CONSTELLATION SOFTWARE INC (CSU.CA) Fundamental Analysis & Valuation

TSX:CSU • CA21037X1006

Current stock price

2524.08 CAD
-95.01 (-3.63%)
Last:

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

7

1. CSU.CA Profitability Analysis

1.1 Basic Checks

  • In the past year CSU was profitable.
  • In the past year CSU had a positive cash flow from operations.
  • In the past 5 years CSU has always been profitable.
  • Each year in the past 5 years CSU had a positive operating cash flow.
CSU.CA Yearly Net Income VS EBIT VS OCF VS FCFCSU.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 500M 1B 1.5B 2B

1.2 Ratios

  • CSU's Return On Assets of 4.35% is fine compared to the rest of the industry. CSU outperforms 72.06% of its industry peers.
  • CSU has a Return On Equity of 19.20%. This is amongst the best in the industry. CSU outperforms 85.29% of its industry peers.
  • The Return On Invested Capital of CSU (9.25%) is better than 73.53% of its industry peers.
  • CSU had an Average Return On Invested Capital over the past 3 years of 10.12%. This is below the industry average of 12.17%.
Industry RankSector 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%
CSU.CA Yearly ROA, ROE, ROICCSU.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

1.3 Margins

  • Looking at the Profit Margin, with a value of 5.97%, CSU is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
  • CSU's Profit Margin has declined in the last couple of years.
  • With an excellent Operating Margin value of 16.15%, CSU belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
  • CSU's Operating Margin has been stable in the last couple of years.
  • CSU has a Gross Margin of 98.30%. This is amongst the best in the industry. CSU outperforms 98.53% of its industry peers.
  • In the last couple of years the Gross Margin of CSU has remained more or less at the same level.
Industry RankSector 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%
CSU.CA Yearly Profit, Operating, Gross MarginsCSU.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

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5

2. CSU.CA Health Analysis

2.1 Basic Checks

  • CSU has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • CSU has about the same amout of shares outstanding than it did 1 year ago.
  • CSU has about the same amout of shares outstanding than it did 5 years ago.
  • The debt/assets ratio for CSU is higher compared to a year ago.
CSU.CA Yearly Shares OutstandingCSU.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M 20M
CSU.CA Yearly Total Debt VS Total AssetsCSU.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

  • CSU has an Altman-Z score of 3.48. This indicates that CSU is financially healthy and has little risk of bankruptcy at the moment.
  • CSU has a better Altman-Z score (3.48) than 70.59% of its industry peers.
  • CSU has a debt to FCF ratio of 2.13. This is a good value and a sign of high solvency as CSU would need 2.13 years to pay back of all of its debts.
  • CSU has a Debt to FCF ratio of 2.13. This is in the better half of the industry: CSU outperforms 75.00% of its industry peers.
  • A Debt/Equity ratio of 1.20 is on the high side and indicates that CSU has dependencies on debt financing.
  • The Debt to Equity ratio of CSU (1.20) is worse than 60.29% of its industry peers.
  • Although CSU'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 1.2
Debt/FCF 2.13
Altman-Z 3.48
ROIC/WACC0.94
WACC9.8%
CSU.CA Yearly LT Debt VS Equity VS FCFCSU.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.3 Liquidity

  • A Current Ratio of 1.02 indicates that CSU should not have too much problems paying its short term obligations.
  • CSU has a Current ratio (1.02) which is comparable to the rest of the industry.
  • CSU has a Quick Ratio of 1.00. This is a normal value and indicates that CSU is financially healthy and should not expect problems in meeting its short term obligations.
  • The Quick ratio of CSU (1.00) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.02
Quick Ratio 1
CSU.CA Yearly Current Assets VS Current LiabilitesCSU.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

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

7

3. CSU.CA Growth Analysis

3.1 Past

  • CSU shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.34%.
  • The Earnings Per Share has been growing by 24.67% on average over the past years. This is a very strong growth
  • CSU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.73%.
  • Measured over the past years, CSU shows a very strong growth in Revenue. The Revenue has been growing by 23.60% on average per year.
EPS 1Y (TTM)5.34%
EPS 3Y24.73%
EPS 5Y24.67%
EPS Q2Q%-25.89%
Revenue 1Y (TTM)19.73%
Revenue growth 3Y25.39%
Revenue growth 5Y23.6%
Sales Q2Q%17.54%

3.2 Future

  • The Earnings Per Share is expected to grow by 18.91% on average over the next years. This is quite good.
  • Based on estimates for the next years, CSU will show a quite strong growth in Revenue. The Revenue will grow by 14.09% on average per year.
EPS Next Y16.2%
EPS Next 2Y18.03%
EPS Next 3Y18.91%
EPS Next 5YN/A
Revenue Next Year15.13%
Revenue Next 2Y15.72%
Revenue Next 3Y15.73%
Revenue Next 5Y14.09%

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.
  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
CSU.CA Yearly Revenue VS EstimatesCSU.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B
CSU.CA Yearly EPS VS EstimatesCSU.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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6

