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

TSX:CSU-DB • CA21037XAA87

116.05 CAD
-0.95 (-0.81%)
Last: Feb 24, 2026, 07:00 PM
Overview Stock Chart Technical Analysis News
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 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CSU-DB has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!


Dividend Valuation Growth Profitability Health

7

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.
  • Each year in the past 5 years CSU-DB has been profitable.
  • CSU-DB had a positive operating cash flow in each of the past 5 years.
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 better Return On Assets (4.35%) than 75.76% of its industry peers.
  • The Return On Equity of CSU-DB (19.20%) is better than 86.36% 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 12.35%.
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

  • CSU-DB's Profit Margin of 5.97% is fine compared to the rest of the industry. CSU-DB outperforms 74.24% of its industry peers.
  • In the last couple of years the Profit Margin of CSU-DB has declined.
  • CSU-DB has a better Operating Margin (16.15%) than 83.33% of its industry peers.
  • CSU-DB's Operating Margin has been stable in the last couple of years.
  • CSU-DB has a Gross Margin of 98.30%. This is amongst the best in 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 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.
  • Compared to 1 year ago, CSU-DB has about the same amount of shares outstanding.
  • 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.
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

  • 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.
  • CSU-DB's Altman-Z score of 1.51 is in line compared to the rest of the industry. CSU-DB outperforms 50.00% of 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's Debt to FCF ratio of 2.13 is fine compared to the rest of the industry. CSU-DB outperforms 75.76% 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 62.12% 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 RankSector Rank
Debt/Equity 1.2
Debt/FCF 2.13
Altman-Z 1.51
ROIC/WACC1.31
WACC7.06%
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

  • A Current Ratio of 1.02 indicates that CSU-DB should not have too much problems paying its short term obligations.
  • The Current ratio of CSU-DB (1.02) is comparable to the rest of the industry.
  • 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's Quick ratio of 1.00 is in line compared to the rest of the industry. CSU-DB outperforms 48.48% of its industry peers.
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

  • The Earnings Per Share has grown by an impressive 35.60% over the past year.
  • The Earnings Per Share has been growing by 24.67% on average over the past years. This is a very strong growth
  • The Revenue has grown by 15.10% in the past year. This is quite good.
  • 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

  • Based on estimates for the next years, CSU-DB will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.01% on average per year.
  • CSU-DB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.09% yearly.
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

  • 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.
  • Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of 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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Find the best growth stocksShow best growing peers

9

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 0.86, which 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 96.97% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.98. CSU-DB is valued rather cheaply when compared to this.
  • CSU-DB is valuated cheaply with a Price/Forward Earnings ratio of 0.71.
  • CSU-DB's Price/Forward Earnings ratio is rather cheap when compared to the industry. CSU-DB is cheaper than 96.97% of the companies 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 28.01.
Industry RankSector Rank
PE 0.86
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

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CSU-DB indicates a rather cheap valuation: CSU-DB is cheaper than 95.45% of the companies listed in the same industry.
  • 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 0.7
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.
  • The decent profitability rating of CSU-DB may justify a higher PE ratio.
  • CSU-DB's earnings are expected to grow with 19.01% in the coming years. This may justify a more expensive valuation.
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 0.25%, which is pretty low.
  • CSU-DB's Dividend Yield is rather good when compared to the industry average which is at 0.28. CSU-DB pays more dividend than 89.39% of the companies 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 0.25%

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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Find the best dividend stocksShow peers with best dividend

CONSTELLATION SOFTWARE

TSX:CSU-DB (2/24/2026, 7:00:00 PM)

116.05

-0.95 (-0.81%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-07
Earnings (Next)03-05
Inst Owners39.78%
Inst Owner ChangeN/A
Ins Owners2.27%
Ins Owner ChangeN/A
Market Cap2.46B
Revenue(TTM)11.15B
Net Income(TTM)666.00M
Analysts78.75
Price Target231.37 (99.37%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.25%
Yearly Dividend5.46
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)28.73%
PT rev (3m)30.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.34%
EPS NY rev (1m)0%
EPS NY rev (3m)9.44%
Revenue NQ rev (1m)-0.47%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.77%
Valuation
Industry RankSector Rank
PE 0.86
Fwd PE 0.71
P/S 0.16
P/FCF 0.7
P/OCF 0.68
P/B 0.52
P/tB N/A
EV/EBITDA 1.41
EPS(TTM)134.28
EY115.71%
EPS(NY)163.88
Fwd EY141.22%
FCF(TTM)164.87
FCFY142.07%
OCF(TTM)169.52
OCFY146.08%
SpS720.28
BVpS224.11
TBVpS-295.63
PEG (NY)0.04
PEG (5Y)0.04
Graham Number822.87
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
WACC7.06%
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%.