CONSTELLATION SOFTWARE (CSU-DB.CA) Stock Price, Quote, News and Overview
TSX:CSU-DB - Toronto Stock Exchange - CA21037XAA87 - Currency: CAD
We assign a fundamental rating of 6 out of 10 to CSU-DB. CSU-DB was compared to 62 industry peers in the Software industry. CSU-DB has an excellent profitability rating, but there are 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.
In the past year CSU-DB had a positive cash flow from operations.
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 (5.33%) is better than 77.42% of its industry peers.
CSU-DB has a Return On Equity of 24.33%. This is amongst the best in the industry. CSU-DB outperforms 87.10% of its industry peers.
CSU-DB has a better Return On Invested Capital (8.78%) than 80.65% 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 12.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.33% | ||
| ROE | 24.33% | ||
| ROIC | 8.78% |
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 (7.15%) than 77.42% of its industry peers.
In the last couple of years the Profit Margin of CSU-DB has declined.
CSU-DB has a Operating Margin of 14.81%. This is amongst the best in the industry. CSU-DB outperforms 82.26% of its industry peers.
CSU-DB's Operating Margin has been stable in the last couple of years.
CSU-DB's Gross Margin of 98.31% 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 | 14.81% | ||
| PM (TTM) | 7.15% | ||
| GM | 98.31% |
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.
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 1.49. 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 of 1.49. This is comparable to the rest of the industry: CSU-DB outperforms 53.23% of its industry peers.
CSU-DB has a debt to FCF ratio of 2.13. This is a good value and a sign of high solvency as CSU-DB would need 2.13 years to pay back of all of its debts.
CSU-DB has a Debt to FCF ratio of 2.13. This is in the better half of the industry: CSU-DB outperforms 69.35% of its industry peers.
A Debt/Equity ratio of 1.25 is on the high side and indicates that CSU-DB has dependencies on debt financing.
The Debt to Equity ratio of CSU-DB (1.25) is worse than 67.74% of its industry peers.
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 | 1.25 | ||
| Debt/FCF | 2.13 | ||
| Altman-Z | 1.49 |
ROIC/WACC1.29
WACC6.81%
2.3 Liquidity
CSU-DB has a Current Ratio of 0.94. 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 (0.94) which is in line with its industry peers.
A Quick Ratio of 0.93 indicates that CSU-DB may have some problems paying its short term obligations.
With a Quick ratio value of 0.93, CSU-DB perfoms like the industry average, outperforming 41.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.93 |
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 46.44%, 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.
Looking at the last year, CSU-DB shows a quite strong growth in Revenue. The Revenue has grown by 17.26% in the last year.
The Revenue has been growing by 23.60% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)46.44%
EPS 3Y24.73%
EPS 5Y24.67%
EPS Q2Q%3.19%
Revenue 1Y (TTM)17.26%
Revenue growth 3Y25.39%
Revenue growth 5Y23.6%
Sales Q2Q%12.79%
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 15.17% on average per year.
Based on estimates for the next years, CSU-DB will show a quite strong growth in Revenue. The Revenue will grow by 19.45% on average per year.
EPS Next Y10.67%
EPS Next 2Y15.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year16.35%
Revenue Next 2Y16.88%
Revenue Next 3Y19.45%
Revenue Next 5Y19.45%
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 Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 0.98, the valuation of CSU-DB can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of CSU-DB indicates a rather cheap valuation: CSU-DB is cheaper than 100.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.24. CSU-DB is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 0.74, the valuation of CSU-DB can be described as very cheap.
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.
CSU-DB is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.98 | ||
| Fwd PE | 0.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CSU-DB is valued cheaply inside the industry as 98.39% 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 | 0.81 | ||
| EV/EBITDA | 1.44 |
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 15.17% in the coming years.
PEG (NY)0.09
PEG (5Y)0.04
EPS Next 2Y15.17%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CSU-DB has a yearly dividend return of 0.12%, which is pretty low.
