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Canadian (TSX) Telecom Sector Analysis

UpdatedMar 19, 2024
DataAggregated Company Financials
Companies49
  • 7D-4.4%
  • 3M-6.8%
  • 1Y-16.8%
  • YTD-9.3%

Over the last 7 days, the Telecom industry has dropped 3.8%, driven by BCE declining 5.7%. On the other hand VerticalScope Holdings is actually up 62%. Overall the industry is down 16% in 12 months. Looking forward, earnings are forecast to grow by 16% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 19 Mar 2024CA$119.0bCA$81.4bCA$4.0b11.1x29.5x1.5x
Thu, 15 Feb 2024CA$125.5bCA$81.1bCA$4.1b12.5x30.7x1.5x
Sat, 13 Jan 2024CA$153.8bCA$85.4bCA$5.0b12.8x30.9x1.8x
Mon, 11 Dec 2023CA$153.4bCA$85.4bCA$5.0b11.9x30.7x1.8x
Wed, 08 Nov 2023CA$147.9bCA$84.6bCA$5.8b11x25.5x1.7x
Fri, 06 Oct 2023CA$141.1bCA$84.1bCA$5.8b10.4x24.3x1.7x
Sun, 03 Sep 2023CA$151.1bCA$84.1bCA$5.8b11.8x25.8x1.8x
Tue, 01 Aug 2023CA$152.0bCA$83.0bCA$6.9b10.4x22x1.8x
Thu, 29 Jun 2023CA$158.1bCA$81.9bCA$7.8b9.6x20.3x1.9x
Sat, 27 May 2023CA$160.9bCA$81.9bCA$7.8b12.8x20.6x2x
Mon, 24 Apr 2023CA$169.2bCA$80.8bCA$8.0b13.5x21.1x2.1x
Wed, 22 Mar 2023CA$160.1bCA$81.2bCA$8.1b13.4x19.8x2x
Fri, 17 Feb 2023CA$163.7bCA$81.2bCA$8.3b15.8x19.8x2x
Sun, 15 Jan 2023CA$165.1bCA$80.1bCA$8.7b14.6x19x2.1x
Tue, 13 Dec 2022CA$161.6bCA$80.1bCA$8.7b13.4x18.5x2x
Thu, 10 Nov 2022CA$157.9bCA$79.8bCA$8.4b8.9x18.8x2x
Sat, 08 Oct 2022CA$148.8bCA$79.1bCA$8.7b7.4x17.2x1.9x
Mon, 05 Sep 2022CA$161.9bCA$79.1bCA$8.7b8.6x18.6x2x
Wed, 03 Aug 2022CA$161.6bCA$77.9bCA$8.2b9.9x19.7x2.1x
Fri, 01 Jul 2022CA$164.7bCA$77.5bCA$8.2b11.5x20.1x2.1x
Sun, 29 May 2022CA$114.0bCA$53.8bCA$5.3b12x21.5x2.1x
Tue, 26 Apr 2022CA$189.2bCA$77.0bCA$8.0b12.5x23.6x2.5x
Thu, 24 Mar 2022CA$179.6bCA$76.4bCA$8.1b12.3x22.3x2.3x
Sat, 19 Feb 2022CA$178.8bCA$76.4bCA$8.4b12.5x21.4x2.3x
Mon, 17 Jan 2022CA$174.0bCA$75.6bCA$8.1b12.6x21.6x2.3x
Wed, 15 Dec 2021CA$170.6bCA$75.4bCA$8.0b11.5x21.3x2.3x
Fri, 12 Nov 2021CA$172.8bCA$74.4bCA$7.6b14.7x22.6x2.3x
Sun, 10 Oct 2021CA$168.8bCA$73.7bCA$7.5b13.7x22.6x2.3x
Tue, 07 Sep 2021CA$176.8bCA$73.7bCA$7.5b13.9x23.6x2.4x
Thu, 05 Aug 2021CA$172.4bCA$73.7bCA$7.5b14.9x23.1x2.3x
Sun, 09 May 2021CA$161.3bCA$71.8bCA$6.1b14.7x26.6x2.2x
Price to Earnings Ratio

25.8x


Total Market Cap: CA$156.5bTotal Earnings: CA$6.1bTotal Revenue: CA$71.8bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian Telecom Sector Price to Earnings3Y Average 22.7x202220232024
Current Industry PE
  • Investors are optimistic on the Canadian Communication Services industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 29.7x which is higher than its 3-year average PE of 22.7x.
  • The 3-year average PS ratio of 2.1x is higher than the industry's current PS ratio of 1.5x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have declined 13% per year over the last three years.
  • Meanwhile revenues for these companies have grown 4.3% 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, which has decreased profits.

Industry Trends

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

CA Market0.24%
Telecom-4.40%
Interactive Media and Services6.30%
Media-0.28%
Wireless Telecom-4.25%
Telecom Services and Carriers-4.69%
Entertainment-7.27%
Industry PE
  • Investors are most optimistic about the Wireless Telecom industry which is trading above its 3-year average PE ratio of 19.5x.
    • Analysts are expecting annual earnings growth of 22.5%, which is higher than its past year's earnings decline of 49.5% per year.
Forecasted Growth
  • Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 127% over the next 5 years.
  • This is better than its past earnings decline of 67% per year.
  • In contrast, the Media industry is expected to see its earnings grow by 2.8% 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
FORA VerticalScope HoldingsCA$7.4562.0%
+CA$61.8m
32.8%PS2x
RAY.A Stingray GroupCA$7.683.8%
+CA$19.2m
31.5%PE14.3x
INIK PopReachCA$0.1716.7%
+CA$7.2m
-28.6%PS0.2x
ZUM ZoomerMediaCA$0.0320.0%
+CA$3.4m
-45.5%PS0.3x
PNC.B Postmedia Network CanadaCA$1.371.5%
+CA$2.0m
n/aPS0.3x
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Latest News

FORA

CA$7.45

VerticalScope Holdings

7D

62.0%

1Y

32.8%

MDF

CA$5.69

mdf commerce

7D

0.4%

1Y

97.6%

RAY.A

CA$7.68

Stingray Group

7D

3.8%

1Y

31.5%

RCI.B

CA$57.15

Rogers Communications

7D

-4.3%

1Y

-8.5%

GAME

CA$1.88

GameSquare Holdings

7D

-20.3%

1Y

n/a

AIM

CA$2.71

Aimia

7D

-6.6%

1Y

-19.3%

WILD

CA$1.11

WildBrain

7D

-3.5%

1Y

-45.6%

BCE

CA$46.31

BCE

7D

-5.7%

1Y

-23.8%

DEAL

CA$0.03

Playgon Games

7D

20.0%

1Y

-62.5%

PRSN

CA$0.055

Personas Social

7D

10.0%

1Y

57.1%