CONSTELLATION SOFTWARE INC (CSU.CA) Stock Fundamental Analysis
Canada - TSX:CSU - CA21037X1006 - Common Stock
3257.27 CAD
-47.61 (-1.44%)
We assign a fundamental rating of 6 out of 10 to CSU. CSU was compared to 63 industry peers in the Software industry. CSU has only an average score on both its financial health and profitability. CSU is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
CSU had positive earnings in the past year.
CSU had a positive operating cash flow in the past year.
In the past 5 years CSU has always been profitable.
In the past 5 years CSU always reported a positive cash flow from operatings.
1.2 Ratios
CSU has a Return On Assets of 4.21%. This is in the better half of the industry: CSU outperforms 74.60% of its industry peers.
CSU's Return On Equity of 18.81% is amongst the best of the industry. CSU outperforms 85.71% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.79%, CSU is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CSU is below the industry average of 12.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.21% | ||
| ROE | 18.81% | ||
| ROIC | 8.79% |
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
The Profit Margin of CSU (5.77%) is better than 76.19% of its industry peers.
In the last couple of years the Profit Margin of CSU has declined.
Looking at the Operating Margin, with a value of 15.73%, CSU is in the better half of the industry, outperforming 79.37% of the companies in the same industry.
In the last couple of years the Operating Margin of CSU has remained more or less at the same level.
CSU has a Gross Margin of 98.31%. This is amongst the best in the industry. CSU outperforms 98.41% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.73% | ||
| PM (TTM) | 5.77% | ||
| GM | 98.32% |
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 is still 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.
2.2 Solvency
CSU has an Altman-Z score of 3.97. This indicates that CSU is financially healthy and has little risk of bankruptcy at the moment.
CSU has a Altman-Z score of 3.97. This is in the better half of the industry: CSU outperforms 63.49% of its industry peers.
CSU has a debt to FCF ratio of 2.17. This is a good value and a sign of high solvency as CSU would need 2.17 years to pay back of all of its debts.
CSU's Debt to FCF ratio of 2.17 is fine compared to the rest of the industry. CSU outperforms 71.43% of its industry peers.
A Debt/Equity ratio of 1.28 is on the high side and indicates that CSU has dependencies on debt financing.
The Debt to Equity ratio of CSU (1.28) is worse than 68.25% of its industry peers.
Even though the debt/equity ratio score it not favorable for CSU, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 2.17 | ||
| Altman-Z | 3.97 |
ROIC/WACC0.9
WACC9.82%
2.3 Liquidity
A Current Ratio of 0.97 indicates that CSU may have some problems paying its short term obligations.
The Current ratio of CSU (0.97) is worse than 61.90% of its industry peers.
A Quick Ratio of 0.96 indicates that CSU may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.96, CSU is doing worse than 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 38.40% over the past year.
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 15.87%.
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)38.4%
EPS 3Y24.73%
EPS 5Y24.67%
EPS Q2Q%33.43%
Revenue 1Y (TTM)15.87%
Revenue growth 3Y25.39%
Revenue growth 5Y23.6%
Sales Q2Q%15.24%
3.2 Future
Based on estimates for the next years, CSU will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.03% on average per year.
The Revenue is expected to grow by 18.68% on average over the next years. This is quite good.
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 25.12, CSU can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of CSU indicates a rather cheap valuation: CSU is cheaper than 84.13% of the companies listed in the same industry.
CSU's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.34.
Based on the Price/Forward Earnings ratio of 20.07, the valuation of CSU can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CSU indicates a somewhat cheap valuation: CSU is cheaper than 71.43% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.43. CSU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.12 | ||
| Fwd PE | 20.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CSU is valued a bit cheaper than 68.25% of the companies in the same industry.
CSU's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CSU is cheaper than 74.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.68 | ||
| EV/EBITDA | 17.37 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of CSU may justify a higher PE ratio.
CSU's earnings are expected to grow with 14.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.72
PEG (5Y)1.02
EPS Next 2Y16.02%
EPS Next 3Y14.03%
5. Dividend
5.1 Amount
With a yearly dividend of 0.17%, CSU is not a good candidate for dividend investing.
In the last 3 months the price of CSU has falen by -25.18%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.51, CSU pays a better dividend. On top of this CSU pays more dividend than 88.89% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, CSU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.17% |
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
5.3 Sustainability
CSU pays out 13.71% of its income as dividend. This is a sustainable payout ratio.