Compared to an average industry Dividend Yield of 1.67, CSU-DB pays a better dividend. On top of this CSU-DB pays more dividend than 88.71% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, CSU-DB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.12% |
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
CSU-DB pays out 11.47% of its income as dividend. This is a sustainable payout ratio.
DP11.47%
EPS Next 2Y15.17%
EPS Next 3YN/A
TSX:CSU-DB (7/31/2025, 7:00:00 PM)
117
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners40.24%
Inst Owner ChangeN/A
Ins Owners2.12%
Ins Owner ChangeN/A
Market Cap2.48B
Analysts78.67
Price Target139.83 (19.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.12% |
Yearly Dividend5.56
Dividend Growth(5Y)-30.08%
DP11.47%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.7%
Min EPS beat(2)-22.05%
Max EPS beat(2)25.45%
EPS beat(4)2
Avg EPS beat(4)1.96%
Min EPS beat(4)-22.05%
Max EPS beat(4)25.45%
EPS beat(8)3
Avg EPS beat(8)-4.19%
EPS beat(12)6
Avg EPS beat(12)3.53%
EPS beat(16)8
Avg EPS beat(16)-0.7%
Revenue beat(2)0
Avg Revenue beat(2)-3.38%
Min Revenue beat(2)-4.77%
Max Revenue beat(2)-1.99%
Revenue beat(4)0
Avg Revenue beat(4)-2.61%
Min Revenue beat(4)-4.77%
Max Revenue beat(4)-1.36%
Revenue beat(8)1
Avg Revenue beat(8)-1.64%
Revenue beat(12)3
Avg Revenue beat(12)-1.01%
Revenue beat(16)3
Avg Revenue beat(16)-1.04%
PT rev (1m)2.68%
PT rev (3m)4.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.31%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-1.33%
Revenue NY rev (1m)-2.38%
Revenue NY rev (3m)-2.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.98 | ||
| Fwd PE | 0.74 | ||
| P/S | 0.17 | ||
| P/FCF | 0.81 | ||
| P/OCF | 0.79 | ||
| P/B | 0.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 1.44 |
EPS(TTM)119.12
EY101.81%
EPS(NY)157.08
Fwd EY134.26%
FCF(TTM)143.96
FCFY123.04%
OCF(TTM)148.64
OCFY127.04%
SpS674.06
BVpS198.05
TBVpS-288.1
PEG (NY)0.09
PEG (5Y)0.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.33% | ||
| ROE | 24.33% | ||
| ROCE | 17.76% | ||
| ROIC | 8.78% | ||
| ROICexc | 12.33% | ||
| ROICexgc | N/A | ||
| OM | 14.81% | ||
| PM (TTM) | 7.15% | ||
| GM | 98.31% | ||
| FCFM | 21.36% |
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-Score8
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 2.13 | ||
| Debt/EBITDA | 1.37 | ||
| Cap/Depr | 5.72% | ||
| Cap/Sales | 0.69% | ||
| Interest Coverage | 7.17 | ||
| Cash Conversion | 81.85% | ||
| Profit Quality | 298.79% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 1.49 |
F-Score8
WACC6.81%
ROIC/WACC1.29
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)46.44%
EPS 3Y24.73%
EPS 5Y24.67%
EPS Q2Q%3.19%
EPS Next Y10.67%
EPS Next 2Y15.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)17.26%
Revenue growth 3Y25.39%
Revenue growth 5Y23.6%
Sales Q2Q%12.79%
Revenue Next Year16.35%
Revenue Next 2Y16.88%
Revenue Next 3Y19.45%
Revenue Next 5Y19.45%
EBIT growth 1Y20.49%
EBIT growth 3Y19.59%
EBIT growth 5Y23.43%
EBIT Next Year140.74%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y59.17%
FCF growth 3Y18.78%
FCF growth 5Y23.82%
OCF growth 1Y59.41%
OCF growth 3Y19.11%
OCF growth 5Y23.46%