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Canadian (TSX) Software Industry Analysis

UpdatedDec 01, 2022
DataAggregated Company Financials
Companies105
  • 7D3.6%
  • 3M4.5%
  • 1Y-27.5%
  • YTD-27.1%

In the last week, the Software industry is up 3.6%, with Constellation Software up 3.9%. During this same period, the Tecsys underperformed, falling 7.8%. However, the industry is down 27% over the past year. Earnings are forecast to grow by 12% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 01 Dec 2022CA$81.6bCA$16.1b-CA$556,881,623.0034.3x-146.4x5.1x
Sat, 29 Oct 2022CA$78.5bCA$15.4b-CA$280,882,352.0037.6x-279.5x5.1x
Mon, 26 Sep 2022CA$73.7bCA$15.4b-CA$421,278,459.0039.4x-174.9x4.8x
Wed, 24 Aug 2022CA$82.1bCA$14.7b-CA$406,070,971.0048x-202.2x5.6x
Fri, 22 Jul 2022CA$80.9bCA$13.9bCA$408.8m55.8x197.9x5.8x
Sun, 19 Jun 2022CA$72.7bCA$14.0bCA$747.4m53.7x97.3x5.2x
Tue, 17 May 2022CA$77.4bCA$14.3bCA$325.4m44.5x237.8x5.4x
Thu, 14 Apr 2022CA$93.8bCA$13.4b-CA$2,700,441,757.0046.8x-34.7x7x
Sat, 12 Mar 2022CA$87.7bCA$12.8b-CA$3,105,818,629.0023.1x-28.2x6.8x
Mon, 07 Feb 2022CA$96.0bCA$12.3b-CA$3,295,680,457.0069.4x-29.1x7.8x
Wed, 05 Jan 2022CA$104.3bCA$12.0b-CA$3,230,966,496.0076.7x-32.3x8.7x
Fri, 03 Dec 2021CA$105.5bCA$12.1b-CA$3,478,213,851.0066.8x-30.3x8.7x
Sun, 31 Oct 2021CA$117.0bCA$11.0b-CA$3,436,985,866.0079.4x-34x10.7x
Tue, 28 Sep 2021CA$117.3bCA$11.0b-CA$3,511,943,999.0045.4x-33.4x10.7x
Thu, 26 Aug 2021CA$112.9bCA$10.9b-CA$3,271,006,370.5044.9x-34.5x10.4x
Fri, 02 Jul 2021CA$96.9bCA$10.7b-CA$3,272,721,025.5563.3x-29.6x9x
Mon, 05 Apr 2021CA$85.3bCA$9.2b-CA$1,139,117,512.9761.9x-74.9x9.3x
Thu, 07 Jan 2021CA$77.0bCA$8.9b-CA$629,089,098.8538.6x-122.4x8.7x
Wed, 30 Sep 2020CA$60.3bCA$8.7b-CA$545,257,734.9639.5x-110.7x7x
Sat, 04 Jul 2020CA$57.2bCA$8.5b-CA$729,677,779.4059.5x-78.4x6.7x
Tue, 07 Apr 2020CA$43.1bCA$8.5bCA$146.5m33.2x294.1x5.1x
Fri, 10 Jan 2020CA$46.2bCA$7.7bCA$48.3m21.7x958.3x6x
Price to Earnings Ratio

-557.1x


Total Market Cap: CA$48.4bTotal Earnings: -CA$86,874,470.47Total Revenue: CA$7.6bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian Software Industry Price to Earnings3Y Average -5.9x202020212022
Current Industry PE
  • Investors are pessimistic on the Canadian Software industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The 3-year average PS ratio of 7.4x is higher than the industry's current PS ratio of 5.1x.
Past Earnings Growth
  • The earnings for companies in the Software industry have deteriorated over the last three years.
  • Meanwhile revenues for these companies have grown 29% 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 caused losses to expand.

Industry Trends

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

CA Market0.70%
Tech3.47%
Software3.60%
Application Software3.76%
Systems Software1.03%
Industry PE
    Forecasted Growth
    • Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 59% over the next 5 years.
    • This is better than its past earnings decline of 33% per year.
    • In contrast, the Application Software industry is expected to see its earnings grow by 9.5% per year over the next few years.

    Top Stock Gainers and Losers

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

    CompanyLast Price7D1YValuation
    CSU Constellation SoftwareCA$2.17k3.9%
    +CA$1.7b
    1.3%PE70.1x
    TOI Topicus.comCA$74.806.9%
    +CA$397.2m
    -30.6%PE197.1x
    LSPD Lightspeed CommerceCA$22.077.1%
    +CA$221.1m
    -63.2%PS3.7x
    MAGT Magnet ForensicsCA$38.8211.4%
    +CA$162.3m
    17.6%PE4467.1x
    ENGH Enghouse SystemsCA$31.105.4%
    +CA$88.4m
    -40.6%PE19.6x
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    PKK

    CA$0.70

    Tenet Fintech Group

    7D

    -21.3%

    1Y

    -91.2%

    BITF

    CA$0.80

    Bitfarms

    7D

    -4.8%

    1Y

    -91.8%

    VXTR

    CA$0.28

    Voxtur Analytics

    7D

    -11.1%

    1Y

    -70.5%

    KXS

    CA$152.20

    Kinaxis

    7D

    1.4%

    1Y

    -19.0%

    ABST

    CA$13.03

    Absolute Software

    7D

    -4.1%

    1Y

    17.5%

    TCS

    CA$28.92

    Tecsys

    7D

    -7.8%

    1Y

    -43.2%

    TOI

    CA$74.80

    Topicus.com

    7D

    6.9%

    1Y

    -30.6%

    WE

    CA$1.98

    WeCommerce Holdings

    7D

    -8.3%

    1Y

    -86.8%

    VSBY

    CA$0.17

    VSBLTY Groupe Technologies

    7D

    -15.4%

    1Y

    -87.1%

    MAGT

    CA$38.82

    Magnet Forensics

    7D

    11.4%

    1Y

    17.6%

    CVO

    CA$7.12

    Coveo Solutions

    7D

    10.9%

    1Y

    -54.2%

    QFOR

    CA$2.64

    Q4

    7D

    -11.1%

    1Y

    -71.9%

    LSPD

    CA$22.07

    Lightspeed Commerce

    7D

    7.1%

    1Y

    -63.2%