Stableview Asset Management recently hosted a Tech15 event in Toronto, featuring several prominent Canadian technology companies. There was also an expert panel of Bay Street analysts who shared their top tech stock picks for the coming year, including the ones of our list today.
TIO Networks Corp (TSXV: TNC) – $1.44
Transactions and Payment Services
This Canada-based information technology company specializes in processing bill payment transactions through a secure Internet enabled platform. TIO is a cloud-based, multi-channel bill payment processor, which serves telecom, wireless, cable and utility network operators in North America. The Company has generated US$59.4 million in revenue over the last 12 months (LTM), more than doubling its 2010 revenues. TIO Networks has a strong cash balance of US$24.2 million, and trades at under 1.0x revenue and at 21.1x LTM EBITDA.
Espial Group Inc. (TSX: ESP) – $3.67
Software and IT Services
The Company develops and markets TV browser and TV Everywhere software solutions to electronics manufacturers and telecommunications service providers. With Espial, video service providers create responsive and engaging subscriber viewing experiences incorporating intuitive content discovery and instinctive navigation. The Company works with Tier-1 clients, such as Sharp, Panasonic, Samsung, Toshiba and many others, gaining US$18.1 million in LTM revenue. Espial became profitable in 2014, selling at 3.6x revenues.
QHR Corp. (TSXV: QHR) – $1.25
Medical Software
The Company has developed two technologies, Accuro®EMR and Medeo. Accuro is software that keeps track of electronic medical records of patients. Medeo, meanwhile, is QHR’s virtual care technology used by health providers around the world for private video visits, secure messaging, and care plans. The Company generated US$23.7 million in LTM revenues, with over $7 million in cash and more than $8 million in working capital. QHR is trading at 1.8x revenues.
TECSYS Inc. (TSX: TCS) – $9.00
Supply Chain Management Software
TECSYS Inc. is a Canada-based supply chain management (SCM) provider of warehouse, distribution and transportation management software solutions. The Company provides its solutions to mid-size and Fortune 1000 corporations in the healthcare industry and organizations with complex supply chains. TECSYS derived 64% of its 2014 revenue from the United States, generating $49.7 million in LTM revenues. The Company trades at 1.6x revenues.
Kinaxis Inc. (TSX: KXS) – $39.72
Supply Chain Management Software
Kinaxis provides a cloud-based subscription software, RapidResponse, which delivers supply chain planning and analytics capabilities that create the foundation for managing multiple, interconnected supply chain management and sales and operations planning processes. Its RapidResponse application is used in inventory management, order fulfillment, capacity planning and master scheduling, sales and operations planning, aggregate supply planning, demand planning, engineering change management, inventory planning and optimization, integrated project management, master production scheduling (MPS), order fulfillment, supplier collaboration and supply action management, among others. The Company has paid off its $77 million debt burden in 2014, eliminating the occurrence of a large interest expense. Last quarter, it generated $23.7 million in revenues, pocketing $5.2 million in profit, a 21.9% income margin. Kinaxis trades at 8.1x LTM revenues.
Halogen Software Inc. (TSX: HGN) – – $8.98
Talent Management SaaS
Halogen Software Inc. (Halogen) is a Canada-based company, which provides software-as-a-service (SaaS) cloud-based talent management solutions. Its customers use Halogen’s suite of integrated Talent Management (TM) solutions to retain talent, align goals, assess and develop employees, cultivate leaders, provide feedback and recognition, employee engagement, communication and manager-employee relationships, support a pay-for-performance culture and build talent bench strength through planning. The Company’s Halogen TalentSpace suite consists of nine integrated talent management modules. It also provides industry configurations of its solutions for healthcare, professional services, financial services, manufacturing, education, public sector, technology and hospitality. Halogen’s Certain to Succeed services are designed to help build workforce by implementing talent management software, providing stellar support to human resources (HR) team. The Company recorded US$61.5 million in LTM revenues, and is trading at 1.8x revenues.
For more small-cap technology investing ideas please see our Ubika Technology reports HERE >>
