TSX:ALYA

Stock Analysis Report

Executive Summary

Alithya Group Inc. provides strategy and digital technology services in Canada, the United States, and Europe.


Snowflake Analysis

Adequate balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Alithya Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ALYA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.3%

ALYA

0.7%

CA IT

0.8%

CA Market


1 Year Return

-8.7%

ALYA

29.2%

CA IT

10.6%

CA Market

Return vs Industry: ALYA underperformed the Canadian IT industry which returned 28.6% over the past year.

Return vs Market: ALYA underperformed the Canadian Market which returned 10.4% over the past year.


Shareholder returns

ALYAIndustryMarket
7 Day-4.3%0.7%0.8%
30 Day-5.8%2.7%2.1%
90 Day-0.8%10.5%6.6%
1 Year-8.7%-8.7%29.2%29.2%14.1%10.6%
3 Yearn/a75.3%75.1%17.0%6.4%
5 Yearn/a132.2%131.6%38.5%18.2%

Price Volatility Vs. Market

How volatile is Alithya Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Alithya Group undervalued compared to its fair value and its price relative to the market?

41.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ALYA (CA$3.72) is trading below our estimate of fair value (CA$6.27)

Significantly Below Fair Value: ALYA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ALYA is unprofitable, so we can't compare its PE Ratio to the IT industry average.

PE vs Market: ALYA is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ALYA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ALYA is good value based on its PB Ratio (1.4x) compared to the CA IT industry average (2.2x).


Next Steps

Future Growth

How is Alithya Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

191.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALYA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.4%).

Earnings vs Market: ALYA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ALYA's is expected to become profitable in the next 3 years.

Revenue vs Market: ALYA's revenue (10% per year) is forecast to grow faster than the Canadian market (5% per year).

High Growth Revenue: ALYA's revenue (10% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ALYA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Alithya Group performed over the past 5 years?

-27.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALYA is currently unprofitable.

Growing Profit Margin: ALYA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ALYA is unprofitable, and losses have increased over the past 5 years at a rate of -27.7% per year.

Accelerating Growth: Unable to compare ALYA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ALYA is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (15.4%).


Return on Equity

High ROE: ALYA has a negative Return on Equity (-8.16%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Alithya Group's financial position?


Financial Position Analysis

Short Term Liabilities: ALYA's short term assets (CA$93.4M) exceed its short term liabilities (CA$50.8M).

Long Term Liabilities: ALYA's short term assets (CA$93.4M) exceed its long term liabilities (CA$41.5M).


Debt to Equity History and Analysis

Debt Level: ALYA's debt to equity ratio (19.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if ALYA's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: ALYA has a low level of unsold assets or inventory.

Debt Coverage by Assets: ALYA's debt is covered by short term assets (assets are 3.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ALYA has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if ALYA has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Alithya Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.5%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate ALYA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ALYA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ALYA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ALYA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ALYA's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

What is the CEO of Alithya Group's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Paul Raymond (55yo)

1.2yrs

Tenure

CA$1,075,855

Compensation

Mr. Paul Raymond has been Chief Executive Officer and President of Alithya Group Inc since November 1, 2018. Mr. Raymond oversees the growth and operation of Groupe Alithis Inc worldwide. He many years of  ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD823.45K) is about average for companies of similar size in the Canadian market ($USD672.22K).

Compensation vs Earnings: Insufficient data to compare Paul's compensation with company performance.


Management Age and Tenure

1.3yrs

Average Tenure

54yo

Average Age

Experienced Management: ALYA's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

1.2yrs

Average Tenure

58.5yo

Average Age

Experienced Board: ALYA's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: ALYA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$48,75930 Dec 19
Robert Lamarre
EntityIndividual
Role
Chief Information Officer
Senior VP & Chief Information Officer
Shares12,730
Max PriceCA$3.84
BuyCA$9,62124 Dec 19
C. Thomas
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceCA$3.87
BuyCA$38,77324 Dec 19
James Renacci
EntityIndividual
Shares10,000
Max PriceCA$3.90
BuyCA$29,00223 Dec 19
C. Thomas
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,500
Max PriceCA$3.88
BuyCA$28,98921 Aug 19
C. Thomas
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceCA$2.95
BuyCA$16,64520 Aug 19
C. Thomas
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,000
Max PriceCA$2.84
BuyCA$44,64916 Aug 19
Claude Thibault
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares12,300
Max PriceCA$3.63
BuyCA$37,11626 Jun 19
Pierre Turcotte
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares9,500
Max PriceCA$3.94
BuyCA$199,74425 Jun 19
Paul Raymond
EntityIndividual
Role
Chief Executive Officer
President
Shares51,800
Max PriceCA$3.93
BuyCA$69,00125 Jun 19
Claude Thibault
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares17,750
Max PriceCA$3.95
BuyCA$195,98825 Jun 19
Pierre Turcotte
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares50,000
Max PriceCA$4.00

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 154.4%.