DP13.71%
EPS Next 2Y16.02%
EPS Next 3Y14.03%
TSX:CSU (11/11/2025, 7:00:00 PM)
3257.27
-47.61 (-1.44%)
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 Cap69.02B
Revenue(TTM)10.74B
Net Income(TTM)620.00M
Analysts78.67
Price Target5592.15 (71.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.17% |
Yearly Dividend5.66
Dividend Growth(5Y)-30.09%
DP13.71%
Div Incr Years0
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.58%
Min EPS beat(2)-22.05%
Max EPS beat(2)6.89%
EPS beat(4)3
Avg EPS beat(4)5.85%
Min EPS beat(4)-22.05%
Max EPS beat(4)25.45%
EPS beat(8)4
Avg EPS beat(8)0.1%
EPS beat(12)7
Avg EPS beat(12)4.23%
EPS beat(16)9
Avg EPS beat(16)1.59%
Revenue beat(2)0
Avg Revenue beat(2)-3.27%
Min Revenue beat(2)-4.77%
Max Revenue beat(2)-1.76%
Revenue beat(4)0
Avg Revenue beat(4)-2.71%
Min Revenue beat(4)-4.77%
Max Revenue beat(4)-1.76%
Revenue beat(8)1
Avg Revenue beat(8)-1.68%
Revenue beat(12)3
Avg Revenue beat(12)-1.14%
Revenue beat(16)3
Avg Revenue beat(16)-1.05%
PT rev (1m)0%
PT rev (3m)-1.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.48%
EPS NY rev (1m)0.19%
EPS NY rev (3m)-1.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.12 | ||
| Fwd PE | 20.07 | ||
| P/S | 4.58 | ||
| P/FCF | 20.68 | ||
| P/OCF | 20.05 | ||
| P/B | 14.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.37 |
EPS(TTM)129.65
EY3.98%
EPS(NY)162.29
Fwd EY4.98%
FCF(TTM)157.53
FCFY4.84%
OCF(TTM)162.49
OCFY4.99%
SpS710.98
BVpS218.15
TBVpS-305.19
PEG (NY)2.72
PEG (5Y)1.02
Graham Number797.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.21% | ||
| ROE | 18.81% | ||
| ROCE | 17.78% | ||
| ROIC | 8.79% | ||
| ROICexc | 12.06% | ||
| ROICexgc | N/A | ||
| OM | 15.73% | ||
| PM (TTM) | 5.77% | ||
| GM | 98.32% | ||
| FCFM | 22.16% |
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-Score6
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 2.17 | ||
| Debt/EBITDA | 1.41 | ||
| Cap/Depr | 5.81% | ||
| Cap/Sales | 0.7% | ||
| Interest Coverage | 8.09 | ||
| Cash Conversion | 82.35% | ||
| Profit Quality | 383.87% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 3.97 |
F-Score6
WACC9.82%
ROIC/WACC0.9
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)38.4%
EPS 3Y24.73%
EPS 5Y24.67%
EPS Q2Q%33.43%
EPS Next Y9.22%
EPS Next 2Y16.02%
EPS Next 3Y14.03%
EPS Next 5YN/A
Revenue 1Y (TTM)15.87%
Revenue growth 3Y25.39%
Revenue growth 5Y23.6%
Sales Q2Q%15.24%
Revenue Next Year16.13%
Revenue Next 2Y16.89%
Revenue Next 3Y17.36%
Revenue Next 5Y18.68%
EBIT growth 1Y27.74%
EBIT growth 3Y19.59%
EBIT growth 5Y23.43%
EBIT Next Year141.56%
EBIT Next 3Y49.68%
EBIT Next 5Y38.21%
FCF growth 1Y65.62%
FCF growth 3Y18.78%
FCF growth 5Y23.82%
OCF growth 1Y66.1%
OCF growth 3Y19.11%
OCF growth 5Y23.46%
CONSTELLATION SOFTWARE INC / CSU.CA 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 for CSU stock?
ChartMill assigns a valuation rating of 5 / 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 6 / 10.
What are the PE and PB ratios of CONSTELLATION SOFTWARE INC (CSU.CA) stock?
The Price/Earnings (PE) ratio for CONSTELLATION SOFTWARE INC (CSU.CA) is 25.12 and the Price/Book (PB) ratio is 14.93.
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 9.22% in the next year.