CONSTELLATION SOFTWARE (CSU-DB.CA) Stock Price, Forecast & Analysis
Canada - Toronto Stock Exchange - TSX:CSU-DB - CA21037XAA87
116.53 CAD
+0.03 (+0.03%)
Overall CSU-DB gets a fundamental rating of 6 out of 10. We evaluated CSU-DB against 65 industry peers in the Software industry. CSU-DB scores excellent on profitability, 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.
In the past year CSU-DB had a positive cash flow from operations.
In the past 5 years CSU-DB has always been profitable.
In the past 5 years CSU-DB always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 4.35%, CSU-DB is doing good in the industry, outperforming 78.13% of the companies in the same industry.
The Return On Equity of CSU-DB (19.20%) is better than 89.06% of its industry peers.
The Return On Invested Capital of CSU-DB (9.25%) is better than 79.69% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CSU-DB is in line with the industry average of 11.66%.
| 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 has a Profit Margin of 5.97%. This is in the better half of the industry: CSU-DB outperforms 79.69% of its industry peers.
In the last couple of years the Profit Margin of CSU-DB has declined.
CSU-DB's Operating Margin of 16.15% is amongst the best of the industry. CSU-DB outperforms 85.94% 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 98.30%, CSU-DB belongs to the top 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CSU-DB is 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.
CSU-DB has a worse debt/assets ratio than last year.
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.
With a decent Debt to FCF ratio value of 2.13, CSU-DB is doing good in the industry, outperforming 76.56% of the companies in the same industry.
CSU-DB has a Debt/Equity ratio of 1.20. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CSU-DB (1.20) is worse than 64.06% 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
A Current Ratio of 1.02 indicates that CSU-DB should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.02, CSU-DB is doing worse than 60.94% of the companies in the same industry.
A Quick Ratio of 1.00 indicates that CSU-DB should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.00, CSU-DB is doing worse than 60.94% 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.
CSU-DB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.67% yearly.
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.
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)35.6%
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-DB will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.00% on average per year.
Based on estimates for the next years, CSU-DB will show a quite strong growth in Revenue. The Revenue will grow by 15.69% on average per year.
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
A Price/Earnings ratio of 0.86 indicates a rather cheap valuation of CSU-DB.
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 is valuated cheaply when we compare the Price/Earnings ratio to 26.56, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 0.72, 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 100.00% of the companies listed in the same industry.
CSU-DB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.86 | ||
| Fwd PE | 0.72 |
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.
Based on the Price/Free Cash Flow ratio, CSU-DB is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.7 | ||
| EV/EBITDA | 1.4 |
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.
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)0.03
EPS Next 2Y17.03%
EPS Next 3Y18%
5. Dividend
5.1 Amount
With a yearly dividend of 0.18%, CSU-DB is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.24, CSU-DB pays a better dividend. On top of this CSU-DB pays more dividend than 87.50% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, CSU-DB's dividend is way lower than the S&P500 average.
| 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 2Y17.03%
EPS Next 3Y18%
TSX:CSU-DB (12/11/2025, 7:00:00 PM)
116.53
+0.03 (+0.03%)
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 Cap2.47B
Revenue(TTM)11.15B
Net Income(TTM)666.00M
Analysts78.75
Price Target179.19 (53.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.18% |
Yearly Dividend5.52
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)-8.52%
PT rev (3m)17.63%
EPS NQ rev (1m)-0.29%
EPS NQ rev (3m)-0.29%
EPS NY rev (1m)7.14%
EPS NY rev (3m)7.34%
Revenue NQ rev (1m)-0.96%
Revenue NQ rev (3m)-0.96%
Revenue NY rev (1m)-0.77%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.86 | ||
| Fwd PE | 0.72 | ||
| P/S | 0.16 | ||
| P/FCF | 0.7 | ||
| P/OCF | 0.68 | ||
| P/B | 0.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 1.4 |
EPS(TTM)134.95
EY115.81%
EPS(NY)161.96
Fwd EY138.99%
FCF(TTM)165.69
FCFY142.18%
OCF(TTM)170.36
OCFY146.2%
SpS723.85
BVpS225.22
TBVpS-297.1
PEG (NY)0.05
PEG (5Y)0.03
Graham Number826.96
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)35.6%
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 116.53 CAD. The price increased by 0.03% 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.