Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

Canadian (TSX) Application Software Industry Analysis

UpdatedFeb 22, 2026
DataAggregated Company Financials
Companies71
  • 7D4.1%
  • 3M-25.5%
  • 1Y-43.6%
  • YTDn/a

In the last week, the Application Software industry is up 4.1%, with Constellation Software up 5.5%. Meanwhile, Abaxx Technologies actually underperformed within the industry, shrinking 7.8% in the last week. In the past year, the industry is down 44%. As for the next few years, earnings are expected to grow by 24% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 22 Feb 2026CA$87.4bCA$25.1b-CA$75,711,111.1037.1x-1154.6x3.5x
Tue, 20 Jan 2026CA$105.1bCA$25.3bCA$129.4m41.7x811.9x4.2x
Thu, 18 Dec 2025CA$114.7bCA$25.2bCA$135.6m38.4x845.9x4.6x
Sat, 15 Nov 2025CA$113.6bCA$25.4bCA$156.1m48.4x727.5x4.5x
Mon, 13 Oct 2025CA$135.9bCA$24.6bCA$238.3m55.3x570.4x5.5x
Wed, 10 Sep 2025CA$154.5bCA$24.3bCA$235.9m62x655.1x6.3x
Fri, 08 Aug 2025CA$158.0bCA$23.5bCA$288.7m51.1x547.4x6.7x
Sun, 06 Jul 2025CA$161.7bCA$23.1bCA$168.4m41.2x959.9x7x
Tue, 03 Jun 2025CA$161.1bCA$23.2bCA$175.2m39.9x919.4x6.9x
Thu, 01 May 2025CA$157.6bCA$22.7bCA$470.8m28.5x334.7x6.9x
Sat, 29 Mar 2025CA$147.7bCA$23.5bCA$431.7m22.2x342.2x6.3x
Mon, 24 Feb 2025CA$154.1bCA$22.6b-CA$2,088,564,672.6124.9x-73.8x6.8x
Wed, 22 Jan 2025CA$146.4bCA$22.7b-CA$2,168,000,724.5322.9x-67.5x6.4x
Fri, 20 Dec 2024CA$147.7bCA$22.8b-CA$2,180,647,465.7123x-67.7x6.5x
Sun, 17 Nov 2024CA$146.8bCA$22.3b-CA$2,152,579,480.0422.1x-68.2x6.6x
Tue, 15 Oct 2024CA$142.3bCA$21.1b-CA$2,296,800,474.1321.9x-62x6.7x
Thu, 12 Sep 2024CA$138.0bCA$20.8b-CA$2,272,920,894.4722.4x-60.7x6.6x
Sat, 10 Aug 2024CA$133.8bCA$20.5b-CA$2,421,432,177.7432.5x-55.2x6.5x
Mon, 08 Jul 2024CA$133.2bCA$20.1b-CA$3,139,497,798.9943.2x-42.4x6.6x
Wed, 05 Jun 2024CA$127.3bCA$20.2b-CA$3,132,310,975.9537.2x-40.6x6.3x
Fri, 03 May 2024CA$124.5bCA$19.4b-CA$3,313,827,633.1235.3x-37.6x6.4x
Sun, 31 Mar 2024CA$126.1bCA$19.3b-CA$3,932,688,098.6422.2x-32.1x6.5x
Tue, 27 Feb 2024CA$120.8bCA$18.4b-CA$1,903,761,705.1523.4x-63.4x6.6x
Thu, 25 Jan 2024CA$119.3bCA$18.5b-CA$3,190,242,239.0025.8x-37.4x6.4x
Sat, 23 Dec 2023CA$111.4bCA$18.3b-CA$3,248,673,616.0027.2x-34.3x6.1x
Mon, 20 Nov 2023CA$106.1bCA$18.8b-CA$3,398,833,939.0030.3x-31.2x5.6x
Wed, 18 Oct 2023CA$96.2bCA$17.9b-CA$3,386,454,750.0044.1x-28.4x5.4x
Fri, 15 Sep 2023CA$97.3bCA$17.7b-CA$3,362,385,903.0043.6x-28.9x5.5x
Sun, 13 Aug 2023CA$97.5bCA$17.2b-CA$3,371,507,620.0042.3x-28.9x5.7x
Tue, 11 Jul 2023CA$95.7bCA$16.7b-CA$2,927,138,054.0062.1x-32.7x5.7x
Thu, 08 Jun 2023CA$97.3bCA$16.8b-CA$2,978,811,957.0068.2x-32.7x5.8x
Sat, 06 May 2023CA$92.3bCA$16.0b-CA$2,323,363,247.0051.1x-39.7x5.8x
Mon, 03 Apr 2023CA$92.0bCA$15.7b-CA$2,384,137,853.0031.2x-38.6x5.8x
Wed, 01 Mar 2023CA$84.8bCA$15.2b-CA$2,307,665,631.0029.7x-36.7x5.6x
Price to Earnings Ratio

