CONSTELLATION SOFTWARE (CSU-DB.CA) Stock Fundamental Analysis

Canada • Toronto Stock Exchange • TSX:CSU-DB • CA21037XAA87

116.52 CAD
-0.88 (-0.75%)
Last: Feb 5, 2026, 07:00 PM
Fundamental Rating

6

CSU-DB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 66 industry peers in the Software industry. While CSU-DB has a great profitability rating, 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!


Dividend Valuation Growth Profitability Health

7

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.
  • 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.
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 500M 1B 1.5B 2B

1.2 Ratios

  • CSU-DB has a Return On Assets of 4.35%. This is in the better half of the industry: CSU-DB outperforms 75.76% of its industry peers.
  • CSU-DB's Return On Equity of 19.20% is amongst the best of the industry. CSU-DB outperforms 87.88% of its industry peers.
  • CSU-DB's Return On Invested Capital of 9.25% is fine compared to the rest of the industry. CSU-DB outperforms 77.27% of its industry peers.
  • CSU-DB had an Average Return On Invested Capital over the past 3 years of 10.12%. This is below the industry average of 12.50%.
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-DB.CA Yearly ROA, ROE, ROICCSU-DB.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

1.3 Margins

  • Looking at the Profit Margin, with a value of 5.97%, CSU-DB is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
  • In the last couple of years the Profit Margin of CSU-DB has declined.
  • With an excellent Operating Margin value of 16.15%, CSU-DB belongs to the best of the industry, outperforming 83.33% 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.
  • 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 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-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 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

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.
  • The number of shares outstanding for CSU-DB remains at a similar level compared to 1 year ago.
  • Compared to 5 years ago, CSU-DB has about the same amount of shares outstanding.
  • The debt/assets ratio for CSU-DB is higher 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 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 2B 4B 6B 8B 10B

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 (1.51) which is in line with its industry peers.
  • CSU-DB has a debt to FCF ratio of 2.13. This is a good value and a sign of high solvency as CSU-DB would need 2.13 years to pay back of all of its debts.
  • CSU-DB has a better Debt to FCF ratio (2.13) than 75.76% 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.
  • CSU-DB has a worse Debt to Equity ratio (1.20) than 63.64% of its industry peers.
  • 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 RankSector Rank
Debt/Equity 1.2
Debt/FCF 2.13
Altman-Z 1.51
ROIC/WACC1.31
WACC7.07%
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 1B 2B 3B

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 46.97% of its industry peers.
  • A Quick Ratio of 1.00 indicates that CSU-DB should not have too much problems paying its short term obligations.
  • CSU-DB has a Quick ratio (1.00) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.02
Quick Ratio 1
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 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-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.
  • The Revenue has been growing by 23.60% on average over the past years. This is a very strong growth!
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 19.01% yearly.
  • The Revenue is expected to grow by 14.09% on average over the next years. This is quite good.
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

  • 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.
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 50 100

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9

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 0.87, 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 96.97% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of CSU-DB to the average of the S&P500 Index (27.67), we can say CSU-DB is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 0.71, the valuation of CSU-DB can be described as very cheap.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of CSU-DB indicates a rather cheap valuation: CSU-DB is cheaper than 96.97% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 27.20. CSU-DB is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 0.87
Fwd PE 0.71
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 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, CSU-DB is valued cheaply inside the industry as 95.45% of the companies are valued more expensively.
  • 98.48% of the companies in the same industry are more expensive than CSU-DB, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 0.71
EV/EBITDA 1.41
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 19.01% in the coming years.
PEG (NY)0.04
PEG (5Y)0.04
EPS Next 2Y18.01%
EPS Next 3Y19.01%

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

3

5. Dividend

5.1 Amount

  • CSU-DB has a yearly dividend return of 0.23%, which is pretty low.
  • CSU-DB's Dividend Yield is rather good when compared to the industry average which is at 0.25. CSU-DB pays more dividend than 87.88% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, CSU-DB's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.23%

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
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 2 4 6 8 10

5.3 Sustainability

  • 12.76% of the earnings are spent on dividend by CSU-DB. This is a low number and sustainable payout ratio.
DP12.76%
EPS Next 2Y18.01%
EPS Next 3Y19.01%
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 500M 1B 1.5B 2B
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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CONSTELLATION SOFTWARE

TSX:CSU-DB (2/5/2026, 7:00:00 PM)

116.52

-0.88 (-0.75%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-07
Earnings (Next)02-05
Inst Owners39.78%
Inst Owner ChangeN/A
Ins Owners2.27%
Ins Owner ChangeN/A
Market Cap2.47B
Revenue(TTM)11.15B
Net Income(TTM)666.00M
Analysts78.75
Price Target179.73 (54.25%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.23%
Yearly Dividend5.42
Dividend Growth(5Y)-30.09%
DP12.76%
Div Incr Years0
Div Non Decr Years0
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)1.38%
PT rev (3m)0.94%
EPS NQ rev (1m)2.8%
EPS NQ rev (3m)2.49%
EPS NY rev (1m)2.15%
EPS NY rev (3m)9.65%
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 0.87
Fwd PE 0.71
P/S 0.16
P/FCF 0.71
P/OCF 0.69
P/B 0.52
P/tB N/A
EV/EBITDA 1.41
EPS(TTM)134.22
EY115.19%
EPS(NY)163.81
Fwd EY140.58%
FCF(TTM)164.8
FCFY141.43%
OCF(TTM)169.45
OCFY145.42%
SpS719.96
BVpS224.01
TBVpS-295.5
PEG (NY)0.04
PEG (5Y)0.04
Graham Number822.5
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 1.51
F-Score5
WACC7.07%
ROIC/WACC1.31
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 / CSU-DB.CA 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.


How profitable is CONSTELLATION SOFTWARE (CSU-DB.CA) stock?

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


Can you provide the financial health for CSU-DB stock?

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


Can you provide the dividend sustainability for CSU-DB stock?

The dividend rating of CONSTELLATION SOFTWARE (CSU-DB.CA) is 3 / 10 and the dividend payout ratio is 12.76%.