Alithya Group (ALYA) AI Stock Analysis

• Market Cap: $191.90M
• Dividend Yield: N/A
• Average Volume (3M): 108.37K
• Price to Earnings (P/E): 46.3
• Beta (1Y): 0.66
• Revenue Growth: -0.76%
• EPS Growth: N/A
• Country: CA
• Employees: 3,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.00
• Shares Outstanding: 92,622,925
• 10 Day Avg. Volume: 57,819
• 30 Day Avg. Volume: 108,369
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.90
• Enterprise Value/Revenue: 0.76
• Enterprise Value/Gross Profit: 2.46
• Enterprise Value/Ebitda: 10.25
• 1Y Price Target: $2.99
• Price Target Upside: 66.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 59 Neutral
• Price Target: C$2.00 ▲(11.11% Upside)

Alithya Group's overall stock score reflects strong revenue growth and operational improvements in the U.S. market, but is offset by profitability challenges, high valuation, and increased net debt. Technical indicators suggest potential bearish momentum, and the lack of a dividend yield further impacts attractiveness.

Positive Factors

U.S. Market Growth

Strong growth in the U.S. market indicates successful strategic positioning and effective leveraging of key partnerships, enhancing long-term revenue potential.

Successful Integration of Acquisitions

Effective integration of acquisitions strengthens market position and expands capabilities, supporting sustainable growth and competitive advantage.

High Gross Margin

Improved gross margins reflect efficient operations and a strategic focus on high-value services, enhancing profitability and financial health.

Negative Factors

Canadian Revenue Decline

Declining revenue in Canada highlights challenges in maintaining growth, potentially impacting overall financial performance and market presence.

Increased Net Debt

Rising net debt levels could strain financial flexibility and increase risk, necessitating careful management to ensure long-term stability.

Free Cash Flow Decline

A decline in free cash flow suggests potential issues in cash generation, which could impact the company's ability to fund operations and growth initiatives.

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 enterprise architecture services. It also provides application services, such as digital applications DevOps, legacy systems modernization, control and software engineering, cloud infrastructure, quality assurance, and automated testing; enterprise solutions comprising enterprise resource planning, corporate performance management, customer relationship management, and human capital management; and data and analytics solutions, including business intelligence, data management, artificial intelligence (AI), and machine learning, as well as internet of things. In addition, the company provides AI-FI, an integrated artificial intelligence and fidelity solution; Alithya GoTest, solution allows clients to test the functionality of applications on various platforms; CASSI analytics for online weekly maintenance, outage management, petrochemical turnarounds, and maintenance and reliability; and SIDER, a secure solution that facilitates distribution of medical results to healthcare sectors and to centralized electronic medical records. It serves financial services, energy, manufacturing, telecommunications, transportation and logistics, professional services, healthcare, and government sectors. Alithya Group Inc. was founded in 1992 and is headquartered in Montreal, Canada.

How the Company Makes Money

Alithya Group generates revenue primarily through its consulting and technology services, which include digital strategy, software development, and IT services. The company operates on a project-based revenue model, where clients pay for specific consulting engagements or ongoing service contracts. Key revenue streams include consulting fees from project work, maintenance and support services, and recurring revenue from managed services. Additionally, Alithya has established significant partnerships with leading technology providers, enhancing its service offerings and expanding its client base, thereby contributing to its overall earnings.

Alithya Group Financial Statement Overview

Summary

Alithya Group shows strong revenue growth and a healthy gross profit margin, but struggles with profitability and cash flow generation. The balance sheet is stable with moderate leverage, but returns on equity are low. The company should focus on improving operational efficiency and cash flow management to enhance overall financial health.

Income Statement

Alithya Group shows a positive trajectory in revenue growth with a TTM growth rate of 69.3%, indicating strong top-line expansion. Gross profit margin is healthy at 31.1%, reflecting efficient cost management. However, net profit margin remains low at 0.89%, suggesting challenges in translating revenue growth into bottom-line profitability. EBIT and EBITDA margins are modest, indicating room for improvement in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio of 0.79 indicates moderate leverage, which is manageable but should be monitored. Return on equity is low at 2.36%, suggesting limited returns for shareholders. The equity ratio stands at 41.3%, reflecting a stable capital structure with a reasonable level of equity financing.

Cash Flow

Free cash flow has declined significantly by 42.2% in the TTM period, raising concerns about cash generation capabilities. The operating cash flow to net income ratio is 0.25, indicating that cash flows are not fully supporting net income. However, the free cash flow to net income ratio is strong at 0.94, suggesting that the company is generating cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	476.76M	473.48M	491.13M	522.70M	437.88M	287.64M
Gross Profit	148.28M	147.01M	140.84M	151.77M	116.15M	83.02M
EBITDA	35.55M	36.00M	24.93M	7.36M	5.80M	-809.00K
Net Income	4.24M	1.29M	-16.66M	-30.10M	-15.55M	-17.34M
Balance Sheet
Total Assets	445.13M	425.98M	416.50M	464.10M	447.72M	243.26M
Cash, Cash Equivalents and Short-Term Investments	19.08M	15.96M	8.86M	22.58M	17.66M	6.90M
Total Debt	145.01M	118.91M	128.90M	145.71M	127.94M	70.41M
Total Liabilities	261.32M	241.42M	241.29M	277.03M	247.97M	135.25M
Stockholders Equity	183.81M	184.56M	175.20M	187.07M	199.75M	108.01M
Cash Flow
Free Cash Flow	25.88M	46.99M	14.88M	26.30M	-4.71M	-2.73M
Operating Cash Flow	27.56M	48.43M	15.67M	28.88M	-1.63M	-456.00K
Investing Cash Flow	-17.55M	-7.82M	-787.00K	-13.73M	-18.94M	-4.57M
Financing Cash Flow	-1.76M	-34.15M	-28.58M	-11.33M	31.40M	3.42M

Alithya Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.80
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 1.8 is below the 20-day moving average (MA) of 1.90, below the 50-day MA of 1.80, and below the 200-day MA of 1.92, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 49.33 is Neutral, neither overbought nor oversold. The STOCH value of 30.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ALYA.

