An Intrinsic Calculation For Kinaxis Inc. (TSE:KXS) Suggests It's 42% Undervalued
May 01
Canadian (TSX) Software Industry Analysis
UpdatedMay 02, 2024
DataAggregated Company Financials
Companies93
- 7D-1.3%
- 3M-0.9%
- 1Y26.2%
- YTD10.1%
Over the last 7 days, the Software industry has dropped 1.3%, driven by a pullback from Constellation Software of 2.2%. In the past year, the industry has gained 26%. As for the next few years, earnings are expected to grow by 16% per annum.
Industry Valuation and Performance
Has the Canadian Software Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 02 May 2024 | CA$125.3b | CA$20.8b | -CA$4,083,900,158.85 | 48.2x | -30.7x | 6x |
| Sat, 30 Mar 2024 | CA$129.4b | CA$20.7b | -CA$4,790,952,304.19 | 28.6x | -27x | 6.3x |
| Mon, 26 Feb 2024 | CA$123.6b | CA$19.8b | -CA$2,760,886,481.82 | 25x | -44.8x | 6.2x |
| Wed, 24 Jan 2024 | CA$122.8b | CA$19.9b | -CA$3,975,888,891.00 | 26x | -30.9x | 6.2x |
| Fri, 22 Dec 2023 | CA$113.3b | CA$19.8b | -CA$4,051,671,458.00 | 26.9x | -28x | 5.7x |
| Sun, 19 Nov 2023 | CA$109.7b | CA$20.3b | -CA$4,239,933,764.00 | 46.5x | -25.9x | 5.4x |
| Tue, 17 Oct 2023 | CA$100.2b | CA$19.4b | -CA$4,185,179,016.00 | 55.3x | -23.9x | 5.2x |
| Thu, 14 Sep 2023 | CA$102.8b | CA$19.4b | -CA$4,090,149,222.00 | 55.9x | -25.1x | 5.3x |
| Sat, 12 Aug 2023 | CA$102.3b | CA$18.7b | -CA$4,155,360,521.00 | 57.4x | -24.6x | 5.5x |
| Mon, 10 Jul 2023 | CA$101.1b | CA$18.2b | -CA$3,700,383,678.00 | 71x | -27.3x | 5.5x |
| Wed, 07 Jun 2023 | CA$102.8b | CA$18.1b | -CA$3,986,586,270.00 | 77.1x | -25.8x | 5.7x |
| Fri, 05 May 2023 | CA$96.2b | CA$17.4b | -CA$3,345,606,419.00 | 61.4x | -28.7x | 5.5x |
| Sun, 02 Apr 2023 | CA$96.3b | CA$17.0b | -CA$3,362,285,542.00 | 38.2x | -28.7x | 5.7x |
| Tue, 28 Feb 2023 | CA$88.0b | CA$16.4b | -CA$2,462,822,631.00 | 37.4x | -35.7x | 5.4x |
| Thu, 26 Jan 2023 | CA$86.7b | CA$16.1b | -CA$663,817,642.00 | 30.4x | -130.6x | 5.4x |
| Sat, 24 Dec 2022 | CA$78.7b | CA$16.3b | -CA$673,585,802.00 | 33.5x | -116.8x | 4.8x |
| Mon, 21 Nov 2022 | CA$76.9b | CA$16.0b | -CA$532,061,717.00 | 38.9x | -144.6x | 4.8x |
| Wed, 19 Oct 2022 | CA$74.7b | CA$15.6b | -CA$280,210,984.00 | 44.4x | -266.7x | 4.8x |
| Fri, 16 Sep 2022 | CA$77.6b | CA$15.0b | -CA$428,363,517.00 | 39.4x | -181.2x | 5.2x |
| Sun, 14 Aug 2022 | CA$86.6b | CA$14.5b | -CA$79,930,022.00 | 49.1x | -1083x | 6x |
| Tue, 12 Jul 2022 | CA$77.1b | CA$14.0b | CA$514.7m | 42.5x | 149.8x | 5.5x |
| Thu, 09 Jun 2022 | CA$79.3b | CA$14.2b | CA$177.4m | 56.1x | 447.3x | 5.6x |
| Sat, 07 May 2022 | CA$80.8b | CA$14.1b | CA$236.0m | 45.6x | 342.5x | 5.7x |
| Mon, 04 Apr 2022 | CA$96.3b | CA$13.3b | -CA$2,711,244,639.00 | 53.1x | -35.5x | 7.2x |
| Wed, 02 Mar 2022 | CA$92.6b | CA$12.8b | -CA$3,147,035,928.00 | 58.5x | -29.4x | 7.2x |
| Fri, 28 Jan 2022 | CA$87.2b | CA$12.0b | -CA$3,205,490,480.00 | 65.2x | -27.2x | 7.3x |
| Sun, 26 Dec 2021 | CA$106.7b | CA$12.1b | -CA$3,255,844,169.00 | 80.7x | -32.8x | 8.8x |
| Tue, 23 Nov 2021 | CA$114.4b | CA$11.9b | -CA$3,423,994,495.00 | 67.3x | -33.4x | 9.6x |
| Thu, 21 Oct 2021 | CA$117.5b | CA$10.8b | -CA$3,402,003,014.00 | 55.3x | -34.5x | 10.8x |
| Sat, 18 Sep 2021 | CA$121.2b | CA$11.1b | -CA$3,403,482,219.00 | 46x | -35.6x | 10.9x |
| Mon, 16 Aug 2021 | CA$107.2b | CA$10.9b | -CA$3,271,006,370.50 | 43.2x | -32.8x | 9.9x |
| Mon, 31 May 2021 | CA$82.6b | CA$9.1b | -CA$392,308,721.26 | 42.9x | -210.6x | 9.1x |
Price to Earnings Ratio
-76x
Current Industry PE
- Investors are relatively neutral on the Canadian Software industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PS ratio of 6.6x.
Past Earnings Growth
- The earnings for companies in the Software industry have deteriorated over the last three years.
- Meanwhile revenues for these companies have grown 31% 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 caused losses to expand.
Industry Trends
Which industries have driven the changes within the Canadian Tech industry?
| CA Market | -0.54% | |
| Tech | -2.02% | |
| Software | -1.32% | |
| Systems Software | -0.93% | |
| Application Software | -1.33% | |
Industry PE
Forecasted Growth
- Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 67% over the next 5 years.
- This is better than its past earnings decline of 49% per year.
- In contrast, the Application Software industry is expected to see its earnings grow by 15% 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 | |
|---|---|---|---|---|---|
| LMN Lumine Group | CA$38.20 | 4.7% +CA$436.3m | 101.1% | PS14.3x | |
| DSG Descartes Systems Group | CA$130.50 | 0.9% +CA$105.9m | 28.2% | PE69.8x | |
| DCBO Docebo | CA$62.17 | 1.8% +CA$33.4m | 21.8% | PE483.4x | |
| CMG Computer Modelling Group | CA$10.93 | 3.1% +CA$26.9m | 43.4% | PE36.7x | |
| KXS Kinaxis | CA$152.49 | 0.5% +CA$22.1m | -14.1% | PE312.7x |
