Fairfax India Holdings Corporation's (TSE:FIH.U) Popularity With Investors Is Under Threat From Overpricing
May 08
Canadian (TSX) Capital Markets Industry Analysis
UpdatedMay 09, 2024
DataAggregated Company Financials
Companies234
- 7D5.2%
- 3M6.3%
- 1Y35.4%
- YTD12.2%
The Capital Markets industry is up 5.2% in the last week, with Brookfield up 7.2%. This takes the industry's 12 month performance to a gain of 35%. As for the next few years, earnings are expected to grow by 16% per annum.
Industry Valuation and Performance
Has the Canadian Capital Markets Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 09 May 2024 | CA$165.5b | CA$156.4b | CA$6.9b | 12.4x | 24.1x | 1.1x |
| Sat, 06 Apr 2024 | CA$153.9b | CA$155.5b | CA$7.3b | 10.5x | 21.2x | 1x |
| Mon, 04 Mar 2024 | CA$158.9b | CA$156.7b | CA$7.9b | 12.2x | 20.1x | 1x |
| Wed, 31 Jan 2024 | CA$154.7b | CA$155.1b | CA$6.5b | 9x | 23.8x | 1x |
| Fri, 29 Dec 2023 | CA$151.3b | CA$153.4b | CA$6.5b | 9.3x | 23.5x | 1x |
| Sun, 26 Nov 2023 | CA$132.9b | CA$157.6b | CA$6.4b | 8.3x | 20.8x | 0.8x |
| Tue, 24 Oct 2023 | CA$126.0b | CA$154.5b | CA$6.0b | 10.5x | 21x | 0.8x |
| Thu, 21 Sep 2023 | CA$135.6b | CA$151.1b | CA$4.8b | 10.8x | 28.3x | 0.9x |
| Sat, 19 Aug 2023 | CA$131.2b | CA$154.4b | CA$5.8b | 10.1x | 22.5x | 0.8x |
| Mon, 17 Jul 2023 | CA$136.1b | CA$148.6b | CA$5.8b | 9.5x | 23.5x | 0.9x |
| Wed, 14 Jun 2023 | CA$123.2b | CA$149.8b | CA$6.0b | 7.6x | 20.4x | 0.8x |
| Fri, 12 May 2023 | CA$128.8b | CA$152.1b | CA$6.6b | 9.1x | 19.5x | 0.8x |
| Sun, 09 Apr 2023 | CA$129.2b | CA$149.6b | CA$6.8b | 9.4x | 18.9x | 0.9x |
| Tue, 07 Mar 2023 | CA$135.5b | CA$149.5b | CA$7.5b | 9.3x | 18.1x | 0.9x |
| Thu, 02 Feb 2023 | CA$139.4b | CA$142.5b | CA$9.2b | 9.8x | 15.1x | 1x |
| Sat, 31 Dec 2022 | CA$124.4b | CA$145.0b | CA$9.4b | 9.9x | 13.2x | 0.9x |
| Mon, 28 Nov 2022 | CA$139.2b | CA$138.7b | CA$6.8b | 9.8x | 20.6x | 1x |
| Wed, 26 Oct 2022 | CA$122.7b | CA$136.0b | CA$8.7b | 9.4x | 14.2x | 0.9x |
| Fri, 23 Sep 2022 | CA$135.6b | CA$135.0b | CA$8.6b | 9.1x | 15.8x | 1x |
| Sun, 21 Aug 2022 | CA$145.9b | CA$130.5b | CA$8.4b | 8x | 17.4x | 1.1x |
| Tue, 19 Jul 2022 | CA$130.8b | CA$129.5b | CA$9.6b | 8.2x | 13.7x | 1x |
| Thu, 16 Jun 2022 | CA$134.2b | CA$128.7b | CA$9.3b | 8.6x | 14.5x | 1x |
| Sat, 14 May 2022 | CA$139.5b | CA$128.2b | CA$9.7b | 10x | 14.4x | 1.1x |
| Mon, 11 Apr 2022 | CA$161.8b | CA$120.3b | CA$10.4b | 10x | 15.5x | 1.3x |
| Wed, 09 Mar 2022 | CA$158.1b | CA$120.7b | CA$11.0b | 10x | 14.4x | 1.3x |
| Fri, 04 Feb 2022 | CA$162.3b | CA$112.3b | CA$10.5b | 11.3x | 15.5x | 1.4x |
| Sun, 02 Jan 2022 | CA$179.9b | CA$112.2b | CA$10.6b | 8.9x | 16.9x | 1.6x |
| Tue, 30 Nov 2021 | CA$179.9b | CA$113.3b | CA$10.7b | 8.4x | 16.8x | 1.6x |
| Thu, 28 Oct 2021 | CA$177.9b | CA$104.8b | CA$9.5b | 6.3x | 18.7x | 1.7x |
| Sat, 25 Sep 2021 | CA$167.2b | CA$107.4b | CA$9.7b | 6.1x | 17.2x | 1.6x |
| Mon, 23 Aug 2021 | CA$158.7b | CA$105.1b | CA$9.3b | 6.5x | 17.1x | 1.5x |
| Sat, 10 Jul 2021 | CA$142.8b | CA$105.1b | CA$9.3b | 6.2x | 15.4x | 1.4x |
Price to Earnings Ratio
17x
Current Industry PE
- Investors are optimistic on the Canadian Capital Markets industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 24.1x which is higher than its 3-year average PE of 18.4x.
- The industry is trading close to its 3-year average PS ratio of 1.1x.
Past Earnings Growth
- The earnings for companies in the Capital Markets industry have declined 5.1% per year over the last three years.
- Meanwhile revenues for these companies have grown 17% 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 Financials industry?
| CA Market | 3.09% | |
| Financials | 2.64% | |
| Capital Markets | 5.22% | |
| Asset Management | 5.51% | |
| Financial Exchanges and Data | 1.43% | |
| Investment Banking and Brokerage | 0.42% | |
| Diversified Capital Markets | 0% | |
Industry PE
- Investors are most optimistic about the Financial Exchanges and Data industry, which is trading close to its 3-year average PE ratio of 26.4x.
- Analysts are expecting annual earnings growth of 5.7%, which is lower than the prior year's growth of 11.6% per year.
Forecasted Growth
- Analysts are most optimistic on the Asset Management industry, expecting annual earnings growth of 18% over the next 5 years.
- However this is lower than its past earnings growth rate of 24% per year.
- In contrast, the Financial Exchanges and Data industry is expected to see its earnings grow by 5.7% 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 | |
|---|---|---|---|---|---|
| BN Brookfield | CA$60.44 | 7.2% +CA$8.9b | 45.1% | PE71.2x | |
| IGM IGM Financial | CA$38.41 | 10.3% +CA$834.4m | -1.2% | PE11.8x | |
| BAM Brookfield Asset Management | CA$53.78 | 2.3% +CA$558.1m | 24.4% | PE8.7x | |
| X TMX Group | CA$36.56 | 1.6% +CA$163.3m | 26.9% | PE24.9x | |
| GLXY Galaxy Digital Holdings | CA$13.17 | 7.2% +CA$107.0m | 147.1% | PE2.6x |