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Canadian (TSX) IT Industry Analysis
UpdatedNov 28, 2021
DataAggregated Company Financials
Companies26
- 7D-0.5%
- 3M-13.6%
- 1Y39.2%
- YTD27.5%
Over the last 7 days, the IT industry has remained flat, although notably Converge Technology Solutions declined by 8.6%. As for the the longer term, the industry is up 39% over the past 12 months.
Industry Valuation and Performance
Has the Canadian IT Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Tue, 30 Nov 2021 | CA$47.0b | CA$14.9b | CA$1.4b | 19x |
| Thu, 28 Oct 2021 | CA$55.4b | CA$14.5b | CA$1.1b | 42.1x |
| Sat, 25 Sep 2021 | CA$55.9b | CA$14.5b | CA$1.1b | 45.6x |
| Mon, 23 Aug 2021 | CA$54.3b | CA$14.5b | CA$1.1b | 52.6x |
| Sat, 10 Jul 2021 | CA$48.9b | CA$14.5b | CA$1.1b | 45.6x |
| Fri, 02 Apr 2021 | CA$43.5b | CA$14.3b | CA$994.4m | 24.3x |
| Mon, 04 Jan 2021 | CA$38.4b | CA$14.0b | CA$903.3m | 21x |
| Thu, 08 Oct 2020 | CA$31.6b | CA$13.9b | CA$810.4m | 66.7x |
| Wed, 01 Jul 2020 | CA$22.6b | CA$12.6b | CA$1.1b | 27.2x |
| Sat, 04 Apr 2020 | CA$20.8b | CA$12.7b | CA$1.1b | 21.9x |
| Tue, 07 Jan 2020 | CA$29.6b | CA$12.6b | CA$1.1b | 57.2x |
| Mon, 30 Sep 2019 | CA$28.7b | CA$12.5b | CA$1.1b | 38.3x |
| Thu, 04 Jul 2019 | CA$28.1b | CA$12.3b | CA$1.1b | 49.2x |
| Sun, 07 Apr 2019 | CA$25.6b | CA$12.1b | CA$1.0b | 33.8x |
| Wed, 09 Jan 2019 | CA$23.5b | CA$11.9b | CA$1.0b | 19.8x |
PE Ratio
20.7x
Current Industry PE: Investors are more pessimistic on the industry, considering it's trading at a PE ratio of 19.1x which is lower than its 3-year average PE of 38.7x. It appears they believe that earnings will not grow as fast as they have historically.
Past Earnings Growth: The earnings for companies in the IT industry have grown 10% per year over the last three years, and revenues for these companies have grown 8.1% 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 IT industry?
| Internet Services and Infrastructure | 1.65% | |
| Data Processing Services | 0.90% | |
| IT Consulting | -1.36% | |
Industry PE: Investors are most optimistic about the IT Consulting industry which is trading above its 3-year average PE ratio of 43.7x. However analysts are expecting annual earnings growth of 13%, which is lower than the prior year's growth of 22% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Internet Services and Infrastructure industry, which is trading close to its 3-year average of 6.1x.
Forecasted Growth: Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 124% over the next 5 years. Meanwhile, the IT Consulting industry is expected to see its earnings grow by 13% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| NVEI Nuvei | 1.1%+CA$191.5m | 102.7% | PE121.3x | |
| MBLM Mobilum Technologies | 48.9%+CA$18.0m | 600.0% | PS912.1x | |
| AMPD AMPD Ventures | 27.3%+CA$17.8m | 292.0% | PS28.5x | |
| PVT Pivotree | 2.0%+CA$2.5m | -55.3% | PS2.1x | |
| ITM Intema Solutions | 2.7%+CA$2.3m | 1,775.0% | PS334.8x |