The small-cap Canadian tech stocks we’ve discovered have seen an average return of 6.8% year to date, average three-year revenue growth of 23.6%, and a low debt-to-assets ratio
SmallCapPower | January 14, 2020: Last year, The S&P/TSX Capped Information Technology Index rallied 65%, outperforming the S&P TSX Composite Index, which was up 23%. With the roaring twenties of the 2000s expecting to bring new technologies such as blockchain, 5G, Internet of Things (IOT), Artificial Intelligence, and Quantum Computing to mass adoption, the Technology Index may continue outperform the broader market. Today we have identified three small cap Canadian tech stocks with high revenue growth and low debt.
*Share price data as at January 10, 2020, data obtained from S&P Capital IQ
**LTM Q3F2019 Revenue used as a Proxy for F2019 Revenues
Blackline Safety Corp. (TSXV:BLN) – $6.58
Technology – Communications Equipment
Blackline Safety Corporation is a global connected safety technology company that looks to become the leading supplier of wirelessly connected gas detection and employee monitoring products that work in the Internet of Things (IOT) network. Blackline’s products immediately notify monitoring personnel of safety incidents, including detected gases and potential no-motion or fall-detected alarms, and pinpoints employees’ locations on an interactive map. Its major products include G7c, G7x, G7 Cartridges, G7 Dock, Loner Mobile, Loner M6, and Loner Duo.
- Market Cap: $314.8M
- YTD-Return: +6.1%
- 90-Day Return: +8.8%
- 90-Day Average Trading Volume: 10,160
- LTM Q3F2019 Revenue: $28.1M
- FY2016 Revenue: $8.0M
- 3-Year Revenue CAGR: +51.9%
- Debt-to-Assets: 0.7%
Quarterhill Inc. (TSX:QTRH) – $1.77
Technology – Communications Equipment
Quarterhill is focused on the disciplined acquisition, management, and growth of companies in dedicated technology areas, including vertical market software & solutions, intelligent industrial systems, and innovation & licensing. Quarterhill puts an emphasis on seeking out acquisition opportunities at reasonable valuations that provide a foundation for recurring revenues, predictable cash flows, profitable growth, and dedicated management teams.
- Market Cap: $210.3M
- YTD-Return: +6.6%
- 90-Day Return: +11.3%
- 90-Day Average Trading Volume: 126,540
- LTM Q3F2019 Revenue: $133.0M
- FY2016 Revenue: $92.9M
- 3-Year Revenue CAGR: +12.7%
- Debt-to-Assets: 3.2%
Sierra Wireless, Inc. (TSX:SW) – $12.58
Technology – Communications Equipment
Sierra Wireless is engaged in building the Internet of Things (IoT) with wireless solutions for organizations. The Company’s OEM Solution segment offers cellular embedded wireless modules for IoT connectivity, including an embedded application framework to support customer applications. The Company’s Enterprise Solution segment offers intelligent routers and gateways, including management tools and applications that enable cellular connectivity. The Company’s Cloud and Connectivity Services segment offers a cloud-based platform for deploying and managing IoT applications, Smart SIM supported by mobile core networks, and managed wireless broadband services to enable customer IoT deployments.
- Market Cap: $455.7M
- YTD-Return: +2.9%
- 90-Day Return: -9.1%
- 90-Day Average Trading Volume: 80,570
- LTM Q3F2019 Revenue: $740.6
- FY2016 Revenue: $615.0
- 3-Year Revenue CAGR: +6.4%
- Debt-to-Assets: 4.5%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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