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Canadian (TSX) IT Industry Analysis

UpdatedMay 01, 2024
DataAggregated Company Financials
Companies13
  • 7D-3.1%
  • 3M-6.5%
  • 1Y1.1%
  • YTD1.5%

Over the last 7 days, the IT industry has dropped 3.1%, driven by CGI declining 3.0%. On the other hand Pivotree is actually up 13%. As for the longer term, the industry's performance has been flat for the past year. Earnings are forecast to grow by 12% annually.

Industry Valuation and Performance

Has the Canadian IT Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 01 May 2024CA$33.5bCA$17.8bCA$1.5b6.3x21.7x1.9x
Fri, 29 Mar 2024CA$35.8bCA$17.8bCA$1.5b6.3x23.5x2x
Sun, 25 Feb 2024CA$37.4bCA$17.8bCA$1.5b11.5x24.9x2.1x
Tue, 23 Jan 2024CA$35.1bCA$17.7bCA$1.5b10.8x24.2x2x
Thu, 21 Dec 2023CA$34.8bCA$17.7bCA$1.5b10.6x23.9x2x
Sat, 18 Nov 2023CA$33.9bCA$17.7bCA$1.5b10.3x23.3x1.9x
Mon, 16 Oct 2023CA$32.2bCA$17.3bCA$1.4b33.4x22.6x1.9x
Wed, 13 Sep 2023CA$33.9bCA$17.3bCA$1.4b36.3x23.7x2x
Fri, 11 Aug 2023CA$33.0bCA$17.2bCA$1.4b33.1x23.1x1.9x
Sun, 09 Jul 2023CA$33.7bCA$16.9bCA$1.4b22.9x24.3x2x
Tue, 06 Jun 2023CA$34.3bCA$16.8bCA$1.4b24.1x24.5x2x
Thu, 04 May 2023CA$33.7bCA$16.7bCA$1.4b23x24.1x2x
Sat, 01 Apr 2023CA$31.8bCA$16.2bCA$1.4b26.8x22.8x2x
Mon, 27 Feb 2023CA$36.8bCA$17.6bCA$1.4b32.7x26x2.1x
Wed, 25 Jan 2023CA$36.2bCA$17.3bCA$1.4b31.3x26.5x2.1x
Fri, 23 Dec 2022CA$34.2bCA$17.3bCA$1.4b22.4x24.9x2x
Sun, 20 Nov 2022CA$34.4bCA$17.3bCA$1.4b29.6x25.2x2x
Tue, 18 Oct 2022CA$31.5bCA$16.8bCA$1.4b32.8x23.2x1.9x
Thu, 15 Sep 2022CA$32.4bCA$16.7bCA$1.4b38.9x23.9x1.9x
Sat, 13 Aug 2022CA$34.7bCA$16.7bCA$1.4b51.9x25.6x2.1x
Mon, 11 Jul 2022CA$33.9bCA$16.1bCA$1.3b58.1x25.9x2.1x
Wed, 08 Jun 2022CA$37.0bCA$16.0bCA$1.3b73.7x28.1x2.3x
Fri, 06 May 2022CA$36.5bCA$15.7bCA$1.4b17x25.3x2.3x
Sun, 03 Apr 2022CA$41.3bCA$15.5bCA$1.4b17.2x29.6x2.7x
Tue, 01 Mar 2022CA$38.6bCA$15.1bCA$1.4b37.1x27.4x2.6x
Thu, 27 Jan 2022CA$38.5bCA$14.9bCA$1.4b30.1x27.2x2.6x
Sat, 25 Dec 2021CA$42.7bCA$15.0bCA$1.4b14x30.2x2.9x
Mon, 22 Nov 2021CA$48.9bCA$14.9bCA$1.4b43.1x34.4x3.3x
Wed, 20 Oct 2021CA$55.9bCA$14.5bCA$1.1b49.1x51.5x3.9x
Fri, 17 Sep 2021CA$57.3bCA$14.5bCA$1.1b45.6x52.9x3.9x
Sun, 15 Aug 2021CA$52.6bCA$14.5bCA$1.1b56.7x48.9x3.6x
Thu, 10 Jun 2021CA$46.0bCA$14.3bCA$975.7m23.4x47.2x3.2x
Price to Earnings Ratio

45.8x


Total Market Cap: CA$45.5bTotal Earnings: CA$994.4mTotal Revenue: CA$14.3bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian IT Industry Price to Earnings3Y Average 28.9x202220232024
Current Industry PE
  • Investors are pessimistic on the Canadian IT 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 21.7x which is lower than its 3-year average PE of 28.9x.
  • The 3-year average PS ratio of 2.4x is higher than the industry's current PS ratio of 1.9x.
Past Earnings Growth
  • The earnings for companies in the IT industry have grown 16% per year over the last three years.
  • Revenues for these companies have grown 7.6% 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 Tech industry?

CA Market-1.05%
Tech-3.60%
IT-3.05%
Data Processing Services0%
IT Consulting-3.05%
Internet Services and Infrastructure-6.87%
Industry PE
  • Investors are most optimistic about the IT Consulting industry, which is trading close to its 3-year average PE ratio of 21.4x.
    • Analysts expect its future annual earnings growth (11.6%) to be largely in line with prior year's earnings growth.
Forecasted Growth
  • Analysts are most optimistic on the IT Consulting industry, expecting annual earnings growth of 12% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 12% 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
PVT PivotreeCA$1.8012.5%
+CA$5.3m		-49.0%PS0.5x
ALYA Alithya GroupCA$2.111.2%
+CA$2.4m		-15.3%PS0.4x
ECOM EMERGE CommerceCA$0.0511.1%
+CA$618.4k		-28.6%PS0.3x
SPTZ SpetzCA$0.234.5%
+CA$57.8k		-77.0%PS1x
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Latest News

ECOM

CA$0.05

EMERGE Commerce

7D

11.1%

1Y

-28.6%

SIX

CA$0.035

Sixty Six Capital

7D

-12.5%

1Y

n/a

PVT

CA$1.80

Pivotree

7D

12.5%

1Y

-49.0%

GIB.A

CA$139.49

CGI

7D

-3.0%

1Y

0.2%

CTS

CA$5.35

Converge Technology Solutions

7D

-4.8%

1Y

64.6%

ICS

CA$0.20

Integrated Cyber Solutions

7D

-11.4%

1Y

n/a

HOLD

CA$0.08

Immutable Holdings

7D

-15.8%

1Y

-65.2%

ALYA

CA$2.11

Alithya Group

7D

1.2%

1Y

-15.3%

DM

CA$0.02

Datametrex AI

7D

-20.0%

1Y

-75.0%

NERD

CA$0.05

Nerds on Site

7D

-23.1%

1Y

-33.3%

SPTZ

CA$0.23

Spetz

7D

4.5%

1Y

-77.0%