Narrative Update • May 15
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- 7D7.5%
- 3M15.1%
- 1Y-34.3%
- YTD-4.4%
Over the last 7 days, the Software industry has risen 7.5%, driven by gains from Constellation Software of 3.9%. Meanwhile, Xanadu Quantum Technologies actually underperformed within the industry, shrinking 13% in the last week. In the past year, the industry is down 34%. 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 |
|---|---|---|---|---|---|---|
| Thu, 04 Jun 2026 | CA$116.9b | CA$27.5b | CA$865.9m | 37.3x | 135.1x | 4.2x |
| Sat, 02 May 2026 | CA$93.0b | CA$26.4b | -CA$107,560,394.21 | 40x | -864.7x | 3.5x |
| Mon, 30 Mar 2026 | CA$88.9b | CA$27.3b | -CA$204,758,772.71 | 36.6x | -434.4x | 3.3x |
| Wed, 25 Feb 2026 | CA$88.5b | CA$26.1b | -CA$58,931,685.24 | 35.6x | -1501.2x | 3.4x |
| Fri, 23 Jan 2026 | CA$104.6b | CA$26.2b | CA$141.3m | 45.2x | 740.3x | 4x |
| Sun, 21 Dec 2025 | CA$122.6b | CA$26.2b | CA$151.1m | 49.5x | 811.4x | 4.7x |
| Tue, 18 Nov 2025 | CA$119.6b | CA$26.6b | CA$219.0m | 43.5x | 546.1x | 4.5x |
| Thu, 16 Oct 2025 | CA$144.8b | CA$25.7b | CA$261.4m | 55x | 554.1x | 5.6x |
| Sat, 13 Sep 2025 | CA$154.7b | CA$25.4b | CA$243.4m | 65.1x | 635.3x | 6.1x |
| Mon, 11 Aug 2025 | CA$159.3b | CA$25.1b | CA$157.8m | 49.4x | 1009.7x | 6.3x |
| Wed, 09 Jul 2025 | CA$167.2b | CA$24.3b | CA$180.2m | 43.1x | 927.7x | 6.9x |
| Fri, 06 Jun 2025 | CA$166.3b | CA$24.2b | CA$159.2m | 43.4x | 1044.1x | 6.9x |
| Sun, 04 May 2025 | CA$163.5b | CA$23.9b | CA$883.9m | 35.9x | 185x | 6.8x |
| Tue, 01 Apr 2025 | CA$150.1b | CA$24.8b | CA$213.9m | 27.1x | 702x | 6x |
| Thu, 27 Feb 2025 | CA$159.6b | CA$24.1b | -CA$2,331,695,554.72 | 27.2x | -68.5x | 6.6x |
| Sat, 25 Jan 2025 | CA$155.0b | CA$24.0b | -CA$2,398,213,427.69 | 40.8x | -64.6x | 6.5x |
| Mon, 23 Dec 2024 | CA$151.4b | CA$24.0b | -CA$2,404,847,263.03 | 41.4x | -63x | 6.3x |
| Wed, 20 Nov 2024 | CA$149.9b | CA$23.3b | -CA$2,335,510,680.56 | 40.1x | -64.2x | 6.4x |
| Fri, 18 Oct 2024 | CA$145.7b | CA$22.3b | -CA$2,508,542,643.47 | 42.4x | -58.1x | 6.5x |
| Sun, 15 Sep 2024 | CA$141.8b | CA$22.0b | -CA$2,508,714,632.60 | 41.1x | -56.5x | 6.4x |
| Tue, 13 Aug 2024 | CA$136.4b | CA$22.3b | -CA$2,562,231,340.08 | 44.7x | -53.3x | 6.1x |
| Thu, 11 Jul 2024 | CA$137.7b | CA$21.3b | -CA$3,374,108,825.36 | 44.5x | -40.8x | 6.5x |
| Sat, 08 Jun 2024 | CA$132.0b | CA$21.7b | -CA$3,407,592,194.73 | 40.1x | -38.7x | 6.1x |
| Mon, 06 May 2024 | CA$128.0b | CA$20.9b | -CA$3,579,940,196.13 | 47.6x | -35.7x | 6.1x |
| Wed, 03 Apr 2024 | CA$128.9b | CA$20.7b | -CA$4,806,659,877.95 | 28.6x | -26.8x | 6.2x |
| Fri, 01 Mar 2024 | CA$124.4b | CA$19.9b | -CA$2,779,017,037.82 | 25.3x | -44.8x | 6.2x |
| Sun, 28 Jan 2024 | CA$123.9b | CA$19.9b | -CA$3,969,717,273.00 | 26.8x | -31.2x | 6.2x |
| Tue, 26 Dec 2023 | CA$115.2b | CA$19.7b | -CA$4,025,371,907.00 | 27.2x | -28.6x | 5.8x |
| Thu, 23 Nov 2023 | CA$110.7b | CA$20.3b | -CA$4,212,231,467.00 | 30.2x | -26.3x | 5.4x |
| Sat, 21 Oct 2023 | CA$98.8b | CA$19.5b | -CA$4,205,331,315.00 | 54.2x | -23.5x | 5.1x |
| Mon, 18 Sep 2023 | CA$104.6b | CA$19.3b | -CA$4,169,592,604.00 | 55.9x | -25.1x | 5.4x |
| Wed, 16 Aug 2023 | CA$100.0b | CA$19.3b | -CA$4,130,279,911.00 | 56.9x | -24.2x | 5.2x |
| Fri, 14 Jul 2023 | CA$102.7b | CA$18.1b | -CA$3,659,298,451.00 | 73x | -28.1x | 5.7x |
| Sun, 11 Jun 2023 | CA$99.8b | CA$18.0b | -CA$3,963,365,928.00 | 77x | -25.2x | 5.5x |
Price to Earnings Ratio
-25.2x
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 industry is trading at a PE ratio of 135x which is lower than its 3-year average PE of 151x.
- The 3-year average PS ratio of 5.7x is higher than the industry's current PS ratio of 4.2x.
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 | 1.07% | |
| Tech | 12.42% | |
| Software | 7.48% | |
| Systems Software | 19.91% | |
| Application Software | 6.51% | |
Industry PE
- Investors are most optimistic about the Systems Software industry which is trading above its 3-year average PE ratio of 98.5x.
- Analysts are expecting annual earnings growth of 18.8%, which is lower than the prior year's growth of 98.5% per year.
- Investors are most pessimistic about the Application Software industry, which is trading below its 3-year average of 149x.
Forecasted Growth
- Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 19% 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 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 | |
|---|---|---|---|---|---|
| CSU Constellation Software | CA$2.75k | 3.9% +CA$2.2b | -44.6% | PE56.4x | |
| BB BlackBerry | CA$14.10 | 17.6% +CA$1.2b | 158.2% | PE111.8x | |
| TOI Topicus.com | CA$101.69 | 9.2% +CA$715.9m | -43.8% | PE168.8x | |
| LMN Lumine Group | CA$22.30 | 13.9% +CA$698.0m | -52.8% | PE35.2x | |
| DSG Descartes Systems Group | CA$102.88 | 6.6% +CA$549.9m | -34.9% | PE38.8x |