The Canadian tech small caps on our list all have a PEG ratio below 0.5
SmallCapPower | May 19, 2017: Whether it’s VR, 3-D printing, Artificial Intelligence, machine learning, or the Internet of Things (IoT), the future of technology in Canada looks extremely bright. Furthermore, the Canadian tech sector brings in more than $100 billion in GDP per year and its rapid pace of growth is expected to continue. One good way to identify how a stock is trading relative to its growth is through the Price to Earnings to Growth ratio (PEG). Today we have identified five Canadian tech small caps with a PEG ratio below 0.5, meaning they have big upside potential but carry a significant amount of risk.
AcuityAds Holdings Inc. (TSXV: AT) – $4.15
AcuityAds Holdings Inc, formerly Wildlaw Capital CPC 2 Inc., is the parent company of AcuityAds Inc. (Acuity). Acuity is a technology company, which provides targeted digital media solutions, enabling advertisers to connect with their audiences across online display, video, social and mobile campaigns. Acuity offers a Programmatic Marketing Platform to connect digital advertisers to consumers across advertising channels. The Programmatic Marketing Platform includes Acuity’s machine learning technology that uses Big Data. Acuity’s Programmatic Marketing Platform allows advertisers to manage their purchasing of digital advertising in real-time using real-time bidding (RTB). Acuity’s customers include both large Fortune 500 enterprises and small to mid-sized businesses.
- Market Cap: $133,019,481
- Total Revenue (LTM): $39,601,720
- Debt to equity: 388.4%
- YTD Price Change: 76.6%
- PEG: 0.32
Intrinsyc Technologies Corp. (TSX: ITC) – $2.13
Intrinsyc Technologies Corporation is a product developer and provides software, engineering services, and integrated solutions. The Company provides solutions for the development and production of mobile, embedded and the Internet of Things (IoT) devices with software solutions for Java or Component Object Model (COM) enterprise interoperability. It operates through three segments: Embedded Solutions, which includes its computer modules and development kits, engineering services related to these modules and kits, and distribution of cellular communication modules; General Engineering Services, which includes RapidRIL telephony software, iDevice Manager and other enabling technology, testing tools, and hardware reference designs and platforms, and Other Software Solutions, including software licenses, implementation and other related services, maintenance and support attributable to its J-Integra Enterprise Interoperability Software, and Destinator software product offerings.
- Market Cap: $44,952,776
- Total Revenue (LTM): $23,454,608
- Debt to equity: 0.0%
- YTD Price Change: -1.4%
- PEG: 0.40
NYX Gaming Group Ltd. (TSXV: NYX) – $1.14
NYX Gaming Group Limited is a digital gaming software supplier engaged in the design, development, manufacture and distribution of digital gaming solutions for interactive, social and mobile gaming around the world. The Company provides a suite of gaming solutions, a distribution platform, full gaming process support services, brand and player management, and both Real Money Gaming (RMG) and social gaming products and services. The Company offers a suite of gaming services, including digital and social gaming content on systems, including a digital gaming platform for real money gaming (RMG); Open Gaming System (OGS) for remote delivery of content; NYX Open Platform System (OPS) for reporting and administrative functions; Game Deployment Module (GDM) for local delivery of content, and a social gaming platform, including casino and poker products.
- Market Cap: $123,353,489
- Total Revenue (LTM): $163,733,000
- Debt to equity: 171.6%
- YTD Price Change: -9.5%
- PEG: 0.18
Nexj Systems Inc. (TSX: NXJ) – $3.75
IT Services & Consulting
Nexj Systems Inc. is a Canada-based company, which provides enterprise customer management solutions to the financial services industry. The Company’s solutions include customer relationship management (CRM) for financial services and insurance; customer process management (CPM) for client onboarding and know your customer (KYC), and customer data management (CDM) to deliver a view of customers across line of business and regional data silos. The Company offers solutions for wealth management and private banking, corporate and commercial banking, capital markets, and insurance. Its CDM operationalizes and harmonizes data across silos, including back office systems of record, multiple CRM systems, customer portals, and social media streams.
- Market Cap: $78,921,633
- Total Revenue (LTM): $33,521,000
- Debt to equity: 1.8%
- YTD Price Change: 17.2%
- PEG: 0.04
Pivot Technology Solutions Inc. (TSX: PTG) – $1.80
IT Services & Consulting
Pivot Technology Solutions, Inc. focuses on the strategy to acquire and integrate technology solution providers, primarily in North America. The businesses acquired by the Company designs, sells and supports integrated computer hardware, software and networking products for business database, network and network security systems. The Company primarily serves customers throughout the United States. The Company, together with its portfolio companies and partners, delivers solutions that enable organizations to design, build, implement and maintain computing and communication infrastructure that addresses their business needs. The Company enables businesses to extend their enterprise through mobility solutions to better connect business partners and customers.
- Market Cap: $74,812,107
- Total Revenue (LTM): $1,975,339,463
- Debt to equity: 618.4%
- YTD Price Change: 5.3%
- PEG: 0.10
Disclosure: Neither the author nor any of the principals at Small Cap Power, or their family members, own shares in any of the companies mentioned above.
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