CONSTELLATION SOFTWARE (CSU-DB.CA) Stock Overview
Canada - TSX:CSU-DB - CA21037XAA87
119.13 CAD
+0.35 (+0.29%)
Overall CSU-DB gets a fundamental rating of 6 out of 10. We evaluated CSU-DB against 63 industry peers in the Software industry. While CSU-DB has a great profitability rating, there are quite some concerns on its financial health. CSU-DB is growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
CSU-DB had positive earnings in the past year.
CSU-DB had a positive operating cash flow in the past year.
CSU-DB had positive earnings in each of the past 5 years.
In the past 5 years CSU-DB always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CSU-DB (4.21%) is better than 76.19% of its industry peers.
CSU-DB has a Return On Equity of 18.81%. This is amongst the best in the industry. CSU-DB outperforms 87.30% of its industry peers.
CSU-DB's Return On Invested Capital of 8.79% is fine compared to the rest of the industry. CSU-DB outperforms 79.37% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CSU-DB is below the industry average of 12.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.21% | ||
| ROE | 18.81% | ||
| ROIC | 8.79% |
ROA(3y)5.8%
ROA(5y)6.55%
ROE(3y)28.73%
ROE(5y)31.4%
ROIC(3y)10.12%
ROIC(5y)11.52%
1.3 Margins
CSU-DB has a better Profit Margin (5.77%) than 79.37% of its industry peers.
In the last couple of years the Profit Margin of CSU-DB has declined.
CSU-DB's Operating Margin of 15.73% is amongst the best of the industry. CSU-DB outperforms 82.54% of its industry peers.
CSU-DB's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 98.31%, CSU-DB belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of CSU-DB has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.73% | ||
| PM (TTM) | 5.77% | ||
| GM | 98.32% |
OM growth 3Y-4.63%
OM growth 5Y-0.13%
PM growth 3Y6.15%
PM growth 5Y-5.31%
GM growth 3Y0.09%
GM growth 5Y0.25%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CSU-DB is still creating some value.
CSU-DB has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, CSU-DB has about the same amount of shares outstanding.
CSU-DB has a worse debt/assets ratio than last year.
2.2 Solvency
CSU-DB has an Altman-Z score of 1.48. This is a bad value and indicates that CSU-DB is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CSU-DB (1.48) is comparable to the rest of the industry.
The Debt to FCF ratio of CSU-DB is 2.17, which is a good value as it means it would take CSU-DB, 2.17 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CSU-DB (2.17) is better than 74.60% of its industry peers.
A Debt/Equity ratio of 1.28 is on the high side and indicates that CSU-DB has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.28, CSU-DB is doing worse than 66.67% of the companies in the same industry.
Although CSU-DB does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 2.17 | ||
| Altman-Z | 1.48 |
ROIC/WACC1.23
WACC7.15%
2.3 Liquidity
CSU-DB has a Current Ratio of 0.97. This is a bad value and indicates that CSU-DB is not financially healthy enough and could expect problems in meeting its short term obligations.
CSU-DB has a Current ratio of 0.97. This is in the lower half of the industry: CSU-DB underperforms 60.32% of its industry peers.
A Quick Ratio of 0.96 indicates that CSU-DB may have some problems paying its short term obligations.
CSU-DB's Quick ratio of 0.96 is on the low side compared to the rest of the industry. CSU-DB is outperformed by 60.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
CSU-DB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.40%, which is quite impressive.
Measured over the past years, CSU-DB shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.67% on average per year.
The Revenue has grown by 15.87% in the past year. This is quite good.
The Revenue has been growing by 23.60% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)38.4%
EPS 3Y24.73%
EPS 5Y24.67%
EPS Q2Q%33.43%
Revenue 1Y (TTM)15.87%
Revenue growth 3Y25.39%
Revenue growth 5Y23.6%
Sales Q2Q%15.19%
3.2 Future
The Earnings Per Share is expected to grow by 14.03% on average over the next years. This is quite good.
Based on estimates for the next years, CSU-DB will show a quite strong growth in Revenue. The Revenue will grow by 19.65% on average per year.
EPS Next Y9.02%
EPS Next 2Y16.02%
EPS Next 3Y14.03%
EPS Next 5YN/A
Revenue Next Year16.13%
Revenue Next 2Y16.89%
Revenue Next 3Y17.36%
Revenue Next 5Y19.65%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 0.92 indicates a rather cheap valuation of CSU-DB.
Based on the Price/Earnings ratio, CSU-DB is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
CSU-DB is valuated cheaply when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 0.74, the valuation of CSU-DB can be described as very cheap.
CSU-DB's Price/Forward Earnings ratio is rather cheap when compared to the industry. CSU-DB is cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CSU-DB to the average of the S&P500 Index (23.32), we can say CSU-DB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.92 | ||
| Fwd PE | 0.74 |
4.2 Price Multiples
98.41% of the companies in the same industry are more expensive than CSU-DB, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CSU-DB is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.76 | ||
| EV/EBITDA | 1.47 |
4.3 Compensation for Growth
CSU-DB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of CSU-DB may justify a higher PE ratio.
CSU-DB's earnings are expected to grow with 14.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.1
PEG (5Y)0.04
EPS Next 2Y16.02%
EPS Next 3Y14.03%
5. Dividend
5.1 Amount
CSU-DB has a yearly dividend return of 0.15%, which is pretty low.
