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Canadian (TSX) Financials Sector Analysis

UpdatedMay 09, 2024
DataAggregated Company Financials
Companies281
  • 7D2.6%
  • 3M5.8%
  • 1Y12.9%
  • YTD4.6%

Over the last 7 days, the Financials industry has risen 2.4%, driven by gains in Brookfield and Royal Bank of Canada of 7.2% and 4.4%, respectively. This means that the industry has gained 13% over the past year. As for the next few years, earnings are expected to grow by 7.0% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 09 May 2024CA$1.1tCA$574.4bCA$79.7b11.8x13.2x1.8x
Sat, 06 Apr 2024CA$1.0tCA$576.5bCA$79.9b10.9x13.1x1.8x
Mon, 04 Mar 2024CA$1.0tCA$595.4bCA$79.8b11.4x13x1.7x
Wed, 31 Jan 2024CA$1.0tCA$584.6bCA$80.9b10.8x12.7x1.8x
Fri, 29 Dec 2023CA$1.0tCA$582.2bCA$80.8b9.7x12.7x1.8x
Sun, 26 Nov 2023CA$950.0bCA$591.7bCA$88.2b9.6x10.8x1.6x
Tue, 24 Oct 2023CA$880.5bCA$589.8bCA$85.7b9.4x10.3x1.5x
Thu, 21 Sep 2023CA$962.2bCA$585.5bCA$84.5b10.2x11.4x1.6x
Sat, 19 Aug 2023CA$950.4bCA$601.4bCA$86.1b10.1x11x1.6x
Mon, 17 Jul 2023CA$974.0bCA$586.7bCA$82.2b10.6x11.9x1.7x
Wed, 14 Jun 2023CA$944.8bCA$588.1bCA$82.4b10.3x11.5x1.6x
Fri, 12 May 2023CA$956.4bCA$578.9bCA$87.3b10.6x11x1.7x
Sun, 09 Apr 2023CA$947.1bCA$553.7bCA$85.6b10.5x11.1x1.7x
Tue, 07 Mar 2023CA$1.0tCA$557.0bCA$86.5b10.7x11.6x1.8x
Thu, 02 Feb 2023CA$1.0tCA$558.4bCA$95.3b10.6x10.5x1.8x
Sat, 31 Dec 2022CA$935.0bCA$561.6bCA$95.5b10.3x9.8x1.7x
Mon, 28 Nov 2022CA$983.0bCA$548.3bCA$88.3b10.2x11.1x1.8x
Wed, 26 Oct 2022CA$910.5bCA$564.0bCA$92.3b9.4x9.9x1.6x
Fri, 23 Sep 2022CA$930.1bCA$562.7bCA$92.2b9.4x10.1x1.7x
Sun, 21 Aug 2022CA$990.3bCA$559.9bCA$93.9b9.7x10.6x1.8x
Tue, 19 Jul 2022CA$898.7bCA$622.1bCA$99.8b8.4x9x1.4x
Thu, 16 Jun 2022CA$958.9bCA$621.3bCA$99.5b9.1x9.6x1.5x
Sat, 14 May 2022CA$980.5bCA$616.1bCA$95.8b9.7x10.2x1.6x
Mon, 11 Apr 2022CA$1.1tCA$613.0bCA$96.1b9.9x11.2x1.8x
Wed, 09 Mar 2022CA$1.1tCA$612.9bCA$97.0b10.1x11x1.7x
Fri, 04 Feb 2022CA$1.1tCA$590.5bCA$93.2b11.4x12.1x1.9x
Sun, 02 Jan 2022CA$1.1tCA$590.3bCA$93.3b10.6x11.6x1.8x
Tue, 30 Nov 2021CA$1.1tCA$586.3bCA$92.4b10.3x11.5x1.8x
Thu, 28 Oct 2021CA$1.1tCA$561.1bCA$90.3b10.5x11.7x1.9x
Sat, 25 Sep 2021CA$1.0tCA$564.5bCA$90.6b9.8x11.1x1.8x
Mon, 23 Aug 2021CA$1.0tCA$561.4bCA$90.0b9.9x11.3x1.8x
Sat, 10 Jul 2021CA$982.3bCA$553.3bCA$84.6b9.9x11.6x1.8x
Price to Earnings Ratio

12.2x


Total Market Cap: CA$971.4bTotal Earnings: CA$79.7bTotal Revenue: CA$553.1bTotal 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 13.2x 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
  • Both revenue and earnings for companies in the Financials industry have remained mostly flat over the last three years.
  • This means that sales and the cost of doing business have remained relatively consistent over this period and subsequently, so have profits.

Industry Trends

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

CA Market3.09%
Financials2.64%
Consumer Finance6.65%
Capital Markets5.22%
Insurance3.29%
Banks1.69%
Diversified Financial0.51%
Mortgage Finance0%
Mortgage REITs0%
Industry PE
  • Investors are most optimistic about the Diversified Financial industry which is trading above its 3-year average PE ratio of 36.9x.
    • Analysts are expecting annual earnings growth of 64.4%, which is higher than its past year's earnings growth of 11.1% 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 9.2x.
Forecasted Growth
  • Analysts are most optimistic on the Diversified Financial industry, expecting annual earnings growth of 64% over the next 5 years.
  • This is better than its past earnings growth rate of 11% per year.
  • In contrast, the Insurance industry is expected to see its earnings grow by 5.6% 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$60.447.2%
+CA$8.9b		45.1%PE71.2x
RY Royal Bank of CanadaCA$139.894.4%
+CA$8.4b		8.5%PB1.8x
BMO Bank of MontrealCA$127.563.4%
+CA$3.1b		8.3%PB1.3x
BNS Bank of Nova ScotiaCA$65.643.1%
+CA$2.4b		-0.7%PB1.1x
CM Canadian Imperial Bank of CommerceCA$66.733.4%
+CA$2.1b		19.9%PB1.2x
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