CONSTELLATION SOFTWARE (CSU-DB.CA) Stock Price, Forecast & Analysis
Canada - Toronto Stock Exchange - TSX:CSU-DB - CA21037XAA87
118 CAD
-0.5 (-0.42%)
We assign a fundamental rating of 6 out of 10 to CSU-DB. CSU-DB was compared to 64 industry peers in the Software industry. CSU-DB has an excellent profitability rating, but there are some minor concerns on its financial health. CSU-DB is evaluated to be cheap and growing strongly. This does not happen too often!
1. Profitability
1.1 Basic Checks
In the past year CSU-DB was profitable.
CSU-DB had a positive operating cash flow in the past year.
In the past 5 years CSU-DB has always been profitable.
CSU-DB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CSU-DB's Return On Assets of 4.35% is fine compared to the rest of the industry. CSU-DB outperforms 79.69% of its industry peers.
Looking at the Return On Equity, with a value of 19.20%, CSU-DB belongs to the top of the industry, outperforming 89.06% of the companies in the same industry.
CSU-DB has a Return On Invested Capital of 9.25%. This is in the better half of the industry: CSU-DB outperforms 79.69% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CSU-DB is below the industry average of 12.19%.
| 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
CSU-DB's Profit Margin of 5.97% is fine compared to the rest of the industry. CSU-DB outperforms 79.69% of its industry peers.
CSU-DB's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 16.15%, CSU-DB belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
CSU-DB's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 98.30%, CSU-DB belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
CSU-DB's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CSU-DB is still creating some value.
CSU-DB has about the same amout of shares outstanding than it did 1 year ago.
CSU-DB has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for CSU-DB is higher compared to a year ago.
2.2 Solvency
CSU-DB has an Altman-Z score of 1.51. This is a bad value and indicates that CSU-DB is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CSU-DB (1.51) is comparable to the rest of the industry.
The Debt to FCF ratio of CSU-DB is 2.13, which is a good value as it means it would take CSU-DB, 2.13 years of fcf income to pay off all of its debts.
CSU-DB has a Debt to FCF ratio of 2.13. This is in the better half of the industry: CSU-DB outperforms 78.13% of its industry peers.
CSU-DB has a Debt/Equity ratio of 1.20. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.20, CSU-DB is doing worse than 64.06% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for CSU-DB, 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 | 1.51 |
ROIC/WACC1.32
WACC7.03%
2.3 Liquidity
CSU-DB has a Current Ratio of 1.02. This is a normal value and indicates that CSU-DB is financially healthy and should not expect problems in meeting its short term obligations.
CSU-DB has a Current ratio of 1.02. This is comparable to the rest of the industry: CSU-DB outperforms 40.63% of its industry peers.
CSU-DB has a Quick Ratio of 1.00. This is a normal value and indicates that CSU-DB is financially healthy and should not expect problems in meeting its short term obligations.
CSU-DB has a Quick ratio of 1.00. This is comparable to the rest of the industry: CSU-DB outperforms 40.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
CSU-DB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.60%, which is quite impressive.
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-DB shows a quite strong growth in Revenue. The Revenue has grown by 15.10% in the last year.
CSU-DB 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
CSU-DB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.00% yearly.
The Revenue is expected to grow by 15.69% on average over the next years. This is quite good.
EPS Next Y17.03%
EPS Next 2Y17.03%
EPS Next 3Y18%
EPS Next 5YN/A
Revenue Next Year15.23%
Revenue Next 2Y16.05%
Revenue Next 3Y16.26%
Revenue Next 5Y15.69%
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
Based on the Price/Earnings ratio of 0.88, the valuation of CSU-DB can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of CSU-DB indicates a rather cheap valuation: CSU-DB is cheaper than 100.00% 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 26.77.
The Price/Forward Earnings ratio is 0.73, which indicates a rather cheap valuation of CSU-DB.