Management Team

  • Claude Thibault (54yo)

    Senior VP & CFO

    • Tenure: 1.4yrs
    • Compensation: CA$461.80k
  • Claude Rousseau (57yo)

    Senior VP & COO

    • Tenure: 3.1yrs
    • Compensation: CA$746.83k
  • Paul Raymond (55yo)

    President

    • Tenure: 1.2yrs
    • Compensation: CA$1.08m
  • Gladys Caron

    Vice President of Communications & Investor Relations

    • Russell Smith (52yo)

      President of Alithya US

      • Tenure: 1.2yrs
      • Compensation: CA$1.39m
    • Dany Paradis

      Senior Vice President of Quebec

      • Natalie Piccinin (54yo)

        Senior Vice President of Human Capital

        • Tenure: 1yrs
      • Robert Lamarre (54yo)

        Senior VP & Chief Information Officer

        • Compensation: CA$428.91k
      • Nigel Fonseca

        Senior Vice President of Ontario & Western Canada

        • Nathalie Forcier (43yo)

          Senior VP

          • Tenure: 2yrs

        Board Members

        • Robert Comeau (58yo)

          Lead Director

          • Tenure: 0.5yrs
          • Compensation: CA$45.83k
        • Pierre Turcotte (60yo)

          Chairman of the Board

          • Compensation: CA$54.17k
        • Paul Raymond (55yo)

          President

          • Tenure: 1.2yrs
          • Compensation: CA$1.08m
        • Fred DiSanto (57yo)

          Independent Director

          • Tenure: 1.2yrs
          • Compensation: CA$31.25k
        • Dana Ades-Landy (60yo)

          Independent Director

          • Tenure: 3.2yrs
          • Compensation: CA$35.42k
        • Lucie Martel (58yo)

          Independent Director

          • Tenure: 0.3yrs
        • Ghyslain Rivard (59yo)

          Independent Director

          • Tenure: 27.8yrs
          • Compensation: CA$39.58k
        • C. Thomas (65yo)

          Independent Director

          • Tenure: 1.2yrs
          • Compensation: CA$35.42k
        • James Renacci

          Director

          • Tenure: 0.08yrs

        Company Information

        Alithya Group Inc.'s company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Alithya Group Inc.
        • Ticker: ALYA
        • Exchange: TSX
        • Founded: 1992
        • Industry: IT Consulting and Other Services
        • Sector: Software
        • Market Cap: CA$204.519m
        • Shares outstanding: 57.45m
        • Website: https://www.alithya.com

        Number of Employees


        Location

        • Alithya Group Inc.
        • 700, De la Gauchetière Street West
        • Suite 2400
        • Montreal
        • Quebec
        • H3B 5M2
        • Canada

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        ALYANasdaqCM (Nasdaq Capital Market)YesClass A Subordinate Voting SharesUSUSDNov 2018
        ALYATSX (The Toronto Stock Exchange)YesClass A Subordinate Voting SharesCACADNov 2018

        Biography

        Alithya Group Inc. provides strategy and digital technology services in Canada, the United States, and Europe. The company’s digital strategy and transformation services include strategic consulting and organizational change, governance and strategic alignment, investment management, collaborative management and co-management, business and enterprise architecture, managing the people side of change, and project management. It also provides enterprise and business architecture, business analysis and architecture, information systems architecture, and technology architecture services. In addition, the company offers project management, project execution, change and transition management, integrated portfolio, and project management solutions; and infrastructure management services, including IT management, business report, infrastructure health check and audit, technology component design and documentation, technology implementation, infrastructure upgrade, repair and optimization, operation of physical and virtual, SAN, and network infrastructure. Further, it provides code and system audits, strategic positioning, applications health check, organic architecture, development and programming, solutions integration, system evolution, design and ergonomics, user experience, security and mobility, establishment of methodologies and tools, and remote development services, as well as various solutions. It serves banking, financial markets and insurance, manufacturing, retail and distribution, energy, transportation, telecommunications, healthcare, professional services, and public sector clients. The company was founded in 1992 and is based in Montreal, Canada. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/23 01:20
        End of Day Share Price2020/01/22 00:00
        Earnings2019/09/30
        Annual Earnings2019/03/31


        Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.