A Look At The Fair Value Of The Descartes Systems Group Inc. (TSE:DSG)
Aug 14
Canadian (TSX) Software Industry Analysis
UpdatedAug 19, 2024
DataAggregated Company Financials
Companies83
- 7D5.7%
- 3M8.3%
- 1Y38.3%
- YTD21.5%
Over the last 7 days, the Software industry has risen 5.7%, driven by gains from Constellation Software of 3.8%. In the last 12 months, the industry was up 38%. As for the next few years, earnings are expected to grow by 28% per annum.
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 |
|---|---|---|---|---|---|---|
| Mon, 19 Aug 2024 | CA$141.0b | CA$22.2b | -CA$2,515,362,115.31 | 43.3x | -56.1x | 6.4x |
| Wed, 17 Jul 2024 | CA$141.4b | CA$21.4b | -CA$3,392,990,557.81 | 45.7x | -41.7x | 6.6x |
| Fri, 14 Jun 2024 | CA$131.1b | CA$21.7b | -CA$3,393,374,262.92 | 40x | -38.6x | 6x |
| Sun, 12 May 2024 | CA$130.0b | CA$21.5b | -CA$3,535,485,775.42 | 48.1x | -36.8x | 6.1x |
| Tue, 09 Apr 2024 | CA$128.2b | CA$20.8b | -CA$4,211,807,362.84 | 22.5x | -30.4x | 6.2x |
| Thu, 07 Mar 2024 | CA$122.1b | CA$20.0b | -CA$4,794,785,269.26 | 26.3x | -25.5x | 6.1x |
| Sat, 03 Feb 2024 | CA$126.2b | CA$19.9b | -CA$3,969,432,911.00 | 26.2x | -31.8x | 6.3x |
| Mon, 01 Jan 2024 | CA$115.5b | CA$19.7b | -CA$4,013,310,158.00 | 26.8x | -28.8x | 5.9x |
| Wed, 29 Nov 2023 | CA$111.2b | CA$20.1b | -CA$4,169,046,757.00 | 44.3x | -26.7x | 5.5x |
| Fri, 27 Oct 2023 | CA$95.8b | CA$19.6b | -CA$4,235,076,906.00 | 52.8x | -22.6x | 4.9x |
| Sun, 24 Sep 2023 | CA$98.7b | CA$19.3b | -CA$4,158,696,173.00 | 53.8x | -23.7x | 5.1x |
| Tue, 22 Aug 2023 | CA$99.7b | CA$19.4b | -CA$4,146,374,622.00 | 57.1x | -24x | 5.1x |
| Thu, 20 Jul 2023 | CA$105.3b | CA$18.1b | -CA$3,848,851,468.00 | 73.1x | -27.4x | 5.8x |
| Sat, 17 Jun 2023 | CA$101.1b | CA$17.9b | -CA$3,941,432,126.00 | 71.8x | -25.7x | 5.7x |
| Mon, 15 May 2023 | CA$96.4b | CA$17.4b | -CA$3,221,932,773.00 | 64.8x | -29.9x | 5.5x |
| Wed, 12 Apr 2023 | CA$97.2b | CA$17.0b | -CA$3,322,383,617.00 | 48.5x | -29.2x | 5.7x |
| Fri, 10 Mar 2023 | CA$88.9b | CA$16.7b | -CA$2,560,858,192.00 | 40.8x | -34.7x | 5.3x |
| Sun, 05 Feb 2023 | CA$90.0b | CA$16.2b | -CA$678,702,580.00 | 30.6x | -132.6x | 5.6x |
| Tue, 03 Jan 2023 | CA$79.2b | CA$16.3b | -CA$672,893,177.00 | 29.6x | -117.7x | 4.9x |
| Thu, 01 Dec 2022 | CA$81.6b | CA$16.1b | -CA$556,881,623.00 | 34.3x | -146.4x | 5.1x |
| Sat, 29 Oct 2022 | CA$78.5b | CA$15.4b | -CA$280,882,352.00 | 37.6x | -279.5x | 5.1x |
| Mon, 26 Sep 2022 | CA$73.7b | CA$15.4b | -CA$421,278,459.00 | 39.4x | -174.9x | 4.8x |
| Wed, 24 Aug 2022 | CA$82.1b | CA$14.7b | -CA$406,070,971.00 | 48x | -202.2x | 5.6x |
| Fri, 22 Jul 2022 | CA$80.9b | CA$13.9b | CA$408.8m | 55.8x | 197.9x | 5.8x |
| Sun, 19 Jun 2022 | CA$72.7b | CA$14.0b | CA$747.4m | 53.7x | 97.3x | 5.2x |
| Tue, 17 May 2022 | CA$77.4b | CA$14.3b | CA$325.4m | 44.5x | 237.8x | 5.4x |
| Thu, 14 Apr 2022 | CA$93.8b | CA$13.4b | -CA$2,700,441,757.00 | 46.8x | -34.7x | 7x |
| Sat, 12 Mar 2022 | CA$87.7b | CA$12.8b | -CA$3,105,818,629.00 | 23.1x | -28.2x | 6.8x |
| Mon, 07 Feb 2022 | CA$96.0b | CA$12.3b | -CA$3,295,680,457.00 | 69.4x | -29.1x | 7.8x |
| Wed, 05 Jan 2022 | CA$104.3b | CA$12.0b | -CA$3,230,966,496.00 | 76.7x | -32.3x | 8.7x |
| Fri, 03 Dec 2021 | CA$105.5b | CA$12.1b | -CA$3,478,213,851.00 | 66.8x | -30.3x | 8.7x |
| Sun, 31 Oct 2021 | CA$117.0b | CA$11.0b | -CA$3,436,985,866.00 | 79.4x | -34x | 10.7x |
| Tue, 28 Sep 2021 | CA$117.3b | CA$11.0b | -CA$3,511,943,999.00 | 45.4x | -33.4x | 10.7x |
| Thu, 26 Aug 2021 | CA$112.9b | CA$10.9b | -CA$3,271,006,370.50 | 44.9x | -34.5x | 10.4x |
Price to Earnings Ratio
-34.5x
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 6.3x.
Past Earnings Growth
- The earnings for companies in the Software industry have improved over the last three years.
- Revenues for these companies have grown 27% 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 | 2.81% | |
| Tech | 5.39% | |
| Software | 5.69% | |
| Application Software | 5.72% | |
| Systems Software | 4.50% | |
Industry PE
Forecasted Growth
- Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 90% over the next 5 years.
- This is better than its past earnings decline of 32% 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$4.23k | 6.8% +CA$5.7b | 57.7% | PE100.9x | |
| TOI Topicus.com | CA$126.97 | 5.4% +CA$536.3m | 19.8% | PE89x | |
| DSG Descartes Systems Group | CA$136.91 | 3.7% +CA$416.7m | 38.6% | PE70.5x | |
| LSPD Lightspeed Commerce | CA$18.28 | 6.0% +CA$156.1m | -13.5% | PS2.1x | |
| KXS Kinaxis | CA$153.90 | 3.2% +CA$135.3m | -7.8% | PE152x |