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Canadian (TSX) IT Industry Analysis

UpdatedOct 03, 2023
DataAggregated Company Financials
Companies19
  • 7D-0.9%
  • 3M-3.7%
  • 1Y19.2%
  • YTD10.6%

Over the last 7 days, the IT industry has dropped 1.0%, driven by CGI declining 1.0%. Over the past 12 months, the industry was up 22%. Looking forward, earnings are forecast to grow by 11% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 03 Oct 2023CA$32.2bCA$17.3bCA$1.4b34.4x22.6x1.9x
Thu, 31 Aug 2023CA$33.8bCA$17.3bCA$1.4b34.8x23.6x2x
Sat, 29 Jul 2023CA$31.5bCA$17.2bCA$1.5b21.7x21.7x1.8x
Mon, 26 Jun 2023CA$32.4bCA$16.9bCA$1.4b22.3x23.3x1.9x
Wed, 24 May 2023CA$33.3bCA$16.9bCA$1.4b23.2x23.8x2x
Fri, 21 Apr 2023CA$32.2bCA$16.2bCA$1.4b27.3x23.1x2x
Sun, 19 Mar 2023CA$38.5bCA$17.4bCA$1.4b29.8x26.9x2.2x
Tue, 14 Feb 2023CA$37.8bCA$17.6bCA$1.4b34.8x26.8x2.1x
Thu, 12 Jan 2023CA$35.1bCA$17.3bCA$1.4b27x25.7x2x
Sat, 10 Dec 2022CA$34.5bCA$17.3bCA$1.4b25.2x24.9x2x
Mon, 07 Nov 2022CA$32.4bCA$16.8bCA$1.3b32.5x24.2x1.9x
Wed, 05 Oct 2022CA$33.5bCA$16.7bCA$1.4b37.8x24.7x2x
Fri, 02 Sep 2022CA$31.6bCA$16.7bCA$1.4b36.3x23.3x1.9x
Sun, 31 Jul 2022CA$34.7bCA$16.3bCA$1.3b57.6x26.4x2.1x
Tue, 28 Jun 2022CA$34.1bCA$16.1bCA$1.3b62x26x2.1x
Thu, 26 May 2022CA$36.4bCA$16.0bCA$1.4b17.7x26.1x2.3x
Sat, 23 Apr 2022CA$38.3bCA$15.5bCA$1.4b17.7x27.5x2.5x
Mon, 21 Mar 2022CA$41.8bCA$15.2bCA$1.4b34x30.1x2.7x
Wed, 16 Feb 2022CA$41.7bCA$15.1bCA$1.4b37.4x29.6x2.8x
Fri, 14 Jan 2022CA$41.5bCA$14.9bCA$1.4b32.4x29.4x2.8x
Sun, 12 Dec 2021CA$41.5bCA$14.9bCA$1.4b14.3x29.2x2.8x
Tue, 09 Nov 2021CA$52.2bCA$14.4bCA$1.2b45.6x43.9x3.6x
Thu, 07 Oct 2021CA$55.2bCA$14.5bCA$1.1b45.6x50.9x3.8x
Sat, 04 Sep 2021CA$57.4bCA$14.5bCA$1.1b49.1x53.3x4x
Mon, 02 Aug 2021CA$48.7bCA$14.5bCA$1.1b60.3x45.2x3.4x
Thu, 06 May 2021CA$45.5bCA$14.3bCA$994.4m23.6x45.8x3.2x
Sun, 07 Feb 2021CA$37.1bCA$14.0bCA$900.2m21.6x41.2x2.6x
Sat, 31 Oct 2020CA$29.1bCA$14.0bCA$808.5m60.6x35.9x2.1x
Price to Earnings Ratio

39x


Total Market Cap: CA$31.6bTotal Earnings: CA$810.4mTotal Revenue: CA$13.9bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian IT Industry Price to Earnings3Y Average 32.5x202120222023
Current Industry PE
  • Investors are pessimistic on the Canadian IT industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 22.6x which is lower than its 3-year average PE of 32.5x.
  • The 3-year average PS ratio of 2.5x is higher than the industry's current PS ratio of 1.9x.
Past Earnings Growth
  • The earnings for companies in the IT industry have grown 21% per year over the last three years.
  • Revenues for these companies have grown 7.6% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

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

CA Market-3.14%
Tech0.59%
IT-0.89%
Internet Services and Infrastructure4.31%
Data Processing Services0.52%
IT Consulting-0.90%
Industry PE
  • Investors are most optimistic about the IT Consulting industry, which is trading close to its 3-year average PE ratio of 21.6x.
    • Analysts are expecting annual earnings growth of 11.1%, which is higher than its past year's earnings decline of 18.6% per year.
Forecasted Growth
  • Analysts are most optimistic on the IT Consulting industry, expecting annual earnings growth of 11% over the next 5 years.
  • This is better than its past earnings decline of 19% per year.
  • In contrast, the Data Processing Services industry is expected to see its earnings decline by 47% 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
DM Datametrex AICA$0.0658.3%
+CA$2.0m
-18.8%PS1.5x
CISC CiscomCA$0.338.3%
+CA$1.3m
n/an/a
HOLD Immutable HoldingsCA$0.129.5%
+CA$980.9k
-74.4%PS10.7x
ECOM Emerge CommerceCA$0.0320.0%
+CA$618.4k
-83.8%PS0.07x
DXX DXStorm.comCA$0.02300.0%
+CA$353.8k
n/aPS5.6x
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Latest News

NERD

CA$0.075

Nerds on Site

7D

-6.3%

1Y

15.4%

ALYA

CA$2.08

Alithya Group

7D

-10.0%

1Y

-20.0%

DM

CA$0.065

Datametrex AI

7D

8.3%

1Y

-18.8%

CISC

CA$0.33

Ciscom

7D

8.3%

1Y

n/a

ECOM

CA$0.03

Emerge Commerce

7D

20.0%

1Y

-83.8%

CTS

CA$2.77

Converge Technology Solutions

7D

-1.4%

1Y

-59.3%

PVT

CA$1.90

Pivotree

7D

-4.5%

1Y

-46.2%

HOLD

CA$0.12

Immutable Holdings

7D

9.5%

1Y

-74.4%

DXX

CA$0.02

DXStorm.com

7D

300.0%

1Y

n/a