CONSTELLATION SOFTWARE (CSU-DB.CA) Fundamental Analysis & Valuation

TSX:CSU-DB • CA21037XAA87

Current stock price

118.6 CAD
+0.5 (+0.42%)
Last:

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

7

1. CSU-DB.CA Profitability Analysis

1.1 Basic Checks

  • In the past year CSU-DB was profitable.
  • CSU-DB had a positive operating cash flow in the past year.
  • Each year in the past 5 years CSU-DB has been profitable.
  • In the past 5 years CSU-DB always reported a positive cash flow from operatings.
CSU-DB.CA Yearly Net Income VS EBIT VS OCF VS FCFCSU-DB.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 2025 500M 1B 1.5B 2B 2.5B

1.2 Ratios

  • CSU-DB's Return On Assets of 3.04% is fine compared to the rest of the industry. CSU-DB outperforms 69.70% of its industry peers.
  • CSU-DB's Return On Equity of 13.73% is amongst the best of the industry. CSU-DB outperforms 81.82% of its industry peers.
  • CSU-DB's Return On Invested Capital of 12.98% is amongst the best of the industry. CSU-DB outperforms 86.36% of its industry peers.
  • CSU-DB had an Average Return On Invested Capital over the past 3 years of 13.53%. This is in line with the industry average of 13.06%.
Industry RankSector Rank
ROA 3.04%
ROE 13.73%
ROIC 12.98%
ROA(3y)4.68%
ROA(5y)5.19%
ROE(3y)23.53%
ROE(5y)25.94%
ROIC(3y)13.53%
ROIC(5y)14.66%
CSU-DB.CA Yearly ROA, ROE, ROICCSU-DB.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • Looking at the Profit Margin, with a value of 4.22%, CSU-DB is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
  • CSU-DB's Profit Margin has declined in the last couple of years.
  • CSU-DB's Operating Margin of 16.31% is amongst the best of the industry. CSU-DB outperforms 83.33% of its industry peers.
  • In the last couple of years the Operating Margin of CSU-DB has remained more or less at the same level.
  • Looking at the Gross Margin, with a value of 98.13%, CSU-DB belongs to the top of the industry, outperforming 98.48% of the companies in the same industry.
  • CSU-DB's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 16.31%
PM (TTM) 4.22%
GM 98.13%
OM growth 3Y7.05%
OM growth 5Y-1.05%
PM growth 3Y-17.1%
PM growth 5Y-16.7%
GM growth 3Y0.05%
GM growth 5Y0.12%
CSU-DB.CA Yearly Profit, Operating, Gross MarginsCSU-DB.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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4

2. CSU-DB.CA Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CSU-DB is creating value.
  • CSU-DB has about the same amout of shares outstanding than it did 1 year ago.
  • The number of shares outstanding for CSU-DB remains at a similar level compared to 5 years ago.
  • The debt/assets ratio for CSU-DB has been reduced compared to a year ago.
CSU-DB.CA Yearly Shares OutstandingCSU-DB.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5M 10M 15M 20M
CSU-DB.CA Yearly Total Debt VS Total AssetsCSU-DB.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • CSU-DB has an Altman-Z score of 1.46. This is a bad value and indicates that CSU-DB is not financially healthy and even has some risk of bankruptcy.
  • CSU-DB has a Altman-Z score of 1.46. This is comparable to the rest of the industry: CSU-DB outperforms 53.03% of its industry peers.
  • CSU-DB has a debt to FCF ratio of 2.00. This is a good value and a sign of high solvency as CSU-DB would need 2.00 years to pay back of all of its debts.
  • With a decent Debt to FCF ratio value of 2.00, CSU-DB is doing good in the industry, outperforming 75.76% of the companies in the same industry.
  • CSU-DB has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
  • CSU-DB has a Debt to Equity ratio (1.07) which is in line with its industry peers.
  • Although CSU-DB'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 1.07
Debt/FCF 2
Altman-Z 1.46
ROIC/WACC1.84
WACC7.05%
CSU-DB.CA Yearly LT Debt VS Equity VS FCFCSU-DB.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.3 Liquidity

  • CSU-DB has a Current Ratio of 0.96. This is a bad value and indicates that CSU-DB is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Current ratio value of 0.96, CSU-DB perfoms like the industry average, outperforming 48.48% of the companies in the same industry.
  • CSU-DB has a Quick Ratio of 0.96. This is a bad value and indicates that CSU-DB is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Quick ratio of CSU-DB (0.94) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.96
Quick Ratio 0.94
CSU-DB.CA Yearly Current Assets VS Current LiabilitesCSU-DB.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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

