Alithya Group (TSE:ALYA)
TSX:ALYA
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Alithya Group
(TSX:ALYA)
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Rating:51Neutral
Price Target:
C$1.50
▲(6.38% Upside)
Action:ReiteratedDate:03/26/26
The score is held back primarily by weak profitability and revenue pressure (despite better gross margin stability) and bearish-to-neutral technicals. These are partly offset by strong cash generation and constructive earnings-call indicators (bookings strength and deleveraging), but valuation remains a headwind given the high P/E and no dividend support.
Positive Factors
Cash generation strength
Material and improving operating and free cash flow provides durable funding for operations, debt reduction, and strategic investment. Strong cash conversion cushions the business against earnings volatility, supports buybacks and M&A, and reduces refinancing and liquidity risk over the medium term.
Negative Factors
Declining revenue & persistent losses
A sustained top-line contraction and ongoing net losses weaken scale economics and limit margin recovery. Persistent negative returns reduce reinvestment capacity, increase reliance on cash conversion and debt, and create execution sensitivity if bookings or utilization slip.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation strength
Material and improving operating and free cash flow provides durable funding for operations, debt reduction, and strategic investment. Strong cash conversion cushions the business against earnings volatility, supports buybacks and M&A, and reduces refinancing and liquidity risk over the medium term.
Read all positive factors
Alithya Group (ALYA) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$136.87M
Dividend YieldN/A
Average Volume (3M)108.37K
Price to Earnings (P/E)60.7
Beta (1Y)0.39
Revenue Growth3.40%
EPS Growth-691.81%
CountryCA
Employees3,000
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.01
Shares Outstanding89,744,865
10 Day Avg. Volume57,819
30 Day Avg. Volume108,369
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)1.11
Price to Sales (P/S)0.39
P/FCF Ratio13.03
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$2.51Price Target Upside78.35% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.14
Revenue Forecast (FY)C$484.75M
Alithya Group Business Overview & Revenue Model
Company Description
Alithya Group Inc. provides strategy and digital technology services in Canada, the United States, and Europe. The company's business strategy services include strategic consulting, digital transformation, organizational performance, and enterpris...
How the Company Makes Money
Alithya primarily makes money by selling IT and business consulting services and delivering technology implementation projects for clients. Its revenue model is service-led and typically includes: (1) Professional services billed on time-and-mater...
Alithya Group Earnings Call Summary
Earnings Call Date:Feb 13, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jun 11, 2026
Earnings Call Sentiment Positive
The call reflects cautious optimism: strong bookings, healthy pipeline, improved cash generation and a reduced leverage ratio underscore operational and financial progress. Growth in the U.S. and International segments, strategic M&A integration, AI-focused initiatives (including the Datum spin-off and Microsoft Copilot recognition), and a strong order backlog are clear positives. Offsetting these are a notable revenue decline in Canada, slight margin compression, timing-related utilization weakness in the U.S., and limited upfront cash from the Datum transaction. Overall, the positives (bookings, cash flow, deleveraging, strategic positioning) outweigh the negatives, though some execution and timing risks remain.Positive Updates
Strong Bookings and Book-to-Bill
Bookings of $130.9M in Q3 with a book-to-bill ratio of 1.14 for the quarter (trailing 12-month book-to-bill of 0.9). Bookings by region: Canada $62.1M, U.S. $56.6M, International $12.2M. Over $52M of bookings were renewals.
Negative Updates
Canada Revenue Decline
Canada revenues declined to $54M, down $7.7M or 12.5% YoY, primarily due to reduced public sector contract revenues and certain client projects reaching maturity while the business shifts away from lower-margin contracts.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Bookings and Book-to-Bill
Bookings of $130.9M in Q3 with a book-to-bill ratio of 1.14 for the quarter (trailing 12-month book-to-bill of 0.9). Bookings by region: Canada $62.1M, U.S. $56.6M, International $12.2M. Over $52M of bookings were renewals.