4. CSU.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 20.49, which indicates a rather expensive current valuation of CSU.
  • Based on the Price/Earnings ratio, CSU is valued a bit cheaper than the industry average as 76.47% of the companies are valued more expensively.
  • CSU's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.70.
  • With a Price/Forward Earnings ratio of 15.50, CSU is valued correctly.
  • Based on the Price/Forward Earnings ratio, CSU is valued a bit cheaper than 72.06% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, CSU is valued a bit cheaper.
Industry RankSector Rank
PE 20.49
Fwd PE 15.5
CSU.CA Price Earnings VS Forward Price EarningsCSU.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, CSU is valued a bit cheaper than the industry average as 66.18% of the companies are valued more expensively.
  • 80.88% of the companies in the same industry are more expensive than CSU, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 15.41
EV/EBITDA 13.85
CSU.CA Per share dataCSU.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 200 -200 400 600

4.3 Compensation for Growth

  • CSU's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The decent profitability rating of CSU may justify a higher PE ratio.
  • A more expensive valuation may be justified as CSU's earnings are expected to grow with 18.91% in the coming years.
PEG (NY)1.27
PEG (5Y)0.83
EPS Next 2Y18.03%
EPS Next 3Y18.91%

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5

5. CSU.CA Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.21%, CSU is not a good candidate for dividend investing.
  • The stock price of CSU dropped by -23.17% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
  • CSU's Dividend Yield is rather good when compared to the industry average which is at 0.27. CSU pays more dividend than 88.24% of the companies in the same industry.
  • With a Dividend Yield of 0.21, CSU pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.21%

5.2 History

  • The dividend of CSU decreases each year by -30.09%.
  • CSU has been paying a dividend for at least 10 years, so it has a reliable track record.
  • CSU has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-30.09%
Div Incr Years0
Div Non Decr Years17
CSU.CA Yearly Dividends per shareCSU.CA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 0 0 0 0

5.3 Sustainability

  • CSU pays out 12.76% of its income as dividend. This is a sustainable payout ratio.
DP12.76%
EPS Next 2Y18.03%
EPS Next 3Y18.91%
CSU.CA Yearly Income VS Free CF VS DividendCSU.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B
CSU.CA Dividend Payout.CSU.CA Dividend Payout, showing the Payout Ratio.CSU.CA Dividend Payout.PayoutRetained Earnings

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CSU.CA Fundamentals: All Metrics, Ratios and Statistics

CONSTELLATION SOFTWARE INC

TSX:CSU (3/13/2026, 7:00:00 PM)

2524.08

-95.01 (-3.63%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)03-09
Earnings (Next)N/A
Inst Owners40.26%
Inst Owner ChangeN/A
Ins Owners2.26%
Ins Owner ChangeN/A
Market Cap53.49B
Revenue(TTM)10.07B
Net Income(TTM)666.00M
Analysts78.75
Price Target4570.81 (81.09%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.21%
Yearly Dividend5.48
Dividend Growth(5Y)-30.09%
DP12.76%
Div Incr Years0
Div Non Decr Years17
Ex-DateN/A
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)-5.19%
PT rev (3m)-10.22%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)2.91%
EPS NY rev (1m)-2.79%
EPS NY rev (3m)-0.71%
Revenue NQ rev (1m)-0.47%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.09%
Valuation
Industry RankSector Rank
PE 20.49
Fwd PE 15.5
P/S 3.53
P/FCF 15.41
P/OCF 14.99
P/B 11.34
P/tB N/A
EV/EBITDA 13.85
EPS(TTM)123.16
EY4.88%
EPS(NY)162.89
Fwd EY6.45%
FCF(TTM)163.81
FCFY6.49%
OCF(TTM)168.43
OCFY6.67%
SpS715.65
BVpS222.67
TBVpS-293.73
PEG (NY)1.27
PEG (5Y)0.83
Graham Number785.53
Profitability
Industry RankSector 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 RankSector 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 3.48
F-Score5
WACC9.8%
ROIC/WACC0.94
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)5.34%
EPS 3Y24.73%
EPS 5Y24.67%
EPS Q2Q%-25.89%
EPS Next Y16.2%
EPS Next 2Y18.03%
EPS Next 3Y18.91%
EPS Next 5YN/A
Revenue 1Y (TTM)19.73%
Revenue growth 3Y25.39%
Revenue growth 5Y23.6%
Sales Q2Q%17.54%
Revenue Next Year15.13%
Revenue Next 2Y15.72%
Revenue Next 3Y15.73%
Revenue Next 5Y14.09%
EBIT growth 1Y30.04%
EBIT growth 3Y19.59%
EBIT growth 5Y23.43%
EBIT Next Year145.85%
EBIT Next 3Y49.44%
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 INC / CSU.CA Fundamental Analysis FAQ

What is the fundamental rating for CSU stock?

ChartMill assigns a fundamental rating of 6 / 10 to CSU.CA.


What is the valuation status of CONSTELLATION SOFTWARE INC (CSU.CA) stock?

ChartMill assigns a valuation rating of 6 / 10 to CONSTELLATION SOFTWARE INC (CSU.CA). This can be considered as Fairly Valued.


How profitable is CONSTELLATION SOFTWARE INC (CSU.CA) stock?

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


How financially healthy is CONSTELLATION SOFTWARE INC?

The financial health rating of CONSTELLATION SOFTWARE INC (CSU.CA) is 5 / 10.


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

The Earnings per Share (EPS) of CONSTELLATION SOFTWARE INC (CSU.CA) is expected to grow by 16.2% in the next year.