CONSTELLATION SOFTWARE INC (CSU.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CSU - CA21037X1006 - Common Stock
3382.25 CAD
-39.76 (-1.16%)
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 an excellent profitability rating, but there are some minor concerns on its financial health. CSU is growing strongly while it is still valued neutral. This is a good combination! These ratings would make CSU suitable for growth investing!
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.
Each year in the past 5 years CSU has been profitable.
In the past 5 years CSU always reported a positive cash flow from operatings.
1.2 Ratios
CSU's Return On Assets of 4.35% is fine compared to the rest of the industry. CSU outperforms 74.60% of its industry peers.
CSU has a better Return On Equity (19.20%) than 87.30% of its industry peers.
With a decent Return On Invested Capital value of 9.25%, CSU is doing good in the industry, outperforming 79.37% of the companies in the same industry.
CSU had an Average Return On Invested Capital over the past 3 years of 10.12%. This is below the industry average of 12.27%.
| Industry Rank | Sector 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%
1.3 Margins
The Profit Margin of CSU (5.97%) is better than 76.19% 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 80.95% 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 better Gross Margin (98.30%) than 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 | 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%
2. Health
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.
Compared to 1 year ago, CSU has about the same amount of shares outstanding.
The number of shares outstanding for CSU remains at a similar level compared to 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 4.03. This indicates that CSU is financially healthy and has little risk of bankruptcy at the moment.
CSU's Altman-Z score of 4.03 is fine compared to the rest of the industry. CSU outperforms 63.49% of its industry peers.
The Debt to FCF ratio of CSU is 2.13, which is a good value as it means it would take CSU, 2.13 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CSU (2.13) is better than 74.60% 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.
CSU's Debt to Equity ratio of 1.20 is on the low side compared to the rest of the industry. CSU is outperformed by 66.67% 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 | 1.2 | ||
| Debt/FCF | 2.13 | ||
| Altman-Z | 4.03 |
ROIC/WACC0.94
WACC9.87%
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 on the low side compared to the rest of the industry. CSU is outperformed by 61.90% of its industry peers.
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.
Looking at the Quick ratio, with a value of 1.00, CSU is doing worse than 63.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 35.60% 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
Looking at the last year, CSU shows a quite strong growth in Revenue. The Revenue has grown by 15.10% in the last year.
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
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.
Based on estimates for the next years, CSU will show a quite strong growth in Revenue. The Revenue will grow by 18.68% on average per year.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 24.55, CSU is valued on the expensive side.
Based on the Price/Earnings ratio, CSU is valued cheaper than 84.13% of the companies in the same industry.
CSU is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 20.81, CSU is valued on the expensive side.
Based on the Price/Forward Earnings ratio, CSU is valued a bit cheaper than 71.43% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.59. CSU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.55 | ||
| Fwd PE | 20.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CSU is valued a bit cheaper than the industry average as 68.25% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CSU is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.99 | ||
| EV/EBITDA | 17.3 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CSU does not grow enough to justify the current Price/Earnings ratio.
CSU has a very decent profitability rating, which 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)2.66
PEG (5Y)1
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.
The stock price of CSU dropped by -25.67% 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 1.76. CSU pays more dividend than 88.89% of the companies in the same industry.
With a Dividend Yield of 0.17, CSU pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.17% |
5.2 History
The dividend of CSU decreases each year by -30.09%.
CSU has paid a dividend for at least 10 years, which is 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
5.3 Sustainability
CSU pays out 12.76% of its income as dividend. This is a sustainable payout ratio.
DP12.76%
EPS Next 2Y16.02%
EPS Next 3Y14.03%
TSX:CSU (11/28/2025, 7:00:00 PM)
3382.25
-39.76 (-1.16%)
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 Cap71.67B
Revenue(TTM)11.15B
Net Income(TTM)666.00M
Analysts78.67
Price Target5120.91 (51.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.17% |
Yearly Dividend5.62
Dividend Growth(5Y)-30.09%
DP12.76%
Div Incr Years0
Div Non Decr Years17
Ex-Date
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)-8.43%
PT rev (3m)-9.98%
EPS NQ rev (1m)-0.82%
EPS NQ rev (3m)-0.82%
EPS NY rev (1m)0.19%
EPS NY rev (3m)0.19%
Revenue NQ rev (1m)-1.21%
Revenue NQ rev (3m)-1.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.55 | ||
| Fwd PE | 20.81 | ||
| P/S | 4.58 | ||
| P/FCF | 19.99 | ||
| P/OCF | 19.45 | ||
| P/B | 14.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.3 |
EPS(TTM)137.77
EY4.07%
EPS(NY)162.52
Fwd EY4.81%
FCF(TTM)169.16
FCFY5%
OCF(TTM)173.93
OCFY5.14%
SpS738.99
BVpS229.94
TBVpS-303.31
PEG (NY)2.66
PEG (5Y)1
Graham Number844.25
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 4.03 |
F-Score5
WACC9.87%
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)35.6%
EPS 3Y24.73%
EPS 5Y24.67%
EPS Q2Q%24.27%
EPS Next Y9.22%
EPS Next 2Y16.02%
EPS Next 3Y14.03%
EPS Next 5YN/A
Revenue 1Y (TTM)15.1%
Revenue growth 3Y25.39%
Revenue growth 5Y23.6%
Sales Q2Q%15.98%
Revenue Next Year16.13%
Revenue Next 2Y16.89%
Revenue Next 3Y17.36%
Revenue Next 5Y18.68%
EBIT growth 1Y30.04%
EBIT growth 3Y19.59%
EBIT growth 5Y23.43%
EBIT Next Year141.56%
EBIT Next 3Y49.68%
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 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 7 / 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 24.55 and the Price/Book (PB) ratio is 14.71.
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.