Read all positive updates
Company Guidance
Management gave no formal forward earnings guide but emphasized leading indicators and financial discipline: Q3 bookings were $130.9M (book‑to‑bill 1.14 for the quarter, 0.9 TTM; 1.26 Q excl. certain long‑term contracts, 1.0 TTM), split by segment as $62.1M Canada, $56.6M U.S. and $12.2M International; consolidated revenue was $115.2M (‑0.5% YoY) with gross margin 31.7% (Canada revenue $54M, ‑12.5%; U.S. $55M, +12.7%; International $6.2M, +19.2%); SG&A totaled $28.5M (24.7% of revenue), adjusted EBITDA $10.0M (8.7% of revenue) and trailing‑12‑month adjusted EBITDA $52.6M; net earnings $0.7M, adjusted net earnings $5.1M ($0.05/share); cash from operations $25.5M (up $13.8M YoY, helped by $17.4M favourable working capital), net debt $101.9M with leverage at 1.9x net debt/TTM adj. EBITDA (down from 2.3x), 347,000 shares repurchased YTD with ~2.5M Class A shares to be repurchased from Amar, Smart Shore headcount at 13.9%, and management highlighted a healthy pipeline and focus on higher‑value, AI‑enabled services rather than issuing explicit forward targets.Alithya Group Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
46
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 488.94M | 473.48M | 522.70M | 437.88M | 287.64M | 279.01M |
| Gross Profit | 151.26M | 147.01M | 151.77M | 116.15M | 83.02M | 82.97M |
| EBITDA | 8.56M | 36.00M | 6.38M | 5.80M | -809.00K | -25.60M |
| Net Income | -22.06M | 1.29M | -30.10M | -15.55M | -17.34M | -39.67M |
Balance Sheet | ||||||
| Total Assets | 373.95M | 425.98M | 464.10M | 447.72M | 243.26M | 257.82M |
| Cash, Cash Equivalents and Short-Term Investments | 12.94M | 15.96M | 22.58M | 17.66M | 6.90M | 8.81M |
| Total Debt | 125.80M | 118.91M | 145.71M | 127.94M | 70.41M | 66.46M |
| Total Liabilities | 218.56M | 241.42M | 277.03M | 247.97M | 135.25M | 130.45M |
| Stockholders Equity | 155.40M | 184.56M | 187.07M | 199.75M | 108.01M | 127.37M |
Cash Flow | ||||||
| Free Cash Flow | 35.93M | 46.99M | 26.30M | -4.71M | -2.73M | 4.16M |
| Operating Cash Flow | 37.53M | 48.43M | 28.88M | -1.63M | -456.00K | 8.69M |
| Investing Cash Flow | -12.72M | -7.82M | -13.73M | -18.94M | -4.57M | -18.20M |
| Financing Cash Flow | -25.54M | -34.15M | -11.33M | 31.40M | 3.42M | 4.94M |
Alithya Group Technical Analysis
Negative
1.41
Price Trends
1.47
Negative
1.59
Negative
1.81
Negative
Market Momentum
-0.01
Negative
52.77
Neutral
91.67
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ALYA, the sentiment is Negative. The current price of 1.41 is above the 20-day moving average (MA) of 1.36, below the 50-day MA of 1.47, and below the 200-day MA of 1.81, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 52.77 is Neutral, neither overbought nor oversold. The STOCH value of 91.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ALYA.
Alithya Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | C$21.89B | 15.49 | 16.37% | 0.48% | 8.43% | 0.25% | |
63 Neutral | C$43.72M | 11.20 | 7.10% | ― | -13.43% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
51 Neutral | C$136.87M | 60.68 | -13.00% | ― | 3.40% | -691.81% | |
51 Neutral | C$104.58M | 2.69 | -0.43% | ― | -59.23% | -100.34% | |
44 Neutral | C$2.75M | -4.02 | ― | ― | 13.01% | 20.00% | |
43 Neutral | C$8.39M | -1.20 | -212.14% | ― | -56.02% | 91.71% |
* Technology Sector Average
TSE:ALYA
Alithya Group
1.41
-0.11
-7.24%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.