BCE (TSE:BCE) Takes On Some Risk With Its Use Of Debt
May 09
Canadian (TSX) Telecom Sector Analysis
UpdatedMay 09, 2024
DataAggregated Company Financials
Companies44
- 7D1.6%
- 3M-9.0%
- 1Y-21.8%
- YTD-11.4%
Over the last 7 days, the Telecom industry has risen 1.6%, driven by gains from Rogers Communications of 3.8%. During this same period, the Thunderbird Entertainment Group underperformed, falling 9.4%. In contrast, the industry has lost 22% in the last 12 months. As for the next few years, earnings are expected to grow by 18% per annum.
Sector Valuation and Performance
Has the Canadian Telecom Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 09 May 2024 | CA$115.8b | CA$81.8b | CA$3.7b | 10.3x | 31.7x | 1.4x |
| Sat, 06 Apr 2024 | CA$114.1b | CA$81.3b | CA$4.0b | 12.7x | 28.9x | 1.4x |
| Mon, 04 Mar 2024 | CA$126.5b | CA$81.4b | CA$4.0b | 11.4x | 31.3x | 1.6x |
| Wed, 31 Jan 2024 | CA$154.9b | CA$85.4b | CA$5.0b | 12.5x | 31.2x | 1.8x |
| Fri, 29 Dec 2023 | CA$148.2b | CA$85.4b | CA$5.0b | 12.7x | 29.6x | 1.7x |
| Sun, 26 Nov 2023 | CA$149.0b | CA$85.4b | CA$5.0b | 12.3x | 29.8x | 1.7x |
| Tue, 24 Oct 2023 | CA$139.1b | CA$84.1b | CA$5.8b | 10.3x | 23.9x | 1.7x |
| Thu, 21 Sep 2023 | CA$147.6b | CA$84.1b | CA$5.8b | 19.9x | 25.4x | 1.8x |
| Sat, 19 Aug 2023 | CA$147.6b | CA$84.1b | CA$5.9b | 10x | 25.2x | 1.8x |
| Mon, 17 Jul 2023 | CA$155.2b | CA$81.9b | CA$7.2b | 11.3x | 21.6x | 1.9x |
| Wed, 14 Jun 2023 | CA$159.4b | CA$81.9b | CA$7.8b | 9.7x | 20.5x | 1.9x |
| Fri, 12 May 2023 | CA$167.4b | CA$81.9b | CA$7.8b | 13.2x | 21.5x | 2x |
| Sun, 09 Apr 2023 | CA$166.3b | CA$80.9b | CA$8.0b | 12.9x | 20.7x | 2.1x |
| Tue, 07 Mar 2023 | CA$162.7b | CA$81.2b | CA$8.2b | 14.1x | 19.7x | 2x |
| Thu, 02 Feb 2023 | CA$167.7b | CA$80.1b | CA$8.7b | 16x | 19.4x | 2.1x |
| Sat, 31 Dec 2022 | CA$156.1b | CA$80.1b | CA$8.7b | 12.8x | 17.9x | 1.9x |
| Mon, 28 Nov 2022 | CA$163.9b | CA$80.1b | CA$8.8b | 11.1x | 18.6x | 2x |
| Wed, 26 Oct 2022 | CA$152.4b | CA$79.1b | CA$8.3b | 7.6x | 18.4x | 1.9x |
| Fri, 23 Sep 2022 | CA$157.9b | CA$79.1b | CA$8.7b | 8.6x | 18.2x | 2x |
| Sun, 21 Aug 2022 | CA$167.6b | CA$79.0b | CA$8.7b | 9.9x | 19.3x | 2.1x |
| Tue, 19 Jul 2022 | CA$161.1b | CA$77.6b | CA$8.1b | 10.6x | 19.9x | 2.1x |
| Thu, 16 Jun 2022 | CA$163.8b | CA$77.4b | CA$8.2b | 11.3x | 19.9x | 2.1x |
| Sat, 14 May 2022 | CA$173.7b | CA$77.3b | CA$8.3b | 11.9x | 21x | 2.2x |
| Mon, 11 Apr 2022 | CA$192.1b | CA$76.7b | CA$8.0b | 12.4x | 24x | 2.5x |
| Wed, 09 Mar 2022 | CA$185.7b | CA$76.4b | CA$8.3b | 12.2x | 22.4x | 2.4x |
| Fri, 04 Feb 2022 | CA$177.0b | CA$75.8b | CA$8.0b | 12.5x | 22.1x | 2.3x |
| Sun, 02 Jan 2022 | CA$172.8b | CA$75.3b | CA$8.0b | 12.2x | 21.5x | 2.3x |
| Tue, 30 Nov 2021 | CA$169.6b | CA$75.4b | CA$8.0b | 12.3x | 21.2x | 2.2x |
| Thu, 28 Oct 2021 | CA$167.8b | CA$73.8b | CA$7.4b | 13.8x | 22.5x | 2.3x |
| Sat, 25 Sep 2021 | CA$172.3b | CA$73.7b | CA$7.5b | 13.6x | 23x | 2.3x |
| Mon, 23 Aug 2021 | CA$174.6b | CA$73.7b | CA$7.5b | 14.9x | 23.4x | 2.4x |
| Sat, 10 Jul 2021 | CA$171.0b | CA$73.7b | CA$7.5b | 14.6x | 22.9x | 2.3x |
Price to Earnings Ratio
23.6x
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 31.7x which is higher than its 3-year average PE of 22.9x.
- The 3-year average PS ratio of 2.0x is higher than the industry's current PS ratio of 1.4x.
Past Earnings Growth
- The earnings for companies in the Communication Services industry have declined 20% per year over the last three years.
- Meanwhile revenues for these companies have grown 4.4% 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 Market | 3.09% | |
| Telecom | 1.63% | |
| Interactive Media and Services | 4.39% | |
| Wireless Telecom | 3.78% | |
| Telecom Services and Carriers | 0.92% | |
| Media | 0.65% | |
| Entertainment | -0.73% | |
Industry PE
- Investors are most optimistic about the Wireless Telecom industry which is trading above its 3-year average PE ratio of 20.5x.
- Analysts are expecting annual earnings growth of 26.8%, which is higher than its past year's earnings decline of 67.0% per year.
Forecasted Growth
- Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 115% over the next 5 years.
- This is better than its past earnings decline of 83% per year.
- In contrast, the Telecom Services and Carriers industry is expected to see its earnings grow by 14% 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 | |
|---|---|---|---|---|---|
| RCI.B Rogers Communications | CA$53.47 | 3.8% +CA$1.0b | -19.2% | PE47.8x | |
| BCE BCE | CA$46.16 | 0.9% +CA$364.9m | -28.0% | PE24x | |
| T TELUS | CA$22.51 | 0.9% +CA$280.5m | -18.4% | PE39.5x | |
| CCA Cogeco Communications | CA$56.46 | 3.6% +CA$82.3m | -10.5% | PE6.5x | |
| QBR.A Quebecor | CA$29.13 | 0.6% +CA$36.9m | -12.2% | PE10.3x |
