CONSTELLATION SOFTWARE (CSU-DB.CA) Fundamental Analysis & Valuation

TSX:CSU-DB • CA21037XAA87

Current stock price

117 CAD
+0.15 (+0.13%)
Last:

This CSU-DB.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. CSU-DB.CA Profitability Analysis

1.1 Basic Checks

  • CSU-DB had positive earnings in the past year.
  • 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 2025 500M 1B 1.5B 2B 2.5B

1.2 Ratios

  • CSU-DB has a better Return On Assets (3.04%) than 71.88% of its industry peers.
  • CSU-DB has a Return On Equity of 13.73%. This is amongst the best in the industry. CSU-DB outperforms 81.25% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 12.98%, CSU-DB belongs to the top of the industry, outperforming 85.94% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for CSU-DB is in line with the industry average of 12.99%.
Industry RankSector Rank
ROA 3.04%
ROE 13.73%
ROIC 12.98%
ROA(3y)4.68%
ROA(5y)5.19%
ROE(3y)23.53%
ROE(5y)25.94%
ROIC(3y)13.53%
ROIC(5y)14.66%
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 2025 10 20 30 40

1.3 Margins

  • With a decent Profit Margin value of 4.22%, CSU-DB is doing good in the industry, outperforming 75.00% 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 16.31%, 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.
  • Looking at the Gross Margin, with a value of 98.13%, CSU-DB belongs to the top of the industry, outperforming 98.44% of the companies in the same industry.
  • CSU-DB's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 16.31%
PM (TTM) 4.22%
GM 98.13%
OM growth 3Y7.05%
OM growth 5Y-1.05%
PM growth 3Y-17.1%
PM growth 5Y-16.7%
GM growth 3Y0.05%
GM growth 5Y0.12%
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 2025 20 40 60 80

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4

2. CSU-DB.CA Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CSU-DB is creating value.
  • CSU-DB has about the same amout of shares outstanding than it did 1 year ago.
  • The number of shares outstanding for CSU-DB remains at a similar level compared to 5 years ago.
  • CSU-DB has a better debt/assets ratio than last year.
CSU-DB.CA Yearly Shares OutstandingCSU-DB.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 5B 10B 15B

2.2 Solvency

  • Based on the Altman-Z score of 1.46, we must say that CSU-DB is in the distress zone and has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 1.46, CSU-DB is in line with its industry, outperforming 54.69% of the companies in the same industry.
  • CSU-DB has a debt to FCF ratio of 2.00. This is a good value and a sign of high solvency as CSU-DB would need 2.00 years to pay back of all of its debts.
  • CSU-DB has a Debt to FCF ratio of 2.00. This is in the better half of the industry: CSU-DB outperforms 75.00% of its industry peers.
  • A Debt/Equity ratio of 1.07 is on the high side and indicates that CSU-DB has dependencies on debt financing.
  • CSU-DB has a worse Debt to Equity ratio (1.07) than 64.06% of its industry peers.
  • Although CSU-DB's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 RankSector Rank
Debt/Equity 1.07
Debt/FCF 2
Altman-Z 1.46
ROIC/WACC1.87
WACC6.96%
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 2025 1B 2B 3B

2.3 Liquidity

  • A Current Ratio of 0.96 indicates that CSU-DB may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.96, CSU-DB is in line with its industry, outperforming 43.75% of the companies in the same industry.
  • A Quick Ratio of 0.94 indicates that CSU-DB may have some problems paying its short term obligations.
  • CSU-DB has a Quick ratio (0.94) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.96
Quick Ratio 0.94
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 2025 2B 4B 6B

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

8

3. CSU-DB.CA Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 5.34% over the past year.
  • CSU-DB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.26% yearly.
  • The Revenue has grown by 15.47% in the past year. This is quite good.
  • The Revenue has been growing by 23.97% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)5.34%
EPS 3Y16.89%
EPS 5Y21.26%
EPS Q2Q%-25.89%
Revenue 1Y (TTM)15.47%
Revenue growth 3Y20.63%
Revenue growth 5Y23.97%
Sales Q2Q%17.54%

3.2 Future

  • Based on estimates for the next years, CSU-DB will show a very strong growth in Earnings Per Share. The EPS will grow by 26.33% 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 13.48% on average per year.
EPS Next Y32.25%
EPS Next 2Y26.33%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year17.05%
Revenue Next 2Y16.14%
Revenue Next 3Y15.27%
Revenue Next 5Y13.48%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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. CSU-DB.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 0.93, which indicates a rather cheap valuation of CSU-DB.
  • Compared to the rest of the industry, the Price/Earnings ratio of CSU-DB indicates a rather cheap valuation: CSU-DB is cheaper than 96.88% of the companies listed in the same industry.
  • CSU-DB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.21.
  • With a Price/Forward Earnings ratio of 0.70, 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 96.88% of the companies are valued more expensively.
  • CSU-DB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.10.
Industry RankSector Rank
PE 0.93
Fwd PE 0.7
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

4.2 Price Multiples

  • 93.75% of the companies in the same industry are more expensive than CSU-DB, based on the Enterprise Value to EBITDA ratio.
  • 98.44% of the companies in the same industry are more expensive than CSU-DB, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 0.67
EV/EBITDA 1.19
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 26.33% in the coming years.
PEG (NY)0.03
PEG (5Y)0.04
EPS Next 2Y26.33%
EPS Next 3YN/A

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4

5. CSU-DB.CA Dividend Analysis

5.1 Amount

  • CSU-DB has a yearly dividend return of 0.24%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.53, CSU-DB pays a better dividend. On top of this CSU-DB pays more dividend than 84.38% of the companies listed in the same industry.
  • With a Dividend Yield of 0.24, CSU-DB pays less dividend than the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 0.24%

