CONSTELLATION SOFTWARE INC (CSU.CA) Stock Fundamental Analysis

Canada • Toronto Stock Exchange • TSX:CSU • CA21037X1006

2434.02 CAD
-43.2 (-1.74%)
Last: Feb 6, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

CSU gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 67 industry peers in the Software industry. CSU scores excellent on profitability, but there are some minor concerns on its financial health. CSU is not priced too expensively while it is growing strongly. Keep and eye on this one! This makes CSU very considerable for growth investing!


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • In the past year CSU was profitable.
  • In the past year CSU had a positive cash flow from operations.
  • CSU had positive earnings in each of the past 5 years.
  • 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 has a Return On Assets of 4.35%. This is in the better half of the industry: CSU outperforms 73.13% of its industry peers.
  • CSU's Return On Equity of 19.20% is amongst the best of the industry. CSU outperforms 85.07% of its industry peers.
  • The Return On Invested Capital of CSU (9.25%) is better than 74.63% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for CSU is below the industry average of 12.66%.
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

  • The Profit Margin of CSU (5.97%) is better than 73.13% of its industry peers.
  • 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 82.09% 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.
  • The Gross Margin of CSU (98.30%) is better than 98.51% of its industry peers.
  • CSU's Gross Margin has been stable in the last couple of years.
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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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CSU is creating some value.
  • The number of shares outstanding for CSU remains at a similar level compared to 1 year ago.
  • CSU has about the same amout of shares outstanding than it did 5 years ago.
  • CSU has a worse debt/assets ratio than last year.
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 3.33. This indicates that CSU is financially healthy and has little risk of bankruptcy at the moment.
  • CSU has a better Altman-Z score (3.33) than 65.67% 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 better Debt to FCF ratio (2.13) than 74.63% of its industry peers.
  • CSU has a Debt/Equity ratio of 1.20. This is a high value indicating a heavy dependency on external financing.
  • CSU has a worse Debt to Equity ratio (1.20) than 64.18% of its industry peers.
  • Although CSU 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 RankSector Rank
Debt/Equity 1.2
Debt/FCF 2.13
Altman-Z 3.33
ROIC/WACC0.92
WACC10.01%
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's Current ratio of 1.02 is in line compared to the rest of the industry. CSU outperforms 46.27% of its industry peers.
  • A Quick Ratio of 1.00 indicates that CSU should not have too much problems paying 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

8

3. Growth

3.1 Past

  • CSU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.60%, which is quite impressive.
  • CSU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.67% yearly.
  • The Revenue has grown by 15.10% in the past year. This is quite good.
  • CSU shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.60% yearly.
EPS 1Y (TTM)35.6%
EPS 3Y24.73%
EPS 5Y24.67%
EPS Q2Q%24.27%
Revenue 1Y (TTM)15.1%
Revenue growth 3Y25.39%
Revenue growth 5Y23.6%
Sales Q2Q%15.98%

3.2 Future

  • The Earnings Per Share is expected to grow by 19.01% on average over the next years. This is quite good.
  • CSU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.09% yearly.
EPS Next Y19.54%
EPS Next 2Y18.01%
EPS Next 3Y19.01%
EPS Next 5YN/A
Revenue Next Year15.23%
Revenue Next 2Y16.05%
Revenue Next 3Y16.26%
Revenue Next 5Y14.09%

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 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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Find the best growth stocksShow best growing peers

6

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 18.16, the valuation of CSU can be described as rather expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of CSU indicates a rather cheap valuation: CSU is cheaper than 80.60% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 28.06, CSU is valued a bit cheaper.
  • A Price/Forward Earnings ratio of 14.88 indicates a correct valuation of CSU.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of CSU indicates a somewhat cheap valuation: CSU is cheaper than 73.13% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.86, CSU is valued a bit cheaper.
Industry RankSector Rank
PE 18.16
Fwd PE 14.88
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 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, CSU is valued a bit cheaper than the industry average as 70.15% of the companies are valued more expensively.
  • 77.61% 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 14.79
EV/EBITDA 12.87
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 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 may justify a higher PE ratio.
  • A more expensive valuation may be justified as CSU's earnings are expected to grow with 19.01% in the coming years.
PEG (NY)0.93
PEG (5Y)0.74
EPS Next 2Y18.01%
EPS Next 3Y19.01%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. Dividend

5.1 Amount

  • CSU has a yearly dividend return of 0.23%, which is pretty low.
  • In the last 3 months the price of CSU has falen by -28.11%. 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 0.27, CSU pays a better dividend. On top of this CSU pays more dividend than 89.55% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.80, CSU's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.23%

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 their dividend for at least 10 years, which is a reliable track record.
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 2Y18.01%
EPS Next 3Y19.01%
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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Find the best dividend stocksShow peers with best dividend

CONSTELLATION SOFTWARE INC

TSX:CSU (2/6/2026, 7:00:00 PM)

2434.02

-43.2 (-1.74%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-05
Earnings (Next)05-11
Inst Owners39.78%
Inst Owner ChangeN/A
Ins Owners2.27%
Ins Owner ChangeN/A
Market Cap51.58B
Revenue(TTM)11.15B
Net Income(TTM)666.00M
Analysts78.75
Price Target4821.17 (98.07%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.23%
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)-4.92%
PT rev (3m)-13.79%
EPS NQ rev (1m)2.8%
EPS NQ rev (3m)2.49%
EPS NY rev (1m)2.15%
EPS NY rev (3m)9.44%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.99%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.77%
Valuation
Industry RankSector Rank
PE 18.16
Fwd PE 14.88
P/S 3.39
P/FCF 14.79
P/OCF 14.38
P/B 10.88
P/tB N/A
EV/EBITDA 12.87
EPS(TTM)134.05
EY5.51%
EPS(NY)163.6
Fwd EY6.72%
FCF(TTM)164.59
FCFY6.76%
OCF(TTM)169.23
OCFY6.95%
SpS719.04
BVpS223.73
TBVpS-295.12
PEG (NY)0.93
PEG (5Y)0.74
Graham Number821.46
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 3.33
F-Score5
WACC10.01%
ROIC/WACC0.92
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)35.6%
EPS 3Y24.73%
EPS 5Y24.67%
EPS Q2Q%24.27%
EPS Next Y19.54%
EPS Next 2Y18.01%
EPS Next 3Y19.01%
EPS Next 5YN/A
Revenue 1Y (TTM)15.1%
Revenue growth 3Y25.39%
Revenue growth 5Y23.6%
Sales Q2Q%15.98%
Revenue Next Year15.23%
Revenue Next 2Y16.05%
Revenue Next 3Y16.26%
Revenue Next 5Y14.09%
EBIT growth 1Y30.04%
EBIT growth 3Y19.59%
EBIT growth 5Y23.43%
EBIT Next Year146.07%
EBIT Next 3Y50.21%
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 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 19.54% in the next year.