CSU-DB's Dividend Yield is rather good when compared to the industry average which is at 1.48. CSU-DB pays more dividend than 88.89% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, CSU-DB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.15% |
5.2 History
The dividend of CSU-DB decreases each year by -30.08%.
CSU-DB has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)-30.08%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
13.71% of the earnings are spent on dividend by CSU-DB. This is a low number and sustainable payout ratio.
DP13.71%
EPS Next 2Y16.02%
EPS Next 3Y14.03%
TSX:CSU-DB (10/2/2025, 7:00:00 PM)
119.13
+0.35 (+0.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners41.11%
Inst Owner ChangeN/A
Ins Owners2.12%
Ins Owner ChangeN/A
Market Cap2.52B
Analysts78.67
Price Target182.2 (52.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.15% |
Yearly Dividend5.6
Dividend Growth(5Y)-30.08%
DP13.71%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.58%
Min EPS beat(2)-22.05%
Max EPS beat(2)6.89%
EPS beat(4)3
Avg EPS beat(4)5.85%
Min EPS beat(4)-22.05%
Max EPS beat(4)25.45%
EPS beat(8)4
Avg EPS beat(8)0.1%
EPS beat(12)7
Avg EPS beat(12)4.23%
EPS beat(16)9
Avg EPS beat(16)1.59%
Revenue beat(2)0
Avg Revenue beat(2)-3.27%
Min Revenue beat(2)-4.77%
Max Revenue beat(2)-1.76%
Revenue beat(4)0
Avg Revenue beat(4)-2.71%
Min Revenue beat(4)-4.77%
Max Revenue beat(4)-1.76%
Revenue beat(8)1
Avg Revenue beat(8)-1.68%
Revenue beat(12)3
Avg Revenue beat(12)-1.14%
Revenue beat(16)3
Avg Revenue beat(16)-1.05%
PT rev (1m)16.87%
PT rev (3m)33.79%
EPS NQ rev (1m)-0.48%
EPS NQ rev (3m)9.11%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.19%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-2.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.92 | ||
| Fwd PE | 0.74 | ||
| P/S | 0.17 | ||
| P/FCF | 0.76 | ||
| P/OCF | 0.74 | ||
| P/B | 0.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 1.47 |
EPS(TTM)129.1
EY108.37%
EPS(NY)161.6
Fwd EY135.65%
FCF(TTM)156.85
FCFY131.67%
OCF(TTM)161.8
OCFY135.82%
SpS707.96
BVpS217.22
TBVpS-303.89
PEG (NY)0.1
PEG (5Y)0.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.21% | ||
| ROE | 18.81% | ||
| ROCE | 17.78% | ||
| ROIC | 8.79% | ||
| ROICexc | 12.06% | ||
| ROICexgc | N/A | ||
| OM | 15.73% | ||
| PM (TTM) | 5.77% | ||
| GM | 98.32% | ||
| FCFM | 22.16% |
ROA(3y)5.8%
ROA(5y)6.55%
ROE(3y)28.73%
ROE(5y)31.4%
ROIC(3y)10.12%
ROIC(5y)11.52%
ROICexc(3y)13.25%
ROICexc(5y)15.63%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)20.46%
ROCE(5y)23.3%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-11.6%
ROICexc growth 5Y-7.15%
OM growth 3Y-4.63%
OM growth 5Y-0.13%
PM growth 3Y6.15%
PM growth 5Y-5.31%
GM growth 3Y0.09%
GM growth 5Y0.25%
F-Score6
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 2.17 | ||
| Debt/EBITDA | 1.41 | ||
| Cap/Depr | 5.81% | ||
| Cap/Sales | 0.7% | ||
| Interest Coverage | 8.09 | ||
| Cash Conversion | 82.35% | ||
| Profit Quality | 383.87% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 1.48 |
F-Score6
WACC7.15%
ROIC/WACC1.23
Cap/Depr(3y)4.86%
Cap/Depr(5y)4.81%
Cap/Sales(3y)0.59%
Cap/Sales(5y)0.6%
Profit Quality(3y)281.44%
Profit Quality(5y)304.12%
High Growth Momentum
Growth
EPS 1Y (TTM)38.4%
EPS 3Y24.73%
EPS 5Y24.67%
EPS Q2Q%33.43%
EPS Next Y9.02%
EPS Next 2Y16.02%
EPS Next 3Y14.03%
EPS Next 5YN/A
Revenue 1Y (TTM)15.87%
Revenue growth 3Y25.39%
Revenue growth 5Y23.6%
Sales Q2Q%15.19%
Revenue Next Year16.13%
Revenue Next 2Y16.89%
Revenue Next 3Y17.36%
Revenue Next 5Y19.65%
EBIT growth 1Y27.74%
EBIT growth 3Y19.59%
EBIT growth 5Y23.43%
EBIT Next Year141.56%
EBIT Next 3Y49.68%
EBIT Next 5Y38.21%
FCF growth 1Y65.62%
FCF growth 3Y18.78%
FCF growth 5Y23.82%
OCF growth 1Y66.1%
OCF growth 3Y19.11%
OCF growth 5Y23.46%