8

3. CSU-DB.CA Growth Analysis

3.1 Past

  • CSU-DB 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 21.26% on average over the past years. This is a very strong growth
  • CSU-DB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.47%.
  • Measured over the past years, CSU-DB shows a very strong growth in Revenue. The Revenue has been growing by 23.97% on average per year.
EPS 1Y (TTM)5.34%
EPS 3Y16.89%
EPS 5Y21.26%
EPS Q2Q%-25.89%
Revenue 1Y (TTM)15.47%
Revenue growth 3Y20.63%
Revenue growth 5Y23.97%
Sales Q2Q%17.54%

3.2 Future

  • The Earnings Per Share is expected to grow by 27.20% on average over the next years. This is a very strong growth
  • CSU-DB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.48% yearly.
EPS Next Y33.62%
EPS Next 2Y26%
EPS Next 3Y27.2%
EPS Next 5YN/A
Revenue Next Year17.05%
Revenue Next 2Y16.14%
Revenue Next 3Y15.27%
Revenue Next 5Y13.48%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
CSU-DB.CA Yearly Revenue VS EstimatesCSU-DB.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B
CSU-DB.CA Yearly EPS VS EstimatesCSU-DB.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 50 100 150

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9

4. CSU-DB.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 0.96, the valuation of CSU-DB can be described as very cheap.
  • Based on the Price/Earnings ratio, CSU-DB is valued cheaply inside the industry as 96.97% of the companies are valued more expensively.
  • CSU-DB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.42.
  • A Price/Forward Earnings ratio of 0.72 indicates a rather cheap valuation of CSU-DB.
  • Based on the Price/Forward Earnings ratio, CSU-DB is valued cheaper than 98.48% of the companies in the same industry.
  • CSU-DB is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.24, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 0.96
Fwd PE 0.72
CSU-DB.CA Price Earnings VS Forward Price EarningsCSU-DB.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 93.94% of the companies in the same industry are more expensive than CSU-DB, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, CSU-DB is valued cheaply inside the industry as 98.48% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 0.69
EV/EBITDA 1.21
CSU-DB.CA Per share dataCSU-DB.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 200 -200 400 600

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • CSU-DB has a very decent profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as CSU-DB's earnings are expected to grow with 27.20% in the coming years.
PEG (NY)0.03
PEG (5Y)0.05
EPS Next 2Y26%
EPS Next 3Y27.2%

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

4

5. CSU-DB.CA Dividend Analysis

5.1 Amount

  • CSU-DB has a yearly dividend return of 0.22%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.48, CSU-DB pays a better dividend. On top of this CSU-DB pays more dividend than 84.85% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, CSU-DB's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.22%

5.2 History

  • CSU-DB has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)0%
Div Incr Years0
Div Non Decr Years0
CSU-DB.CA Yearly Dividends per shareCSU-DB.CA Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6 8 10

5.3 Sustainability

  • 17.31% of the earnings are spent on dividend by CSU-DB. This is a low number and sustainable payout ratio.
DP17.31%
EPS Next 2Y26%
EPS Next 3Y27.2%
CSU-DB.CA Yearly Income VS Free CF VS DividendCSU-DB.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B
CSU-DB.CA Dividend Payout.CSU-DB.CA Dividend Payout, showing the Payout Ratio.CSU-DB.CA Dividend Payout.PayoutRetained Earnings

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CSU-DB.CA Fundamentals: All Metrics, Ratios and Statistics

CONSTELLATION SOFTWARE

TSX:CSU-DB (4/23/2026, 7:00:00 PM)

