Constellation Software Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
Mar 11
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Canadian (TSX) Software Industry Analysis
UpdatedMar 11, 2025
DataAggregated Company Financials
Companies77
- 7D-2.1%
- 3M-1.5%
- 1Y17.2%
- YTD1.8%
Over the last 7 days, the Software industry has dropped 2.1%, driven by Descartes Systems Group declining 13%. In contrast, Lumine Group has gained 6.4%. This takes the industry's 12 month performance to a gain of 17%. Earnings are forecast to grow by 25% 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 |
|---|---|---|---|---|---|---|
| Tue, 11 Mar 2025 | CA$159.5b | CA$25.0b | CA$86.9m | 25.5x | 1834.7x | 6.4x |
| Thu, 06 Feb 2025 | CA$160.4b | CA$23.9b | -CA$2,397,985,684.72 | 42.9x | -66.9x | 6.7x |
| Sat, 04 Jan 2025 | CA$151.8b | CA$24.1b | -CA$2,417,390,280.67 | 42.3x | -62.8x | 6.3x |
| Mon, 02 Dec 2024 | CA$158.6b | CA$23.5b | -CA$2,337,696,650.44 | 40.9x | -67.9x | 6.8x |
| Wed, 30 Oct 2024 | CA$142.9b | CA$22.5b | -CA$2,529,532,617.98 | 40.7x | -56.5x | 6.4x |
| Fri, 27 Sep 2024 | CA$144.0b | CA$21.9b | -CA$2,487,025,124.58 | 39.8x | -57.9x | 6.6x |
| Sun, 25 Aug 2024 | CA$142.9b | CA$22.0b | -CA$2,514,582,192.92 | 38.6x | -56.8x | 6.5x |
| Tue, 23 Jul 2024 | CA$141.3b | CA$21.5b | -CA$3,413,881,149.87 | 49x | -41.4x | 6.6x |
| Thu, 20 Jun 2024 | CA$130.1b | CA$21.7b | -CA$3,387,451,641.58 | 39x | -38.4x | 6x |
| Sat, 18 May 2024 | CA$129.9b | CA$21.5b | -CA$3,427,014,060.54 | 40.7x | -37.9x | 6x |
| Mon, 15 Apr 2024 | CA$127.6b | CA$21.1b | -CA$4,274,681,561.08 | 31.9x | -29.8x | 6.1x |
| Wed, 13 Mar 2024 | CA$125.2b | CA$20.6b | -CA$4,785,270,148.41 | 26.6x | -26.2x | 6.1x |
| Fri, 09 Feb 2024 | CA$120.9b | CA$19.6b | -CA$3,926,321,625.28 | 26x | -30.8x | 6.2x |
| Sun, 07 Jan 2024 | CA$113.7b | CA$19.8b | -CA$3,952,044,280.00 | 26.7x | -28.8x | 5.7x |
| Tue, 05 Dec 2023 | CA$112.1b | CA$20.0b | -CA$4,144,280,146.00 | 26.9x | -27.1x | 5.6x |
| Thu, 02 Nov 2023 | CA$98.2b | CA$19.7b | -CA$4,242,784,133.00 | 71.5x | -23.2x | 5x |
| Sat, 30 Sep 2023 | CA$100.0b | CA$19.3b | -CA$4,177,663,221.00 | 54.9x | -23.9x | 5.2x |
| Mon, 28 Aug 2023 | CA$102.1b | CA$19.4b | -CA$4,166,981,992.00 | 57.6x | -24.5x | 5.3x |
| Wed, 26 Jul 2023 | CA$104.5b | CA$18.1b | -CA$3,851,310,765.00 | 72.4x | -27.1x | 5.8x |
| Fri, 23 Jun 2023 | CA$99.7b | CA$17.8b | -CA$3,928,784,451.00 | 69.4x | -25.4x | 5.6x |
| Sun, 21 May 2023 | CA$101.1b | CA$18.0b | -CA$3,196,704,898.00 | 68.8x | -31.6x | 5.6x |
| Tue, 18 Apr 2023 | CA$97.1b | CA$16.9b | -CA$3,306,510,360.00 | 48.5x | -29.4x | 5.8x |
| Thu, 16 Mar 2023 | CA$87.6b | CA$16.7b | -CA$2,552,506,375.00 | 37.4x | -34.3x | 5.3x |
| Sat, 11 Feb 2023 | CA$88.6b | CA$16.3b | -CA$2,217,969,789.00 | 34.3x | -39.9x | 5.4x |
| Mon, 09 Jan 2023 | CA$81.2b | CA$16.2b | -CA$673,655,255.00 | 27.3x | -120.5x | 5x |
| Wed, 07 Dec 2022 | CA$79.0b | CA$16.3b | -CA$583,757,725.00 | 35.1x | -135.3x | 4.8x |
| Fri, 04 Nov 2022 | CA$75.9b | CA$15.4b | -CA$295,253,299.00 | 28.1x | -257x | 4.9x |
| Sun, 02 Oct 2022 | CA$75.0b | CA$15.5b | -CA$285,562,336.00 | 42x | -262.8x | 4.8x |
| Tue, 30 Aug 2022 | CA$80.1b | CA$14.8b | -CA$413,952,248.00 | 42.9x | -193.4x | 5.4x |
| Thu, 28 Jul 2022 | CA$80.8b | CA$13.9b | CA$407.6m | 49.7x | 198.2x | 5.8x |
| Sat, 25 Jun 2022 | CA$75.9b | CA$13.9b | CA$589.3m | 52.7x | 128.8x | 5.5x |
| Mon, 23 May 2022 | CA$79.5b | CA$14.3b | CA$278.6m | 48.6x | 285.3x | 5.6x |
| Wed, 20 Apr 2022 | CA$93.8b | CA$13.4b | -CA$2,690,605,884.00 | 45.6x | -34.9x | 7x |
| Fri, 18 Mar 2022 | CA$93.4b | CA$12.8b | -CA$3,131,047,912.00 | 23.9x | -29.8x | 7.3x |
Price to Earnings Ratio
-29.8x
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 2kx which is higher than its 3-year average PE of -35.0x.
- The industry is trading close to its 3-year average PS ratio of 5.8x.
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 25% 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 | -2.11% | |
| Tech | -2.51% | |
| Software | -2.10% | |
| Application Software | -1.98% | |
| Systems Software | -5.90% | |
Industry PE
- Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings growth of 24.3%, which is lower than the prior year's growth of 28.8% per year.
Forecasted Growth
- Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 60% over the next 5 years.
- This is better than its past earnings growth rate of 30% per year.
- In contrast, the Application Software industry is expected to see its earnings grow by 24% 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 | |
|---|---|---|---|---|---|
| LMN Lumine Group | CA$39.17 | 6.4% +CA$608.2m | 7.3% | PS10.4x | |
| TOI Topicus.com | CA$141.59 | 1.4% +CA$162.0m | 15.5% | PE81.8x | |
| DND Dye & Durham | CA$13.52 | 11.7% +CA$95.4m | -2.6% | PS1.9x | |
| ENGH Enghouse Systems | CA$26.42 | 3.0% +CA$41.9m | -24.9% | PE17.9x | |
| VERS VERSES AI | CA$1.39 | 15.8% +CA$36.4m | -6.7% | PS248.1x |
