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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?

DateMarket CapRevenueEarningsPE
Tue, 30 Nov 2021CA$47.0bCA$14.9bCA$1.4b19x
Thu, 28 Oct 2021CA$55.4bCA$14.5bCA$1.1b42.1x
Sat, 25 Sep 2021CA$55.9bCA$14.5bCA$1.1b45.6x
Mon, 23 Aug 2021CA$54.3bCA$14.5bCA$1.1b52.6x
Sat, 10 Jul 2021CA$48.9bCA$14.5bCA$1.1b45.6x
Fri, 02 Apr 2021CA$43.5bCA$14.3bCA$994.4m24.3x
Mon, 04 Jan 2021CA$38.4bCA$14.0bCA$903.3m21x
Thu, 08 Oct 2020CA$31.6bCA$13.9bCA$810.4m66.7x
Wed, 01 Jul 2020CA$22.6bCA$12.6bCA$1.1b27.2x
Sat, 04 Apr 2020CA$20.8bCA$12.7bCA$1.1b21.9x
Tue, 07 Jan 2020CA$29.6bCA$12.6bCA$1.1b57.2x
Mon, 30 Sep 2019CA$28.7bCA$12.5bCA$1.1b38.3x
Thu, 04 Jul 2019CA$28.1bCA$12.3bCA$1.1b49.2x
Sun, 07 Apr 2019CA$25.6bCA$12.1bCA$1.0b33.8x
Wed, 09 Jan 2019CA$23.5bCA$11.9bCA$1.0b19.8x
PE Ratio

20.7x

Total Market Cap: CA$24.2bTotal Earnings: CA$1.1bTotal Revenue: CA$11.8b0%0%0%3 Year10 Year
201920202021

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 Infrastructure1.65%
Data Processing Services0.90%
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?

Company7D1YValuation
NVEI Nuvei1.1%+CA$191.5m102.7%PE121.3x
MBLM Mobilum Technologies48.9%+CA$18.0m600.0%PS912.1x
AMPD AMPD Ventures27.3%+CA$17.8m292.0%PS28.5x
PVT Pivotree2.0%+CA$2.5m-55.3%PS2.1x
ITM Intema Solutions2.7%+CA$2.3m1,775.0%PS334.8x
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AMPD

CA$0.49

AMPD Ventures

7D

27.3%

1Y

292.0%

PVT

CA$5.10

Pivotree

7D

2.0%

1Y

-55.3%

PAY

CA$8.94

Payfare

7D

-4.7%

1Y

n/a

NVEI

CA$122.83

Nuvei

7D

1.1%

1Y

102.7%

PAID

CA$0.36

XTM

7D

-5.3%

1Y

176.9%