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Canadian (TSX) Utilities Sector Analysis
UpdatedNov 28, 2021
DataAggregated Company Financials
Companies29
- 7D-1.2%
- 3M-5.3%
- 1Y-4.2%
- YTD-6.7%
Over the last 7 days, the Utilities industry has dropped 1.2%, driven by a pullback from Brookfield Renewable of 2.4%. However, the industry is down 4.2% over the past year.
Sector Valuation and Performance
Has the Canadian Utilities Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Tue, 30 Nov 2021 | CA$165.5b | CA$62.2b | CA$2.7b | 20.6x |
| Thu, 28 Oct 2021 | CA$166.0b | CA$59.4b | CA$1.5b | 20x |
| Sat, 25 Sep 2021 | CA$169.8b | CA$59.7b | CA$1.4b | 19.6x |
| Mon, 23 Aug 2021 | CA$174.8b | CA$59.4b | CA$1.5b | 21.1x |
| Sat, 10 Jul 2021 | CA$167.6b | CA$59.4b | CA$1.5b | 20.5x |
| Fri, 02 Apr 2021 | CA$169.6b | CA$57.8b | CA$2.0b | 18.8x |
| Mon, 04 Jan 2021 | CA$172.6b | CA$56.2b | CA$2.5b | 15.6x |
| Thu, 08 Oct 2020 | CA$154.8b | CA$56.4b | CA$4.3b | 19.5x |
| Wed, 01 Jul 2020 | CA$121.1b | CA$52.5b | CA$6.2b | 15.3x |
| Sat, 04 Apr 2020 | CA$118.0b | CA$53.8b | CA$6.1b | 15.1x |
| Tue, 07 Jan 2020 | CA$123.0b | CA$53.6b | CA$6.6b | 15.6x |
| Mon, 30 Sep 2019 | CA$118.1b | CA$53.4b | CA$6.0b | 16.1x |
| Thu, 04 Jul 2019 | CA$109.4b | CA$53.3b | CA$5.1b | 15.3x |
| Sun, 07 Apr 2019 | CA$103.8b | CA$52.0b | CA$4.0b | 16.1x |
| Wed, 09 Jan 2019 | CA$91.4b | CA$55.1b | CA$3.1b | 14.3x |
PE Ratio
18.8x
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 17.1x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: The earnings for companies in the Utilities industry have grown 2.5% per year over the last three years, and revenues for these companies have grown 6.0% per year. This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Canadian Utilities sector?
| Gas Utilities | 0.10% | |
| Electric Utilities | -0.23% | |
| Other Utilities | -0.81% | |
| Renewable Energy | -2.40% | |
| Water Utilities | -3.94% | |
Industry PE: Investors are most optimistic about the Other Utilities industry which is trading above its 3-year average PE ratio of 15.9x. This is likely because analysts are expecting annual earnings growth of 26%, which is higher than its past year's earnings decline of 21% per year. Meanwhile, investors are most pessimistic about the Gas Utilities industry. Although, investor sentiment seems to have improved given its trading above its 3-year average of 13.3x.
Forecasted Growth: Analysts are most optimistic on the Renewable Energy industry, expecting annual earnings growth of 56% over the next 5 years. This is better than its past earnings decline of 3.6% per year. Meanwhile, the Electric Utilities industry is expected to see its earnings grow by 9.0% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| H Hydro One | 1.0%+CA$179.5m | 2.7% | PE19.3x | |
| ALA AltaGas | 1.0%+CA$70.0m | 33.8% | PE16.1x | |
| ACO.X ATCO | 0.6%+CA$29.7m | 9.0% | PE22.8x | |
| ARR Altius Renewable Royalties | 4.8%+CA$13.5m | n/a | PS73162.3x | |
| MXG Maxim Power | 3.3%+CA$6.0m | 79.4% | PE2.3x |