Based on the Price/Forward Earnings ratio, CSU-DB is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.35. CSU-DB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.88 | ||
| Fwd PE | 0.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CSU-DB is valued cheaply inside the industry as 96.88% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CSU-DB indicates a rather cheap valuation: CSU-DB is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.72 | ||
| EV/EBITDA | 1.41 |
4.3 Compensation for Growth
CSU-DB'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-DB may justify a higher PE ratio.
A more expensive valuation may be justified as CSU-DB's earnings are expected to grow with 18.00% in the coming years.
PEG (NY)0.05
PEG (5Y)0.04
EPS Next 2Y17.03%
EPS Next 3Y18%
5. Dividend
5.1 Amount
CSU-DB has a yearly dividend return of 0.17%, which is pretty low.
Compared to an average industry Dividend Yield of 0.20, CSU-DB pays a better dividend. On top of this CSU-DB pays more dividend than 89.06% of the companies listed in the same industry.
With a Dividend Yield of 0.17, CSU-DB pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.17% |
5.2 History
The dividend of CSU-DB decreases each year by -30.09%.
CSU-DB has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)-30.09%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
CSU-DB pays out 12.76% of its income as dividend. This is a sustainable payout ratio.
DP12.76%
EPS Next 2Y17.03%
EPS Next 3Y18%
TSX:CSU-DB (12/30/2025, 7:00:00 PM)
118
-0.5 (-0.42%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners40.3%
Inst Owner ChangeN/A
Ins Owners2.27%
Ins Owner ChangeN/A
Market Cap2.50B
Revenue(TTM)11.15B
Net Income(TTM)666.00M
Analysts78.75
Price Target177.29 (50.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.17% |
Yearly Dividend5.49
Dividend Growth(5Y)-30.09%
DP12.76%
Div Incr Years0
Div Non Decr Years0
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)-0.01%
PT rev (3m)16.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.29%
EPS NY rev (1m)7.14%
EPS NY rev (3m)7.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.96%
Revenue NY rev (1m)-0.77%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.88 | ||
| Fwd PE | 0.73 | ||
| P/S | 0.16 | ||
| P/FCF | 0.72 | ||
| P/OCF | 0.7 | ||
| P/B | 0.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 1.41 |
EPS(TTM)134.36
EY113.86%
EPS(NY)161.26
Fwd EY136.66%
FCF(TTM)164.96
FCFY139.8%
OCF(TTM)169.62
OCFY143.74%
SpS720.68
BVpS224.24
TBVpS-295.8
PEG (NY)0.05
PEG (5Y)0.04
Graham Number823.34
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 | 1.51 |
F-Score5
WACC7.03%
ROIC/WACC1.32
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 Y17.03%
EPS Next 2Y17.03%
EPS Next 3Y18%
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 5Y15.69%
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 / CSU-DB.CA FAQ
What does CONSTELLATION SOFTWARE do?
Constellation Software, Inc. is a holding company, which acquires, manages and builds vertical market software businesses. The company is headquartered in Toronto, Ontario and currently employs 64,000 full-time employees. The company went IPO on 2006-05-15. The firm acquires, manages and builds vertical market software (VMS) businesses that provide mission-critical software solutions. The company is principally engaged in the development, installation, and customization of software as well as in the provisioning of related professional services and support for customers globally. Its professional services include the installation, implementation, training and customization of software and other services. The firm sells on-premises software licenses on both a perpetual and specified-term basis. The company has six operating groups, which service customers in over 100 different markets around the world. The six operating groups include Volaris, Harris, Topicus.com, Vela, Jonas, and Perseus Group. The company operates offices in North America, Continental Europe, the United Kingdom, South America, Africa, and Australia.
What is the stock price of CONSTELLATION SOFTWARE today?
The current stock price of CSU-DB.CA is 118 CAD. The price decreased by -0.42% in the last trading session.
What is the ChartMill rating of CONSTELLATION SOFTWARE stock?
CSU-DB.CA has a ChartMill Technical rating of 3 out of 10 and a ChartMill Fundamental rating of 6 out of 10.