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Canadian (TSX) Application Software Industry Analysis

UpdatedFeb 19, 2026
DataAggregated Company Financials
Companies71
  • 7D0.8%
  • 3M-25.1%
  • 1Y-46.2%
  • YTDn/a

Over the last 7 days, the Application Software industry has dropped 7.0%, driven by Constellation Software declining 7.5%. On the other hand Railtown AI Technologies is actually up 13%. However, the industry is down 49% over the past year. As for the next few years, earnings are expected to grow by 25% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 19 Feb 2026CA$81.5bCA$25.1b-CA$75,558,067.3634.8x-1078.4x3.2x
Sat, 17 Jan 2026CA$106.5bCA$25.4bCA$132.2m43.1x805.3x4.2x
Mon, 15 Dec 2025CA$116.1bCA$25.2bCA$136.7m39.1x849.3x4.6x
Wed, 12 Nov 2025CA$115.8bCA$25.4bCA$163.9m50.9x706.9x4.6x
Fri, 10 Oct 2025CA$135.8bCA$24.6bCA$238.1m56.3x570.2x5.5x
Sun, 07 Sep 2025CA$154.2bCA$24.3bCA$235.8m62.6x654x6.3x
Tue, 05 Aug 2025CA$158.1bCA$23.6bCA$207.7m48.8x760.8x6.7x
Thu, 03 Jul 2025CA$160.1bCA$23.1bCA$179.3m41.2x892.7x6.9x
Sat, 31 May 2025CA$159.2bCA$23.2bCA$179.4m39.1x887.6x6.9x
Mon, 28 Apr 2025CA$155.3bCA$22.8bCA$475.5m27.3x326.7x6.8x
Wed, 26 Mar 2025CA$149.7bCA$23.4bCA$314.6m22.4x475.9x6.4x
Fri, 21 Feb 2025CA$156.4bCA$22.6b-CA$2,080,934,157.8321.2x-75.2x6.9x
Sun, 19 Jan 2025CA$146.7bCA$22.9b-CA$2,186,158,100.4923x-67.1x6.4x
Tue, 17 Dec 2024CA$154.3bCA$22.6b-CA$2,154,629,553.5224.9x-71.6x6.8x
Thu, 14 Nov 2024CA$149.5bCA$22.2b-CA$2,124,143,209.6822.8x-70.4x6.7x
Sat, 12 Oct 2024CA$140.4bCA$21.1b-CA$2,296,801,139.9921.8x-61.1x6.7x
Mon, 09 Sep 2024CA$134.8bCA$20.8b-CA$2,271,347,508.5122.3x-59.4x6.5x
Wed, 07 Aug 2024CA$133.5bCA$20.5b-CA$3,124,921,395.6643x-42.7x6.5x
Fri, 05 Jul 2024CA$134.6bCA$20.1b-CA$3,135,944,990.2543.6x-42.9x6.7x
Sun, 02 Jun 2024CA$127.6bCA$20.1b-CA$3,143,066,504.9741.9x-40.6x6.3x
Tue, 30 Apr 2024CA$124.8bCA$19.4b-CA$3,985,485,079.7835.7x-31.3x6.4x
Thu, 28 Mar 2024CA$127.5bCA$19.3b-CA$3,938,961,786.6522x-32.4x6.6x
Sat, 24 Feb 2024CA$120.5bCA$18.4b-CA$1,905,830,083.2023.1x-63.2x6.5x
Mon, 22 Jan 2024CA$119.6bCA$18.4b-CA$3,171,796,481.0025.6x-37.7x6.5x
Wed, 20 Dec 2023CA$108.2bCA$18.4b-CA$3,258,522,856.0026.6x-33.2x5.9x
Fri, 17 Nov 2023CA$105.6bCA$18.8b-CA$3,425,814,372.0046.3x-30.8x5.6x
Sun, 15 Oct 2023CA$95.6bCA$17.9b-CA$3,389,739,201.0045.4x-28.2x5.3x
Tue, 12 Sep 2023CA$98.3bCA$17.8b-CA$3,287,726,706.0043.7x-29.9x5.5x
Thu, 10 Aug 2023CA$96.7bCA$17.1b-CA$3,501,097,333.0042.8x-27.6x5.6x
Sat, 08 Jul 2023CA$96.2bCA$16.7b-CA$2,927,453,202.0061x-32.9x5.8x
Mon, 05 Jun 2023CA$96.8bCA$16.9b-CA$2,987,527,834.0067.8x-32.4x5.7x
Wed, 03 May 2023CA$95.2bCA$16.2b-CA$2,339,546,354.0051.4x-40.7x5.9x
Fri, 31 Mar 2023CA$90.2bCA$15.8b-CA$2,373,417,330.0034.3x-38x5.7x
Sun, 26 Feb 2023CA$83.9bCA$15.1b-CA$2,310,699,880.0030.2x-36.3x5.5x
Price to Earnings Ratio

-36.3x


Total Market Cap: CA$83.9bTotal Earnings: -CA$2,310,699,880.00Total Revenue: CA$15.1bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian Application Software Industry Price to Earnings3Y Average 181.6x202420252026
Current Industry PE
  • Investors are pessimistic on the Canadian Application Software industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The 3-year average PS ratio of 6.0x is higher than the industry's current PS ratio of 3.4x.
Past Earnings Growth
  • The earnings for companies in the Application Software industry have improved over the last three years.
  • Revenues for these companies have grown 18% per year.
  • This means that more sales are being generated by these companies overall, and subsequently losses are decreasing too.

