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Canadian (TSX) Software Industry Analysis
UpdatedDec 13, 2025
DataAggregated Company Financials
Companies78
- 7D-1.7%
- 3M-21.7%
- 1Y-23.6%
- YTD-20.8%
Over the last 7 days, the Software industry has dropped 1.7%, driven by a pullback from Constellation Software of 1.2%. In contrast, Dye & Durham has gained 67%. The industry has fallen 24% in the last year. Earnings are forecast to grow by 28% annually.
Industry Valuation and Performance
Has the Canadian Software Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sat, 13 Dec 2025 | CA$121.4b | CA$26.1b | CA$147.4m | 50.1x | 823.7x | 4.6x |
| Mon, 10 Nov 2025 | CA$124.1b | CA$26.4b | CA$184.7m | 54x | 672x | 4.7x |
| Wed, 08 Oct 2025 | CA$142.1b | CA$25.5b | CA$258.3m | 55.2x | 550x | 5.6x |
| Fri, 05 Sep 2025 | CA$157.3b | CA$25.3b | CA$243.8m | 64.9x | 645x | 6.2x |
| Sun, 03 Aug 2025 | CA$162.7b | CA$24.6b | CA$217.7m | 50x | 747.4x | 6.6x |
| Tue, 01 Jul 2025 | CA$164.9b | CA$24.2b | CA$190.0m | 43x | 868.2x | 6.8x |
| Thu, 29 May 2025 | CA$164.4b | CA$24.4b | CA$169.3m | 43.4x | 971.3x | 6.7x |
| Sat, 26 Apr 2025 | CA$158.6b | CA$23.9b | CA$438.7m | 31.7x | 361.5x | 6.6x |
| Mon, 24 Mar 2025 | CA$151.2b | CA$24.7b | CA$89.5m | 26.6x | 1688.5x | 6.1x |
| Wed, 19 Feb 2025 | CA$163.9b | CA$23.8b | -CA$2,310,697,056.86 | 28.3x | -70.9x | 6.9x |
| Fri, 17 Jan 2025 | CA$148.9b | CA$24.1b | -CA$2,411,470,956.13 | 40.9x | -61.8x | 6.2x |
| Sun, 15 Dec 2024 | CA$157.4b | CA$23.8b | -CA$2,366,695,010.22 | 43.2x | -66.5x | 6.6x |
| Tue, 12 Nov 2024 | CA$148.4b | CA$23.2b | -CA$2,321,823,718.55 | 43.7x | -63.9x | 6.4x |
| Thu, 10 Oct 2024 | CA$142.6b | CA$22.2b | -CA$2,493,571,662.26 | 41.7x | -57.2x | 6.4x |
| Sat, 07 Sep 2024 | CA$137.6b | CA$22.0b | -CA$2,504,171,439.81 | 41x | -55x | 6.3x |
| Mon, 05 Aug 2024 | CA$136.2b | CA$21.8b | -CA$3,383,761,039.63 | 44.2x | -40.3x | 6.3x |
| Wed, 03 Jul 2024 | CA$135.1b | CA$21.3b | -CA$3,435,969,856.87 | 43.7x | -39.3x | 6.3x |
| Fri, 31 May 2024 | CA$129.7b | CA$21.6b | -CA$3,404,751,763.76 | 42x | -38.1x | 6x |
| Sun, 28 Apr 2024 | CA$128.2b | CA$20.9b | -CA$4,253,287,409.27 | 47.4x | -30.1x | 6.1x |
| Tue, 26 Mar 2024 | CA$123.9b | CA$20.8b | -CA$4,803,975,565.53 | 28.6x | -25.8x | 6x |
| Thu, 22 Feb 2024 | CA$122.5b | CA$19.8b | -CA$2,776,576,517.07 | 24.1x | -44.1x | 6.2x |
| Sat, 20 Jan 2024 | CA$122.4b | CA$19.9b | -CA$3,970,840,601.00 | 25.6x | -30.8x | 6.1x |
| Mon, 18 Dec 2023 | CA$116.1b | CA$19.9b | -CA$4,048,611,156.00 | 26.5x | -28.7x | 5.8x |
| Wed, 15 Nov 2023 | CA$107.4b | CA$20.3b | -CA$4,220,209,339.00 | 47.8x | -25.5x | 5.3x |
| Fri, 13 Oct 2023 | CA$101.3b | CA$19.5b | -CA$4,204,743,699.00 | 55.5x | -24.1x | 5.2x |
| Sun, 10 Sep 2023 | CA$102.1b | CA$19.5b | -CA$4,104,906,403.00 | 55.8x | -24.9x | 5.2x |
| Tue, 08 Aug 2023 | CA$101.6b | CA$18.7b | -CA$4,435,543,308.00 | 58.5x | -22.9x | 5.4x |
| Thu, 06 Jul 2023 | CA$102.9b | CA$18.2b | -CA$3,703,681,721.00 | 72.9x | -27.8x | 5.6x |
| Sat, 03 Jun 2023 | CA$102.3b | CA$18.1b | -CA$3,997,798,551.00 | 75.1x | -25.6x | 5.6x |
| Mon, 01 May 2023 | CA$97.9b | CA$17.4b | -CA$3,301,705,022.00 | 66x | -29.7x | 5.6x |
| Wed, 29 Mar 2023 | CA$92.3b | CA$16.5b | -CA$2,583,184,264.00 | 42.8x | -35.7x | 5.6x |
| Fri, 24 Feb 2023 | CA$88.9b | CA$16.4b | -CA$2,466,171,845.00 | 35.9x | -36.1x | 5.4x |
| Sun, 22 Jan 2023 | CA$85.5b | CA$16.1b | -CA$662,875,788.00 | 30.4x | -129x | 5.3x |
| Tue, 20 Dec 2022 | CA$79.1b | CA$16.4b | -CA$570,806,042.00 | 32.7x | -138.5x | 4.8x |
Price to Earnings Ratio
-138.5x
Current Industry PE
- Investors are optimistic on the Canadian Software industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 824x which is higher than its 3-year average PE of 154x.
- The 3-year average PS ratio of 5.9x is higher than the industry's current PS ratio of 4.6x.
Past Earnings Growth
- Total earnings for the Software industry have gone up over the last three years, and the industry is now profitable. Revenues have grown 17% per year.
- This means that more sales are being generated by the industry overall, and subsequently profits are increasing too.
Industry Trends
Which industries have driven the changes within the Canadian Tech industry?
| CA Market | 0.70% | |
| Tech | -2.80% | |
| Software | -1.71% | |
| Application Software | -1.64% | |
| Systems Software | -3.30% | |
Industry PE
- Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 126x.
- Analysts are expecting annual earnings growth of 27.4%, which is higher than its past year's earnings growth of 6.9% per year.
- Investors are most pessimistic about the Systems Software industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 48.6x.
Forecasted Growth
- Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 33% over the next 5 years.
- However this is lower than its past earnings growth rate of 111% per year.
- In contrast, the Application Software industry is expected to see its earnings grow by 27% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| DND Dye & Durham | CA$4.64 | 66.9% +CA$124.9m | -78.9% | PS0.7x | |
| LSPD Lightspeed Commerce | CA$16.71 | 4.2% +CA$91.1m | -27.7% | PS1.4x | |
| CVO Coveo Solutions | CA$6.17 | 5.7% +CA$31.6m | -6.4% | PS3x | |
| NDA Neptune Digital Assets | CA$0.92 | 35.3% +CA$30.7m | -16.4% | PS63.7x | |
| QSE Quantum Secure Encryption | CA$0.73 | 46.0% +CA$15.7m | -32.4% | PB31.1x |
