CONSTELLATION SOFTWARE (CSU-DB.CA) Stock Price, Forecast & Analysis
Canada - Toronto Stock Exchange - TSX:CSU-DB - CA21037XAA87
115 CAD
+1.95 (+1.72%)
CSU-DB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 63 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
In the past year CSU-DB was profitable.
CSU-DB had a positive operating cash flow in the past year.
Each year in the past 5 years CSU-DB has been profitable.
In the past 5 years CSU-DB always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.35%, CSU-DB is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
CSU-DB has a better Return On Equity (19.20%) than 88.89% of its industry peers.
CSU-DB has a better Return On Invested Capital (9.25%) than 80.95% 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 12.27%.
| 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
With a decent Profit Margin value of 5.97%, CSU-DB is doing good in the industry, outperforming 77.78% of the companies in the same industry.
In the last couple of years the Profit Margin of CSU-DB has declined.
CSU-DB has a better Operating Margin (16.15%) than 82.54% of its industry peers.
CSU-DB's Operating Margin has been stable in the last couple of years.
CSU-DB's Gross Margin of 98.30% is amongst the best of the industry. CSU-DB outperforms 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 | 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.
Compared to 1 year ago, CSU-DB has about the same amount of shares outstanding.
CSU-DB has about the same amout of shares outstanding than it did 5 years ago.
CSU-DB has a worse debt/assets ratio than last year.
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.
CSU-DB has a Altman-Z score (1.51) which is in line with its industry peers.
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 76.19% of its industry peers.
A Debt/Equity ratio of 1.20 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 1.20, CSU-DB is doing worse than 65.08% 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 | 1.2 | ||
| Debt/FCF | 2.13 | ||
| Altman-Z | 1.51 |
ROIC/WACC1.34
WACC6.91%
2.3 Liquidity
A Current Ratio of 1.02 indicates that CSU-DB should not have too much problems paying its short term obligations.
CSU-DB has a Current ratio of 1.02. This is in the lower half of the industry: CSU-DB underperforms 60.32% of its industry peers.
A Quick Ratio of 1.00 indicates that CSU-DB should not have too much problems paying its short term obligations.
CSU-DB has a Quick ratio of 1.00. This is in the lower half of the industry: CSU-DB underperforms 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 1 |
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.
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)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 14.03% on average over the next years. This is quite good.
CSU-DB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.68% yearly.
EPS Next Y9.22%
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 5Y18.68%
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.
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
With a Price/Earnings ratio of 0.83, the valuation of CSU-DB can be described as very cheap.
Based on the Price/Earnings ratio, CSU-DB is valued cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of CSU-DB to the average of the S&P500 Index (26.15), we can say CSU-DB is valued rather cheaply.
The Price/Forward Earnings ratio is 0.70, which indicates a rather cheap valuation of CSU-DB.
100.00% of the companies in the same industry are more expensive than CSU-DB, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CSU-DB to the average of the S&P500 Index (36.12), we can say CSU-DB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.83 | ||
| Fwd PE | 0.7 |
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 96.83% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CSU-DB is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.68 | ||
| EV/EBITDA | 1.38 |
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)0.09
PEG (5Y)0.03
EPS Next 2Y16.02%
EPS Next 3Y14.03%
5. Dividend
5.1 Amount
With a yearly dividend of 0.18%, CSU-DB is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.76, CSU-DB pays a better dividend. On top of this CSU-DB pays more dividend than 87.30% of the companies listed in the same industry.
With a Dividend Yield of 0.18, CSU-DB pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.18% |
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 2Y16.02%
EPS Next 3Y14.03%
TSX:CSU-DB (11/25/2025, 7:00:00 PM)
115
+1.95 (+1.72%)
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 Cap2.44B
Revenue(TTM)11.15B
Net Income(TTM)666.00M
Analysts78.67
Price Target177.31 (54.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.18% |
Yearly Dividend5.65
Dividend Growth(5Y)-30.09%
DP12.76%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)-2.69%
PT rev (3m)13.73%
EPS NQ rev (1m)-0.82%
EPS NQ rev (3m)-0.82%
EPS NY rev (1m)0.19%
EPS NY rev (3m)0.19%
Revenue NQ rev (1m)-1.21%
Revenue NQ rev (3m)-1.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.83 | ||
| Fwd PE | 0.7 | ||
| P/S | 0.15 | ||
| P/FCF | 0.68 | ||
| P/OCF | 0.66 | ||
| P/B | 0.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 1.38 |
EPS(TTM)138.43
EY120.37%
EPS(NY)163.3
Fwd EY142%
FCF(TTM)169.96
FCFY147.79%
OCF(TTM)174.75
OCFY151.96%
SpS742.51
BVpS231.03
TBVpS-304.75
PEG (NY)0.09
PEG (5Y)0.03
Graham Number848.28
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
WACC6.91%
ROIC/WACC1.34
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 Y9.22%
EPS Next 2Y16.02%
EPS Next 3Y14.03%
EPS Next 5YN/A
Revenue 1Y (TTM)15.1%
Revenue growth 3Y25.39%
Revenue growth 5Y23.6%
Sales Q2Q%15.98%
Revenue Next Year16.13%
Revenue Next 2Y16.89%
Revenue Next 3Y17.36%
Revenue Next 5Y18.68%
EBIT growth 1Y30.04%
EBIT growth 3Y19.59%
EBIT growth 5Y23.43%
EBIT Next Year141.56%
EBIT Next 3Y49.68%
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 stock price of CONSTELLATION SOFTWARE today?
The current stock price of CSU-DB.CA is 115 CAD. The price increased by 1.72% in the last trading session.
What is the ChartMill rating of CONSTELLATION SOFTWARE stock?
CSU-DB.CA has a ChartMill Technical rating of 0 out of 10 and a ChartMill Fundamental rating of 6 out of 10.