5.2 History

  • CSU-DB has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)0%
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 2026 2 4 6 8 10

5.3 Sustainability

  • CSU-DB pays out 17.31% of its income as dividend. This is a sustainable payout ratio.
DP17.31%
EPS Next 2Y26.33%
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B
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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CSU-DB.CA Fundamentals: All Metrics, Ratios and Statistics

CONSTELLATION SOFTWARE

TSX:CSU-DB (4/6/2026, 7:00:00 PM)

117

+0.15 (+0.13%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)03-09
Earnings (Next)05-11
Inst Owners40.26%
Inst Owner ChangeN/A
Ins Owners2.26%
Ins Owner ChangeN/A
Market Cap2.48B
Revenue(TTM)11.62B
Net Income(TTM)491.00M
Analysts78.75
Price Target222.18 (89.9%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.24%
Yearly Dividend5.58
Dividend Growth(5Y)0%
DP17.31%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-30
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.99%
Min EPS beat(2)-23.76%
Max EPS beat(2)13.77%
EPS beat(4)2
Avg EPS beat(4)-6.29%
Min EPS beat(4)-23.76%
Max EPS beat(4)13.77%
EPS beat(8)4
Avg EPS beat(8)-0.9%
EPS beat(12)6
Avg EPS beat(12)1.08%
EPS beat(16)9
Avg EPS beat(16)3.39%
Revenue beat(2)1
Avg Revenue beat(2)-0.75%
Min Revenue beat(2)-1.64%
Max Revenue beat(2)0.13%
Revenue beat(4)1
Avg Revenue beat(4)-2.01%
Min Revenue beat(4)-4.77%
Max Revenue beat(4)0.13%
Revenue beat(8)1
Avg Revenue beat(8)-1.81%
Revenue beat(12)3
Avg Revenue beat(12)-1.29%
Revenue beat(16)4
Avg Revenue beat(16)-1.01%
PT rev (1m)0%
PT rev (3m)25.32%
EPS NQ rev (1m)8.88%
EPS NQ rev (3m)8.88%
EPS NY rev (1m)0%
EPS NY rev (3m)1.72%
Revenue NQ rev (1m)0.35%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)0.62%
Revenue NY rev (3m)0.07%
Valuation
Industry RankSector Rank
PE 0.93
Fwd PE 0.7
P/S 0.15
P/FCF 0.67
P/OCF 0.65
P/B 0.5
P/tB N/A
EV/EBITDA 1.19
EPS(TTM)125.97
EY107.67%
EPS(NY)166.6
Fwd EY142.4%
FCF(TTM)174.9
FCFY149.49%
OCF(TTM)179.37
OCFY153.3%
SpS763.09
BVpS234.71
TBVpS-315.99
PEG (NY)0.03
PEG (5Y)0.04
Graham Number815.63
Profitability
Industry RankSector Rank
ROA 3.04%
ROE 13.73%
ROCE 18.78%
ROIC 12.98%
ROICexc 18.84%
ROICexgc N/A
OM 16.31%
PM (TTM) 4.22%
GM 98.13%
FCFM 22.92%
ROA(3y)4.68%
ROA(5y)5.19%
ROE(3y)23.53%
ROE(5y)25.94%
ROIC(3y)13.53%
ROIC(5y)14.66%
ROICexc(3y)18.43%
ROICexc(5y)19.61%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)19.57%
ROCE(5y)21.21%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-0.55%
ROICexc growth 5Y-8.93%
OM growth 3Y7.05%
OM growth 5Y-1.05%
PM growth 3Y-17.1%
PM growth 5Y-16.7%
GM growth 3Y0.05%
GM growth 5Y0.12%
F-Score5
Asset Turnover0.72
Health
Industry RankSector Rank
Debt/Equity 1.07
Debt/FCF 2
Debt/EBITDA 1.17
Cap/Depr 4.92%
Cap/Sales 0.59%
Interest Coverage 8.94
Cash Conversion 83.32%
Profit Quality 542.57%
Current Ratio 0.96
Quick Ratio 0.94
Altman-Z 1.46
F-Score5
WACC6.96%
ROIC/WACC1.87
Cap/Depr(3y)4.83%
Cap/Depr(5y)4.81%
Cap/Sales(3y)0.58%
Cap/Sales(5y)0.59%
Profit Quality(3y)373.04%
Profit Quality(5y)354.93%
High Growth Momentum
Growth
EPS 1Y (TTM)5.34%
EPS 3Y16.89%
EPS 5Y21.26%
EPS Q2Q%-25.89%
EPS Next Y32.25%
EPS Next 2Y26.33%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)15.47%
Revenue growth 3Y20.63%
Revenue growth 5Y23.97%
Sales Q2Q%17.54%
Revenue Next Year17.05%
Revenue Next 2Y16.14%
Revenue Next 3Y15.27%
Revenue Next 5Y13.48%
EBIT growth 1Y29.51%
EBIT growth 3Y29.13%
EBIT growth 5Y22.68%
EBIT Next Year107.17%
EBIT Next 3Y43.45%
EBIT Next 5Y34.28%
FCF growth 1Y25.07%
FCF growth 3Y28.45%
FCF growth 5Y18.07%
OCF growth 1Y24.35%
OCF growth 3Y28.15%
OCF growth 5Y18.16%

CONSTELLATION SOFTWARE / CSU-DB.CA Fundamental Analysis 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.


Can you provide the profitability details for CONSTELLATION SOFTWARE?

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


How financially healthy is CONSTELLATION SOFTWARE?

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


What is the expected EPS growth for CONSTELLATION SOFTWARE (CSU-DB.CA) stock?

The Earnings per Share (EPS) of CONSTELLATION SOFTWARE (CSU-DB.CA) is expected to grow by 32.25% in the next year.