ALITHYA GROUP INC-CLASS A (ALYA.CA) Stock Fundamental Analysis
TSX:ALYA - Toronto Stock Exchange - CA01643B1067 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to ALYA. ALYA was compared to 12 industry peers in the IT Services industry. Both the profitability and the financial health of ALYA get a neutral evaluation. Nothing too spectacular is happening here. ALYA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ALYA had positive earnings in the past year.
In the past year ALYA had a positive cash flow from operations.
ALYA had negative earnings in 4 of the past 5 years.
Of the past 5 years ALYA 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 0.30%, ALYA is doing good in the industry, outperforming 69.23% of the companies in the same industry.
The Return On Equity of ALYA (0.70%) is better than 76.92% of its industry peers.
ALYA's Return On Invested Capital of 3.88% is fine compared to the rest of the industry. ALYA outperforms 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.3% | ||
| ROE | 0.7% | ||
| ROIC | 3.88% |
ROA(3y)-3.39%
ROA(5y)-4.15%
ROE(3y)-8.3%
ROE(5y)-9.73%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
ALYA has a Profit Margin of 0.27%. This is in the better half of the industry: ALYA outperforms 76.92% of its industry peers.
With a decent Operating Margin value of 3.51%, ALYA is doing good in the industry, outperforming 76.92% of the companies in the same industry.
ALYA's Gross Margin of 32.98% is in line compared to the rest of the industry. ALYA outperforms 46.15% of its industry peers.
ALYA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.51% | ||
| PM (TTM) | 0.27% | ||
| GM | 32.98% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y9.1%
GM growth 5Y2.08%
2. Health
2.1 Basic Checks
ALYA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ALYA has more shares outstanding
ALYA has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ALYA has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.37, we must say that ALYA is in the distress zone and has some risk of bankruptcy.
ALYA's Altman-Z score of 1.37 is fine compared to the rest of the industry. ALYA outperforms 76.92% of its industry peers.
The Debt to FCF ratio of ALYA is 2.52, which is a good value as it means it would take ALYA, 2.52 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.52, ALYA is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
ALYA has a Debt/Equity ratio of 0.58. This is a neutral value indicating ALYA is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.58, ALYA is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 2.52 | ||
| Altman-Z | 1.37 |
ROIC/WACC0.48
WACC8.03%
2.3 Liquidity
ALYA has a Current Ratio of 1.24. This is a normal value and indicates that ALYA is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.24, ALYA is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
A Quick Ratio of 1.24 indicates that ALYA should not have too much problems paying its short term obligations.
ALYA's Quick ratio of 1.24 is fine compared to the rest of the industry. ALYA outperforms 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 142.11% over the past year.
Looking at the last year, ALYA shows a decrease in Revenue. The Revenue has decreased by -3.60% in the last year.
ALYA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.16% yearly.
EPS 1Y (TTM)142.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%300%
Revenue 1Y (TTM)-3.6%
Revenue growth 3Y2.64%
Revenue growth 5Y11.16%
Sales Q2Q%3.97%
3.2 Future
ALYA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 79.66% yearly.
Based on estimates for the next years, ALYA will show a small growth in Revenue. The Revenue will grow by 7.33% on average per year.
EPS Next Y8.38%
EPS Next 2Y42.83%
EPS Next 3Y79.66%
EPS Next 5YN/A
Revenue Next Year4.28%
Revenue Next 2Y4.93%
Revenue Next 3Y6.01%
Revenue Next 5Y7.33%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 28.25 indicates a quite expensive valuation of ALYA.
Based on the Price/Earnings ratio, ALYA is valued a bit cheaper than 76.92% of the companies in the same industry.
ALYA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 26.07, ALYA can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALYA indicates a rather cheap valuation: ALYA is cheaper than 84.62% of the companies listed in the same industry.
ALYA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.25 | ||
| Fwd PE | 26.07 |
4.2 Price Multiples
84.62% of the companies in the same industry are more expensive than ALYA, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ALYA is valued cheaply inside the industry as 92.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.75 | ||
| EV/EBITDA | 8.17 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as ALYA's earnings are expected to grow with 79.66% in the coming years.
