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Canadian (TSX) Tech Sector Analysis

UpdatedNov 29, 2022
DataAggregated Company Financials
Companies176
  • 7D1.7%
  • 3M-0.08%
  • 1Y-31.1%
  • YTD-26.1%

In the last week, the Tech industry is up 1.7%, with Constellation Software up 2.6%. In contrast, the industry has lost 31% in the last 12 months. As for the next few years, earnings are expected to grow by 16% per annum.

Sector Valuation and Performance

Has the Canadian Tech Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 30 Nov 2022CA$120.3bCA$46.3bCA$795.3m22x151.2x2.6x
Fri, 28 Oct 2022CA$117.8bCA$45.0bCA$938.5m25x125.5x2.6x
Sun, 25 Sep 2022CA$112.0bCA$44.5bCA$933.0m25x120x2.5x
Tue, 23 Aug 2022CA$123.7bCA$43.4bCA$952.3m42.5x129.9x2.9x
Thu, 21 Jul 2022CA$122.5bCA$41.2bCA$1.7b48.6x70.5x3x
Sat, 18 Jun 2022CA$110.2bCA$41.4bCA$2.0b52.1x55.8x2.7x
Mon, 16 May 2022CA$121.6bCA$41.5bCA$1.6b37.4x77.4x2.9x
Wed, 13 Apr 2022CA$140.3bCA$39.1b-CA$1,468,838,535.0042.6x-95.5x3.6x
Fri, 11 Mar 2022CA$138.4bCA$38.5b-CA$1,935,129,389.0023.4x-71.5x3.6x
Sun, 06 Feb 2022CA$142.0bCA$37.5b-CA$2,050,652,522.0052.7x-69.2x3.8x
Tue, 04 Jan 2022CA$157.5bCA$37.0b-CA$2,035,591,717.0033.7x-77.4x4.3x
Thu, 02 Dec 2021CA$164.0bCA$36.9b-CA$2,250,949,571.0033.8x-72.9x4.4x
Sat, 30 Oct 2021CA$183.3bCA$35.6b-CA$2,485,069,580.0041.4x-73.8x5.1x
Mon, 27 Sep 2021CA$185.3bCA$36.0b-CA$2,579,400,556.0042.1x-71.8x5.2x
Wed, 25 Aug 2021CA$177.6bCA$35.2b-CA$2,335,567,095.7740.6x-76x5x
Thu, 01 Jul 2021CA$154.9bCA$35.0b-CA$2,344,443,971.7040.8x-66.1x4.4x
Sun, 04 Apr 2021CA$135.7bCA$32.4b-CA$259,338,809.2237.5x-523.3x4.2x
Wed, 06 Jan 2021CA$120.9bCA$32.0bCA$212.3m31.1x569.7x3.8x
Sat, 10 Oct 2020CA$96.3bCA$32.4bCA$144.5m39.5x666.7x3x
Fri, 03 Jul 2020CA$83.9bCA$30.9bCA$201.4m38.1x416.5x2.7x
Mon, 06 Apr 2020CA$67.0bCA$31.3bCA$1.1b23.7x63.6x2.1x
Thu, 09 Jan 2020CA$80.5bCA$30.0bCA$1.1b21.7x72.1x2.7x
Price to Earnings Ratio

75.1x


Total Market Cap: CA$82.9bTotal Earnings: CA$1.1bTotal Revenue: CA$30.3bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian Tech Sector Price to Earnings3Y Average 128.2x202020212022
Current Industry PE
  • Investors are optimistic on the Canadian Information Technology industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 151x which is higher than its 3-year average PE of 127x.
  • The 3-year average PS ratio of 3.4x is higher than the industry's current PS ratio of 2.6x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have declined 10% per year over the last three years.
  • Meanwhile revenues for these companies have grown 15% 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 Tech sector?

CA Market1.18%
Tech1.67%
Communications3.89%
Software2.21%
IT0.69%
Tech Hardware0%
Electronic Equipment and Components-1.72%
Semiconductors-6.35%
Industry PE
  • Investors are most optimistic about the Electronic Equipment and Components industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 29.1%, which is higher than its past year's earnings growth of 22.3% per year.
Forecasted Growth
  • Analysts are most optimistic on the Communications industry, expecting annual earnings growth of 93% over the next 5 years.
  • This is better than its past earnings decline of 4.8% per year.
  • In contrast, the Semiconductors industry is expected to see its earnings decline by 6.6% 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
CSU Constellation SoftwareCA$2.11k2.3%
+CA$998.1m
-3.0%PE67.8x
GIB.A CGICA$115.631.1%
+CA$292.6m
8.3%PE18.6x
BB BlackBerryCA$6.555.5%
+CA$197.0m
-46.2%PS4x
LSPD Lightspeed CommerceCA$20.794.6%
+CA$138.3m
-67.8%PS3.5x
CTS Converge Technology SolutionsCA$4.6416.3%
+CA$136.7m
-57.3%PE26x
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