1Q26_ Quarterly Outlook Report_Final_EN - Flipbook - Page 121
T H E P LUMB LI N E | A RETU RN TO F I RS T PRI N CI PL ES
EQUITIES OVERVIEW
GLOBAL EQUITY MARKETS ENDED THE YEAR ON A POSITIVE NOTE
Equity markets rallied in 4Q to finish the
year strong
Earnings expectations point to an
acceleration in 2026 for North America
49%
U.S.
CA
Int
10%
14%
16%
12% 12%
9%
4%
LatAm
-5%
EPS
0%
5%
Multiple Δ
Dividends
10%
U.S.
CA
Int
Last 12 months
LatAm
Next 12 months
INDEX COMPOSITION SUGGESTS THE U.S. MARKET IS OF HIGHER QUALITY AND MORE DIVERSIFIED THAN PEERS
Adjusting for index earnings composition shows
U.S. equity valuations are in line with Canada
Cyclical sectors account for the majority of
earnings in markets outside the U.S.
24
33%
61%
79%
81%
21%
19%
LatAm
CA
17
16
67%
39%
U.S.
Int
Cyclicals (financials, energy, industrials, materials)
All others
23
17
16
U.S.
CA
P/E
11
Int
Adj. P/E
LatAm
OPERATIONAL & CAPITAL EFFICIENCY GAUGED BY RETURN ON INVESTED CAPITAL, RETURN ON EQUITY, AND LEVERAGE
ROIC (Median)
18.8%
11.3%
8.6%
U.S.
Net Debt/EBITDA
ROE
CA
8.9%
Int
1.3x
12.2%
U.S.
CA
1.4x
12.1%
Int
0.9x
U.S.
CA
Int
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