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Canadian (TSX) IT Industry Analysis

UpdatedOct 16, 2024
DataAggregated Company Financials
Companies8
  • 7D1.8%
  • 3M8.5%
  • 1Y18.3%
  • YTD14.6%

The IT industry is up 1.7% in the last week, with CGI up 1.8%. During this same period, the Datametrex AI underperformed, falling 50%. This means that the industry has gained 19% over the past year. As for the next few years, earnings are expected to grow by 11% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 16 Oct 2024CA$37.0bCA$17.7bCA$1.5b11.7x25.2x2.1x
Fri, 13 Sep 2024CA$36.2bCA$17.7bCA$1.5b11x24.7x2x
Sun, 11 Aug 2024CA$34.1bCA$17.8bCA$1.5b10.1x23.2x1.9x
Tue, 09 Jul 2024CA$32.4bCA$17.7bCA$1.6b9.8x20.1x1.8x
Thu, 06 Jun 2024CA$32.2bCA$17.8bCA$1.6b9.8x20.5x1.8x
Sat, 04 May 2024CA$33.3bCA$17.8bCA$1.5b6.3x21.5x1.9x
Mon, 01 Apr 2024CA$35.9bCA$17.8bCA$1.5b6.3x23.6x2x
Wed, 28 Feb 2024CA$37.2bCA$17.8bCA$1.5b11.4x24.8x2.1x
Fri, 26 Jan 2024CA$35.2bCA$17.7bCA$1.5b10.9x24.2x2x
Sun, 24 Dec 2023CA$34.1bCA$17.7bCA$1.5b10.5x23.5x1.9x
Tue, 21 Nov 2023CA$33.4bCA$17.7bCA$1.5b10.3x22.9x1.9x
Thu, 19 Oct 2023CA$32.4bCA$17.3bCA$1.4b30.6x22.7x1.9x
Sat, 16 Sep 2023CA$33.6bCA$17.3bCA$1.4b37.1x23.5x1.9x
Mon, 14 Aug 2023CA$33.3bCA$17.3bCA$1.4b34.3x23.2x1.9x
Wed, 12 Jul 2023CA$33.7bCA$16.8bCA$1.4b23.7x24.1x2x
Fri, 09 Jun 2023CA$33.5bCA$16.9bCA$1.4b23.8x24.1x2x
Sun, 07 May 2023CA$32.6bCA$16.7bCA$1.4b23.2x23.3x2x
Tue, 04 Apr 2023CA$32.0bCA$16.2bCA$1.4b25.2x23x2x
Thu, 02 Mar 2023CA$36.8bCA$17.6bCA$1.4b29.9x26x2.1x
Sat, 28 Jan 2023CA$35.4bCA$17.3bCA$1.4b31.8x25.9x2x
Mon, 26 Dec 2022CA$34.1bCA$17.3bCA$1.4b22.1x24.9x2x
Wed, 23 Nov 2022CA$34.3bCA$17.3bCA$1.4b22x25.1x2x
Fri, 21 Oct 2022CA$31.9bCA$16.8bCA$1.4b33.9x23.5x1.9x
Sun, 18 Sep 2022CA$32.3bCA$16.7bCA$1.4b37.8x23.8x1.9x
Tue, 16 Aug 2022CA$35.1bCA$16.7bCA$1.4b49.5x25.9x2.1x
Thu, 14 Jul 2022CA$33.4bCA$16.1bCA$1.3b53.5x25.5x2.1x
Sat, 11 Jun 2022CA$34.8bCA$16.1bCA$1.3b76.9x26.4x2.2x
Mon, 09 May 2022CA$36.5bCA$15.7bCA$1.4b17.1x25.5x2.3x
Wed, 06 Apr 2022CA$42.2bCA$15.5bCA$1.4b17.9x30.3x2.7x
Fri, 04 Mar 2022CA$38.0bCA$15.1bCA$1.4b37.4x27x2.5x
Sun, 30 Jan 2022CA$39.5bCA$15.0bCA$1.4b31.2x28x2.6x
Tue, 28 Dec 2021CA$42.7bCA$15.0bCA$1.4b14x30.2x2.9x
Thu, 25 Nov 2021CA$47.8bCA$14.9bCA$1.4b45.5x33.7x3.2x
Sat, 23 Oct 2021CA$56.9bCA$14.5bCA$1.1b49.1x52.3x3.9x
Price to Earnings Ratio

52.3x


Total Market Cap: CA$56.9bTotal Earnings: CA$1.1bTotal Revenue: CA$14.5bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian IT Industry Price to Earnings3Y Average 25.4x202220232024
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 25.4x.
  • The industry is trading close to its 3-year average PS ratio of 2.2x.
Past Earnings Growth
  • The earnings for companies in the IT industry have grown 11% per year over the last three years.
  • Revenues for these companies have grown 6.9% 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 Market1.45%
Tech2.29%
IT1.83%
IT Consulting1.84%
Data Processing Services0%
Internet Services and Infrastructure-21.11%
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 11.0%, which is higher than its past year's earnings growth of 5.8% 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 growth rate of 5.8% per year.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 11% 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
GIB.A CGICA$159.161.8%
+CA$651.1m		17.9%PE21.5x
CTS Converge Technology SolutionsCA$4.601.1%
+CA$9.7m		81.1%PS0.3x
ALYA Alithya GroupCA$1.783.5%
+CA$5.8m		-21.2%PS0.4x
MTLO Martello Technologies GroupCA$0.01550.0%
+CA$2.7m		-25.0%PS0.5x
PVT PivotreeCA$1.137.6%
+CA$2.1m		-47.7%PS0.4x
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