Alithya Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GIB.A	―	C$26.98B	16.00	17.56%	0.49%	7.13%	5.02%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ALYA	―	$191.90M	46.27	2.20%	―	-0.76%	―
PVT	―	C$39.34M	―	-4.98%	―	-11.75%	74.20%
NERD	―	$3.13M	-6.73	―	―	10.33%	-4.00%
DM	―	C$3.01M	―	-49.91%	―	-39.84%	92.78%
KNR	―	C$104.58M	―	-10.74%	―	-63.58%	-112.17%

Alithya Group Corporate Events

Alithya Group Announces Successful Shareholder Meeting Results

On September 10, 2025, Alithya Group Inc. held its Annual General Meeting of Shareholders virtually, where 68.58% of the total voting shares were represented. Shareholders voted in favor of all proposed items, including the election of eight directors and the appointment of KPMG LLP as the auditor for the fiscal year ending March 31, 2026. This outcome reflects strong shareholder support and is expected to positively impact Alithya’s governance and operational continuity.

The most recent analyst rating on (TSE:ALYA) stock is a Hold with a C$2.00 price target. To see the full list of analyst forecasts on Alithya Group stock, see the TSE:ALYA Stock Forecast page.

Alithya Group Launches Share Buyback Program to Enhance Shareholder Value

On September 10, 2025, Alithya Group Inc. announced that the Toronto Stock Exchange has accepted its intention to implement a normal course issuer bid (NCIB) program. This share buyback initiative is part of Alithya’s strategy to enhance shareholder value, optimize capital deployment, and support growth and debt reduction. The program allows the company to repurchase up to 5,939,183 Class A Shares, representing 10% of its public float, with purchases commencing on September 12, 2025. The move reflects Alithya’s confidence in its intrinsic value and future growth prospects, aiming to create sustainable, long-term value for its shareholders.

The most recent analyst rating on (TSE:ALYA) stock is a Hold with a C$2.00 price target. To see the full list of analyst forecasts on Alithya Group stock, see the TSE:ALYA Stock Forecast page.

Alithya Group’s Earnings Call Highlights U.S. Growth Amid Canadian Challenges

The recent earnings call for Alithya Group, Inc. Class A painted a mixed picture of the company’s performance. On the positive side, there was strong growth and performance in the U.S. market, driven by successful integration of acquisitions and increased operational efficiency. However, challenges in the Canadian segment, such as revenue decline and lower utilization, as well as an increased net debt, tempered the overall sentiment.

Alithya Group Inc. Reports Q2 2025 Financial Results

Alithya Group Inc. is a professional services firm specializing in IT services and solutions, focusing on strategic consulting, enterprise transformation, and business enablement. The company’s Class A subordinate voting shares are traded on the Toronto Stock Exchange under the symbol ‘ALYA’.

Alithya Group Reports Q2 2025 Financial Results with Increased Revenue but Continued Losses

Alithya Group Inc. has released its interim condensed consolidated financial statements for the three months ended June 30, 2025. The company reported revenues of CAD 124.2 million, a slight increase from the previous year. However, the company experienced a net loss before income taxes of CAD 2.9 million, compared to a loss of CAD 2.0 million in the same period last year. This financial performance highlights ongoing challenges in managing operating expenses and financial costs, impacting the company’s profitability.

The most recent analyst rating on (TSE:ALYA) stock is a Buy with a C$3.50 price target. To see the full list of analyst forecasts on Alithya Group stock, see the TSE:ALYA Stock Forecast page.

Alithya Group Reports Strong Q1 2026 Financial Results

Alithya Group Inc. reported a positive financial performance for the first quarter of fiscal 2026, ending June 30, 2025, with revenues increasing by 2.7% to $124.2 million compared to the same period last year. The company achieved a net earnings turnaround, reporting $0.2 million compared to a net loss of $2.8 million in the previous year. The acquisition of eVerge Interests, Inc. contributed to the growth in U.S. revenues, which saw a 17.3% increase. Despite a decrease in Canadian revenues, the overall gross margin improved to 32.1%. The company also reduced its selling, general, and administrative expenses by 3.4%, enhancing its profitability.

The most recent analyst rating on (TSE:ALYA) stock is a Buy with a C$3.50 price target. To see the full list of analyst forecasts on Alithya Group stock, see the TSE:ALYA Stock Forecast page.

Alithya Group Announces Virtual AGM Amid Strong Financial Performance

Alithya Group Inc. announced its 2025 Annual General Meeting of Shareholders to be held virtually on September 10, 2025. Despite a challenging fiscal year ending March 31, 2025, the company achieved significant financial results, including a record gross margin of 36.8% in the fourth quarter, driven by a focus on higher-value services and strategic acquisitions. The company remains committed to operational efficiency and strategic growth, welcoming Pierre Blanchette as the new CFO. The meeting will review financial positions, business operations, and shareholder value, with a focus on strong governance and addressing global geopolitical developments.

The most recent analyst rating on (TSE:ALYA) stock is a Buy with a C$3.50 price target. To see the full list of analyst forecasts on Alithya Group stock, see the TSE:ALYA Stock Forecast page.