Alithya Group (ALYA) AI Stock Analysis

• Market Cap: C$173.24M
• Dividend Yield: N/A
• Average Volume (3M): 108.37K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: 3.40%
• EPS Growth: -691.81%
• Country: CA
• Employees: 3,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -0.32
• Shares Outstanding: 92,235,280
• 10 Day Avg. Volume: 57,819
• 30 Day Avg. Volume: 108,369
• PEG Ratio: 0.25
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 13.03
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$3.05
• Price Target Upside: 83.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: C$1.50 ▼(-9.64% Downside)

Alithya Group's overall stock score reflects a combination of mixed financial performance and valuation challenges. The positive momentum from U.S. market growth and acquisition integration is offset by profitability issues and technical indicators suggesting limited upward momentum.

Positive Factors

U.S. Market Growth

Strong U.S. market growth driven by key partnerships with Oracle and Microsoft highlights Alithya's competitive advantage and market expansion potential.

Successful Integration of Acquisitions

Effective integration of acquisitions enhances Alithya's service offerings and operational capabilities, supporting long-term growth and innovation.

Smart Shore Capabilities Expansion

Expanding smart shore capabilities improves cost efficiency and service delivery, strengthening Alithya's competitive position in the industry.

Negative Factors

Canadian Revenue Decline

Declining Canadian revenues indicate challenges in maintaining market share and client retention, potentially impacting overall growth.

Increased Net Debt

Rising net debt levels can limit financial flexibility and increase risk, potentially affecting Alithya's ability to invest in growth opportunities.

Lower Utilization and Margins in Canada

Reduced utilization and margins in Canada suggest operational inefficiencies, which could hinder profitability and competitive positioning.

Alithya Group Business Overview & Revenue Model

Company Description

Alithya Group Inc. is a leading North American firm specializing in digital transformation services, including technology consulting, application development, and data analytics. Founded in 1992 and headquartered in Montreal, Canada, Alithya operates across various sectors such as financial services, manufacturing, healthcare, and public sector. The company offers a wide range of solutions, including cloud services, enterprise resource planning (ERP) implementations, and custom software development, designed to help organizations enhance operational efficiency and drive innovation.

How the Company Makes Money

Alithya generates revenue primarily through its consulting and professional services, which include technology implementation, project management, and ongoing support. The company operates on a time-and-materials basis for many of its consulting services, charging clients based on the hours worked and the expertise provided. Additionally, Alithya earns revenue from fixed-price contracts for specific projects, particularly in software development and system integration. Key revenue streams also include maintenance and support services for custom applications and software solutions. The company has established significant partnerships with major technology providers, such as Microsoft and Oracle, which can contribute to revenue through joint offerings and integrated solutions. Furthermore, Alithya benefits from long-term client relationships, allowing for recurring revenue through ongoing contracts and repeat business.

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 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	489.54M	491.13M	473.48M	522.70M	437.88M	287.64M
Gross Profit	156.93M	140.84M	147.01M	151.77M	116.15M	83.02M
EBITDA	5.73M	24.29M	36.00M	6.38M	5.80M	-809.00K
Net Income	-26.45M	-16.66M	1.29M	-30.10M	-15.55M	-17.34M
Balance Sheet
Total Assets	412.26M	416.50M	425.98M	464.10M	447.72M	243.26M
Cash, Cash Equivalents and Short-Term Investments	17.81M	8.86M	15.96M	22.58M	17.66M	6.90M
Total Debt	146.95M	128.90M	118.91M	145.71M	127.94M	70.41M
Total Liabilities	257.51M	241.29M	241.42M	277.03M	247.97M	135.25M
Stockholders Equity	154.75M	175.20M	184.56M	187.07M	199.75M	108.01M
Cash Flow
Free Cash Flow	24.15M	14.88M	46.99M	26.30M	-4.71M	-2.73M
Operating Cash Flow	25.64M	15.67M	48.43M	28.88M	-1.63M	-456.00K
Investing Cash Flow	-17.37M	-787.00K	-7.82M	-13.73M	-18.94M	-4.57M
Financing Cash Flow	-3.08M	-28.58M	-34.15M	-11.33M	31.40M	3.42M

Alithya Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1.66 is below the 20-day moving average (MA) of 1.71, below the 50-day MA of 1.76, and below the 200-day MA of 1.91, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 42.12 is Neutral, neither overbought nor oversold. The STOCH value of 17.07 is Positive, 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	79 Outperform	$27.47B	17.20	16.50%	0.48%	8.43%	0.25%
PVT	64 Neutral	C$46.33M	13.28	7.17%	―	-13.43%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ALYA	49 Neutral	C$173.24M	-6.43	-16.17%	―	3.40%	-691.81%
DM	46 Neutral	C$7.73M	-0.84	-58.58%	―	-56.02%	91.71%
KNR	44 Neutral	C$104.58M	-3,571.43	-0.42%	―	-59.23%	-100.34%
NERD	39 Underperform	C$3.13M	-7.95	―	―	13.01%	20.00%

Alithya Group Corporate Events

Alithya Group Reports Strong Revenue Growth Amid Challenges

Alithya Group, Inc. Class A is a strategic consulting and digital transformation services company that leverages AI and the latest technologies to solve business challenges and unlock new opportunities for its clients. The company operates in the technology sector and is known for its specialized global delivery network and AI-based IP solutions.

Alithya Group Reports Strong Q2 2026 Financial Performance

Alithya Group Inc. reported a significant financial performance for the second quarter of fiscal 2026, ending September 30, 2025, with revenues rising by 11.5% to $124.3 million compared to the previous year. The company achieved a 25.5% increase in gross margin, reaching $42.8 million, and improved its adjusted net earnings by 80% to $9.5 million. Despite a net loss of $31.0 million due to an impairment charge, Alithya’s strategic focus on value creation and expansion through acquisitions has positioned it as a growing force in the industry, with increased capabilities to handle larger projects amid challenging market conditions.

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 Reports Q3 2025 Financial Results with Increased Revenue but Operating Loss

Alithya Group Inc. released its interim financial results for the three months ending September 30, 2025, reporting a revenue increase to $124.3 million from $111.5 million in the same period last year. Despite the revenue growth, the company faced an operating loss of $28.5 million, attributed to significant impairment charges on goodwill and intangibles, impacting its financial performance and stakeholder confidence.

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 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.