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Canadian (TSX) Software Industry Analysis

UpdatedMar 22, 2026
DataAggregated Company Financials
Companies80
  • 7D-1.0%
  • 3M-22.9%
  • 1Y-38.5%
  • YTD-21.1%

Over the last 7 days, the Software industry has dropped 1.0%, driven by Constellation Software declining 1.0%. Meanwhile, Abaxx Technologies actually outperformed within the industry, gaining 9.7% in the last week. Overall the industry is down 39% in 12 months. As for the next few years, earnings are expected to grow by 25% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 22 Mar 2026CA$93.7bCA$27.0b-CA$181,270,089.2538.1x-517.1x3.5x
Tue, 17 Feb 2026CA$87.8bCA$25.9bCA$159.0m35x552.1x3.4x
Thu, 15 Jan 2026CA$119.6bCA$26.3bCA$147.9m47.8x808.3x4.5x
Sat, 13 Dec 2025CA$121.4bCA$26.1bCA$147.4m50.1x823.7x4.6x
Mon, 10 Nov 2025CA$124.1bCA$26.4bCA$184.7m54x672x4.7x
Wed, 08 Oct 2025CA$142.1bCA$25.5bCA$258.3m55.2x550x5.6x
Fri, 05 Sep 2025CA$157.3bCA$25.3bCA$243.8m64.9x645x6.2x
Sun, 03 Aug 2025CA$162.7bCA$24.6bCA$217.7m50x747.4x6.6x
Tue, 01 Jul 2025CA$164.9bCA$24.2bCA$190.0m43x868.2x6.8x
Thu, 29 May 2025CA$164.4bCA$24.4bCA$169.3m43.4x971.3x6.7x
Sat, 26 Apr 2025CA$158.6bCA$23.9bCA$438.7m31.7x361.5x6.6x
Mon, 24 Mar 2025CA$151.2bCA$24.7bCA$89.5m26.6x1688.5x6.1x
Wed, 19 Feb 2025CA$163.9bCA$23.8b-CA$2,310,697,056.8628.3x-70.9x6.9x
Fri, 17 Jan 2025CA$148.9bCA$24.1b-CA$2,411,470,956.1340.9x-61.8x6.2x
Sun, 15 Dec 2024CA$157.4bCA$23.8b-CA$2,366,695,010.2243.2x-66.5x6.6x
Tue, 12 Nov 2024CA$148.4bCA$23.2b-CA$2,321,823,718.5543.7x-63.9x6.4x
Thu, 10 Oct 2024CA$142.6bCA$22.2b-CA$2,493,571,662.2641.7x-57.2x6.4x
Sat, 07 Sep 2024CA$137.6bCA$22.0b-CA$2,504,171,439.8141x-55x6.3x
Mon, 05 Aug 2024CA$136.2bCA$21.8b-CA$3,383,761,039.6344.2x-40.3x6.3x
Wed, 03 Jul 2024CA$135.1bCA$21.3b-CA$3,435,969,856.8743.7x-39.3x6.3x
Fri, 31 May 2024CA$129.7bCA$21.6b-CA$3,404,751,763.7642x-38.1x6x
Sun, 28 Apr 2024CA$128.2bCA$20.9b-CA$4,253,287,409.2747.4x-30.1x6.1x
Tue, 26 Mar 2024CA$123.9bCA$20.8b-CA$4,803,975,565.5328.6x-25.8x6x
Thu, 22 Feb 2024CA$122.5bCA$19.8b-CA$2,776,576,517.0724.1x-44.1x6.2x
Sat, 20 Jan 2024CA$122.4bCA$19.9b-CA$3,970,840,601.0025.6x-30.8x6.1x
Mon, 18 Dec 2023CA$116.1bCA$19.9b-CA$4,048,611,156.0026.5x-28.7x5.8x
Wed, 15 Nov 2023CA$107.4bCA$20.3b-CA$4,220,209,339.0047.8x-25.5x5.3x
Fri, 13 Oct 2023CA$101.3bCA$19.5b-CA$4,204,743,699.0055.5x-24.1x5.2x
Sun, 10 Sep 2023CA$102.1bCA$19.5b-CA$4,104,906,403.0055.8x-24.9x5.2x
Tue, 08 Aug 2023CA$101.6bCA$18.7b-CA$4,435,543,308.0058.5x-22.9x5.4x
Thu, 06 Jul 2023CA$102.9bCA$18.2b-CA$3,703,681,721.0072.9x-27.8x5.6x
Sat, 03 Jun 2023CA$102.3bCA$18.1b-CA$3,997,798,551.0075.1x-25.6x5.6x
Mon, 01 May 2023CA$97.9bCA$17.4b-CA$3,301,705,022.0066x-29.7x5.6x
Wed, 29 Mar 2023CA$92.3bCA$16.5b-CA$2,583,184,264.0042.8x-35.7x5.6x
Price to Earnings Ratio

