the Canadian Packaging industry?

Industry PE: Investors are most optimistic about the Metal and Glass Containers industry even though it's trading below its 3-year average PE ratio of 18.0x. However analysts are expecting annual earnings growth of 7.5%, which is lower than the prior year's growth of 13% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Paper Packaging industry, which is trading below its 3-year average of 16.8x.

Forecasted Growth: Analysts are most optimistic on the Paper Packaging industry, expecting annual earnings growth of 46% over the next 5 years. However this is lower than its past earnings growth rate of 146% per year. Meanwhile, the Metal and Glass Containers 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?