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Canadian (TSX) IT Industry Analysis

UpdatedNov 30, 2022
DataAggregated Company Financials
Companies27
  • 7D1.1%
  • 3M6.8%
  • 1Y-27.1%
  • YTD-18.0%

The IT industry is up 1.1% in the last week, with CGI up 1.1%. In the past year, the industry is down 27%. As for the next few years, earnings are expected to grow by 15% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 30 Nov 2022CA$34.7bCA$17.3bCA$1.4b23.5x24.9x2x
Fri, 28 Oct 2022CA$33.5bCA$16.7bCA$1.4b37.2x24.7x2x
Sun, 25 Sep 2022CA$31.2bCA$16.7bCA$1.4b34.4x23x1.9x
Tue, 23 Aug 2022CA$33.4bCA$16.7bCA$1.4b42.5x24.5x2x
Thu, 21 Jul 2022CA$34.9bCA$16.1bCA$1.3b57.7x26.7x2.2x
Sat, 18 Jun 2022CA$32.0bCA$16.1bCA$1.3b61.7x24.3x2x
Mon, 16 May 2022CA$36.2bCA$16.1bCA$1.4b17.5x25.8x2.3x
Wed, 13 Apr 2022CA$39.7bCA$15.5bCA$1.4b17.7x28.5x2.6x
Fri, 11 Mar 2022CA$38.9bCA$15.3bCA$1.4b35.6x28x2.6x
Sun, 06 Feb 2022CA$41.3bCA$15.1bCA$1.4b36x29x2.7x
Tue, 04 Jan 2022CA$42.7bCA$15.0bCA$1.4b13.9x30.2x2.9x
Thu, 02 Dec 2021CA$47.9bCA$14.9bCA$1.4b19.1x33.8x3.2x
Sat, 30 Oct 2021CA$56.3bCA$14.5bCA$1.1b45.6x51.8x3.9x
Mon, 27 Sep 2021CA$55.9bCA$14.5bCA$1.1b45.6x51.6x3.8x
Wed, 25 Aug 2021CA$54.8bCA$14.5bCA$1.1b52.6x50.8x3.8x
Thu, 01 Jul 2021CA$48.9bCA$14.5bCA$1.1b45.6x45.4x3.4x
Sun, 04 Apr 2021CA$43.5bCA$14.3bCA$994.4m24.3x43.8x3.1x
Wed, 06 Jan 2021CA$38.4bCA$14.0bCA$903.3m21x42.5x2.7x
Sat, 10 Oct 2020CA$31.6bCA$13.9bCA$810.4m66.7x39x2.3x
Fri, 03 Jul 2020CA$22.6bCA$12.6bCA$1.1b27.2x21x1.8x
Mon, 06 Apr 2020CA$20.8bCA$12.7bCA$1.1b21.9x18.2x1.6x
Thu, 09 Jan 2020CA$29.6bCA$12.6bCA$1.1b57.2x25.8x2.3x
Price to Earnings Ratio

26.5x


Total Market Cap: CA$29.9bTotal Earnings: CA$1.1bTotal Revenue: CA$12.5bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian IT Industry Price to Earnings3Y Average 32.4x202020212022
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 24.9x which is lower than its 3-year average PE of 32.4x.
  • The 3-year average PS ratio of 2.5x is higher than the industry's current PS ratio of 2.0x.
Past Earnings Growth
  • The earnings for companies in the IT industry have grown 7.3% per year over the last three years.
  • Revenues for these companies have grown 11% 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 Market0.22%
Tech1.17%
IT1.05%
IT Consulting1.52%
Data Processing Services-1.07%
Internet Services and Infrastructure-3.78%
Industry PE
  • Investors are most optimistic about the IT Consulting industry, which is trading close to its 3-year average PE ratio of 21.4x.
    • Analysts are expecting annual earnings growth of 9.3%, which is lower than the prior year's growth of 136.6% per year.
Forecasted Growth
  • Analysts are most optimistic on the Data Processing Services industry, expecting annual earnings growth of 43% over the next 5 years.
  • This is better than its past earnings decline of 47% per year.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 9.3% 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$115.631.1%
+CA$292.6m
8.3%PE18.6x
CTS Converge Technology SolutionsCA$4.6416.3%
+CA$136.7m
-57.3%PE26x
PBIT POSaBIT SystemsCA$0.7613.4%
+CA$12.5m
-53.9%PS2.8x
GIVX GivexCA$0.4611.0%
+CA$5.5m
n/aPS0.8x
REVO RevoluGROUP CanadaCA$0.299.4%
+CA$4.9m
28.9%PS200x
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PAY

CA$4.29

Payfare

7D

2.1%

1Y

-52.3%

PAID

CA$0.13

XTM

7D

18.2%

1Y

-61.8%

GIVX

CA$0.46

Givex

7D

11.0%

1Y

n/a

MTLO

CA$0.025

Martello Technologies Group

7D

-16.7%

1Y

-70.6%

GIB.A

CA$115.63

CGI

7D

1.1%

1Y

8.3%

PGV

CA$0.035

Prodigy Ventures

7D

-12.5%

1Y

-61.1%

RGG

CA$0.07

React Gaming Group

7D

-17.6%

1Y

-81.6%

REVO

CA$0.29

RevoluGROUP Canada

7D

9.4%

1Y

28.9%

ALYA

CA$2.39

Alithya Group

7D

2.1%

1Y

-23.2%

NVEI

CA$38.81

Nuvei

7D

-1.5%

1Y

-69.1%

PBIT

CA$0.76

POSaBIT Systems

7D

13.4%

1Y

-53.9%

PVT

CA$3.35

Pivotree

7D

-1.5%

1Y

-34.3%

AMPD

CA$0.11

AMPD Ventures

7D

-8.3%

1Y

-77.8%

HOLD

CA$0.21

Immutable Holdings

7D

-6.5%

1Y

-92.7%