CONSTELLATION SOFTWARE (CSU-DB.CA) Stock Fundamental Analysis

TSX:CSU-DB • CA21037XAA87

117.01 CAD
-0.02 (-0.02%)
Last: Feb 12, 2026, 07:00 PM
Overview Stock Chart Technical Analysis News
Fundamental Rating

6

CSU-DB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 67 industry peers in the Software industry. CSU-DB has an excellent profitability rating, but there are some minor concerns on its financial health. CSU-DB is evaluated to be cheap and growing strongly. This does not happen too often!


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • In the past year CSU-DB was profitable.
  • CSU-DB had a positive operating cash flow in the past year.
  • CSU-DB had positive earnings in each of the past 5 years.
  • Each year in the past 5 years CSU-DB had a positive operating cash flow.
CSU-DB.CA Yearly Net Income VS EBIT VS OCF VS FCFCSU-DB.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

1.2 Ratios

  • With a decent Return On Assets value of 4.35%, CSU-DB is doing good in the industry, outperforming 74.63% of the companies in the same industry.
  • CSU-DB has a better Return On Equity (19.20%) than 86.57% of its industry peers.
  • CSU-DB has a better Return On Invested Capital (9.25%) than 76.12% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for CSU-DB is below the industry average of 12.66%.
Industry RankSector 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%
CSU-DB.CA Yearly ROA, ROE, ROICCSU-DB.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

1.3 Margins

  • Looking at the Profit Margin, with a value of 5.97%, CSU-DB is in the better half of the industry, outperforming 74.63% of the companies in the same industry.
  • CSU-DB's Profit Margin has declined in the last couple of years.
  • CSU-DB has a Operating Margin of 16.15%. This is amongst the best in the industry. CSU-DB outperforms 83.58% 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 better Gross Margin (98.30%) than 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 RankSector 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%
CSU-DB.CA Yearly Profit, Operating, Gross MarginsCSU-DB.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CSU-DB is creating some value.
  • The number of shares outstanding for CSU-DB remains at a similar level compared to 1 year ago.
  • Compared to 5 years ago, CSU-DB has about the same amount of shares outstanding.
  • Compared to 1 year ago, CSU-DB has a worse debt to assets ratio.
CSU-DB.CA Yearly Shares OutstandingCSU-DB.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M 20M
CSU-DB.CA Yearly Total Debt VS Total AssetsCSU-DB.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

  • Based on the Altman-Z score of 1.51, we must say that CSU-DB is in the distress zone and 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.
  • Looking at the Debt to FCF ratio, with a value of 2.13, CSU-DB is in the better half of the industry, outperforming 76.12% of the companies in the same industry.
  • A Debt/Equity ratio of 1.20 is on the high side and indicates that CSU-DB has dependencies on debt financing.
  • The Debt to Equity ratio of CSU-DB (1.20) is worse than 62.69% of its industry peers.
  • 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 RankSector Rank
Debt/Equity 1.2
Debt/FCF 2.13
Altman-Z 1.51
ROIC/WACC1.31
WACC7.08%
CSU-DB.CA Yearly LT Debt VS Equity VS FCFCSU-DB.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.3 Liquidity

  • A Current Ratio of 1.02 indicates that CSU-DB should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.02, CSU-DB perfoms like the industry average, outperforming 47.76% of the companies in the same industry.
  • CSU-DB has a Quick Ratio of 1.00. This is a normal value and indicates that CSU-DB is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Quick ratio value of 1.00, CSU-DB perfoms like the industry average, outperforming 47.76% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.02
Quick Ratio 1
CSU-DB.CA Yearly Current Assets VS Current LiabilitesCSU-DB.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

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 35.60%, which is quite impressive.
  • The Earnings Per Share has been growing by 24.67% on average over the past years. This is a very strong growth
  • The Revenue has grown by 15.10% 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)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

  • The Earnings Per Share is expected to grow by 19.01% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 14.09% on average over the next years. This is quite good.
EPS Next Y19.54%
EPS Next 2Y18.01%
EPS Next 3Y19.01%
EPS Next 5YN/A
Revenue Next Year15.23%
Revenue Next 2Y16.05%
Revenue Next 3Y16.26%
Revenue Next 5Y14.09%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
CSU-DB.CA Yearly Revenue VS EstimatesCSU-DB.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B
CSU-DB.CA Yearly EPS VS EstimatesCSU-DB.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 50 100

