Market Movers: March 2024

Zach Diaz Mar 26, 2024
Headline image for Market Movers: March 2024

Not much movement in the level of the TSX : up 1.6% for the month of February, 2024 ; up 1.93% YTD and up 1.1% over the past year. The annual inflation rate in Canada fell to 2.9% in January of 2024, the lowest since June, from 3.4% in the previous month; it stood at 3.1% in the USA; proscribed interest remained unchanged. With this background the following table presents the winners and losers for the month of February, 2024.

Docebo Inc (DCBO)

The no 1 performer was Docebo Inc (DCBO) whose stock was up 25% in the month; 16%YTD and 54% over the past year. From a low of $40.60 in early May, the stock price has risen jaggedly to close at $74.08 recently.

 DCBO is a leading learning platform provider with a foundation in its mission to redefine the way enterprises, including their internal and external workforces, partners and customers, learn by applying new technologies to the traditional corporate Learning Management System


DCBO generates revenue primarily from the provision of access to its platform, which is typically provided on the basis of an annual subscription fee and prepaid on a quarterly or annual basis.

With over 900 employees across eight global offices, Docebo sells its products in approximately 70 countries and empowers nearly 3,700 companies of all sizes, providing access to learners situated around the world in a variety of languages   

Results for the quarter ended  Dec 31, 2023 (announced February 29, 2024) had revenues at $49.3 million, up 27%; net income at $3.2 million was up by 100%. Adjusted EBITDA $16 million with cash on hand of $71,950 million..

CCL Industries Inc (CCLB)

The number 2 stock performer was CCL Industries (CCLB) whose stock was up 20%, 16% YTD and 5% over the past year. The stock price had a high of $70.68  in mid May, dropped to $52.26 in early October and drifted along to rise steeply at the middle of February, to close at $69.18.

CCL Industries Inc. employs approximately 25,700 people operating 213 production facilities in 43 countries with corporate offices in Toronto, Canada, and Framingham, Massachusetts. CCLB’S strategy is to increase shareholder value through investment in organic growth and product innovations around the world, augmented by a global acquisition strategy.

One operating Segment, which contributed more than 60% of revenues in 2023, is believed to be the world’s largest converter of pressure sensitive and extruded film materials for a wide range of decorative, instructional, security and functional applications for government institutions and large global customers in consumer packaging,

For the quarter ended December 31, 2023 Operating income increased 20.6%, with a 15.3% operating margin up 200 bp.

For the year ended December 31, 203, Sales were $6.149 billion up 4.19%; net earnings at  $530.2 million were down $92.5 million. A goodwill impairment charge of $95 million and an increase of $133 million in SG&A expenses , largely account for this result. Cash on hand amounted to $774.2 million. Annual dividend increased 9.4% effective March 15, 2024

Telus International (Cda) inc (TIXT)

The third best performer was Telus International (Cda) Inc (TIXT) whose stock was up 20% over the month, 23% YTD; and down 52% over the past year, It entered the year at a high of $28.28 in mid March 2023 from which it fell to a  low of $8.62 in late October 2023 and has since risen to close at $13.98.

TIXT is a leading digital customer experience innovator that designs, builds, and delivers next-generation solutions, including artificial intelligence (AI) and content moderation, for global and disruptive brands. It employs 75,347 people.

For the quarter ended December 31, 2023 Revenues were $692 million, up 10%; net income of $38million was up 11.8%; adj EBITDA at $164 million was up 4%. Management outlook is for revenue growth of 3  to 5%; adj EBITDA growth of 7 to 10%; EBITDA margin of 22.3 to 22.6%


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Lightspeed Commerce Inc (LSPD)

The third worst performer was Lightspeed Commerce Inc (LSPD) whose stock was down 23% for the month; Down 32% YTD and 9% over the past year. The stock price has bumped around over the past year:  it touched a low of $17.64 in early May 2023, rising to a high of $23.85 at the end of July and falling to $17.16 and then rising again to $27.82 at the end of December only to fall to $19.05 at the close. It was ranked No 2 performer in December 2023 and 3rdworst performer in January 2024.

LSPD offers a cloud-based commerce platform that connects suppliers, merchants and consumers while enabling omnichannel experience.  Its solutions enable users to manage end-to-end processes including inventory, loyalty, sales, and analytics as well as offering various products, such as retail POS, Restaurant POS, e-commerce and Onsite.

Results for the quarter ended  December 31, 2024 showed revenue at $239.7 million, up 27%; Cost of Revenue $138.2 , up 60.7%;  Operating expenses $153 leading to operating loss of $51.5 Million and finally, net loss was $40.2 million, approximately half the prior period loss. Cash on hand amounted to $749.4 million. The question seems to be can LSPD grow revenues sufficiently to offset growing expenses, before it runs out of money.

Kinaxis Inc (KXS)

The second worst performer in the month was Kinaxis Inc (KXS) whose price was down 15%; down 6% YTD and down 12% over the past year. KXS is a leading provider of supply chain management solutions. The stock price started the past year at around $180 through late July 2023 and then dropped to $131.12 in late October and then rising lumpily to close at $140.68.

Management notes We finished the year 2023 with a record number of customer wins, a record backlog that provides strong visibility into 2024 and beyond, and record free cash flow. “More and more, we are seeing siloed, legacy methods giving way to end-to-end supply chain orchestration, where Kinaxis is the acknowledged leader”

For the quarter ended December 31, 2023, Revenue at $427 million was up 16.4%; gross profit at $258.9 million, up 9.8%; operating expenses at $244.8 million, up 17.7%; leading to net profit of $10 million, down 50%. Cash on hand was $174.8 million. Clearly, further expense control is required.

Illumin Holdings Inc (ILLM)

The 3rd worst performer was Illumin Holdings Inc (ILLM) whose stock price was down 14% on the month, up 4% YTD and diwn 25% for the past year. The stock price  pushed ahead in the early part of the year to a high of $2.51 in mid August 2023; with the exception of a spike to $1.97 in mid January, it then fell to close at $1.66. ILLM was the 2nd best performer in January 2024.

ILLM is a technology company that enables marketers to connect intelligently with audiences across video, mobile, out-of-home, social and online display advertising campaigns. It provides a programmatic platform where clients can plan, activate and measure one’s online advertising; it brings media planning and buying together in an interactive and intuitive interface. llumin is a journey advertising platform that enables marketers to reach consumers at every stage of their journey by leveraging advanced machine learning algorithms and real-time data analytics. The Company’s mission is to illuminate the path for brands to connect with their customers through the power of data-driven advertising.

Results for the quarter ended December 31, 2023 were discouraging: Revenue for 2023 was $37 million , down 7.5%; loss from operations widened to $1 million from $0.2 million and overall loss was $2.5 million. Managed service revenue for the quarter was $18,530, a decrease of $8,111, or 30%, from the same prior year period. Despite the general market conditions, there has been a steady growth in Illumin self-service revenue due to the unique and differentiated solution it provides for marketers and advertisers.


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Take Care,

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Disclosure: The analyst(s) responsible for this report do not have a financial or other interest in the securities mentioned.





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