CONSTELLATION SOFTWARE (CSU-DB.CA) Stock Overview
Canada - TSX:CSU-DB - CA21037XAA87
119.5 CAD
+0.25 (+0.21%)
CSU-DB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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. An interesting combination arises when we look at growth and value: CSU-DB is growing strongly while it also seems undervalued.
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.
CSU-DB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CSU-DB has a Return On Assets of 4.21%. This is in the better half of the industry: CSU-DB outperforms 77.78% of its industry peers.
The Return On Equity of CSU-DB (18.81%) is better than 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
Looking at the Profit Margin, with a value of 5.77%, CSU-DB is in the better half of the industry, outperforming 79.37% of the companies in the same industry.
CSU-DB's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 15.73%, CSU-DB belongs to the top of the industry, outperforming 82.54% of the companies in the same industry.
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 (98.31%) than 100.00% of its industry peers.
CSU-DB's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, CSU-DB has about the same amount of shares outstanding.
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.
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.
CSU-DB has a Altman-Z score (1.48) which 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.
CSU-DB's Debt to FCF ratio of 2.17 is fine compared to the rest of the industry. CSU-DB outperforms 74.60% of its industry peers.
CSU-DB has a Debt/Equity ratio of 1.28. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.28, CSU-DB is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
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/WACC1.24
WACC7.08%
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.
With a Current ratio value of 0.97, CSU-DB is not doing good in the industry: 60.32% of the companies in the same industry are doing better.
A Quick Ratio of 0.96 indicates that CSU-DB may have some problems paying its short term obligations.
CSU-DB has a Quick ratio of 0.96. This is in the lower half of the industry: CSU-DB underperforms 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.
CSU-DB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.67% yearly.
CSU-DB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.87%.
CSU-DB shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.60% yearly.
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
Based on estimates for the next years, CSU-DB will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.03% on average per year.
The Revenue is expected to grow by 19.65% on average over the next years. This is quite good.
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
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.
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
With a Price/Earnings ratio of 0.92, the valuation of CSU-DB can be described as very cheap.
100.00% of the companies in the same industry are more expensive than CSU-DB, based on the Price/Earnings ratio.
CSU-DB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.76.
With a Price/Forward Earnings ratio of 0.74, the valuation of CSU-DB can be described as very cheap.
100.00% of the companies in the same industry are more expensive than CSU-DB, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.63. CSU-DB is valued rather cheaply when compared to this.
| 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.
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 100.00% of the companies listed in the same industry.
| 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.
CSU-DB has a very decent profitability rating, which 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.
Compared to an average industry Dividend Yield of 1.58, CSU-DB pays a better dividend. On top of this CSU-DB pays more dividend than 88.89% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, 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 -30.09%.
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 13.71% of its income as dividend. This is a sustainable payout ratio.
DP13.71%
EPS Next 2Y16.02%
EPS Next 3Y14.03%
TSX:CSU-DB (10/28/2025, 7:00:00 PM)
119.5
+0.25 (+0.21%)
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 Cap2.53B
Revenue(TTM)10.74B
Net Income(TTM)620.00M
Analysts78.67
Price Target182.2 (52.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.15% |
Yearly Dividend5.63
Dividend Growth(5Y)-30.09%
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)19.61%
PT rev (3m)30.3%
EPS NQ rev (1m)-0.48%
EPS NQ rev (3m)8.48%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.09%
Revenue NY rev (1m)0%
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)129.43
EY108.31%
EPS(NY)162.02
Fwd EY135.58%
FCF(TTM)157.26
FCFY131.6%
OCF(TTM)162.22
OCFY135.75%
SpS709.8
BVpS217.79
TBVpS-304.68
PEG (NY)0.1
PEG (5Y)0.04
Graham Number796.39
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%
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-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
WACC7.08%
ROIC/WACC1.24
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%
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 stock price of CONSTELLATION SOFTWARE today?
The current stock price of CSU-DB.CA is 119.5 CAD. The price increased by 0.21% in the last trading session.
What is the ChartMill rating of CONSTELLATION SOFTWARE stock?
CSU-DB.CA has a ChartMill Technical rating of 5 out of 10 and a ChartMill Fundamental rating of 6 out of 10.