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9

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 97.01% of the companies are valued more expensively.
  • CSU-DB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.97.
  • Based on the Price/Forward Earnings ratio of 0.72, 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 97.01% of the companies in the same industry.
  • CSU-DB is valuated cheaply when we compare the Price/Forward Earnings ratio to 27.96, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 0.88
Fwd PE 0.72
CSU-DB.CA Price Earnings VS Forward Price EarningsCSU-DB.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • CSU-DB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CSU-DB is cheaper than 95.52% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of CSU-DB indicates a rather cheap valuation: CSU-DB is cheaper than 98.51% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 0.72
EV/EBITDA 1.41
CSU-DB.CA Per share dataCSU-DB.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 200 -200 400 600

4.3 Compensation for Growth

  • The 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 19.01% in the coming years.
PEG (NY)0.04
PEG (5Y)0.04
EPS Next 2Y18.01%
EPS Next 3Y19.01%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. Dividend

5.1 Amount

  • CSU-DB has a yearly dividend return of 0.23%, which is pretty low.
  • CSU-DB's Dividend Yield is rather good when compared to the industry average which is at 0.27. CSU-DB pays more dividend than 88.06% of the companies in the same industry.
  • With a Dividend Yield of 0.23, CSU-DB pays less dividend than the S&P500 average, which is at 1.79.
Industry RankSector Rank
Dividend Yield 0.23%

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
CSU-DB.CA Yearly Dividends per shareCSU-DB.CA Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

5.3 Sustainability

  • CSU-DB pays out 12.76% of its income as dividend. This is a sustainable payout ratio.
DP12.76%
EPS Next 2Y18.01%
EPS Next 3Y19.01%
CSU-DB.CA Yearly Income VS Free CF VS DividendCSU-DB.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B
CSU-DB.CA Dividend Payout.CSU-DB.CA Dividend Payout, showing the Payout Ratio.CSU-DB.CA Dividend Payout.PayoutRetained Earnings

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CONSTELLATION SOFTWARE

TSX:CSU-DB (2/12/2026, 7:00:00 PM)

117.01

-0.02 (-0.02%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-05
Earnings (Next)05-11
Inst Owners39.78%
Inst Owner ChangeN/A
Ins Owners2.27%
Ins Owner ChangeN/A
Market Cap2.48B
Revenue(TTM)11.15B
Net Income(TTM)666.00M
Analysts78.75
Price Target231.37 (97.74%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.23%
Yearly Dividend5.48
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)30.51%
PT rev (3m)18.11%
EPS NQ rev (1m)2.8%
EPS NQ rev (3m)2.49%
EPS NY rev (1m)2.15%
EPS NY rev (3m)9.44%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.99%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.77%
Valuation
Industry RankSector Rank
PE 0.88
Fwd PE 0.72
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)133.23
EY113.86%
EPS(NY)162.6
Fwd EY138.96%
FCF(TTM)163.58
FCFY139.8%
OCF(TTM)168.2
OCFY143.74%
SpS714.64
BVpS222.36
TBVpS-293.32
PEG (NY)0.04
PEG (5Y)0.04
Graham Number816.43
Profitability
Industry RankSector 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 RankSector 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
WACC7.08%
ROIC/WACC1.31
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 Y19.54%
EPS Next 2Y18.01%
EPS Next 3Y19.01%
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 5Y14.09%
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 is the ChartMill fundamental rating of CONSTELLATION SOFTWARE (CSU-DB.CA) stock?

ChartMill assigns a fundamental rating of 6 / 10 to CSU-DB.CA.


What is the valuation status for CSU-DB stock?

ChartMill assigns a valuation rating of 9 / 10 to CONSTELLATION SOFTWARE (CSU-DB.CA). This can be considered as Undervalued.


How profitable is CONSTELLATION SOFTWARE (CSU-DB.CA) stock?

CONSTELLATION SOFTWARE (CSU-DB.CA) has a profitability rating of 7 / 10.


Can you provide the financial health for CSU-DB stock?

The financial health rating of CONSTELLATION SOFTWARE (CSU-DB.CA) is 4 / 10.


Can you provide the dividend sustainability for CSU-DB stock?

The dividend rating of CONSTELLATION SOFTWARE (CSU-DB.CA) is 3 / 10 and the dividend payout ratio is 12.76%.