CONSTELLATION SOFTWARE (CSU-DB.CA) Stock Price, Forecast & Analysis
Canada - TSX:CSU-DB - CA21037XAA87
116.99 CAD
-0.01 (-0.01%)
CSU-DB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 63 industry peers in the Software industry. CSU-DB has an excellent profitability rating, but there are some minor concerns on its financial health. An interesting combination arises when we look at growth and value: CSU-DB is growing strongly while it also seems undervalued.
1. Profitability
1.1 Basic Checks
CSU-DB had positive earnings in the past year.
CSU-DB had a positive operating cash flow in the past year.
CSU-DB had positive earnings in each of the past 5 years.
In the past 5 years CSU-DB always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CSU-DB (4.35%) is better than 74.60% of its industry peers.
With an excellent Return On Equity value of 19.20%, CSU-DB belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.25%, CSU-DB belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
CSU-DB had an Average Return On Invested Capital over the past 3 years of 10.12%. This is below the industry average of 12.39%.
| 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-DB (5.97%) is better than 77.78% 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 82.54% of the companies in the same industry.
In the last couple of years the Operating Margin of CSU-DB has remained more or less at the same level.
CSU-DB's Gross Margin of 98.30% is amongst the best of the industry. CSU-DB outperforms 100.00% of its industry peers.
In the last couple of years the Gross Margin of CSU-DB 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CSU-DB is creating some value.
Compared to 1 year ago, CSU-DB has about the same amount of shares outstanding.
The number of shares outstanding for CSU-DB remains at a similar level compared to 5 years ago.
CSU-DB has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.51, we must say that CSU-DB is in the distress zone and has some risk of bankruptcy.
CSU-DB has a Altman-Z score of 1.51. This is comparable to the rest of the industry: CSU-DB outperforms 46.03% of its industry peers.
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 76.19% of its industry peers.
A Debt/Equity ratio of 1.20 is on the high side and indicates that CSU-DB has dependencies on debt financing.
CSU-DB's Debt to Equity ratio of 1.20 is on the low side compared to the rest of the industry. CSU-DB is outperformed by 61.90% of its industry peers.
Although CSU-DB 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 2.13 | ||
| Altman-Z | 1.51 |
ROIC/WACC1.33
WACC6.97%
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 (1.02) which is in line with its industry peers.
A Quick Ratio of 1.00 indicates that CSU-DB should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.00, CSU-DB perfoms like the industry average, outperforming 41.27% of the companies in the same industry.
| 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 35.37%, 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
CSU-DB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.10%.
Measured over the past years, CSU-DB shows a very strong growth in Revenue. The Revenue has been growing by 23.60% on average per year.
EPS 1Y (TTM)35.37%
EPS 3Y24.73%
EPS 5Y24.67%
EPS Q2Q%28.03%
Revenue 1Y (TTM)15.1%
Revenue growth 3Y25.39%
Revenue growth 5Y23.6%
Sales Q2Q%16.02%
3.2 Future
The Earnings Per Share is expected to grow by 14.03% on average over the next years. This is quite good.
Based on estimates for the next years, CSU-DB 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
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 0.97, which indicates a rather cheap valuation of CSU-DB.
Based on the Price/Earnings ratio, CSU-DB is valued cheaper than 98.41% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.51, CSU-DB is valued rather cheaply.
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 100.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.98. CSU-DB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.97 | ||
| Fwd PE | 0.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CSU-DB is valued cheaper than 96.83% of the companies in the same industry.
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 | 0.69 | ||
| EV/EBITDA | 1.39 |
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 14.03% in the coming years.
PEG (NY)0.11
PEG (5Y)0.04
EPS Next 2Y16.02%
EPS Next 3Y14.03%
5. Dividend
5.1 Amount
CSU-DB has a yearly dividend return of 0.18%, which is pretty low.
CSU-DB's Dividend Yield is rather good when compared to the industry average which is at 1.60. CSU-DB pays more dividend than 87.30% of the companies in the same industry.
With a Dividend Yield of 0.18, CSU-DB pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.18% |
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 2Y16.02%
EPS Next 3Y14.03%
TSX:CSU-DB (11/18/2025, 7:00:00 PM)
116.99
-0.01 (-0.01%)
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 Cap2.48B
Revenue(TTM)11.15B
Net Income(TTM)666.00M
Analysts78.67
Price Target195.89 (67.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.18% |
Yearly Dividend5.62
Dividend Growth(5Y)-30.09%
DP12.76%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.68%
Min Revenue beat(2)-1.76%
Max Revenue beat(2)-1.6%
Revenue beat(4)0
Avg Revenue beat(4)-2.53%
Min Revenue beat(4)-4.77%
Max Revenue beat(4)-1.6%
Revenue beat(8)1
Avg Revenue beat(8)-1.63%
Revenue beat(12)3
Avg Revenue beat(12)-1.16%
Revenue beat(16)3
Avg Revenue beat(16)-1.03%
PT rev (1m)7.51%
PT rev (3m)39.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.98%
EPS NY rev (1m)0.19%
EPS NY rev (3m)-1.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.97 | ||
| 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 | 1.39 |
EPS(TTM)120.57
EY103.06%
EPS(NY)162.31
Fwd EY138.74%
FCF(TTM)168.93
FCFY144.4%
OCF(TTM)173.7
OCFY148.47%
SpS738.01
BVpS229.63
TBVpS-302.91
PEG (NY)0.11
PEG (5Y)0.04
Graham Number789.27
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
WACC6.97%
ROIC/WACC1.33
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)35.37%
EPS 3Y24.73%
EPS 5Y24.67%
EPS Q2Q%28.03%
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%16.02%
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 / 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 116.99 CAD. The price decreased by -0.01% in the last trading session.
What is the ChartMill rating of CONSTELLATION SOFTWARE stock?
CSU-DB.CA has a ChartMill Technical rating of 0 out of 10 and a ChartMill Fundamental rating of 6 out of 10.