What You Can Learn From The Descartes Systems Group Inc.'s (TSE:DSG) P/E
May 08
Canadian (TSX) Software Industry Analysis
UpdatedMay 09, 2024
DataAggregated Company Financials
Companies92
- 7D3.4%
- 3M4.3%
- 1Y31.0%
- YTD13.9%
The Software industry is up 3.4% in the last week, with Constellation Software up 5.6%. In the same time, Kinaxis was down 5.4%. This takes the industry's 12 month performance to a gain of 31%. Looking forward, earnings are forecast to grow by 16% annually.
Industry Valuation and Performance
Has the Canadian Software Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 09 May 2024 | CA$130.9b | CA$20.9b | -CA$3,585,721,112.51 | 47.8x | -36.5x | 6.3x |
| Sat, 06 Apr 2024 | CA$126.0b | CA$20.8b | -CA$4,215,476,494.81 | 23.1x | -29.9x | 6.1x |
| Mon, 04 Mar 2024 | CA$126.8b | CA$19.9b | -CA$2,775,860,333.02 | 24.9x | -45.7x | 6.4x |
| Wed, 31 Jan 2024 | CA$125.8b | CA$19.8b | -CA$3,951,408,355.00 | 26.9x | -31.8x | 6.3x |
| Fri, 29 Dec 2023 | CA$117.0b | CA$19.7b | -CA$4,017,474,391.00 | 26.9x | -29.1x | 5.9x |
| Sun, 26 Nov 2023 | CA$110.3b | CA$20.2b | -CA$4,183,921,716.00 | 43.1x | -26.4x | 5.5x |
| Tue, 24 Oct 2023 | CA$98.4b | CA$19.5b | -CA$4,200,599,789.00 | 54.1x | -23.4x | 5.1x |
| Thu, 21 Sep 2023 | CA$101.3b | CA$19.2b | -CA$4,156,025,612.00 | 54.8x | -24.4x | 5.3x |
| Sat, 19 Aug 2023 | CA$99.5b | CA$19.4b | -CA$4,146,058,169.00 | 56.2x | -24x | 5.1x |
| Mon, 17 Jul 2023 | CA$102.8b | CA$18.2b | -CA$3,682,304,301.00 | 72.9x | -27.9x | 5.6x |
| Wed, 14 Jun 2023 | CA$101.6b | CA$18.0b | -CA$3,969,753,097.00 | 69.7x | -25.6x | 5.6x |
| Fri, 12 May 2023 | CA$97.7b | CA$17.3b | -CA$3,297,561,430.00 | 65.3x | -29.6x | 5.6x |
| Sun, 09 Apr 2023 | CA$96.0b | CA$17.0b | -CA$3,331,219,099.00 | 46.9x | -28.8x | 5.6x |
| Tue, 07 Mar 2023 | CA$87.9b | CA$16.6b | -CA$2,468,258,883.00 | 41.6x | -35.6x | 5.3x |
| Thu, 02 Feb 2023 | CA$89.6b | CA$16.0b | -CA$665,264,911.00 | 28.2x | -134.8x | 5.6x |
| Sat, 31 Dec 2022 | CA$79.4b | CA$16.3b | -CA$672,894,979.00 | 29.6x | -118x | 4.9x |
| Mon, 28 Nov 2022 | CA$78.9b | CA$16.0b | -CA$526,552,905.00 | 35.9x | -149.8x | 4.9x |
| Wed, 26 Oct 2022 | CA$76.8b | CA$15.4b | -CA$284,863,993.00 | 43.2x | -269.7x | 5x |
| Fri, 23 Sep 2022 | CA$74.2b | CA$15.3b | -CA$422,215,502.00 | 41.1x | -175.7x | 4.8x |
| Sun, 21 Aug 2022 | CA$83.9b | CA$14.8b | -CA$404,978,486.00 | 50.4x | -207.2x | 5.7x |
| Tue, 19 Jul 2022 | CA$75.7b | CA$14.0b | CA$517.5m | 45.3x | 146.2x | 5.4x |
| Thu, 16 Jun 2022 | CA$73.3b | CA$13.9b | CA$736.9m | 56.2x | 99.5x | 5.3x |
| Sat, 14 May 2022 | CA$77.9b | CA$14.3b | CA$244.5m | 44.7x | 318.7x | 5.5x |
| Mon, 11 Apr 2022 | CA$94.1b | CA$13.4b | -CA$2,697,541,680.00 | 47.7x | -34.9x | 7x |
| Wed, 09 Mar 2022 | CA$88.3b | CA$13.0b | -CA$3,135,859,000.00 | 36.1x | -28.2x | 6.8x |
| Fri, 04 Feb 2022 | CA$89.7b | CA$12.1b | -CA$3,240,823,594.00 | 67.7x | -27.7x | 7.4x |
| Sun, 02 Jan 2022 | CA$106.2b | CA$11.9b | -CA$3,235,724,950.00 | 76.7x | -32.8x | 8.9x |
| Tue, 30 Nov 2021 | CA$109.4b | CA$12.0b | -CA$3,458,067,436.00 | 66.8x | -31.6x | 9.1x |
| Thu, 28 Oct 2021 | CA$115.1b | CA$10.9b | -CA$3,421,869,076.00 | 55.7x | -33.6x | 10.5x |
| Sat, 25 Sep 2021 | CA$119.5b | CA$11.1b | -CA$3,367,129,263.00 | 45x | -35.5x | 10.7x |
| Mon, 23 Aug 2021 | CA$111.4b | CA$10.9b | -CA$3,271,006,370.50 | 45.7x | -34x | 10.3x |
| Sat, 10 Jul 2021 | CA$96.9b | CA$10.7b | -CA$3,272,721,025.55 | 63.3x | -29.6x | 9x |
Price to Earnings Ratio
-210.6x
Current Industry PE
- Investors are relatively neutral on the Canadian Software industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PS ratio of 6.6x.
Past Earnings Growth
- The earnings for companies in the Software industry have deteriorated over the last three years.
- Meanwhile revenues for these companies have grown 32% 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 caused losses to expand.
Industry Trends
Which industries have driven the changes within the Canadian Tech industry?
| CA Market | 3.09% | |
| Tech | 3.86% | |
| Software | 3.41% | |
| Application Software | 3.54% | |
| Systems Software | -1.18% | |
Industry PE
Forecasted Growth
- Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 67% over the next 5 years.
- This is better than its past earnings decline of 49% per year.
- In contrast, the Application Software industry is expected to see its earnings grow by 15% 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 | |
| DSG Descartes Systems Group | CA$134.02 | 2.7% +CA$327.4m | 27.9% | PE71.9x | |
| LSPD Lightspeed Commerce | CA$18.68 | 2.8% +CA$76.8m | -4.8% | PS2.4x | |
| DCBO Docebo | CA$63.15 | 2.5% +CA$47.1m | 53.6% | PE492.1x | |
| CMG Computer Modelling Group | CA$11.40 | 4.3% +CA$38.3m | 55.5% | PE38.3x |
