company background image
ALYA

Alithya GroupTSX:ALYA Stock Report

Market Cap

CA$272.6m

7D

-5.6%

1Y

11.8%

Updated

28 Sep, 2021

Data

Company Financials +
ALYA fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance0/6
Financial Health4/6
Dividends0/6

ALYA Overview

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

Alithya Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Alithya Group
Historical stock prices
Current Share PriceCA$3.23
52 Week HighCA$2.53
52 Week LowCA$6.91
Beta0.98
1 Month Change-8.76%
3 Month Change-7.71%
1 Year Change11.77%
3 Year Changen/a
5 Year Changen/a
Change since IPO-44.50%

Recent News & Updates

Shareholder Returns

ALYACA ITCA Market
7D-5.6%-2.4%1.8%
1Y11.8%77.7%29.7%

Return vs Industry: ALYA underperformed the Canadian IT industry which returned 77.7% over the past year.

Return vs Market: ALYA underperformed the Canadian Market which returned 29.7% over the past year.

Price Volatility

Is ALYA's price volatile compared to industry and market?
ALYA volatility
ALYA Beta0.98
Industry Beta1.2
Market Beta1

Stable Share Price: ALYA is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ALYA's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19923,300Paul Raymondhttps://www.alithya.com

Alithya Group Inc. provides strategy and digital technology services in Canada, the United States, and Europe. The company’s business strategy services include strategic consulting, digital transformation, organizational performance, and enterprise architecture services. It also provides application services, such as digital applications DevOps, legacy systems modernization, control and software engineering, cloud infrastructure, quality assurance, and automated testing; enterprise solutions comprising enterprise resource planning, corporate performance management, customer relationship management, and human capital management; and data and analytics solutions, including business intelligence, data management, artificial intelligence (AI), and machine learning, as well as internet of things.

Alithya Group Fundamentals Summary

How do Alithya Group's earnings and revenue compare to its market cap?
ALYA fundamental statistics
Market CapCA$272.60m
Earnings (TTM)-CA$14.84m
Revenue (TTM)CA$319.85m

0.8x

P/S Ratio

-18.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ALYA income statement (TTM)
RevenueCA$319.85m
Cost of RevenueCA$228.90m
Gross ProfitCA$90.95m
ExpensesCA$105.80m
Earnings-CA$14.84m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.18
Gross Margin28.44%
Net Profit Margin-4.64%
Debt/Equity Ratio33.4%

How did ALYA perform over the long term?

See historical performance and comparison

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ALYA (CA$3.23) is trading below our estimate of fair value (CA$11.27)

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 Canadian 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 (4.7x).


Future Growth

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

135.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALYA is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: ALYA is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: ALYA is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: ALYA's revenue (13% per year) is forecast to grow faster than the Canadian market (6.1% per year).

High Growth Revenue: ALYA's revenue (13% 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


Past Performance

How has Alithya Group performed over the past 5 years?

-43.6%

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 43.6% 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 (28%).


Return on Equity

High ROE: ALYA has a negative Return on Equity (-7.94%), as it is currently unprofitable.


Financial Health

How is Alithya Group's financial position?


Financial Position Analysis

Short Term Liabilities: ALYA's short term assets (CA$119.5M) do not cover its short term liabilities (CA$140.8M).

Long Term Liabilities: ALYA's short term assets (CA$119.5M) exceed its long term liabilities (CA$38.0M).


Debt to Equity History and Analysis

Debt Level: ALYA's debt to equity ratio (33.4%) is considered satisfactory.

Reducing Debt: ALYA's debt to equity ratio has reduced from 55.7% to 33.4% over the past 5 years.


Balance Sheet


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.


Dividend

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


Dividend Yield vs Market

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

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

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Paul Raymond (57 yo)

9.42yrs

Tenure

CA$996,217

Compensation

Mr. Paul Raymond has been Chief Executive Officer of Alithya Group Inc. since April 2012, President since April 2011 and served as its Chief Operating Officer from April 2011 to March 2012. Mr. Raymond ove...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD785.07K) is above average for companies of similar size in the Canadian market ($USD512.06K).

Compensation vs Earnings: Paul's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: ALYA's management team is considered experienced (3.7 years average tenure).


Board Members

Experienced Board: ALYA's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 44.4%.


Top Shareholders

Company Information

Alithya Group Inc.'s 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$272.604m
  • Shares outstanding: 83.88m
  • Website: https://www.alithya.com

Number of Employees


Location

  • Alithya Group Inc.
  • 2 Sheppard Avenue East
  • Suite 1200
  • Toronto
  • Ontario
  • M2N 5Y7
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/28 23:24
End of Day Share Price2021/09/28 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


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.