-35.7x


Total Market Cap: CA$92.3bTotal Earnings: -CA$2,583,184,264.00Total Revenue: CA$16.5bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian Software Industry Price to Earnings3Y Average 172.9x202420252026
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 5.8x is higher than the industry's current PS ratio of 3.5x.
Past Earnings Growth
  • The earnings for companies in the 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 Trends

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

CA Market-3.67%
Tech-0.15%
Software-1.01%
Application Software-0.86%
Systems Software-4.79%
Industry PE
  • Investors are most optimistic about the Systems Software industry which is trading above its 3-year average PE ratio of 87.5x.
    • Analysts are expecting annual earnings growth of 27.4%, which is lower than the prior year's growth of 98.5% per year.
Forecasted Growth
  • Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 27% over the next 5 years.
  • However this is lower than its past earnings growth rate of 99% per year.
  • In contrast, the Application Software industry is expected to see its earnings grow by 25% 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
ABXX Abaxx TechnologiesCA$38.059.7%
+CA$123.0m		276.4%PS1720.6x
KXS KinaxisCA$137.722.0%
+CA$74.7m		-13.8%PE39.3x
ENGH Enghouse SystemsCA$15.955.0%
+CA$41.4m		-39.7%PE12.6x
SPAI Sparc AlCA$3.2149.3%
+CA$24.6m		872.7%PB307.7x
DCBO DoceboCA$26.622.0%
+CA$15.2m		-38.3%PE14.9x

Latest News

ENGH
CA$15.95
Enghouse Systems
7D
5.0%
1Y
-39.7%

ENGH: Share Repurchases And Dividend Policy Will Support Future Upside Potential

Enghouse Systems' updated Analyst Price Target has shifted from CA$21.25 to CA$18.13 as analysts factor in lower fair value estimates, along with more cautious assumptions for revenue growth, profit margins and future P/E multiples, as reflected in recent Street target cuts to CA$17, CA$18.50 and CA$20. Analyst Commentary Recent Street commentary on Enghouse Systems centers on lower price targets in a relatively tight range of CA$17 to CA$20, with ratings clustered around Hold, Neutral and Sector Perform.
BTQ
CA$3.29
BTQ Technologies
7D
-18.8%
1Y
20.1%
KXS
CA$137.72
Kinaxis
7D
2.0%
1Y
-13.8%
TCS
CA$26.54
Tecsys
7D
1.8%
1Y
-34.1%
CVO
CA$4.26
Coveo Solutions
7D
-9.7%
1Y
-21.5%

CVO: Future Upside Will Rely On Execution Of Sovereign AI Partnership

Analysts have trimmed their average price target on Coveo Solutions by CA$0.37, reflecting updated views on fair value, discount rates, growth assumptions and margins following recent target reductions from several firms. Analyst Commentary Recent target cuts from several firms point to a more conservative stance on Coveo Solutions, with analysts refining their views on valuation, growth, and execution risk rather than making wholesale changes to their overall thesis.
DCBO
CA$26.62
Docebo
7D
2.0%
1Y
-38.3%
SPAI
CA$3.21
Sparc Al
7D
49.3%
1Y
872.7%
DSG
CA$99.63
Descartes Systems Group
7D
0.1%
1Y
-31.4%
CSU
CA$2,499.22
Constellation Software
7D
-1.0%
1Y
-46.0%
LMN
CA$23.97
Lumine Group
7D
-4.4%
1Y
-38.3%
TOI
CA$97.51
Topicus.com
7D
-0.4%
1Y
-29.9%
LSPD
CA$11.95
Lightspeed Commerce
7D
-1.6%
1Y
-21.5%

LSPD: Sector Reset And AI Investments Will Shape Balanced Risk Reward

The consensus analyst price target for Lightspeed Commerce has been reduced by CA$1.86. Analysts are incorporating slightly lower fair value estimates, a modestly higher discount rate, and more cautious revenue growth assumptions.
BB
CA$4.43
BlackBerry
7D
-3.1%
1Y
-28.9%
ABXX
CA$38.05
Abaxx Technologies
7D
9.7%
1Y
276.4%
ISTK
CA$0.68
Intellistake Technologies
7D
9.7%
1Y
369.0%
HIVE
CA$2.78
HIVE Digital Technologies
7D
-5.1%
1Y
18.3%