This Canadian Tech Stock Could Quietly Become a Global Leader

Shopify is a great Canadian tech success story. Here’s another tech stock that could skyrocket in the years to come.

Robin Brown

Author Bio

Robin Brown has been a regular contributor to The Motley Fool Canada since January 2020. He began investing in 2009, during the depths of the global financial crisis, and has continued to refine his approach over the years. His investment philosophy emphasizes patience, quality, and identifying businesses with the potential to create lasting value. Robin currently lives in St. Albert, Alberta, where he manages a portfolio of Western Canadian industrial properties and private investments. Having lived in Canada, Norway, and Australia, he brings a broad perspective to his work and investing. Outside of work, Robin enjoys traveling, hiking, hunting, fishing, biking, and cooking for his wife, two daughters, and son.

Education

Bachelor's degree in Theology
Advanced Diploma in Business Management

Areas of Expertise

Dividend investing, value investing, quality stocks, small-cap stocks, long-term investing, business fundamentals, balance sheet analysis, capital allocation, industrial real estate, and private investments.

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Favorite Investment Quote

"Whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down." — Warren Buffett

Published November 7, 2025 4:50 pm EST

Although Canada isn’t often known for its tech stocks, it has fostered some giants through the years. Shopify (TSX: SHOP) is one of Canada’s best-known success stories. With a market cap of $286 billion and trailing enterprise value-to-sales ratio of 19, its growth story is already widely and loudly known.

There is no doubt it has created an incredible e-commerce ecosystem that can compete with the best (like Amazon.com). However, in many respects, it is already a global leader. The e-commerce platform is probably in the fourth or fifth inning of its growth story. There are still more legs for it to expand, but its growth is widely recognized with a premium valuation.

doctor uses telehealth — Source: Getty Images

VitalHub: A Canadian small cap tech stock with ample room for growth

If you want to find the next global leader, you need to look for small or mid-cap stocks that are still early in their growth trajectory. One Canadian tech stock that looks interesting is VitalHub (TSX: VHI). This small-cap stock has a market cap of $623 million and trades for $9.93 per share today.

VitalHub provides specialized software catered to the healthcare industry. Its focus is on electronic health records (HER) management, case management, communication, and mobile solutions. However, it concentrates on niche service areas like social services, psychological support services, community support, and outpatient support.

This focus on niches helps it avoid competition with the big EHR providers like Oracle and Epic. It doesn’t operate in the very competitive U.S. market and mainly works in regions with public health services (like Canada, the U.K., and Australia).

A key to its growth has been making smart acquisitions. It has made over 20 acquisitions over the past several years. These acquisitions either expand it through scale, provide new products that it can sell across its portfolio, or enlarge its presence geographically.

So far, this tech stock has done an excellent job incorporating acquisitions into its fold. It has a development centre in Sri Lanka that helps it cost-efficiently improve and integrate the software it acquires. This is a major competitive edge that supports better margins.

This tech stock has delivered and could keep doing so ahead

VitalHub has delivered great results for shareholders. While its stock is down 9% this year, it is up 235% over the past five years. In that time, revenues have grown by a 51% compounded annual growth rate (CAGR). Earnings before interest, tax, depreciation, and amortization (EBITDA) have risen by a 77% CAGR.

After a couple of equity raises, VitalHub is sitting with over $100 million of cash to deploy. It is in a solid position to continue growing via acquisition.

The Foolish takeaway

VitalHub may never hit a market cap of $286 billion like Shopify. However, if it can smartly deploy its capital at elevated rates of return and continue to expand its market share, it is still possible for its stock price to increase several times over. It already has a global presence but give it time and this Canadian tech stock could become a global leader in niche healthcare software.