Header cover image

Canadian (TSX) Tech Sector Analysis

UpdatedMar 18, 2024
DataAggregated Company Financials
Companies131
  • 7D-1.1%
  • 3M13.8%
  • 1Y36.9%
  • YTD14.0%

Over the last 7 days, the Tech industry has dropped 1.1%, driven by a pullback from Constellation Software of 2.9%. Over the past 12 months, the industry was up 37%. Looking forward, earnings are forecast to grow by 15% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 19 Mar 2024CA$172.6bCA$52.2b-CA$2,932,075,509.8021.3x-58.9x3.3x
Thu, 15 Feb 2024CA$164.5bCA$51.5b-CA$882,558,424.7120.5x-186.3x3.2x
Sat, 13 Jan 2024CA$164.4bCA$52.0b-CA$2,243,302,329.0021.8x-73.3x3.2x
Mon, 11 Dec 2023CA$158.4bCA$52.5b-CA$2,361,295,523.0022.1x-67.1x3x
Wed, 08 Nov 2023CA$144.1bCA$52.0b-CA$2,738,330,372.0022.7x-52.6x2.8x
Fri, 06 Oct 2023CA$142.7bCA$51.4b-CA$2,585,340,453.0022.9x-55.2x2.8x
Sun, 03 Sep 2023CA$148.8bCA$51.2b-CA$2,613,495,551.0024.3x-56.9x2.9x
Tue, 01 Aug 2023CA$145.9bCA$49.4b-CA$2,444,620,104.0019.8x-59.7x3x
Thu, 29 Jun 2023CA$143.1bCA$48.6b-CA$2,621,532,239.0020.9x-54.6x2.9x
Sat, 27 May 2023CA$141.7bCA$49.3b-CA$2,777,867,077.0024.8x-51x2.9x
Mon, 24 Apr 2023CA$137.7bCA$47.4b-CA$1,929,985,898.0023.3x-71.3x2.9x
Wed, 22 Mar 2023CA$127.9bCA$46.8b-CA$1,216,522,490.0022x-105.1x2.7x
Fri, 17 Feb 2023CA$135.7bCA$47.7b-CA$895,489,577.0024.7x-151.6x2.8x
Sun, 15 Jan 2023CA$127.6bCA$46.4bCA$639.6m23.3x199.6x2.8x
Tue, 13 Dec 2022CA$123.6bCA$46.8bCA$733.4m22.2x168.6x2.6x
Thu, 10 Nov 2022CA$113.1bCA$45.7bCA$979.1m27.1x115.5x2.5x
Sat, 08 Oct 2022CA$114.3bCA$44.7bCA$920.2m41.1x124.2x2.6x
Mon, 05 Sep 2022CA$116.8bCA$43.6bCA$935.3m44.9x124.9x2.7x
Wed, 03 Aug 2022CA$125.1bCA$41.8bCA$1.7b52.4x75.5x3x
Fri, 01 Jul 2022CA$116.0bCA$41.1bCA$1.8b46.2x64.6x2.8x
Sun, 29 May 2022CA$125.6bCA$41.3bCA$1.6b45.1x79.3x3x
Tue, 26 Apr 2022CA$132.9bCA$39.4b-CA$1,483,084,758.0034.7x-89.6x3.4x
Thu, 24 Mar 2022CA$145.3bCA$38.4b-CA$2,015,865,336.0050.5x-72.1x3.8x
Sat, 19 Feb 2022CA$138.3bCA$38.2b-CA$1,987,898,728.0052.6x-69.6x3.6x
Mon, 17 Jan 2022CA$145.6bCA$36.7b-CA$2,017,589,051.0040.5x-72.2x4x
Wed, 15 Dec 2021CA$149.7bCA$37.2b-CA$2,288,972,636.0026.4x-65.4x4x
Fri, 12 Nov 2021CA$172.1bCA$36.3b-CA$2,263,450,695.0040.4x-76.1x4.7x
Sun, 10 Oct 2021CA$175.4bCA$35.8b-CA$2,482,483,577.0041.7x-70.6x4.9x
Tue, 07 Sep 2021CA$188.9bCA$35.2b-CA$2,367,912,852.7743.9x-79.8x5.4x
Thu, 05 Aug 2021CA$162.9bCA$35.2b-CA$2,335,567,095.7737.1x-69.8x4.6x
Sun, 09 May 2021CA$139.1bCA$32.4b-CA$266,656,096.5138.5x-521.5x4.3x
Price to Earnings Ratio

-523.3x


Total Market Cap: CA$135.7bTotal Earnings: -CA$259,338,809.22Total Revenue: CA$32.4bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian Tech Sector Price to Earnings3Y Average -47.7x202220232024
Current Industry PE
  • Investors are pessimistic on the Canadian Information Technology industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The 3-year average PS ratio of 3.8x is higher than the industry's current PS ratio of 3.3x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have deteriorated over the last three years.
  • Meanwhile revenues for these companies have grown 17% 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 sector?

CA Market0.35%
Tech-1.07%
Communications5.25%
Semiconductors2.12%
IT0.13%
Tech Hardware0%
Electronic Equipment and Components-0.17%
Software-1.60%
Industry PE
  • Investors are most optimistic about the Communications industry which is trading above its 3-year average PE ratio of 13.5x.
    • Analysts are expecting annual earnings growth of 38.7%, which is higher than its past year's earnings decline of 7.6% per year.
Forecasted Growth
  • Analysts are most optimistic on the Communications industry, expecting annual earnings growth of 39% over the next 5 years.
  • This is better than its past earnings decline of 7.6% per year.
  • In contrast, the Semiconductors industry is expected to see its earnings decline by 6.9% 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
CLS CelesticaCA$60.512.8%
+CA$186.6m
261.5%PE21.7x
SFTC SoftchoiceCA$22.179.8%
+CA$118.2m
43.5%PE21.2x
DND Dye & DurhamCA$15.5011.7%
+CA$108.3m
-15.1%PS2.3x
DSG Descartes Systems GroupCA$125.300.9%
+CA$94.6m
17.1%PE68x
CTS Converge Technology SolutionsCA$5.876.5%
+CA$73.2m
47.1%PS0.4x
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

CSU

CA$3,684.38

Constellation Software

7D

-2.9%

1Y

54.8%

BB

CA$3.57

BlackBerry

7D

-13.3%

1Y

-27.7%

GRDI

CA$1.30

Griid Infrastructure

7D

-48.0%

1Y

-90.8%

TCXT

CA$1.05

TrueContext

7D

37.3%

1Y

110.0%

DSG

CA$125.30

Descartes Systems Group

7D

0.9%

1Y

17.1%

CVO

CA$10.09

Coveo Solutions

7D

-4.4%

1Y

44.1%

SFTC

CA$22.17

Softchoice

7D

9.8%

1Y

43.5%

CLS

CA$60.51

Celestica

7D

2.8%

1Y

261.5%

LMN

CA$33.99

Lumine Group

7D

-6.9%

1Y

n/a

BITF

CA$3.04

Bitfarms

7D

-5.9%

1Y

143.2%

TOI

CA$118.84

Topicus.com

7D

-3.1%

1Y

35.1%

DND

CA$15.50

Dye & Durham

7D

11.7%

1Y

-15.1%