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Canadian (TSX) IT Industry Analysis

UpdatedNov 20, 2024
DataAggregated Company Financials
Companies8
  • 7D-2.2%
  • 3M1.2%
  • 1Y9.6%
  • YTD9.7%

Over the last 7 days, the IT industry has dropped 2.2%, driven by CGI declining 2.5%. Meanwhile, Sixty Six Capital actually outperformed within the industry, gaining 6.7% in the last week. Over the past 12 months, the industry was up 9.6%. Looking forward, earnings are forecast to grow by 10% annually.

Industry Valuation and Performance

Has the Canadian IT Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 21 Nov 2024CA$35.5bCA$17.8bCA$1.5b11.6x23.8x2x
Sat, 19 Oct 2024CA$37.1bCA$17.7bCA$1.5b11.8x25.2x2.1x
Mon, 16 Sep 2024CA$36.5bCA$17.7bCA$1.5b11.1x24.8x2.1x
Wed, 14 Aug 2024CA$33.8bCA$17.8bCA$1.5b10.1x23x1.9x
Fri, 12 Jul 2024CA$32.8bCA$17.7bCA$1.6b10x20.4x1.9x
Sun, 09 Jun 2024CA$32.8bCA$17.8bCA$1.6b9.8x20.8x1.8x
Tue, 07 May 2024CA$33.8bCA$17.8bCA$1.6b6.3x21.5x1.9x
Thu, 04 Apr 2024CA$35.6bCA$17.8bCA$1.5b6.3x23.4x2x
Sat, 02 Mar 2024CA$37.2bCA$17.8bCA$1.5b11.5x24.8x2.1x
Mon, 29 Jan 2024CA$35.4bCA$17.7bCA$1.5b10.9x24.3x2x
Wed, 27 Dec 2023CA$34.1bCA$17.7bCA$1.5b10.5x23.5x1.9x
Fri, 24 Nov 2023CA$33.5bCA$17.7bCA$1.5b10.2x22.9x1.9x
Sun, 22 Oct 2023CA$32.2bCA$17.3bCA$1.4b34.1x22.5x1.9x
Tue, 19 Sep 2023CA$33.6bCA$17.3bCA$1.4b36.5x23.5x1.9x
Thu, 17 Aug 2023CA$32.8bCA$17.3bCA$1.4b32.6x22.9x1.9x
Sat, 15 Jul 2023CA$34.2bCA$16.8bCA$1.4b23.7x24.4x2x
Mon, 12 Jun 2023CA$33.6bCA$16.9bCA$1.4b23.9x24.2x2x
Wed, 10 May 2023CA$33.2bCA$16.7bCA$1.4b23.9x23.7x2x
Fri, 07 Apr 2023CA$31.7bCA$16.2bCA$1.4b24.2x22.8x1.9x
Sun, 05 Mar 2023CA$37.9bCA$17.6bCA$1.4b29.6x26.8x2.1x
Tue, 31 Jan 2023CA$35.6bCA$17.3bCA$1.4b33x26.1x2.1x
Thu, 29 Dec 2022CA$33.7bCA$17.3bCA$1.4b23.4x24.7x1.9x
Sat, 26 Nov 2022CA$34.5bCA$17.3bCA$1.4b23.5x25.3x2x
Mon, 24 Oct 2022CA$32.5bCA$16.8bCA$1.4b35.3x23.9x1.9x
Wed, 21 Sep 2022CA$32.1bCA$16.7bCA$1.4b36.9x23.6x1.9x
Fri, 19 Aug 2022CA$34.5bCA$16.7bCA$1.4b47.2x25.3x2.1x
Sun, 17 Jul 2022CA$33.2bCA$16.1bCA$1.3b52.8x25.4x2.1x
Tue, 14 Jun 2022CA$33.3bCA$16.1bCA$1.3b70.9x25.3x2.1x
Thu, 12 May 2022CA$34.3bCA$15.7bCA$1.4b16.9x23.9x2.2x
Sat, 09 Apr 2022CA$40.3bCA$15.5bCA$1.4b17.7x28.9x2.6x
Mon, 07 Mar 2022CA$37.0bCA$15.1bCA$1.4b37x26.3x2.4x
Wed, 02 Feb 2022CA$41.9bCA$15.0bCA$1.4b33.8x29.9x2.8x
Fri, 31 Dec 2021CA$43.3bCA$15.0bCA$1.4b13.9x30.6x2.9x
Sun, 28 Nov 2021CA$47.0bCA$14.9bCA$1.4b19x33.2x3.2x
Price to Earnings Ratio

33.2x


Total Market Cap: CA$47.0bTotal Earnings: CA$1.4bTotal Revenue: CA$14.9bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian IT Industry Price to Earnings3Y Average 24.7x202220232024
Current Industry PE
  • Investors are relatively neutral on the Canadian IT 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 PE ratio of 24.7x.
  • The industry is trading close to its 3-year average PS ratio of 2.1x.
Past Earnings Growth
  • The earnings for companies in the IT industry have remained mostly flat over the last three years.
  • Meanwhile revenues for these companies have grown 6.2% 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 and as a result, profits have held steady.

Industry Trends

Which industries have driven the changes within the Canadian Tech industry?

CA Market0.41%
Tech-1.38%
IT-2.19%
Data Processing Services0%
IT Consulting-2.19%
Internet Services and Infrastructure-3.40%
Industry PE
  • Investors are most optimistic about the IT Consulting industry which is trading above its 3-year average PE ratio of 21.1x.
    • Analysts are expecting annual earnings growth of 10.1%, which is higher than its past year's earnings growth of 3.8% per year.
Forecasted Growth
  • Analysts are most optimistic on the IT Consulting industry, expecting annual earnings growth of 10% over the next 5 years.
  • This is better than its past earnings growth rate of 3.8% per year.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 10% 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
SIX Sixty Six CapitalCA$0.086.7%
+CA$698.7k		166.7%PE2.7x
ECOM EMERGE CommerceCA$0.0414.3%
+CA$695.9k		60.0%PS0.2x
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