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Canadian (TSX) Software Industry Analysis

UpdatedNov 28, 2021
DataAggregated Company Financials
Companies106
  • 7D-1.4%
  • 3M-9.4%
  • 1Y37.1%
  • YTD24.6%

Over the last 7 days, the Software industry has dropped 1.4%, driven by a pullback from Lightspeed Commerce of 7.2%. This takes the industry's 12 month performance to a gain of 37%.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPE
Tue, 30 Nov 2021CA$109.4bCA$12.0b-CA$3,466,634,780.0071.3x
Thu, 28 Oct 2021CA$115.1bCA$10.9b-CA$3,421,869,076.0055.7x
Sat, 25 Sep 2021CA$119.5bCA$11.1b-CA$3,367,129,263.0045x
Mon, 23 Aug 2021CA$111.4bCA$10.9b-CA$3,271,006,370.5045.7x
Sat, 10 Jul 2021CA$96.9bCA$10.7b-CA$3,272,721,025.5563.3x
Fri, 02 Apr 2021CA$85.3bCA$9.2b-CA$1,139,117,512.9761.9x
Mon, 04 Jan 2021CA$77.0bCA$8.9b-CA$629,089,098.8538.6x
Thu, 08 Oct 2020CA$60.3bCA$8.7b-CA$545,257,734.9639.5x
Wed, 01 Jul 2020CA$57.2bCA$8.5b-CA$729,677,779.4059.5x
Sat, 04 Apr 2020CA$43.1bCA$8.5bCA$146.5m33.2x
Tue, 07 Jan 2020CA$46.2bCA$7.7bCA$48.3m21.7x
Mon, 30 Sep 2019CA$44.8bCA$7.5bCA$14.6m25.6x
Thu, 04 Jul 2019CA$44.6bCA$7.3bCA$80.9m25.3x
Sun, 07 Apr 2019CA$42.6bCA$7.1b-CA$65,046,928.2831.2x
Wed, 09 Jan 2019CA$31.8bCA$6.9bCA$151.8m35.2x
PE Ratio

32.3x

Total Market Cap: CA$34.3bTotal Earnings: CA$307.8mTotal Revenue: CA$6.3b0%0%0%3 Year10 Year
201920202021

Current Industry PE: Investors are more optimistic on the industry, considering it's trading at a PE ratio of 66.8x which is higher than its 3-year average PE of 39.8x. It appears they are confident that earnings will grow faster in the future than they have historically.

Past Earnings Growth: Total earnings for the Software industry have declined over the last three years, with the industry now making a loss overall. But revenues have grown 24% per year. This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.

Industry Trends

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

Systems Software-1.32%
Application Software-1.46%

Industry PE: Investors are most optimistic about the Systems Software industry, which is trading close to its 3-year average PE ratio of 82.7x. However analysts are expecting annual earnings growth of 58%, which is lower than the prior year's growth of 115% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Application Software industry. Although, investor sentiment seems to have improved given its trading above its 3-year average of 32.1x.

Forecasted Growth: Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 58% over the next 5 years. However this is lower than its past earnings growth rate of 115% per year. Meanwhile, the Application Software industry is expected to see its earnings grow by 47% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

Company7D1YValuation
DCBO Docebo4.9%+CA$144.3m39.0%PS25.9x
WE WeCommerce Holdings22.9%+CA$104.9mn/aPS17.3x
CVO Coveo Solutions4.4%+CA$70.7mn/aPS18.3x
MAGT Magnet Forensics5.2%+CA$69.7mn/aPE99.9x
VXTR Voxtur Analytics17.1%+CA$67.8mn/aPS10.7x
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BITF

CA$9.70

Bitfarms

7D

-4.7%

1Y

1,143.6%

DCBO

CA$94.07

Docebo

7D

4.9%

1Y

39.0%

BB

CA$12.17

BlackBerry

7D

-5.1%

1Y

34.0%