What You Can Learn From The Descartes Systems Group Inc.'s (TSE:DSG) P/E
May 08
Canadian (TSX) Tech Sector Analysis
UpdatedMay 08, 2024
DataAggregated Company Financials
Companies131
- 7D4.0%
- 3M2.3%
- 1Y27.6%
- YTD12.6%
The Tech industry is up 4.0% in the last week, with Constellation Software up 6.0%. Meanwhile, Kinaxis actually underperformed within the industry, shrinking 5.4% in the last week. In the last 12 months, the industry was up 28%. Looking forward, earnings are forecast to grow by 15% annually.
Sector Valuation and Performance
Has the Canadian Tech Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 09 May 2024 | CA$176.4b | CA$53.1b | -CA$1,561,179,088.97 | 24.4x | -113x | 3.3x |
| Sat, 06 Apr 2024 | CA$172.6b | CA$52.4b | -CA$2,348,848,764.75 | 21.6x | -73.5x | 3.3x |
| Mon, 04 Mar 2024 | CA$175.6b | CA$51.5b | -CA$876,631,685.42 | 20.2x | -200.3x | 3.4x |
| Wed, 31 Jan 2024 | CA$172.1b | CA$52.1b | -CA$2,170,300,479.00 | 20.2x | -79.3x | 3.3x |
| Fri, 29 Dec 2023 | CA$160.9b | CA$51.7b | -CA$2,298,352,895.00 | 20.9x | -70x | 3.1x |
| Sun, 26 Nov 2023 | CA$153.1b | CA$52.5b | -CA$2,463,785,109.00 | 22.6x | -62.1x | 2.9x |
| Tue, 24 Oct 2023 | CA$140.4b | CA$51.4b | -CA$2,576,772,736.00 | 21.9x | -54.5x | 2.7x |
| Thu, 21 Sep 2023 | CA$143.6b | CA$50.9b | -CA$2,636,773,442.00 | 24.4x | -54.4x | 2.8x |
| Sat, 19 Aug 2023 | CA$140.6b | CA$51.2b | -CA$2,664,966,329.00 | 22.5x | -52.7x | 2.7x |
| Mon, 17 Jul 2023 | CA$145.1b | CA$48.8b | -CA$2,347,699,650.00 | 21.6x | -61.8x | 3x |
| Wed, 14 Jun 2023 | CA$143.0b | CA$48.7b | -CA$2,635,787,164.00 | 22.1x | -54.2x | 2.9x |
| Fri, 12 May 2023 | CA$138.5b | CA$48.2b | -CA$1,984,146,658.00 | 22.1x | -69.8x | 2.9x |
| Sun, 09 Apr 2023 | CA$135.2b | CA$47.0b | -CA$1,971,201,783.00 | 27x | -68.6x | 2.9x |
| Tue, 07 Mar 2023 | CA$133.4b | CA$48.1b | -CA$1,109,997,495.00 | 25.2x | -120.2x | 2.8x |
| Thu, 02 Feb 2023 | CA$134.6b | CA$46.9b | CA$641.0m | 23.6x | 210x | 2.9x |
| Sat, 31 Dec 2022 | CA$121.0b | CA$46.6b | CA$629.1m | 22.3x | 192.3x | 2.6x |
| Mon, 28 Nov 2022 | CA$120.7b | CA$46.2b | CA$794.5m | 22x | 151.9x | 2.6x |
| Wed, 26 Oct 2022 | CA$117.4b | CA$45.2b | CA$939.0m | 31.3x | 125x | 2.6x |
| Fri, 23 Sep 2022 | CA$112.9b | CA$44.3b | CA$929.6m | 41.1x | 121.4x | 2.5x |
| Sun, 21 Aug 2022 | CA$125.5b | CA$43.3b | CA$951.7m | 44.8x | 131.9x | 2.9x |
| Tue, 19 Jul 2022 | CA$116.4b | CA$41.4b | CA$1.7b | 45.3x | 66.6x | 2.8x |
| Thu, 16 Jun 2022 | CA$114.1b | CA$41.2b | CA$2.0b | 55.6x | 58x | 2.8x |
| Sat, 14 May 2022 | CA$121.6b | CA$41.4b | CA$1.6b | 37.4x | 77.1x | 2.9x |
| Mon, 11 Apr 2022 | CA$143.0b | CA$39.0b | -CA$1,467,764,059.00 | 43.7x | -97.4x | 3.7x |
| Wed, 09 Mar 2022 | CA$133.9b | CA$38.5b | -CA$1,921,862,368.00 | 36.1x | -69.7x | 3.5x |
| Fri, 04 Feb 2022 | CA$138.8b | CA$37.2b | -CA$1,996,140,454.00 | 42.7x | -69.5x | 3.7x |
| Sun, 02 Jan 2022 | CA$157.5b | CA$36.8b | -CA$2,030,878,930.00 | 33.7x | -77.6x | 4.3x |
| Tue, 30 Nov 2021 | CA$165.1b | CA$36.9b | -CA$2,233,307,874.00 | 33.1x | -73.9x | 4.5x |
| Thu, 28 Oct 2021 | CA$179.9b | CA$35.5b | -CA$2,473,309,216.00 | 37.2x | -72.7x | 5.1x |
| Sat, 25 Sep 2021 | CA$185.3b | CA$36.1b | -CA$2,422,595,349.00 | 42.1x | -76.5x | 5.1x |
| Mon, 23 Aug 2021 | CA$175.0b | CA$35.2b | -CA$2,335,567,095.77 | 39.5x | -74.9x | 5x |
| Sat, 10 Jul 2021 | CA$154.9b | CA$35.0b | -CA$2,344,443,971.70 | 40.8x | -66.1x | 4.4x |
Price to Earnings Ratio
294.3x
Current Industry PE
- Investors are pessimistic on the Canadian Information Technology industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The 3-year average PS ratio of 3.7x is higher than the industry's current PS ratio of 3.3x.
Past Earnings Growth
- Total earnings for the Information Technology industry have declined over the last three years, with the industry now making a loss overall.
- Meanwhile revenues have grown 18% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the Canadian Tech sector?
| CA Market | 2.53% | |
| Tech | 3.95% | |
| Electronic Equipment and Components | 8.62% | |
| Software | 4.41% | |
| IT | 1.49% | |
| Tech Hardware | 0% | |
| Communications | -1.53% | |
| Semiconductors | -19.98% | |
Industry PE
- Investors are most optimistic about the Communications industry which is trading above its 3-year average PE ratio of 31.9x.
- Analysts are expecting annual earnings growth of 50.3%, which is higher than its past year's earnings growth of 4.2% per year.
Forecasted Growth
- Analysts are most optimistic on the Communications industry, expecting annual earnings growth of 50% over the next 5 years.
- This is better than its past earnings growth rate of 4.2% per year.
- In contrast, the Electronic Equipment and Components industry is expected to see its earnings grow by 7.5% 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$3.82k | 5.6% +CA$4.3b | 45.0% | PE104.3x | |
| GIB.A CGI | CA$141.96 | 3.8% +CA$1.2b | 3.3% | PE19.7x | |
| CLS Celestica | CA$67.86 | 13.4% +CA$952.8m | 364.5% | PE18.3x | |
| DSG Descartes Systems Group | CA$134.02 | 2.7% +CA$327.4m | 27.9% | PE71.9x | |
| CTS Converge Technology Solutions | CA$5.73 | 8.9% +CA$95.0m | 111.4% | PS0.4x |
