CONSTELLATION SOFTWARE (CSU-DB.CA) Stock Price, Forecast & Analysis
Canada - Toronto Stock Exchange - TSX:CSU-DB - CA21037XAA87
118 CAD
0 (0%)
We assign a fundamental rating of 6 out of 10 to CSU-DB. CSU-DB was compared to 64 industry peers in the Software industry. CSU-DB scores excellent on profitability, but there are some minor 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.
In the past 5 years CSU-DB has always been profitable.
Each year in the past 5 years CSU-DB had a positive operating cash flow.
1.2 Ratios
CSU-DB has a better Return On Assets (4.35%) than 81.25% of its industry peers.
CSU-DB's Return On Equity of 19.20% is amongst the best of the industry. CSU-DB outperforms 90.63% of its industry peers.
CSU-DB has a Return On Invested Capital of 9.25%. This is in the better half of the industry: CSU-DB outperforms 79.69% of its industry peers.
CSU-DB had an Average Return On Invested Capital over the past 3 years of 10.12%. This is in line with the industry average of 11.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.35% | ||
| ROE | 19.2% | ||
| ROIC | 9.25% |
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
The Profit Margin of CSU-DB (5.97%) is better than 78.13% of its industry peers.
CSU-DB's Profit Margin has declined in the last couple of years.
The Operating Margin of CSU-DB (16.15%) is better than 87.50% of its industry peers.
In the last couple of years the Operating Margin of CSU-DB has remained more or less at the same level.
CSU-DB has a Gross Margin of 98.30%. This is amongst the best in the industry. CSU-DB outperforms 100.00% of its industry peers.
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 | 16.15% | ||
| PM (TTM) | 5.97% | ||
| GM | 98.3% |
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
CSU-DB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for CSU-DB remains at a similar level compared to 1 year ago.
The number of shares outstanding for CSU-DB remains at a similar level compared to 5 years ago.
Compared to 1 year ago, CSU-DB has a worse debt to assets ratio.
2.2 Solvency
CSU-DB has an Altman-Z score of 1.51. 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 (1.51) is comparable to the rest of the industry.
The Debt to FCF ratio of CSU-DB is 2.13, which is a good value as it means it would take CSU-DB, 2.13 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CSU-DB (2.13) is better than 79.69% of its industry peers.
CSU-DB has a Debt/Equity ratio of 1.20. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.20, CSU-DB is not doing good in the industry: 64.06% of the companies in the same industry are doing better.
Even though the debt/equity ratio score it not favorable for CSU-DB, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 2.13 | ||
| Altman-Z | 1.51 |
ROIC/WACC1.32
WACC7.03%
2.3 Liquidity
A Current Ratio of 1.02 indicates that CSU-DB should not have too much problems paying its short term obligations.
The Current ratio of CSU-DB (1.02) is comparable to the rest of the industry.
A Quick Ratio of 1.00 indicates that CSU-DB should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.00, CSU-DB is in line with its industry, outperforming 43.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 35.60% over the past year.
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.
Looking at the last year, CSU-DB shows a quite strong growth in Revenue. The Revenue has grown by 15.10% in the last year.
Measured over the past years, CSU-DB shows a very strong growth in Revenue. The Revenue has been growing by 23.60% on average per year.
EPS 1Y (TTM)35.6%
EPS 3Y24.73%
EPS 5Y24.67%
EPS Q2Q%24.27%
Revenue 1Y (TTM)15.1%
Revenue growth 3Y25.39%
Revenue growth 5Y23.6%
Sales Q2Q%15.98%
3.2 Future
CSU-DB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.00% yearly.
Based on estimates for the next years, CSU-DB will show a quite strong growth in Revenue. The Revenue will grow by 15.69% on average per year.
EPS Next Y17.03%
EPS Next 2Y17.03%
EPS Next 3Y18%
EPS Next 5YN/A
Revenue Next Year15.23%
Revenue Next 2Y16.05%
Revenue Next 3Y16.26%
Revenue Next 5Y15.69%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 0.88, the valuation of CSU-DB can be described as very cheap.
Based on the Price/Earnings ratio, CSU-DB is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.60. CSU-DB is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 0.73 indicates a rather cheap valuation of CSU-DB.
Based on the Price/Forward Earnings ratio, CSU-DB is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.23. CSU-DB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.88 | ||
| Fwd PE | 0.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CSU-DB is valued cheaply inside the industry as 96.88% of the companies are valued more expensively.
CSU-DB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CSU-DB is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.72 | ||
| EV/EBITDA | 1.41 |
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.
A more expensive valuation may be justified as CSU-DB's earnings are expected to grow with 18.00% in the coming years.
PEG (NY)0.05
PEG (5Y)0.04
EPS Next 2Y17.03%
EPS Next 3Y18%
5. Dividend
5.1 Amount
CSU-DB has a yearly dividend return of 0.17%, which is pretty low.
CSU-DB's Dividend Yield is rather good when compared to the industry average which is at 0.20. CSU-DB pays more dividend than 89.06% of the companies in the same industry.
With a Dividend Yield of 0.17, CSU-DB pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.17% |
5.2 History
The dividend of CSU-DB decreases each year by -30.09%.
CSU-DB has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)-30.09%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
CSU-DB pays out 12.76% of its income as dividend. This is a sustainable payout ratio.
