Narrative Update • Jun 07
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- 7D-2.0%
- 3M12.9%
- 1Y-32.3%
- YTD-5.4%
Over the last 7 days, the Software industry has dropped 2.0%, driven by declines in Xanadu Quantum Technologies and BlackBerry of 20% and 13%, respectively. In contrast, Constellation Software has gained 14%. Overall the industry is down 32% in 12 months. As for the next few years, earnings are expected to grow by 19% 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 |
|---|---|---|---|---|---|---|
| Thu, 11 Jun 2026 | CA$114.4b | CA$27.6b | CA$922.0m | 35.9x | 124x | 4.1x |
| Sat, 09 May 2026 | CA$104.0b | CA$26.8b | -CA$216,684,286.17 | 37.6x | -479.9x | 3.9x |
| Mon, 06 Apr 2026 | CA$92.9b | CA$27.0b | -CA$144,090,341.05 | 37.5x | -644.5x | 3.4x |
| Wed, 04 Mar 2026 | CA$93.9b | CA$26.2b | -CA$24,028,207.28 | 40.1x | -3909.9x | 3.6x |
| Fri, 30 Jan 2026 | CA$101.0b | CA$25.7b | CA$140.8m | 41.8x | 717.3x | 3.9x |
| Sun, 28 Dec 2025 | CA$121.6b | CA$26.0b | CA$149.1m | 49.3x | 815.5x | 4.7x |
| Tue, 25 Nov 2025 | CA$120.3b | CA$26.7b | CA$145.8m | 49.2x | 825.1x | 4.5x |
| Thu, 23 Oct 2025 | CA$136.4b | CA$25.6b | CA$254.8m | 56.2x | 535.3x | 5.3x |
| Sat, 20 Sep 2025 | CA$152.3b | CA$25.3b | CA$244.3m | 60.4x | 623.5x | 6x |
| Mon, 18 Aug 2025 | CA$152.3b | CA$25.3b | CA$237.9m | 51.6x | 640.2x | 6x |
| Wed, 16 Jul 2025 | CA$166.8b | CA$24.3b | CA$175.9m | 50x | 948.2x | 6.9x |
| Fri, 13 Jun 2025 | CA$162.3b | CA$24.1b | CA$154.7m | 42.8x | 1048.6x | 6.7x |
| Sun, 11 May 2025 | CA$167.6b | CA$24.1b | CA$966.1m | 33.1x | 173.5x | 7x |
| Tue, 08 Apr 2025 | CA$142.9b | CA$24.4b | CA$454.5m | 27x | 314.4x | 5.8x |
| Thu, 06 Mar 2025 | CA$157.5b | CA$24.2b | -CA$2,332,400,557.76 | 27.1x | -67.5x | 6.5x |
| Sat, 01 Feb 2025 | CA$160.0b | CA$24.3b | -CA$2,431,964,088.12 | 41.4x | -65.8x | 6.6x |
| Mon, 30 Dec 2024 | CA$153.4b | CA$24.1b | -CA$2,411,023,393.07 | 41.8x | -63.6x | 6.4x |
| Wed, 27 Nov 2024 | CA$154.8b | CA$23.5b | -CA$2,347,687,558.21 | 41.4x | -65.9x | 6.6x |
| Fri, 25 Oct 2024 | CA$143.4b | CA$22.4b | -CA$2,516,666,896.80 | 41.5x | -57x | 6.4x |
| Sun, 22 Sep 2024 | CA$144.5b | CA$22.0b | -CA$2,501,950,147.87 | 40.8x | -57.7x | 6.6x |
| Tue, 20 Aug 2024 | CA$141.0b | CA$22.1b | -CA$2,507,145,243.91 | 42.5x | -56.3x | 6.4x |
| Thu, 18 Jul 2024 | CA$142.4b | CA$21.4b | -CA$3,396,295,480.08 | 45.6x | -41.9x | 6.6x |
| Sat, 15 Jun 2024 | CA$131.1b | CA$21.7b | -CA$3,393,225,403.39 | 40.2x | -38.6x | 6x |
| Mon, 13 May 2024 | CA$130.0b | CA$21.5b | -CA$3,534,241,760.42 | 48.1x | -36.8x | 6.1x |
| Wed, 10 Apr 2024 | CA$128.4b | CA$20.8b | -CA$4,210,401,463.52 | 22.7x | -30.5x | 6.2x |
| Fri, 08 Mar 2024 | CA$126.4b | CA$20.6b | -CA$4,774,735,236.60 | 27.1x | -26.5x | 6.1x |
| Sun, 04 Feb 2024 | CA$126.2b | CA$19.9b | -CA$3,969,426,293.00 | 26.2x | -31.8x | 6.3x |
| Tue, 02 Jan 2024 | CA$115.5b | CA$19.7b | -CA$4,013,308,748.00 | 26.8x | -28.8x | 5.9x |
| Thu, 30 Nov 2023 | CA$111.7b | CA$20.1b | -CA$4,138,175,544.00 | 43.9x | -27x | 5.5x |
| Sat, 28 Oct 2023 | CA$95.8b | CA$19.7b | -CA$4,245,093,570.00 | 52.2x | -22.6x | 4.9x |
| Mon, 25 Sep 2023 | CA$98.7b | CA$19.3b | -CA$4,158,696,173.00 | 53.8x | -23.7x | 5.1x |
| Wed, 23 Aug 2023 | CA$100.7b | CA$19.4b | -CA$4,146,702,769.00 | 57.1x | -24.3x | 5.2x |
| Fri, 21 Jul 2023 | CA$104.4b | CA$18.1b | -CA$3,850,763,874.00 | 72.5x | -27.1x | 5.8x |
| Sun, 18 Jun 2023 | CA$101.1b | CA$17.9b | -CA$3,941,432,126.00 | 71.8x | -25.7x | 5.7x |
Price to Earnings Ratio
-25.7x
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 124x which is lower than its 3-year average PE of 152x.
- The 3-year average PS ratio of 5.7x is higher than the industry's current PS ratio of 4.1x.
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 16% 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 | -2.46% | |
| Tech | -8.89% | |
| Software | -1.97% | |
| Application Software | -0.99% | |
| Systems Software | -12.06% | |
Industry PE
- Investors are most optimistic about the Systems Software industry which is trading above its 3-year average PE ratio of 102x.
- 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 Application Software industry, expecting annual earnings growth of 19% over the next 5 years.
- This is better than its past earnings decline of 11% 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 | |
|---|---|---|---|---|---|
| CSU Constellation Software | CA$3.14k | 14.3% +CA$8.3b | -35.9% | PE64.3x | |
| TOI Topicus.com | CA$106.40 | 4.6% +CA$392.5m | -38.1% | PE176.8x | |
| LMN Lumine Group | CA$23.29 | 4.4% +CA$254.1m | -50.1% | PE36.6x | |
| KXS Kinaxis | CA$164.00 | 1.8% +CA$79.0m | -17.9% | PE38x | |
| DCBO Docebo | CA$25.42 | 9.4% +CA$55.6m | -32.5% | PE13.4x |