Header cover image

Canadian (TSX) Tech Sector Analysis

UpdatedNov 28, 2021
DataAggregated Company Financials
Companies177
  • 7D-4.3%
  • 3M-10.3%
  • 1Y35.6%
  • YTD24.5%

Over the last 7 days, the Tech industry has dropped 4.3%, driven by declines in Constellation Software and Nuvei of 2.4% and 6.3%, respectively. Meanwhile, WeCommerce Holdings actually outperformed within the industry, gaining 21% in the last week. This takes the industry's 12 month performance to a gain of 36%.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPE
Mon, 29 Nov 2021CA$165.1bCA$36.9b-CA$2,244,738,482.0033.5x
Wed, 27 Oct 2021CA$183.7bCA$35.6b-CA$2,483,564,226.0037.6x
Fri, 24 Sep 2021CA$186.7bCA$35.9b-CA$2,592,648,931.0043.1x
Sun, 22 Aug 2021CA$172.3bCA$35.2b-CA$2,335,567,095.7739.6x
Fri, 09 Jul 2021CA$154.9bCA$35.0b-CA$2,344,443,971.7040.8x
Thu, 01 Apr 2021CA$135.7bCA$32.4b-CA$259,338,809.2237.5x
Sun, 03 Jan 2021CA$120.9bCA$32.0bCA$212.3m31.1x
Wed, 07 Oct 2020CA$96.3bCA$32.4bCA$144.5m39.5x
Tue, 30 Jun 2020CA$83.9bCA$30.9bCA$201.4m38.1x
Fri, 03 Apr 2020CA$67.0bCA$31.3bCA$1.1b23.7x
Mon, 06 Jan 2020CA$80.5bCA$30.0bCA$1.1b21.7x
Thu, 10 Oct 2019CA$77.8bCA$30.2bCA$1.2b22.3x
Wed, 03 Jul 2019CA$77.4bCA$30.0bCA$1.3b22.4x
Sat, 06 Apr 2019CA$73.2bCA$30.2bCA$1.1b24.5x
Tue, 08 Jan 2019CA$60.5bCA$31.4bCA$1.2b33x
PE Ratio

27.7x

Total Market Cap: CA$63.7bTotal Earnings: CA$1.4bTotal Revenue: CA$28.5b0%0%0%3 Year10 Year
201920202021

Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 31.3x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: Total earnings for the Information Technology industry have declined over the last three years, with the industry now making a loss overall. But revenues have grown 9.0% 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?

Communications-3.61%
IT-3.99%
Tech Hardware-4.10%
Electronic Equipment and Components-4.36%
Software-4.37%
Semiconductors-11.69%

Industry PE: Investors are most optimistic about the Software industry which is trading above its 3-year average PE ratio of 39.6x. This is likely because analysts are expecting annual earnings growth of 48%, which is higher than its past year's earnings growth of 35% per year. Meanwhile, investors are most pessimistic about the Communications industry, which is trading below its 3-year average of 38.0x.

Forecasted Growth: Analysts are most optimistic on the Communications industry, expecting annual earnings growth of 64% over the next 5 years. This is better than its past earnings decline of 0.3% per year. Meanwhile, the Semiconductors 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?

Company7D1YValuation
WE WeCommerce Holdings21.4%+CA$93.9mn/aPS16.4x
ITM Intema Solutionsn/aCA$47.6m1,875.0%PS343.5x
VXTR Voxtur Analytics8.1%+CA$33.9mn/aPS10.4x
TSF TraceSafe97.8%+CA$19.9m150.7%PS2.5x
SYZ Sylogist6.8%+CA$18.2m9.3%PE53.9x
Simply Wall St
Simply Wall Street Pty Ltd
17-21 Bellevue Street, Surry Hills, Sydney
Download on the App StoreGet it on Google Play
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Latest News

TSF

CA$0.89

TraceSafe

7D

97.8%

1Y

150.7%

GIB.A

CA$107.01

CGI

7D

-1.9%

1Y

9.6%

KXS

CA$201.70

Kinaxis

7D

-12.0%

1Y

7.2%

BB

CA$12.59

BlackBerry

7D

-4.7%

1Y

57.6%

NVEI

CA$118.20

Nuvei

7D

-6.3%

1Y

97.7%