Converge Technology Solutions (TSE:CTS) Has A Pretty Healthy Balance Sheet
Nov 29
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?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Wed, 30 Nov 2022 | CA$120.3b | CA$46.3b | CA$795.3m | 22x | 151.2x | 2.6x |
| Fri, 28 Oct 2022 | CA$117.8b | CA$45.0b | CA$938.5m | 25x | 125.5x | 2.6x |
| Sun, 25 Sep 2022 | CA$112.0b | CA$44.5b | CA$933.0m | 25x | 120x | 2.5x |
| Tue, 23 Aug 2022 | CA$123.7b | CA$43.4b | CA$952.3m | 42.5x | 129.9x | 2.9x |
| Thu, 21 Jul 2022 | CA$122.5b | CA$41.2b | CA$1.7b | 48.6x | 70.5x | 3x |
| Sat, 18 Jun 2022 | CA$110.2b | CA$41.4b | CA$2.0b | 52.1x | 55.8x | 2.7x |
| Mon, 16 May 2022 | CA$121.6b | CA$41.5b | CA$1.6b | 37.4x | 77.4x | 2.9x |
| Wed, 13 Apr 2022 | CA$140.3b | CA$39.1b | -CA$1,468,838,535.00 | 42.6x | -95.5x | 3.6x |
| Fri, 11 Mar 2022 | CA$138.4b | CA$38.5b | -CA$1,935,129,389.00 | 23.4x | -71.5x | 3.6x |
| Sun, 06 Feb 2022 | CA$142.0b | CA$37.5b | -CA$2,050,652,522.00 | 52.7x | -69.2x | 3.8x |
| Tue, 04 Jan 2022 | CA$157.5b | CA$37.0b | -CA$2,035,591,717.00 | 33.7x | -77.4x | 4.3x |
| Thu, 02 Dec 2021 | CA$164.0b | CA$36.9b | -CA$2,250,949,571.00 | 33.8x | -72.9x | 4.4x |
| Sat, 30 Oct 2021 | CA$183.3b | CA$35.6b | -CA$2,485,069,580.00 | 41.4x | -73.8x | 5.1x |
| Mon, 27 Sep 2021 | CA$185.3b | CA$36.0b | -CA$2,579,400,556.00 | 42.1x | -71.8x | 5.2x |
| Wed, 25 Aug 2021 | CA$177.6b | CA$35.2b | -CA$2,335,567,095.77 | 40.6x | -76x | 5x |
| Thu, 01 Jul 2021 | CA$154.9b | CA$35.0b | -CA$2,344,443,971.70 | 40.8x | -66.1x | 4.4x |
| Sun, 04 Apr 2021 | CA$135.7b | CA$32.4b | -CA$259,338,809.22 | 37.5x | -523.3x | 4.2x |
| Wed, 06 Jan 2021 | CA$120.9b | CA$32.0b | CA$212.3m | 31.1x | 569.7x | 3.8x |
| Sat, 10 Oct 2020 | CA$96.3b | CA$32.4b | CA$144.5m | 39.5x | 666.7x | 3x |
| Fri, 03 Jul 2020 | CA$83.9b | CA$30.9b | CA$201.4m | 38.1x | 416.5x | 2.7x |
| Mon, 06 Apr 2020 | CA$67.0b | CA$31.3b | CA$1.1b | 23.7x | 63.6x | 2.1x |
| Thu, 09 Jan 2020 | CA$80.5b | CA$30.0b | CA$1.1b | 21.7x | 72.1x | 2.7x |
Price to Earnings Ratio
75.1x
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 Market | 1.18% | |
| Tech | 1.67% | |
| Communications | 3.89% | |
| Software | 2.21% | |
| IT | 0.69% | |
| Tech Hardware | 0% | |
| 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?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| CSU Constellation Software | CA$2.11k | 2.3% +CA$998.1m | -3.0% | PE67.8x | |
| GIB.A CGI | CA$115.63 | 1.1% +CA$292.6m | 8.3% | PE18.6x | |
| BB BlackBerry | CA$6.55 | 5.5% +CA$197.0m | -46.2% | PS4x | |
| LSPD Lightspeed Commerce | CA$20.79 | 4.6% +CA$138.3m | -67.8% | PS3.5x | |
| CTS Converge Technology Solutions | CA$4.64 | 16.3% +CA$136.7m | -57.3% | PE26x |
