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Oct 30
Canadian (TSX) Industrials Sector Analysis
UpdatedOct 30, 2023
DataAggregated Company Financials
Companies135
- 7D-1.9%
- 3M-9.3%
- 1Y0.4%
- YTD-1.9%
Over the last 7 days, the Industrials industry has dropped 1.9%, driven by a pullback from Thomson Reuters of 3.0%. As for the longer term, the industry's performance has been flat for the past year. Earnings are forecast to grow by 14% annually.
Sector Valuation and Performance
Has the Canadian Industrials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 31 Oct 2023 | CA$390.6b | CA$161.5b | CA$15.4b | 16.7x | 25.4x | 2.4x |
| Thu, 28 Sep 2023 | CA$408.4b | CA$160.7b | CA$15.8b | 17.1x | 25.9x | 2.5x |
| Sat, 26 Aug 2023 | CA$423.8b | CA$160.9b | CA$15.8b | 17.1x | 26.8x | 2.6x |
| Mon, 24 Jul 2023 | CA$425.3b | CA$156.9b | CA$13.7b | 19.1x | 30.9x | 2.7x |
| Wed, 21 Jun 2023 | CA$418.6b | CA$157.0b | CA$13.8b | 19x | 30.4x | 2.7x |
| Fri, 19 May 2023 | CA$431.0b | CA$157.3b | CA$13.7b | 19.9x | 31.4x | 2.7x |
| Sun, 16 Apr 2023 | CA$423.9b | CA$153.4b | CA$13.8b | 20.2x | 30.7x | 2.8x |
| Tue, 14 Mar 2023 | CA$413.4b | CA$153.8b | CA$14.0b | 19.3x | 29.6x | 2.7x |
| Thu, 09 Feb 2023 | CA$413.2b | CA$150.7b | CA$13.8b | 17.4x | 29.9x | 2.7x |
| Sat, 07 Jan 2023 | CA$408.1b | CA$149.0b | CA$12.7b | 17.1x | 32.1x | 2.7x |
| Mon, 05 Dec 2022 | CA$421.1b | CA$149.1b | CA$12.7b | 16x | 33.1x | 2.8x |
| Wed, 02 Nov 2022 | CA$389.3b | CA$145.6b | CA$12.0b | 14.2x | 32.4x | 2.7x |
| Fri, 30 Sep 2022 | CA$371.6b | CA$143.8b | CA$11.6b | 15.3x | 32.1x | 2.6x |
| Sun, 28 Aug 2022 | CA$398.4b | CA$142.1b | CA$11.5b | 16.6x | 34.6x | 2.8x |
| Tue, 26 Jul 2022 | CA$378.5b | CA$136.3b | CA$13.2b | 13.8x | 28.7x | 2.8x |
| Thu, 23 Jun 2022 | CA$356.0b | CA$136.2b | CA$13.2b | 14x | 27x | 2.6x |
| Sat, 21 May 2022 | CA$357.5b | CA$135.7b | CA$13.2b | 15.9x | 27.2x | 2.6x |
| Mon, 18 Apr 2022 | CA$397.9b | CA$129.3b | CA$17.8b | 19.4x | 22.3x | 3.1x |
| Wed, 16 Mar 2022 | CA$395.3b | CA$129.6b | CA$17.9b | 18.7x | 22.1x | 3.1x |
| Fri, 11 Feb 2022 | CA$400.1b | CA$126.2b | CA$16.9b | 21.5x | 23.7x | 3.2x |
| Sun, 09 Jan 2022 | CA$410.2b | CA$124.0b | CA$17.8b | 19.7x | 23x | 3.3x |
| Tue, 07 Dec 2021 | CA$395.5b | CA$124.2b | CA$17.9b | 19.1x | 22.1x | 3.2x |
| Thu, 04 Nov 2021 | CA$402.2b | CA$121.1b | CA$17.6b | 20.7x | 22.9x | 3.3x |
| Sat, 02 Oct 2021 | CA$370.9b | CA$119.2b | CA$17.7b | 19.2x | 20.9x | 3.1x |
| Mon, 30 Aug 2021 | CA$378.4b | CA$120.4b | CA$17.5b | 19.8x | 21.6x | 3.1x |
| Tue, 06 Jul 2021 | CA$357.6b | CA$120.4b | CA$17.5b | 19.3x | 20.4x | 3x |
| Fri, 09 Apr 2021 | CA$349.8b | CA$112.4b | CA$14.7b | 21x | 23.8x | 3.1x |
| Thu, 31 Dec 2020 | CA$328.8b | CA$117.4b | CA$3.3b | 16.4x | 100.3x | 2.8x |
Price to Earnings Ratio
37.4x
Current Industry PE
- Investors are pessimistic on the Canadian Industrials industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 25.4x which is lower than its 3-year average PE of 33.7x.
- The 3-year average PS ratio of 2.9x is higher than the industry's current PS ratio of 2.4x.
Past Earnings Growth
- The earnings for companies in the Industrials industry have grown 26% per year over the last three years.
- Revenues for these companies have grown 10% 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 Industrials sector?
| CA Market | -1.70% | |
| Industrials | -1.94% | |
| Electrical | 0.85% | |
| Marine and Shipping | -0.89% | |
| Transportation | -1.39% | |
| Aerospace & Defense | -1.42% | |
| Industrials | -1.46% | |
| Trade Distributors | -1.52% | |
| Machinery | -1.67% | |
| Professional Services | -1.98% | |
| Infrastructure | -2.27% | |
| Airlines | -2.32% | |
| Commercial Services | -3.59% | |
| Construction | -4.01% | |
| Building | -4.07% | |
| Logistics | -5.62% | |
Industry PE
- Investors are most optimistic about the Aerospace & Defense industry even though it's trading below its 3-year average PE ratio of 350x.
- Analysts are expecting annual earnings growth of 29.5%, which is lower than the prior year's growth of 195.2% per year.
Forecasted Growth
- Analysts are most optimistic on the Commercial Services industry, expecting annual earnings growth of 97% over the next 5 years.
- This is better than its past earnings growth rate of 11% per year.
- In contrast, the Professional Services industry is expected to see its earnings decline by 2.5% 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 | |
|---|---|---|---|---|---|
| CP Canadian Pacific Kansas City | CA$98.20 | 1.7% +CA$1.5b | -3.3% | PE21.9x | |
| CNR Canadian National Railway | CA$146.54 | 1.3% +CA$669.7m | -9.2% | PE19.3x | |
| BBD.B Bombardier | CA$44.02 | 6.3% +CA$247.9m | 10.0% | PE5.5x | |
| TIH Toromont Industries | CA$105.41 | 1.4% +CA$116.9m | 0.7% | PE16.9x | |
| HPS.A Hammond Power Solutions | CA$67.59 | 16.4% +CA$113.3m | 235.4% | PE13x |
