Analysis Article • May 08
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- 7D-3.0%
- 3M9.6%
- 1Y-44.1%
- YTD-17.4%
Over the last 7 days, the Software industry has dropped 3.0%, driven by Xanadu Quantum Technologies declining 12%. Meanwhile, Abaxx Technologies actually outperformed within the industry, gaining 7.7% in the last week. Overall the industry is down 44% in 12 months. Looking forward, earnings are forecast to grow by 19% 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 |
|---|---|---|---|---|---|---|
| Fri, 15 May 2026 | CA$97.5b | CA$27.2b | CA$76.8m | 33.9x | 1269.4x | 3.6x |
| Sun, 12 Apr 2026 | CA$88.1b | CA$26.9b | -CA$104,497,599.73 | 33.7x | -842.7x | 3.3x |
| Tue, 10 Mar 2026 | CA$105.7b | CA$26.1b | CA$51.4m | 41.4x | 2057.4x | 4.1x |
| Thu, 05 Feb 2026 | CA$88.0b | CA$26.0b | CA$167.8m | 37x | 524.6x | 3.4x |
| Sat, 03 Jan 2026 | CA$120.3b | CA$26.1b | CA$145.3m | 37.8x | 828.3x | 4.6x |
| Mon, 01 Dec 2025 | CA$125.3b | CA$26.5b | CA$148.0m | 52.7x | 847.1x | 4.7x |
| Wed, 29 Oct 2025 | CA$141.4b | CA$25.5b | CA$254.0m | 56x | 556.8x | 5.5x |
| Fri, 26 Sep 2025 | CA$147.3b | CA$25.5b | CA$261.7m | 55.8x | 562.8x | 5.8x |
| Sun, 24 Aug 2025 | CA$157.5b | CA$25.3b | CA$238.5m | 55.9x | 660.3x | 6.2x |
| Tue, 22 Jul 2025 | CA$169.8b | CA$24.3b | CA$175.6m | 55x | 966.5x | 7x |
| Thu, 19 Jun 2025 | CA$159.7b | CA$24.2b | CA$157.5m | 41.1x | 1013.9x | 6.6x |
| Sat, 17 May 2025 | CA$167.7b | CA$24.6b | CA$932.9m | 34.3x | 179.7x | 6.8x |
| Mon, 14 Apr 2025 | CA$147.8b | CA$23.9b | CA$440.8m | 27.6x | 335.3x | 6.2x |
| Wed, 12 Mar 2025 | CA$154.8b | CA$25.0b | CA$91.2m | 25.7x | 1698x | 6.2x |
| Fri, 07 Feb 2025 | CA$163.2b | CA$24.0b | -CA$2,377,632,735.88 | 40.4x | -68.6x | 6.8x |
| Sun, 05 Jan 2025 | CA$152.4b | CA$24.1b | -CA$2,417,393,302.56 | 42.3x | -63x | 6.3x |
| Tue, 03 Dec 2024 | CA$158.6b | CA$23.5b | -CA$2,344,766,957.64 | 40.9x | -67.7x | 6.7x |
| Thu, 31 Oct 2024 | CA$144.5b | CA$22.5b | -CA$2,526,400,256.98 | 40.8x | -57.2x | 6.4x |
| Sat, 28 Sep 2024 | CA$146.0b | CA$21.9b | -CA$2,463,213,193.76 | 39.1x | -59.3x | 6.7x |
| Mon, 26 Aug 2024 | CA$142.9b | CA$22.0b | -CA$2,516,247,008.92 | 44.3x | -56.8x | 6.5x |
| Wed, 24 Jul 2024 | CA$143.4b | CA$21.5b | -CA$3,420,026,082.75 | 50.8x | -41.9x | 6.7x |
| Fri, 21 Jun 2024 | CA$130.1b | CA$21.6b | -CA$3,382,019,624.27 | 39.5x | -38.5x | 6x |
| Sun, 19 May 2024 | CA$130.0b | CA$21.5b | -CA$3,426,759,742.54 | 40.7x | -37.9x | 6x |
| Tue, 16 Apr 2024 | CA$127.6b | CA$21.1b | -CA$4,277,071,878.80 | 32.2x | -29.8x | 6.1x |
| Thu, 14 Mar 2024 | CA$124.6b | CA$20.6b | -CA$4,781,680,270.22 | 26.6x | -26.1x | 6x |
| Sat, 10 Feb 2024 | CA$121.7b | CA$19.7b | -CA$2,884,020,939.07 | 25x | -42.2x | 6.2x |
| Mon, 08 Jan 2024 | CA$113.7b | CA$19.8b | -CA$3,952,044,280.00 | 26.7x | -28.8x | 5.7x |
| Wed, 06 Dec 2023 | CA$113.4b | CA$20.2b | -CA$4,266,444,408.00 | 26.6x | -26.6x | 5.6x |
| Fri, 03 Nov 2023 | CA$99.4b | CA$19.6b | -CA$4,152,192,126.00 | 72.5x | -23.9x | 5.1x |
| Sun, 01 Oct 2023 | CA$100.7b | CA$19.3b | -CA$4,177,310,018.00 | 54.9x | -24.1x | 5.2x |
| Tue, 29 Aug 2023 | CA$102.1b | CA$19.4b | -CA$4,166,981,992.00 | 57.6x | -24.5x | 5.3x |
| Thu, 27 Jul 2023 | CA$103.5b | CA$18.2b | -CA$3,857,687,072.00 | 71.8x | -26.8x | 5.7x |
| Sat, 24 Jun 2023 | CA$99.2b | CA$17.9b | -CA$3,938,982,418.00 | 70.1x | -25.2x | 5.5x |
| Mon, 22 May 2023 | CA$101.1b | CA$18.0b | -CA$3,195,413,934.00 | 68.8x | -31.7x | 5.6x |
Price to Earnings Ratio
-31.7x
Current Industry PE
- Investors are optimistic on the Canadian Software industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 1kx which is higher than its 3-year average PE of 142x.
- The 3-year average PS ratio of 5.7x is higher than the industry's current PS ratio of 3.6x.
Past Earnings Growth
- Total earnings for the Software industry have gone up over the last three years, and the industry is now profitable. Revenues have grown 15% per year.
- This means that more sales are being generated by the industry overall, and subsequently profits are increasing too.
Industry Trends
Which industries have driven the changes within the Canadian Tech industry?
| CA Market | 1.72% | |
| Tech | -2.47% | |
| Software | -3.04% | |
| Systems Software | 0.74% | |
| Application Software | -3.29% | |
Industry PE
- Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 137x.
- Analysts are expecting annual earnings growth of 19.0%, which is higher than its past year's earnings decline of 2.5% per year.
- Investors are most pessimistic about the Systems Software industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 92.9x.
Forecasted Growth
- Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 19% over the next 5 years.
- This is better than its past earnings decline of 2.5% per year.
- In contrast, the Systems Software industry is expected to see its earnings grow by 19% 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 | |
|---|---|---|---|---|---|
| ABXX Abaxx Technologies | CA$58.00 | 7.7% +CA$154.6m | 422.5% | PS2058.1x | |
| BB BlackBerry | CA$8.46 | 1.7% +CA$82.3m | 56.1% | PE68.1x | |
| ACT Aduro Clean Technologies | CA$19.35 | 9.3% +CA$55.7m | 131.2% | PS2698.2x | |
| HIVE HIVE Digital Technologies | CA$4.07 | 3.6% +CA$35.5m | 57.8% | PS2.9x | |
| BTQ BTQ Technologies | CA$4.45 | 6.0% +CA$35.3m | 29.7% | PS1993.2x |