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Canadian (TSX) IT Industry Analysis

UpdatedAug 24, 2025
DataAggregated Company Financials
Companies8
  • 7D3.1%
  • 3M-9.4%
  • 1Y-9.2%
  • YTD-14.7%

Over the last 7 days, the IT industry has risen 3.1%, driven by gains from CGI of 3.3%. Meanwhile, Alithya Group actually underperformed within the industry, shrinking 9.6% in the last week. However, the industry is down 9.2% over the past year. As for the next few years, earnings are expected to grow by 9.8% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 25 Aug 2025CA$29.9bCA$16.1bCA$1.7b42.1x17.5x1.9x
Wed, 23 Jul 2025CA$30.9bCA$15.7bCA$1.7b36.3x17.9x2x
Fri, 20 Jun 2025CA$33.0bCA$15.7bCA$1.7b18.8x19.1x2.1x
Sun, 18 May 2025CA$33.9bCA$15.7bCA$1.7b10.2x19.6x2.2x
Tue, 15 Apr 2025CA$33.1bCA$18.0bCA$1.5b10x21.5x1.8x
Thu, 13 Mar 2025CA$34.8bCA$18.0bCA$1.5b10.8x22.6x1.9x
Sat, 08 Feb 2025CA$39.1bCA$18.0bCA$1.5b12.5x25.3x2.2x
Mon, 06 Jan 2025CA$36.6bCA$17.8bCA$1.5b12x24.4x2.1x
Wed, 04 Dec 2024CA$36.5bCA$17.8bCA$1.5b11.9x24.4x2.1x
Fri, 01 Nov 2024CA$36.6bCA$17.7bCA$1.5b11.7x24.9x2.1x
Sun, 29 Sep 2024CA$35.8bCA$17.7bCA$1.5b11.3x24.4x2x
Tue, 27 Aug 2024CA$34.5bCA$17.7bCA$1.5b10.5x23.5x1.9x
Thu, 25 Jul 2024CA$34.5bCA$17.7bCA$1.6b10.4x21.5x1.9x
Sat, 22 Jun 2024CA$32.0bCA$17.7bCA$1.6b9.5x20x1.8x
Mon, 20 May 2024CA$34.0bCA$17.8bCA$1.6b10.2x21.7x1.9x
Wed, 17 Apr 2024CA$34.0bCA$17.8bCA$1.5b6.3x22.5x1.9x
Fri, 15 Mar 2024CA$38.3bCA$17.8bCA$1.5b6.3x25.1x2.1x
Sun, 11 Feb 2024CA$36.6bCA$17.8bCA$1.5b11.2x24.3x2.1x
Tue, 09 Jan 2024CA$32.8bCA$17.7bCA$1.5b10.4x22.6x1.9x
Thu, 07 Dec 2023CA$33.9bCA$17.7bCA$1.5b10.5x23.3x1.9x
Sat, 04 Nov 2023CA$33.2bCA$17.3bCA$1.4b36.9x23.3x1.9x
Mon, 02 Oct 2023CA$32.2bCA$17.3bCA$1.4b34.5x22.6x1.9x
Wed, 30 Aug 2023CA$33.8bCA$17.3bCA$1.4b34.6x23.7x2x
Fri, 28 Jul 2023CA$31.5bCA$17.2bCA$1.5b21.1x21.7x1.8x
Sun, 25 Jun 2023CA$32.4bCA$16.9bCA$1.4b22.3x23.3x1.9x
Tue, 23 May 2023CA$34.3bCA$16.9bCA$1.4b23.6x24.4x2x
Thu, 20 Apr 2023CA$32.2bCA$16.2bCA$1.4b27.3x23.2x2x
Sat, 18 Mar 2023CA$38.9bCA$17.6bCA$1.4b29.8x27.7x2.2x
Mon, 13 Feb 2023CA$37.6bCA$17.6bCA$1.4b37.9x26.7x2.1x
Wed, 11 Jan 2023CA$34.8bCA$17.3bCA$1.4b25x25.4x2x
Fri, 09 Dec 2022CA$34.7bCA$17.3bCA$1.4b25.2x25.1x2x
Sun, 06 Nov 2022CA$32.4bCA$16.8bCA$1.3b32.9x24.2x1.9x
Tue, 04 Oct 2022CA$32.5bCA$16.8bCA$1.4b34.9x23.9x1.9x
Thu, 01 Sep 2022CA$32.0bCA$16.7bCA$1.4b36.8x23.6x1.9x
Price to Earnings Ratio

23.6x


Total Market Cap: CA$32.0bTotal Earnings: CA$1.4bTotal Revenue: CA$16.7bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian IT Industry Price to Earnings3Y Average 23.1x202320242025
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 17.5x which is lower than its 3-year average PE of 23.1x.
  • The industry is trading close to its 3-year average PS ratio of 2.0x.
Past Earnings Growth
  • The earnings for companies in the IT industry have grown 8.2% per year over the last three years, while revenues have remained mostly flat.
  • This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.

Industry Trends

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

CA Market1.67%
Tech2.23%
IT3.15%
IT Consulting3.21%
Data Processing Services0%0
Internet Services and Infrastructure-24.80%
Industry PE
  • Investors are most optimistic about the IT Consulting industry even though it's trading below its 3-year average PE ratio of 21.4x.
    • Analysts are expecting annual earnings growth of 9.8%, which is higher than its past year's earnings growth of 2.5% 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 2.5% 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
GIB.A CGICA$134.083.3%
+CA$946.7m		-9.4%PE17.3x
MTLO Martello Technologies GroupCA$0.01550.0%
+CA$2.9m		50.0%PS0.6x
ECOM EMERGE CommerceCA$0.0912.5%
+CA$1.5m		50.0%PS0.6x
PVT PivotreeCA$1.422.2%
+CA$792.1k		29.1%PS0.5x
CCDS Carrier Connect Data SolutionsCA$0.785.4%
+CA$534.1k		n/aPS28.6x

Latest News

DM
CA$0.09
Datametrex AI
7D
5.9%
1Y
-70.0%
ALYA
CA$1.88
Alithya Group
7D
-9.6%
1Y
2.7%
PVT
CA$1.42
Pivotree
7D
2.2%
1Y
29.1%

AI MIPS And Professional Services Will Build Future Value

Pivotree’s consensus price target has increased to CA$2.17, primarily reflecting improved net profit margin expectations, despite a slight deterioration in forecast revenue growth. Valuation Changes Summary of Valuation Changes for Pivotree The Consensus Analyst Price Target has risen from CA$2.00 to CA$2.17.
MTLO
CA$0.015
Martello Technologies Group
7D
50.0%
1Y
50.0%
ECOM
CA$0.09
EMERGE Commerce
7D
12.5%
1Y
50.0%
GIB.A
CA$134.08
CGI
7D
3.3%
1Y
-9.4%
ICS
CA$0.20
Integrated Cyber Solutions
7D
-7.0%
1Y
263.6%
CCDS
CA$0.78
Carrier Connect Data Solutions
7D
5.4%
1Y
n/a
SIX
CA$0.14
Sixty Six Capital
7D
-31.7%
1Y
366.7%
CSTR
CA$0.01
CryptoStar
7D
-33.3%
1Y
-66.7%