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Canadian (TSX) IT Industry Analysis

UpdatedMay 09, 2024
DataAggregated Company Financials
Companies11
  • 7D4.0%
  • 3M-6.7%
  • 1Y4.7%
  • YTD3.5%

In the last week, the IT industry is up 1.5%, with CGI up 1.4%. In the same time, Martello Technologies Group was down 25%. This means that the industry has gained 4.3% over the past year. Earnings are forecast to grow by 12% annually.

Industry Valuation and Performance

Has the Canadian IT Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 09 May 2024CA$33.7bCA$17.8bCA$1.6b6.3x21.5x1.9x
Sat, 06 Apr 2024CA$34.7bCA$17.8bCA$1.5b6.3x22.8x1.9x
Mon, 04 Mar 2024CA$37.6bCA$17.8bCA$1.5b11.5x24.8x2.1x
Wed, 31 Jan 2024CA$35.7bCA$17.7bCA$1.5b11.1x24.6x2x
Fri, 29 Dec 2023CA$34.1bCA$17.7bCA$1.5b10.4x23.5x1.9x
Sun, 26 Nov 2023CA$33.2bCA$17.7bCA$1.5b10.2x22.8x1.9x
Tue, 24 Oct 2023CA$32.5bCA$17.3bCA$1.4b34.1x22.8x1.9x
Thu, 21 Sep 2023CA$33.3bCA$17.3bCA$1.4b35.6x23.3x1.9x
Sat, 19 Aug 2023CA$32.4bCA$17.3bCA$1.4b32.4x22.7x1.9x
Mon, 17 Jul 2023CA$34.2bCA$16.8bCA$1.4b23.7x24.4x2x
Wed, 14 Jun 2023CA$33.7bCA$16.9bCA$1.4b23.2x24.3x2x
Fri, 12 May 2023CA$33.5bCA$16.9bCA$1.4b23.5x24x2x
Sun, 09 Apr 2023CA$31.7bCA$16.2bCA$1.4b24.2x22.7x1.9x
Tue, 07 Mar 2023CA$37.6bCA$17.6bCA$1.4b30.8x26.5x2.1x
Thu, 02 Feb 2023CA$37.1bCA$17.3bCA$1.4b34.9x26.9x2.1x
Sat, 31 Dec 2022CA$34.3bCA$17.3bCA$1.4b24.6x25.1x2x
Mon, 28 Nov 2022CA$34.5bCA$17.3bCA$1.4b23.5x24.7x2x
Wed, 26 Oct 2022CA$33.2bCA$16.8bCA$1.4b36.3x24.5x2x
Fri, 23 Sep 2022CA$31.3bCA$16.7bCA$1.4b34.6x23x1.9x
Sun, 21 Aug 2022CA$33.6bCA$16.7bCA$1.4b44.8x24.7x2x
Tue, 19 Jul 2022CA$33.2bCA$16.1bCA$1.3b52.8x25.4x2.1x
Thu, 16 Jun 2022CA$33.5bCA$16.1bCA$1.3b69.5x25.5x2.1x
Sat, 14 May 2022CA$36.2bCA$16.1bCA$1.4b17.5x25.8x2.3x
Mon, 11 Apr 2022CA$40.3bCA$15.5bCA$1.4b17.7x28.9x2.6x
Wed, 09 Mar 2022CA$37.2bCA$15.1bCA$1.4b34.8x26.4x2.5x
Fri, 04 Feb 2022CA$40.5bCA$15.0bCA$1.4b34.7x28.4x2.7x
Sun, 02 Jan 2022CA$42.7bCA$14.9bCA$1.4b13.9x30.2x2.9x
Tue, 30 Nov 2021CA$47.0bCA$14.9bCA$1.4b19.1x33.2x3.2x
Thu, 28 Oct 2021CA$55.4bCA$14.5bCA$1.1b42.1x51x3.8x
Sat, 25 Sep 2021CA$55.9bCA$14.5bCA$1.1b45.6x51.6x3.8x
Mon, 23 Aug 2021CA$54.3bCA$14.5bCA$1.1b52.6x50.4x3.7x
Sat, 10 Jul 2021CA$48.9bCA$14.5bCA$1.1b45.6x45.4x3.4x
Price to Earnings Ratio

47.2x


Total Market Cap: CA$46.0bTotal Earnings: CA$975.7mTotal Revenue: CA$14.3bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian IT Industry Price to Earnings3Y Average 28.9x202220232024
Current Industry PE
  • Investors are pessimistic on the Canadian IT 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 21.5x which is lower than its 3-year average PE of 28.9x.
  • The 3-year average PS ratio of 2.4x is higher than the industry's current PS ratio of 1.9x.
Past Earnings Growth
  • The earnings for companies in the IT industry have grown 17% per year over the last three years.
  • Revenues for these companies have grown 7.7% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the Canadian Tech industry?

CA Market3.09%
Tech3.86%
IT3.97%
Internet Services and Infrastructure4.83%
IT Consulting3.97%
Data Processing Services0%
Industry PE
  • Investors are most optimistic about the IT Consulting industry, which is trading close to its 3-year average PE ratio of 21.4x.
    • Analysts are expecting annual earnings growth of 11.6%, which is higher than its past year's earnings growth of 7.7% per year.
Forecasted Growth
  • Analysts are most optimistic on the IT Consulting industry, expecting annual earnings growth of 12% over the next 5 years.
  • This is better than its past earnings growth rate of 7.7% per year.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 12% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
GIB.A CGICA$141.963.8%
+CA$1.2b		3.3%PE19.7x
CTS Converge Technology SolutionsCA$5.738.9%
+CA$95.0m		111.4%PS0.4x
MTLO Martello Technologies GroupCA$0.0233.3%
+CA$2.7m		-20.0%PS0.7x
DM Datametrex AICA$0.0233.3%
+CA$2.3m		-71.4%PS1.1x
ALYA Alithya GroupCA$2.130.5%
+CA$954.2k		-15.6%PS0.4x
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