The Descartes Systems Group Inc. (TSE:DSG) Shares Could Be 25% Above Their Intrinsic Value Estimate
May 01
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Canadian (TSX) Software Industry Analysis
UpdatedMay 03, 2025
DataAggregated Company Financials
Companies74
- 7D2.6%
- 3M2.4%
- 1Y27.9%
- YTD7.2%
Over the last 7 days, the Software industry has risen 2.0%, driven by gains from Constellation Software of 2.0%. This means that the industry has gained 29% over the past year. Looking forward, earnings are forecast to grow by 30% 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 |
|---|---|---|---|---|---|---|
| Sat, 03 May 2025 | CA$161.6b | CA$23.9b | CA$883.9m | 35.9x | 182.8x | 6.8x |
| Mon, 31 Mar 2025 | CA$150.1b | CA$24.7b | CA$197.9m | 26.9x | 758.5x | 6.1x |
| Wed, 26 Feb 2025 | CA$159.7b | CA$24.0b | -CA$2,327,069,585.13 | 27.1x | -68.6x | 6.6x |
| Fri, 24 Jan 2025 | CA$153.7b | CA$24.0b | -CA$2,403,089,210.70 | 35.2x | -64x | 6.4x |
| Sun, 22 Dec 2024 | CA$151.4b | CA$24.0b | -CA$2,404,847,263.03 | 41.4x | -63x | 6.3x |
| Tue, 19 Nov 2024 | CA$149.8b | CA$23.5b | -CA$2,354,128,975.33 | 40.4x | -63.6x | 6.4x |
| Thu, 17 Oct 2024 | CA$145.3b | CA$22.2b | -CA$2,500,504,615.96 | 41.8x | -58.1x | 6.5x |
| Sat, 14 Sep 2024 | CA$141.2b | CA$22.0b | -CA$2,508,714,454.15 | 41.1x | -56.3x | 6.4x |
| Mon, 12 Aug 2024 | CA$136.6b | CA$22.2b | -CA$2,560,164,972.09 | 45.1x | -53.4x | 6.1x |
| Wed, 10 Jul 2024 | CA$137.9b | CA$21.3b | -CA$3,376,987,926.67 | 44.5x | -40.8x | 6.5x |
| Fri, 07 Jun 2024 | CA$132.4b | CA$21.6b | -CA$3,385,564,506.32 | 39.8x | -39.1x | 6.1x |
| Sun, 05 May 2024 | CA$128.0b | CA$20.9b | -CA$3,579,940,196.13 | 47.6x | -35.7x | 6.1x |
| Tue, 02 Apr 2024 | CA$129.4b | CA$20.7b | -CA$4,801,570,973.32 | 28.3x | -27x | 6.2x |
| Thu, 29 Feb 2024 | CA$123.9b | CA$19.9b | -CA$2,772,083,980.21 | 25.7x | -44.7x | 6.2x |
| Sat, 27 Jan 2024 | CA$122.8b | CA$19.9b | -CA$3,970,137,242.00 | 26.8x | -30.9x | 6.2x |
| Mon, 25 Dec 2023 | CA$115.2b | CA$19.7b | -CA$4,025,371,907.00 | 27.2x | -28.6x | 5.8x |
| Wed, 22 Nov 2023 | CA$110.1b | CA$20.4b | -CA$4,211,346,662.00 | 30x | -26.1x | 5.4x |
| Fri, 20 Oct 2023 | CA$99.8b | CA$19.5b | -CA$4,210,282,052.00 | 55x | -23.7x | 5.1x |
| Sun, 17 Sep 2023 | CA$104.6b | CA$19.3b | -CA$4,169,592,604.00 | 55.9x | -25.1x | 5.4x |
| Tue, 15 Aug 2023 | CA$101.1b | CA$19.3b | -CA$4,118,530,035.00 | 57.5x | -24.5x | 5.2x |
| Thu, 13 Jul 2023 | CA$100.6b | CA$18.1b | -CA$3,676,617,795.00 | 71.3x | -27.4x | 5.5x |
| Sat, 10 Jun 2023 | CA$99.8b | CA$18.0b | -CA$3,963,376,721.00 | 77x | -25.2x | 5.5x |
| Mon, 08 May 2023 | CA$97.0b | CA$17.3b | -CA$3,306,554,978.00 | 63.5x | -29.3x | 5.6x |
| Wed, 05 Apr 2023 | CA$96.5b | CA$16.9b | -CA$3,349,149,576.00 | 38.1x | -28.8x | 5.7x |
| Fri, 03 Mar 2023 | CA$87.8b | CA$16.4b | -CA$2,482,924,701.00 | 35.9x | -35.3x | 5.3x |
| Sun, 29 Jan 2023 | CA$88.2b | CA$16.0b | -CA$660,761,784.00 | 29x | -133.4x | 5.5x |
| Tue, 27 Dec 2022 | CA$78.7b | CA$16.3b | -CA$673,323,327.00 | 33.5x | -116.9x | 4.8x |
| Thu, 24 Nov 2022 | CA$78.7b | CA$16.0b | -CA$533,822,892.00 | 41.1x | -147.5x | 4.9x |
| Sat, 22 Oct 2022 | CA$74.5b | CA$15.5b | -CA$282,312,212.00 | 43x | -263.8x | 4.8x |
| Mon, 19 Sep 2022 | CA$76.1b | CA$15.1b | -CA$426,181,352.00 | 42x | -178.5x | 5x |
| Wed, 17 Aug 2022 | CA$87.6b | CA$14.6b | -CA$241,300,199.00 | 47.1x | -363.2x | 6x |
| Fri, 15 Jul 2022 | CA$75.2b | CA$14.1b | CA$525.4m | 44.3x | 143.2x | 5.3x |
| Sun, 12 Jun 2022 | CA$75.3b | CA$13.8b | CA$257.5m | 56.1x | 292.3x | 5.5x |
| Tue, 10 May 2022 | CA$79.7b | CA$14.2b | CA$241.0m | 43.5x | 330.5x | 5.6x |
Price to Earnings Ratio
330.5x
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 370x which is higher than its 3-year average PE of 5.9x.
- The 3-year average PS ratio of 5.8x is lower than the industry's current PS ratio of 6.8x.
Past Earnings Growth
- The earnings for companies in the Software industry have grown 23% per year over the last three years.
- Revenues for these companies have grown 19% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Canadian Tech industry?
| CA Market | 1.39% | |
| Tech | 2.22% | |
| Software | 2.61% | |
| Systems Software | 3.55% | |
| Application Software | 2.58% | |
Industry PE
- Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio.
- Analysts expect its future annual earnings growth (29.8%) to be largely in line with prior year's earnings growth.
Forecasted Growth
- Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 44% over the next 5 years.
- In contrast, the Application Software industry is expected to see its earnings grow by 30% 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$5.04k | 3.3% +CA$3.4b | 38.6% | PE105.9x | |
| TOI Topicus.com | CA$163.75 | 3.0% +CA$394.6m | 45.6% | PE94.7x | |
| KXS Kinaxis | CA$186.91 | 3.4% +CA$170.5m | 23.5% | PE68020.5x | |
| DSG Descartes Systems Group | CA$147.97 | 1.2% +CA$152.4m | 13.4% | PE64x | |
| BB BlackBerry | CA$4.80 | 3.2% +CA$89.4m | 19.7% | PS3.9x |