118.6

+0.5 (+0.42%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)03-09
Earnings (Next)05-12
Inst Owners38.11%
Inst Owner ChangeN/A
Ins Owners2.26%
Ins Owner ChangeN/A
Market Cap2.51B
Revenue(TTM)11.62B
Net Income(TTM)491.00M
Analysts78.75
Price Target205.14 (72.97%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.22%
Yearly Dividend5.48
Dividend Growth(5Y)0%
DP17.31%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-30
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.99%
Min EPS beat(2)-23.76%
Max EPS beat(2)13.77%
EPS beat(4)2
Avg EPS beat(4)-6.29%
Min EPS beat(4)-23.76%
Max EPS beat(4)13.77%
EPS beat(8)4
Avg EPS beat(8)-0.9%
EPS beat(12)6
Avg EPS beat(12)1.08%
EPS beat(16)9
Avg EPS beat(16)3.39%
Revenue beat(2)1
Avg Revenue beat(2)-0.75%
Min Revenue beat(2)-1.64%
Max Revenue beat(2)0.13%
Revenue beat(4)1
Avg Revenue beat(4)-2.01%
Min Revenue beat(4)-4.77%
Max Revenue beat(4)0.13%
Revenue beat(8)1
Avg Revenue beat(8)-1.81%
Revenue beat(12)3
Avg Revenue beat(12)-1.29%
Revenue beat(16)4
Avg Revenue beat(16)-1.01%
PT rev (1m)-7.67%
PT rev (3m)14.14%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.88%
EPS NY rev (1m)1.03%
EPS NY rev (3m)2.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)0.62%
Revenue NY rev (3m)0.07%
Valuation
Industry RankSector Rank
PE 0.96
Fwd PE 0.72
P/S 0.16
P/FCF 0.69
P/OCF 0.67
P/B 0.51
P/tB N/A
EV/EBITDA 1.21
EPS(TTM)123.78
EY104.37%
EPS(NY)165.4
Fwd EY139.46%
FCF(TTM)171.86
FCFY144.91%
OCF(TTM)176.25
OCFY148.61%
SpS749.83
BVpS230.63
TBVpS-310.5
PEG (NY)0.03
PEG (5Y)0.05
Graham Number801.452 (575.76%)
Profitability
Industry RankSector Rank
ROA 3.04%
ROE 13.73%
ROCE 18.78%
ROIC 12.98%
ROICexc 18.84%
ROICexgc N/A
OM 16.31%
PM (TTM) 4.22%
GM 98.13%
FCFM 22.92%
ROA(3y)4.68%
ROA(5y)5.19%
ROE(3y)23.53%
ROE(5y)25.94%
ROIC(3y)13.53%
ROIC(5y)14.66%
ROICexc(3y)18.43%
ROICexc(5y)19.61%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)19.57%
ROCE(5y)21.21%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-0.55%
ROICexc growth 5Y-8.93%
OM growth 3Y7.05%
OM growth 5Y-1.05%
PM growth 3Y-17.1%
PM growth 5Y-16.7%
GM growth 3Y0.05%
GM growth 5Y0.12%
F-Score5
Asset Turnover0.72
Health
Industry RankSector Rank
Debt/Equity 1.07
Debt/FCF 2
Debt/EBITDA 1.17
Cap/Depr 4.92%
Cap/Sales 0.59%
Interest Coverage 8.94
Cash Conversion 83.32%
Profit Quality 542.57%
Current Ratio 0.96
Quick Ratio 0.94
Altman-Z 1.46
F-Score5
WACC7.05%
ROIC/WACC1.84
Cap/Depr(3y)4.83%
Cap/Depr(5y)4.81%
Cap/Sales(3y)0.58%
Cap/Sales(5y)0.59%
Profit Quality(3y)373.04%
Profit Quality(5y)354.93%
High Growth Momentum
Growth
EPS 1Y (TTM)5.34%
EPS 3Y16.89%
EPS 5Y21.26%
EPS Q2Q%-25.89%
EPS Next Y33.62%
EPS Next 2Y26%
EPS Next 3Y27.2%
EPS Next 5YN/A
Revenue 1Y (TTM)15.47%
Revenue growth 3Y20.63%
Revenue growth 5Y23.97%
Sales Q2Q%17.54%
Revenue Next Year17.05%
Revenue Next 2Y16.14%
Revenue Next 3Y15.27%
Revenue Next 5Y13.48%
EBIT growth 1Y29.51%
EBIT growth 3Y29.13%
EBIT growth 5Y22.68%
EBIT Next Year107.33%
EBIT Next 3Y37.51%
EBIT Next 5Y34.28%
FCF growth 1Y25.07%
FCF growth 3Y28.45%
FCF growth 5Y18.07%
OCF growth 1Y24.35%
OCF growth 3Y28.15%
OCF growth 5Y18.16%

CONSTELLATION SOFTWARE / CSU-DB.CA Fundamental Analysis FAQ

What is the ChartMill fundamental rating of CONSTELLATION SOFTWARE (CSU-DB.CA) stock?

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


What is the valuation status for CSU-DB stock?

ChartMill assigns a valuation rating of 9 / 10 to CONSTELLATION SOFTWARE (CSU-DB.CA). This can be considered as Undervalued.


Can you provide the profitability details for CONSTELLATION SOFTWARE?

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


How financially healthy is CONSTELLATION SOFTWARE?

The financial health rating of CONSTELLATION SOFTWARE (CSU-DB.CA) is 4 / 10.


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

The Earnings per Share (EPS) of CONSTELLATION SOFTWARE (CSU-DB.CA) is expected to grow by 33.62% in the next year.