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CONSTELLATION SOFTWARE (CSU-DB.CA) Stock Price, Quote, News and Overview

TSX:CSU-DB - Toronto Stock Exchange - CA21037XAA87 - Currency: CAD

117.75  +0.75 (+0.64%)

Fundamental Rating

6

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 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.


Dividend Valuation Growth Profitability Health

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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.
In the past 5 years CSU-DB has always been profitable.
CSU-DB had a positive operating cash flow in each of the past 5 years.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

1.2 Ratios

CSU-DB's Return On Assets of 5.33% is fine compared to the rest of the industry. CSU-DB outperforms 78.13% of its industry peers.
CSU-DB has a better Return On Equity (24.33%) than 87.50% of its industry peers.
CSU-DB's Return On Invested Capital of 8.78% is amongst the best of the industry. CSU-DB outperforms 81.25% 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 12.51%.
Industry RankSector 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%
CSU-DB.CA Yearly ROA, ROE, ROICCSU-DB.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

1.3 Margins

With a decent Profit Margin value of 7.15%, CSU-DB is doing good in the industry, outperforming 76.56% of the companies in the same industry.
In the last couple of years the Profit Margin of CSU-DB has declined.
Looking at the Operating Margin, with a value of 14.81%, CSU-DB belongs to the top of the industry, outperforming 82.81% of the companies in the same industry.
CSU-DB's Operating Margin has been stable in the last couple of years.
CSU-DB has a Gross Margin of 98.31%. This is amongst the best in 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 RankSector 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%
CSU-DB.CA Yearly Profit, Operating, Gross MarginsCSU-DB.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

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3

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.
The debt/assets ratio for CSU-DB is higher compared to a year ago.
CSU-DB.CA Yearly Shares OutstandingCSU-DB.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

Based on the Altman-Z score of 1.49, we must say that CSU-DB is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of CSU-DB (1.49) 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.
CSU-DB's Debt to FCF ratio of 2.13 is fine compared to the rest of the industry. CSU-DB outperforms 70.31% of its industry peers.
CSU-DB has a Debt/Equity ratio of 1.25. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CSU-DB (1.25) is worse than 65.63% 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 1.25
Debt/FCF 2.13
Altman-Z 1.49
ROIC/WACC1.25
WACC7.04%
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

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.
With a Current ratio value of 0.94, CSU-DB perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
A Quick Ratio of 0.93 indicates that CSU-DB may have some problems paying its short term obligations.
The Quick ratio of CSU-DB (0.93) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.94
Quick Ratio 0.93
CSU-DB.CA Yearly Current Assets VS Current LiabilitesCSU-DB.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

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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 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.
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)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 Year19.19%
Revenue Next 2Y18.36%
Revenue Next 3Y19.45%
Revenue Next 5Y19.45%

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.
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.
CSU-DB.CA Yearly Revenue VS EstimatesCSU-DB.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10B 20B 30B 40B
CSU-DB.CA Yearly EPS VS EstimatesCSU-DB.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20 40 60 80 100

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9

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 1.00 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/Earnings ratio.
CSU-DB is valuated cheaply when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 0.76, 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 100.00% of the companies in the same industry.
CSU-DB is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.74, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 1
Fwd PE 0.76
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

Based on the Enterprise Value to EBITDA ratio, CSU-DB is valued cheaply inside the industry as 98.44% of the companies are valued more expensively.
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 RankSector Rank
P/FCF 0.83
EV/EBITDA 1.45
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

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 15.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.09
PEG (5Y)0.04
EPS Next 2Y15.17%
EPS Next 3YN/A

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3

5. Dividend

5.1 Amount

With a yearly dividend of 0.11%, CSU-DB is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.68, CSU-DB pays a better dividend. On top of this CSU-DB pays more dividend than 89.06% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, CSU-DB's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.11%

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
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 11.47% of its income as dividend. This is a sustainable payout ratio.
DP11.47%
EPS Next 2Y15.17%
EPS Next 3YN/A
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 2015 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 (7/3/2025, 7:00:00 PM)

117.75

+0.75 (+0.64%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)05-07 2025-05-07/amc
Earnings (Next)08-07 2025-08-07/amc
Inst Owners40.24%
Inst Owner ChangeN/A
Ins Owners2.12%
Ins Owner ChangeN/A
Market Cap2.50B
Analysts78.67
Price Target136.19 (15.66%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.11%
Yearly Dividend5.45
Dividend Growth(5Y)-30.08%
DP11.47%
Div Incr Years0
Div Non Decr Years0
Ex-Date06-27 2025-06-27 (2.225)
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)9.77%
PT rev (3m)-3.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.36%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.38%
Valuation
Industry RankSector Rank
PE 1
Fwd PE 0.76
P/S 0.18
P/FCF 0.83
P/OCF 0.8
P/B 0.6
P/tB N/A
EV/EBITDA 1.45
EPS(TTM)117.53
EY99.81%
EPS(NY)154.97
Fwd EY131.61%
FCF(TTM)142.03
FCFY120.62%
OCF(TTM)146.64
OCFY124.54%
SpS665.03
BVpS195.4
TBVpS-284.24
PEG (NY)0.09
PEG (5Y)0.04
Profitability
Industry RankSector 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 RankSector 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
WACC7.04%
ROIC/WACC1.25
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 Year19.19%
Revenue Next 2Y18.36%
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%