-36.7x


Total Market Cap: CA$84.8bTotal Earnings: -CA$2,307,665,631.00Total Revenue: CA$15.2bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian Application Software Industry Price to Earnings3Y Average 178.6x202420252026
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 3.5x.
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 Market1.50%
Tech4.04%
Software3.87%
Application Software4.06%
Systems Software-0.32%
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$2.49k5.5%
+CA$2.8b		-48.6%PE56.1x
TOI Topicus.comCA$90.005.5%
+CA$393.4m		-35.8%PE178.7x
LMN Lumine GroupCA$19.496.5%
+CA$305.4m		-49.8%PE37.1x
DSG Descartes Systems GroupCA$91.782.5%
+CA$190.0m		-42.4%PE37.1x
LSPD Lightspeed CommerceCA$12.814.6%
+CA$76.9m		-31.5%PS1.1x

Latest News

LSPD
CA$12.81
Lightspeed Commerce
7D
4.6%
1Y
-31.5%

LSPD: Product Execution And Margin Discipline Will Support Long-Term Upside Potential

Analysts have reduced their average price target for Lightspeed Commerce to about CA$19.24 from CA$19.78, citing slightly higher discount rate assumptions and updated P/E expectations, while revenue growth and profit margin inputs remain broadly consistent. Analyst Commentary Recent research updates show a cluster of reductions in Lightspeed Commerce price targets, often framed as adjustments to models and sector views rather than company specific revisions to revenue or margin assumptions.
BITF
CA$2.79
Bitfarms
7D
-4.8%
1Y
49.2%

BITF: Liquidity Management And Emerging Crypto Rules Will Support Future Upside

Analysts have revised their Bitfarms price target to CA$8.48, reflecting slightly higher discount rate assumptions and updated views on revenue growth, margins, and future P/E in light of liquidity concerns and ongoing regulatory uncertainty around crypto market structure. Analyst Commentary Bullish Takeaways Bullish analysts see the revised CA$8.48 target as still allowing room for execution on revenue growth and margin initiatives, provided liquidity pressures are managed carefully.
KXS
CA$124.20
Kinaxis
7D
0.3%
1Y
-19.9%

AI Supply Chain Adoption Risks Will Persist Yet Eventually Support A Healthier Business Mix

Catalysts About Kinaxis Kinaxis provides cloud-based supply chain planning and orchestration software for large enterprises globally. What are the underlying business or industry changes driving this perspective?
ENGH
CA$17.12
Enghouse Systems
7D
-0.8%
1Y
-35.1%

ENGH: Acquisition Pipeline And Share Buybacks Will Support Future Upside Potential

Analysts have modestly reduced their price target for Enghouse Systems from CA$21.75 to CA$21.25, reflecting updated assumptions around discount rates and P/E expectations, while keeping revenue growth and profit margin forecasts broadly in line with prior views. What's in the News Management is actively looking for acquisitions, with the CEO highlighting what he describes as substantial opportunities and an intention to expand the acquisition team to support higher capital deployment toward deals.
CSU
CA$2,486.52
Constellation Software
7D
5.5%
1Y
-48.6%
HIVE
CA$2.92
HIVE Digital Technologies
7D
-3.6%
1Y
-17.7%
CVO
CA$6.05
Coveo Solutions
7D
6.1%
1Y
-13.9%

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$90.00
Topicus.com
7D
5.5%
1Y
-35.8%
LMN
CA$19.49
Lumine Group
7D
6.5%
1Y
-49.8%
RAIL
CA$0.42
Railtown AI Technologies
7D
-19.2%
1Y
-12.5%
ABXX
CA$40.60
Abaxx Technologies
7D
-7.8%
1Y
263.1%
DSG
CA$91.78
Descartes Systems Group
7D
2.5%
1Y
-42.4%

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.
DCBO
CA$23.47
Docebo
7D
-9.0%
1Y
-58.1%

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.
DGX
CA$3.32
Digi Power X
7D
6.8%
1Y
23.4%
NDA
CA$0.78
Neptune Digital Assets
7D
-7.1%
1Y
-55.4%
IMP
CA$1.70
Intermap Technologies
7D
-9.1%
1Y
-33.1%

Intermap Technologies Corporation's (TSE:IMP) Stock Retreats 25% But Revenues Haven't Escaped The Attention Of Investors

Jan 10
Intermap Technologies Corporation's (TSE:IMP) Stock Retreats 25% But Revenues Haven't Escaped The Attention Of Investors