Industry Comparison

How does Canadian Application Software compare with similar industries?

CA Market0.084%
Tech0.16%
Software0.73%
Application Software0.83%
Systems Software-1.38%
Industry PEThere are no additional sub-industries under this industry.
Forecasted GrowthThere are no additional sub-industries under this industry.

Top Stock Gainers and Losers

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

CompanyLast Price7D1YValuation
CSU Constellation SoftwareCA$2.38k2.3%
+CA$1.1b		-51.4%PE53.5x
DSG Descartes Systems GroupCA$90.421.3%
+CA$98.0m		-44.6%PE36.5x
LSPD Lightspeed CommerceCA$12.745.6%
+CA$92.0m		-34.3%PS1.1x
TOI Topicus.comCA$88.800.8%
+CA$55.8m		-39.2%PE176.2x
DGX Digi Power XCA$3.289.7%
+CA$19.1m		-3.5%PS5.1x

Latest News

CSU
CA$2,376.98
Constellation Software
7D
2.3%
1Y
-51.4%
HIVE
CA$2.87
HIVE Digital Technologies
7D
-5.9%
1Y
-26.0%
DND
CA$3.49
Dye & Durham
7D
-9.6%
1Y
-71.7%
CMG
CA$3.98
Computer Modelling Group
7D
2.3%
1Y
-53.4%
CVO
CA$5.91
Coveo Solutions
7D
-1.7%
1Y
-17.8%

CVO: AI Progress And Buybacks Will Support Future Upside

Analysts have trimmed their average price target on Coveo Solutions by approximately CA$2, citing slightly more cautious assumptions on revenue growth and valuation multiples, while expectations for firmer profit margins partly offset these changes. Analyst Commentary Even with the lower price targets, bullish analysts still see a constructive setup for Coveo Solutions, pointing to a mix of execution, margin potential, and growth optionality that they believe is not fully captured in recent target trims of C$1 to C$2.50.
TOI
CA$88.80
Topicus.com
7D
0.8%
1Y
-39.2%
LMN
CA$18.30
Lumine Group
7D
-6.5%
1Y
-52.5%
XTAO.U
US$0.55
xTAO
7D
41.0%
1Y
n/a
KXS
CA$123.50
Kinaxis
7D
0.3%
1Y
-22.8%

KXS: AI Agent Platform And New CEO Will Support Future Upside

Analysts have trimmed their fair value and price target assumptions for Kinaxis, with one firm lowering its target by CA$40. This reflects slightly higher discount rates and modestly adjusted expectations for growth and valuation multiples.
LSPD
CA$12.74
Lightspeed Commerce
7D
5.6%
1Y
-34.3%
DSG
CA$90.42
Descartes Systems Group
7D
1.3%
1Y
-44.6%

DSG: Freight Headwinds And Buyback Plan Will Shape Bullish Upside Potential

Analysts have reduced their average 12 month price target on Descartes Systems Group to CA$134.07, with recent cuts from firms such as Scotiabank, Wolfe Research and Morgan Stanley offset by upgrades that point to a potential inflection in growth and relatively low valuation levels. Analyst Commentary Recent research paints a mixed picture for Descartes Systems Group, with some analysts leaning more positive on the long term setup while others are trimming expectations in the near term.
ENGH
CA$16.99
Enghouse Systems
7D
-4.8%
1Y
-36.6%

AI Monetization And M&A Constraints Will Shape A Cautious Long Term Outlook

Catalysts About Enghouse Systems Enghouse Systems provides software and services across contact centers, networks and transportation, with a focus on recurring SaaS and maintenance revenue. What are the underlying business or industry changes driving this perspective?
DCBO
CA$22.18
Docebo
7D
-13.3%
1Y
-62.3%

DCBO: Rebased Profitability Assumptions Will Support Future Upside Repricing

Analysts have trimmed their price targets on Docebo, with our fair value estimate moving from about US$46.46 to US$43.15 as they factor in slightly lower profit margin assumptions, a marginally higher discount rate, and updated P/E expectations following recent target cuts at several firms. Analyst Commentary Recent research on Docebo has centered on valuation reset rather than ratings changes, with several firms revising their price targets lower and aligning expectations with updated P/E assumptions and discount rates.
CTRL
CA$0.82
Edge Total Intelligence
7D
-19.6%
1Y
43.9%
BITF
CA$2.83
Bitfarms
7D
-4.1%
1Y
41.5%

BITF: Liquidity Progress And Clearer Crypto Rules Will Support Future Expansion

Narrative Update: Bitfarms Analyst Price Target Shift Analysts have trimmed their price target on Bitfarms by a small amount to reflect increased focus on liquidity risk and a less supportive regulatory backdrop for crypto, while keeping only minor adjustments to the discount rate, revenue growth, profit margin, and future P/E assumptions. Analyst Commentary Recent research commentary on Bitfarms has shifted toward risk control, with a particular focus on liquidity and the policy backdrop for crypto.
DGX
CA$3.28
Digi Power X
7D
9.7%
1Y
-3.5%