We Like These Underlying Return On Capital Trends At Tecsys (TSE:TCS)
May 06
Canadian (TSX) Software Industry Analysis
UpdatedJun 06, 2024
DataAggregated Company Financials
Companies86
- 7D1.0%
- 3M-1.0%
- 1Y29.1%
- YTD13.9%
The Software industry has been flat over the last week, but Descartes Systems Group has lost 5.2%. As for the the longer term, the industry is up 29% over the past 12 months. Earnings are forecast to grow by 28% 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 |
|---|---|---|---|---|---|---|
| Thu, 06 Jun 2024 | CA$130.6b | CA$21.6b | -CA$3,389,986,069.25 | 41.6x | -38.5x | 6x |
| Sat, 04 May 2024 | CA$125.4b | CA$20.9b | -CA$3,580,901,652.49 | 47.6x | -35x | 6x |
| Mon, 01 Apr 2024 | CA$129.4b | CA$20.7b | -CA$4,792,048,249.65 | 28.6x | -27x | 6.3x |
| Wed, 28 Feb 2024 | CA$124.0b | CA$19.9b | -CA$2,765,119,976.12 | 25.6x | -44.8x | 6.2x |
| Fri, 26 Jan 2024 | CA$122.6b | CA$19.9b | -CA$3,977,278,440.00 | 26.3x | -30.8x | 6.2x |
| Sun, 24 Dec 2023 | CA$115.2b | CA$19.7b | -CA$4,032,969,641.00 | 27.2x | -28.6x | 5.8x |
| Tue, 21 Nov 2023 | CA$110.1b | CA$20.4b | -CA$4,211,682,706.00 | 30.3x | -26.1x | 5.4x |
| Thu, 19 Oct 2023 | CA$99.3b | CA$19.5b | -CA$4,209,470,097.00 | 55.1x | -23.6x | 5.1x |
| Sat, 16 Sep 2023 | CA$102.8b | CA$19.3b | -CA$4,167,427,245.00 | 56x | -24.7x | 5.3x |
| Mon, 14 Aug 2023 | CA$102.3b | CA$19.3b | -CA$4,185,396,941.00 | 57.4x | -24.4x | 5.3x |
| Wed, 12 Jul 2023 | CA$100.7b | CA$18.2b | -CA$3,689,390,773.00 | 72.1x | -27.3x | 5.5x |
| Fri, 09 Jun 2023 | CA$99.8b | CA$18.1b | -CA$3,964,630,698.00 | 78.4x | -25.2x | 5.5x |
| Sun, 07 May 2023 | CA$97.0b | CA$17.3b | -CA$3,307,385,085.00 | 63.5x | -29.3x | 5.6x |
| Tue, 04 Apr 2023 | CA$95.4b | CA$16.9b | -CA$3,344,372,700.00 | 39.1x | -28.5x | 5.6x |
| Thu, 02 Mar 2023 | CA$87.3b | CA$16.4b | -CA$2,482,814,639.00 | 34.3x | -35.1x | 5.3x |
| Sat, 28 Jan 2023 | CA$88.2b | CA$16.0b | -CA$664,823,906.00 | 29x | -132.6x | 5.5x |
| Mon, 26 Dec 2022 | CA$78.7b | CA$16.3b | -CA$673,323,327.00 | 33.5x | -116.9x | 4.8x |
| Wed, 23 Nov 2022 | CA$77.8b | CA$16.0b | -CA$531,972,322.00 | 37.4x | -146.2x | 4.9x |
| Fri, 21 Oct 2022 | CA$74.0b | CA$15.5b | -CA$282,620,892.00 | 44.3x | -261.9x | 4.8x |
| Sun, 18 Sep 2022 | CA$76.1b | CA$15.1b | -CA$426,181,352.00 | 42x | -178.5x | 5x |
| Tue, 16 Aug 2022 | CA$86.4b | CA$14.6b | -CA$76,265,782.00 | 53.7x | -1132.3x | 5.9x |
| Thu, 14 Jul 2022 | CA$75.3b | CA$13.9b | CA$513.1m | 44.3x | 146.8x | 5.4x |
| Sat, 11 Jun 2022 | CA$75.7b | CA$14.4b | CA$183.6m | 56.1x | 412.5x | 5.3x |
| Mon, 09 May 2022 | CA$80.7b | CA$14.1b | CA$236.0m | 45.6x | 342x | 5.7x |
| Wed, 06 Apr 2022 | CA$98.7b | CA$13.2b | -CA$2,676,588,352.00 | 52.9x | -36.9x | 7.5x |
| Fri, 04 Mar 2022 | CA$92.0b | CA$12.8b | -CA$3,126,382,189.00 | 39.6x | -29.4x | 7.2x |
| Sun, 30 Jan 2022 | CA$90.4b | CA$12.0b | -CA$3,217,470,154.00 | 66x | -28.1x | 7.5x |
| Tue, 28 Dec 2021 | CA$106.7b | CA$12.0b | -CA$3,246,748,707.00 | 80.7x | -32.9x | 8.9x |
| Thu, 25 Nov 2021 | CA$110.7b | CA$11.9b | -CA$3,405,899,311.00 | 67.5x | -32.5x | 9.3x |
| Sat, 23 Oct 2021 | CA$117.2b | CA$10.9b | -CA$3,407,719,524.00 | 53.4x | -34.4x | 10.8x |
| Mon, 20 Sep 2021 | CA$121.2b | CA$11.1b | -CA$3,403,482,219.00 | 46x | -35.6x | 10.9x |
| Wed, 18 Aug 2021 | CA$107.4b | CA$10.9b | -CA$3,271,006,370.50 | 43.9x | -32.8x | 9.9x |
Price to Earnings Ratio
-29.6x
Current Industry PE
- Investors are relatively neutral on the Canadian Software industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PS ratio of 6.5x.
Past Earnings Growth
- Losses for companies in the Software industry have mostly stayed the same over the last three years.
- Meanwhile revenues for these companies have grown 26% 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 and as a result, losses haven't seen much improvement.
Industry Trends
Which industries have driven the changes within the Canadian Tech industry?
| CA Market | 0.77% | |
| Tech | 0.59% | |
| Software | 0.97% | |
| Application Software | 1.02% | |
| Systems Software | -1.01% | |
Industry PE
Forecasted Growth
- Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 69% over the next 5 years.
- This is better than its past earnings decline of 59% per year.
- In contrast, the Application Software industry is expected to see its earnings grow by 27% 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 | |
|---|---|---|---|---|---|
| CSU Constellation Software | CA$3.82k | 1.7% +CA$1.3b | 40.7% | PE102.8x | |
| LMN Lumine Group | CA$39.10 | 2.3% +CA$223.3m | 100.5% | PS13.4x | |
| BITF Bitfarms | CA$3.42 | 14.0% +CA$167.4m | 128.0% | PS6x | |
| VERS VERSES AI | CA$1.13 | -8.9% CA$54.2m | -56.5% | PS98.6x | |
| CMG Computer Modelling Group | CA$13.41 | 4.6% +CA$48.0m | 94.6% | PE41.6x |