DP12.76%
EPS Next 2Y17.03%
EPS Next 3Y18%
TSX:CSU-DB (1/2/2026, 7:00:00 PM)
118
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners39.78%
Inst Owner ChangeN/A
Ins Owners2.27%
Ins Owner ChangeN/A
Market Cap2.50B
Revenue(TTM)11.15B
Net Income(TTM)666.00M
Analysts78.75
Price Target177.29 (50.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.17% |
Yearly Dividend5.49
Dividend Growth(5Y)-30.09%
DP12.76%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.33%
Min EPS beat(2)6.89%
Max EPS beat(2)13.77%
EPS beat(4)3
Avg EPS beat(4)6.01%
Min EPS beat(4)-22.05%
Max EPS beat(4)25.45%
EPS beat(8)4
Avg EPS beat(8)-0.2%
EPS beat(12)7
Avg EPS beat(12)3.79%
EPS beat(16)10
Avg EPS beat(16)5.24%
Revenue beat(2)0
Avg Revenue beat(2)-1.7%
Min Revenue beat(2)-1.76%
Max Revenue beat(2)-1.64%
Revenue beat(4)0
Avg Revenue beat(4)-2.54%
Min Revenue beat(4)-4.77%
Max Revenue beat(4)-1.64%
Revenue beat(8)1
Avg Revenue beat(8)-1.64%
Revenue beat(12)3
Avg Revenue beat(12)-1.17%
Revenue beat(16)3
Avg Revenue beat(16)-1.03%
PT rev (1m)-0.01%
PT rev (3m)-2.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.29%
EPS NY rev (1m)0%
EPS NY rev (3m)7.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.96%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.88 | ||
| Fwd PE | 0.73 | ||
| P/S | 0.16 | ||
| P/FCF | 0.72 | ||
| P/OCF | 0.7 | ||
| P/B | 0.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 1.41 |
EPS(TTM)134.3
EY113.81%
EPS(NY)161.19
Fwd EY136.6%
FCF(TTM)164.9
FCFY139.74%
OCF(TTM)169.55
OCFY143.69%
SpS720.39
BVpS224.15
TBVpS-295.68
PEG (NY)0.05
PEG (5Y)0.04
Graham Number823
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.35% | ||
| ROE | 19.2% | ||
| ROCE | 18.7% | ||
| ROIC | 9.25% | ||
| ROICexc | 13.04% | ||
| ROICexgc | N/A | ||
| OM | 16.15% | ||
| PM (TTM) | 5.97% | ||
| GM | 98.3% | ||
| FCFM | 22.89% |
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%
ROICexgc growth 3YN/A
ROICexgc 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-Score5
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 2.13 | ||
| Debt/EBITDA | 1.33 | ||
| Cap/Depr | 5.4% | ||
| Cap/Sales | 0.65% | ||
| Interest Coverage | 8.74 | ||
| Cash Conversion | 83.73% | ||
| Profit Quality | 383.18% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 1.51 |
F-Score5
WACC7.03%
ROIC/WACC1.32
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)35.6%
EPS 3Y24.73%
EPS 5Y24.67%
EPS Q2Q%24.27%
EPS Next Y17.03%
EPS Next 2Y17.03%
EPS Next 3Y18%
EPS Next 5YN/A
Revenue 1Y (TTM)15.1%
Revenue growth 3Y25.39%
Revenue growth 5Y23.6%
Sales Q2Q%15.98%
Revenue Next Year15.23%
Revenue Next 2Y16.05%
Revenue Next 3Y16.26%
Revenue Next 5Y15.69%
EBIT growth 1Y30.04%
EBIT growth 3Y19.59%
EBIT growth 5Y23.43%
EBIT Next Year146.07%
EBIT Next 3Y50.21%
EBIT Next 5Y38.21%
FCF growth 1Y57.05%
FCF growth 3Y18.78%
FCF growth 5Y23.82%
OCF growth 1Y57.31%
OCF growth 3Y19.11%
OCF growth 5Y23.46%
CONSTELLATION SOFTWARE / CSU-DB.CA FAQ
What does CONSTELLATION SOFTWARE do?
Constellation Software, Inc. is a holding company, which acquires, manages and builds vertical market software businesses. The company is headquartered in Toronto, Ontario and currently employs 64,000 full-time employees. The company went IPO on 2006-05-15. The firm acquires, manages and builds vertical market software (VMS) businesses that provide mission-critical software solutions. The company is principally engaged in the development, installation, and customization of software as well as in the provisioning of related professional services and support for customers globally. Its professional services include the installation, implementation, training and customization of software and other services. The firm sells on-premises software licenses on both a perpetual and specified-term basis. The company has six operating groups, which service customers in over 100 different markets around the world. The six operating groups include Volaris, Harris, Topicus.com, Vela, Jonas, and Perseus Group. The company operates offices in North America, Continental Europe, the United Kingdom, South America, Africa, and Australia.
What is the current price of CSU-DB stock?
The current stock price of CSU-DB.CA is 118 CAD.
What is the ChartMill rating of CONSTELLATION SOFTWARE stock?
CSU-DB.CA has a ChartMill Technical rating of 3 out of 10 and a ChartMill Fundamental rating of 6 out of 10.
Where is CONSTELLATION SOFTWARE (CSU-DB.CA) stock traded?
CSU-DB.CA stock is listed on the Toronto Stock Exchange exchange.