Growing profitability along with rising revenue from the Canadian tech stocks on our list indicates consistent performance of the business keeping costs under control
SmallCapPower | September 19, 2017: Today we have identified four Canadian tech stocks with the best five-year revenue and EPS growth. Tech companies are usually able to drive higher revenue growth but struggle to convert much of their topline into profits. Hence, growing profitability along with revenue growth indicates consistent performance of the business keeping the costs under control. Companies with revenue and EPS growth over a five-year period, such as the ones on our list today, are the firms investors might want to investigate further.
Pioneering Technology Corporation (TSXV: PTE)
Pioneering Technology is a smart energy technology and consumer goods company. The Company engages in the development, manufacturing and sale of products, which offer consumer convenience and safety. The Company’s primary business is focused on cooking fire prevention and also enables end-users manage energy consumption. Pioneering Technology offers a range of products that provide cooking fire prevention solutions for both the residential and commercial market.
- Market Cap: $55.2 million
- 5 year revenue growth: 25.0%
- 5 year EPS growth: 174.7%
Pacific Insight Electronics Corp. (TSX: PIH)
Pacific Insight Electronics is an electronic solutions provider to the automotive, commercial and specialty vehicle markets. The Company provides planning, design and manufacture of electronic solutions for the transportation industry. Pacific Insight Electronics sells its products and services to original equipment manufacturers (OEMs) and distributors in the United States, Canada and various other countries.
- Market Cap: $129.6 million
- 5 year revenue growth: 31.1%
- 5 year EPS growth: 120.3%
Open Text Corporation (TSX: OTEX)
Open Text is a developer of software products and services that assist organizations in finding, utilizing and sharing business information from any device. The Company designs, develops, markets and sells Enterprise Information Management (EIM) software and solutions. Its EIM offerings include Enterprise Content Management (ECM), Business Process Management (BPM), Customer Experience Management (CEM), Business Network, Discovery and Analytics. Its solutions incorporate collaborative and mobile technologies and are delivered for on-premises deployment, as well as through cloud, hybrid and managed hosted services models.
- Market Cap: $10.4 billion
- 5 year revenue growth: 13.7%
- 5 year EPS growth: 49.7%
Sylogist Ltd. (TSXV: SYZ)
Sylogist provides intellectual property solutions to public and private sector companies. The Company operates through two segments: the Public Sector division and Private Sector division. The Public Sector division develops software and provides implementation services to the public sector market consisting of local governments, school districts, and regional utility authorities, non-profit and non-governmental organizations. The Private Sector division develops software and hardware solutions for data collection and operations management, which provides the private sector customers with the capability of having mobile devices interact directly with data collection systems and enterprise resource planning (ERP) systems.
- Market Cap: $199.1 million
- 5 year revenue growth: 29.5%
- 5 year EPS growth: 25.4%
Disclosure: Neither the author nor any of the principals at SmallCapPower, or their family members, own shares in any of the companies mentioned above.
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