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Canadian (TSX) IT Industry Analysis

UpdatedDec 21, 2024
DataAggregated Company Financials
Companies8
  • 7D-1.8%
  • 3M2.2%
  • 1Y10.2%
  • YTD12.6%

Over the last 7 days, the IT industry has dropped 1.8%, driven by CGI declining 1.7%. Meanwhile, Nerds on Site actually outperformed within the industry, gaining 40% in the last week. In the past year, the industry has gained 10%. Looking forward, earnings are forecast to grow by 9.8% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 22 Dec 2024CA$36.2bCA$17.8bCA$1.5b11.9x24.2x2x
Tue, 19 Nov 2024CA$35.5bCA$17.8bCA$1.5b11.4x23.8x2x
Thu, 17 Oct 2024CA$36.7bCA$17.7bCA$1.5b11.6x25x2.1x
Sat, 14 Sep 2024CA$36.3bCA$17.7bCA$1.5b11.1x24.7x2x
Mon, 12 Aug 2024CA$34.1bCA$17.8bCA$1.5b10.1x23.2x1.9x
Wed, 10 Jul 2024CA$32.5bCA$17.7bCA$1.6b9.7x20.2x1.8x
Fri, 07 Jun 2024CA$32.5bCA$17.8bCA$1.6b9.7x20.7x1.8x
Sun, 05 May 2024CA$33.8bCA$17.8bCA$1.5b6.3x21.8x1.9x
Tue, 02 Apr 2024CA$35.9bCA$17.8bCA$1.5b6.3x23.6x2x
Thu, 29 Feb 2024CA$37.4bCA$17.8bCA$1.5b11.4x24.9x2.1x
Sat, 27 Jan 2024CA$35.4bCA$17.7bCA$1.5b10.9x24.4x2x
Mon, 25 Dec 2023CA$34.1bCA$17.7bCA$1.5b10.5x23.5x1.9x
Wed, 22 Nov 2023CA$33.4bCA$17.7bCA$1.5b10.4x22.9x1.9x
Fri, 20 Oct 2023CA$32.4bCA$17.3bCA$1.4b30.6x22.7x1.9x
Sun, 17 Sep 2023CA$33.9bCA$17.3bCA$1.4b37x23.8x2x
Tue, 15 Aug 2023CA$33.3bCA$17.3bCA$1.4b33.4x23.2x1.9x
Thu, 13 Jul 2023CA$33.8bCA$16.8bCA$1.4b23.3x24.2x2x
Sat, 10 Jun 2023CA$33.6bCA$16.9bCA$1.4b23.9x24.2x2x
Mon, 08 May 2023CA$32.6bCA$16.7bCA$1.4b23.2x23.3x2x
Wed, 05 Apr 2023CA$32.0bCA$16.2bCA$1.4b26.8x23x2x
Fri, 03 Mar 2023CA$37.2bCA$17.6bCA$1.4b29.8x26.3x2.1x
Sun, 29 Jan 2023CA$35.4bCA$17.3bCA$1.4b31.8x25.9x2x
Tue, 27 Dec 2022CA$34.1bCA$17.3bCA$1.4b22.1x24.9x2x
Thu, 24 Nov 2022CA$34.3bCA$17.3bCA$1.4b23.7x25.1x2x
Sat, 22 Oct 2022CA$32.5bCA$16.8bCA$1.4b35.3x23.9x1.9x
Mon, 19 Sep 2022CA$32.3bCA$16.7bCA$1.4b37.8x23.8x1.9x
Wed, 17 Aug 2022CA$35.3bCA$16.7bCA$1.4b49.5x26x2.1x
Fri, 15 Jul 2022CA$33.2bCA$16.1bCA$1.3b52.4x25.4x2.1x
Sun, 12 Jun 2022CA$34.8bCA$16.1bCA$1.3b76.9x26.4x2.2x
Tue, 10 May 2022CA$35.6bCA$15.7bCA$1.4b17.1x24.8x2.3x
Thu, 07 Apr 2022CA$41.2bCA$15.5bCA$1.4b17.8x29.5x2.7x
Sat, 05 Mar 2022CA$37.0bCA$15.1bCA$1.4b37x26.3x2.4x
Mon, 31 Jan 2022CA$39.5bCA$15.0bCA$1.4b31.2x28x2.6x
Wed, 29 Dec 2021CA$42.7bCA$15.0bCA$1.4b14x30.2x2.9x
Price to Earnings Ratio

30.2x


Total Market Cap: CA$42.7bTotal Earnings: CA$1.4bTotal Revenue: CA$15.0bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian IT Industry Price to Earnings3Y Average 24.5x202220232024
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 24.5x.
  • 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 6.0% 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 and as a result, profits have held steady.

Industry Trends

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

CA Market-2.58%
Tech-3.42%
IT-1.76%
Data Processing Services0%
IT Consulting-1.75%
Internet Services and Infrastructure-19.15%
Industry PE
  • Investors are most optimistic about the IT Consulting industry which is trading above its 3-year average PE ratio of 21.2x.
    • Analysts are expecting annual earnings growth of 9.8%, 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 9.8% 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 9.8% 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
NERD Nerds on SiteCA$0.0740.0%
+CA$1.8m		16.7%PS0.6x
PVT PivotreeCA$0.771.3%
+CA$263.8k		-48.3%PS0.3x
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NERD

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7D

40.0%

1Y

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