Converge Technology Solutions Corp.

TSX:CTS Stock Report

Market Cap: CA$629.4m

Converge Technology Solutions Valuation

Is CTS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CTS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CTS (CA$3.26) is trading below our estimate of fair value (CA$12.12)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CTS?

Key metric: As CTS is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for CTS. This is calculated by dividing CTS's market cap by their current revenue.
What is CTS's PS Ratio?
PS Ratio0.2x
SalesCA$2.56b
Market CapCA$629.40m

Price to Sales Ratio vs Peers

How does CTS's PS Ratio compare to its peers?

The above table shows the PS ratio for CTS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.6x
ALYA Alithya Group
0.4x3.4%CA$170.0m
PVT Pivotree
0.3x-3.7%CA$20.3m
GIB.A CGI
2.4x4.6%CA$35.7b
CVO Coveo Solutions
3.5x11.4%CA$659.2m
CTS Converge Technology Solutions
0.2x1.4%CA$629.4m

Price-To-Sales vs Peers: CTS is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (1.6x).

Price to Sales Ratio vs Industry

How does CTS's PS Ratio compare vs other companies in the North American IT Industry?

33 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.2.5x9.7%
CTS Converge Technology Solutions
 0.2x1.4%US$437.54m
CTS 0.2xIndustry Avg. 2.5xNo. of Companies33PS02.44.87.29.612+
33 CompaniesEstimated GrowthMarket Cap
Industry Avg.2.5x14.1%
CTS Converge Technology Solutions
 0.2x136.4%US$437.54m
No more companies

Price-To-Sales vs Industry: CTS is good value based on its Price-To-Sales Ratio (0.2x) compared to the North American IT industry average (2.5x).

Price to Sales Ratio vs Fair Ratio

What is CTS's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CTS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.2x
Fair PS Ratio1.3x

Price-To-Sales vs Fair Ratio: CTS is good value based on its Price-To-Sales Ratio (0.2x) compared to the estimated Fair Price-To-Sales Ratio (1.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst CTS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$3.26
CA$5.04
+54.6%
16.5%CA$6.50CA$4.00n/a11
Dec ’25CA$3.36
CA$5.04
+50.0%
16.5%CA$6.50CA$4.00n/a11
Nov ’25CA$2.99
CA$5.77
+92.9%
25.3%CA$9.00CA$4.00n/a11
Oct ’25CA$4.57
CA$6.55
+43.2%
18.2%CA$9.00CA$4.50n/a11
Sep ’25CA$4.53
CA$6.55
+44.5%
18.2%CA$9.00CA$4.50n/a11
Aug ’25CA$4.16
CA$6.89
+65.5%
14.5%CA$9.00CA$5.00n/a11
Jul ’25CA$4.30
CA$6.85
+59.4%
14.0%CA$9.00CA$5.00n/a12
Jun ’25CA$4.71
CA$6.89
+46.2%
14.5%CA$9.00CA$5.00n/a11
May ’25CA$5.26
CA$6.77
+28.8%
15.5%CA$9.00CA$5.00n/a11
Apr ’25CA$5.65
CA$6.75
+19.5%
15.7%CA$9.00CA$5.00n/a11
Mar ’25CA$5.10
CA$5.89
+15.5%
15.6%CA$7.25CA$4.25n/a11
Feb ’25CA$4.74
CA$5.89
+24.3%
15.6%CA$7.25CA$4.25n/a11
Jan ’25CA$4.14
CA$5.72
+38.1%
18.0%CA$7.25CA$4.00n/a11
Dec ’24CA$4.05
CA$5.72
+41.2%
18.0%CA$7.25CA$4.00CA$3.3611
Nov ’24CA$2.74
CA$5.33
+94.6%
25.3%CA$7.25CA$3.00CA$2.9911
Oct ’24CA$2.78
CA$5.33
+91.8%
25.3%CA$7.25CA$3.00CA$4.5711
Sep ’24CA$2.84
CA$5.33
+87.7%
25.3%CA$7.25CA$3.00CA$4.5311
Aug ’24CA$3.17
CA$5.84
+84.3%
22.2%CA$7.75CA$3.00CA$4.1611
Jul ’24CA$3.20
CA$5.84
+82.5%
22.2%CA$7.75CA$3.00CA$4.3011
Jun ’24CA$3.72
CA$5.79
+55.6%
22.3%CA$7.75CA$3.00CA$4.7113
May ’24CA$3.29
CA$7.52
+128.5%
15.9%CA$10.00CA$5.25CA$5.2613
Apr ’24CA$4.08
CA$7.52
+84.3%
15.9%CA$10.00CA$5.25CA$5.6513
Mar ’24CA$4.52
CA$8.02
+77.4%
15.7%CA$10.00CA$5.25CA$5.1013
Feb ’24CA$5.75
CA$8.71
+51.5%
16.8%CA$10.50CA$5.25CA$4.7413
Jan ’24CA$4.59
CA$8.77
+91.0%
16.3%CA$10.50CA$5.25CA$4.1414
Dec ’23CA$5.05
CA$9.21
+82.5%
19.1%CA$14.00CA$6.50CA$4.0514

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/24 22:05
End of Day Share Price 2024/12/24 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Converge Technology Solutions Corp. is covered by 19 analysts. 11 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Benjamin MayBerenberg
Deepak KaushalBMO Capital Markets Equity Research
Robert YoungCanaccord Genuity