PEG (NY)3.37
PEG (5Y)N/A
EPS Next 2Y42.83%
EPS Next 3Y79.66%
5. Dividend
5.1 Amount
ALYA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:ALYA (7/11/2025, 7:00:00 PM)
2.26
-0.04 (-1.74%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners18.97%
Inst Owner ChangeN/A
Ins Owners5.85%
Ins Owner ChangeN/A
Market Cap224.44M
Analysts80
Price Target3.13 (38.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)382.45%
Min EPS beat(2)370.49%
Max EPS beat(2)394.41%
EPS beat(4)3
Avg EPS beat(4)179.95%
Min EPS beat(4)-145.1%
Max EPS beat(4)394.41%
EPS beat(8)5
Avg EPS beat(8)76.13%
EPS beat(12)6
Avg EPS beat(12)-10.09%
EPS beat(16)9
Avg EPS beat(16)-6.42%
Revenue beat(2)2
Avg Revenue beat(2)1.46%
Min Revenue beat(2)0.1%
Max Revenue beat(2)2.82%
Revenue beat(4)2
Avg Revenue beat(4)-2.45%
Min Revenue beat(4)-8.28%
Max Revenue beat(4)2.82%
Revenue beat(8)2
Avg Revenue beat(8)-4.44%
Revenue beat(12)3
Avg Revenue beat(12)-3.63%
Revenue beat(16)7
Avg Revenue beat(16)-1.11%
PT rev (1m)17.81%
PT rev (3m)11.35%
EPS NQ rev (1m)40%
EPS NQ rev (3m)40%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)1.2%
Revenue NQ rev (3m)1.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.25 | ||
| Fwd PE | 26.07 | ||
| P/S | 0.47 | ||
| P/FCF | 4.75 | ||
| P/OCF | 4.63 | ||
| P/B | 1.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.17 |
EPS(TTM)0.08
EY3.54%
EPS(NY)0.09
Fwd EY3.84%
FCF(TTM)0.48
FCFY21.04%
OCF(TTM)0.49
OCFY21.58%
SpS4.77
BVpS1.86
TBVpS-0.72
PEG (NY)3.37
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.3% | ||
| ROE | 0.7% | ||
| ROCE | 5.38% | ||
| ROIC | 3.88% | ||
| ROICexc | 4.09% | ||
| ROICexgc | 32.63% | ||
| OM | 3.51% | ||
| PM (TTM) | 0.27% | ||
| GM | 32.98% | ||
| FCFM | 9.98% |
ROA(3y)-3.39%
ROA(5y)-4.15%
ROE(3y)-8.3%
ROE(5y)-9.73%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y9.1%
GM growth 5Y2.08%
F-Score8
Asset Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 2.52 | ||
| Debt/EBITDA | 2.68 | ||
| Cap/Depr | 5.13% | ||
| Cap/Sales | 0.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 120.92% | ||
| Profit Quality | 3647.18% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 1.37 |
F-Score8
WACC8.03%
ROIC/WACC0.48
Cap/Depr(3y)4.27%
Cap/Depr(5y)7.15%
Cap/Sales(3y)0.25%
Cap/Sales(5y)0.38%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)142.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%300%
EPS Next Y8.38%
EPS Next 2Y42.83%
EPS Next 3Y79.66%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.6%
Revenue growth 3Y2.64%
Revenue growth 5Y11.16%
Sales Q2Q%3.97%
Revenue Next Year4.28%
Revenue Next 2Y4.93%
Revenue Next 3Y6.01%
Revenue Next 5Y7.33%
EBIT growth 1Y442.78%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year1231.29%
EBIT Next 3Y189.42%
EBIT Next 5Y95.49%
FCF growth 1Y216.5%
FCF growth 3YN/A
FCF growth 5Y62.25%
OCF growth 1Y209.1%
OCF growth 3Y196.93%
OCF growth 5Y41%