CONSTELLATION SOFTWARE (CSU-DB.CA) Stock Overview
Canada - TSX:CSU-DB - CA21037XAA87
119.01 CAD
+0.21 (+0.18%)
We assign a fundamental rating of 6 out of 10 to CSU-DB. CSU-DB was compared to 64 industry peers in the Software industry. While CSU-DB has a great profitability rating, there are quite some 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
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.
Each year in the past 5 years CSU-DB had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.21%, CSU-DB is doing good in the industry, outperforming 71.88% of the companies in the same industry.
With an excellent Return On Equity value of 18.81%, CSU-DB belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
The Return On Invested Capital of CSU-DB (8.79%) is better than 79.69% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CSU-DB is below the industry average of 12.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.21% | ||
| ROE | 18.81% | ||
| ROIC | 8.79% |
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
With a decent Profit Margin value of 5.77%, CSU-DB is doing good in the industry, outperforming 76.56% of the companies in the same industry.
CSU-DB's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 15.73%, CSU-DB belongs to the best of the industry, outperforming 82.81% of the companies in the same industry.
CSU-DB's Operating Margin has been stable in the last couple of years.
The Gross Margin of CSU-DB (98.31%) is better than 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 | 15.73% | ||
| PM (TTM) | 5.77% | ||
| GM | 98.32% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CSU-DB is still creating some value.
CSU-DB has about the same amout of shares outstanding than it did 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.
2.2 Solvency
CSU-DB has an Altman-Z score of 1.48. 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 (1.48) which is in line with its industry peers.
CSU-DB has a debt to FCF ratio of 2.17. This is a good value and a sign of high solvency as CSU-DB would need 2.17 years to pay back of all of its debts.
CSU-DB has a Debt to FCF ratio of 2.17. This is in the better half of the industry: CSU-DB outperforms 70.31% of its industry peers.
CSU-DB has a Debt/Equity ratio of 1.28. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.28, CSU-DB is doing worse than 64.06% of the companies in the same industry.
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 | 1.28 | ||
| Debt/FCF | 2.17 | ||
| Altman-Z | 1.48 |
ROIC/WACC1.23
WACC7.17%
2.3 Liquidity
CSU-DB has a Current Ratio of 0.97. 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 0.97, CSU-DB perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
CSU-DB has a Quick Ratio of 0.97. 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 Quick ratio value of 0.96, CSU-DB perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.96 |
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 38.40%, which is quite impressive.
CSU-DB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.67% yearly.
CSU-DB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.87%.
The Revenue has been growing by 23.60% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)38.4%
EPS 3Y24.73%
EPS 5Y24.67%
EPS Q2Q%33.43%
Revenue 1Y (TTM)15.87%
Revenue growth 3Y25.39%
Revenue growth 5Y23.6%
Sales Q2Q%15.19%
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 14.03% yearly.
Based on estimates for the next years, CSU-DB will show a quite strong growth in Revenue. The Revenue will grow by 19.65% on average per year.
EPS Next Y9.02%
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 5Y19.65%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 0.94, the valuation of CSU-DB can be described as very cheap.
Based on the Price/Earnings ratio, CSU-DB is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.41, CSU-DB is valued rather cheaply.
A Price/Forward Earnings ratio of 0.75 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, CSU-DB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.94 | ||
| Fwd PE | 0.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CSU-DB is valued cheaply inside the industry as 98.44% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CSU-DB is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.77 | ||
| EV/EBITDA | 1.48 |
4.3 Compensation for Growth
CSU-DB's 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 14.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.1
PEG (5Y)0.04
EPS Next 2Y16.02%
EPS Next 3Y14.03%
5. Dividend
5.1 Amount
With a yearly dividend of 0.13%, CSU-DB is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.46, CSU-DB pays a better dividend. On top of this CSU-DB pays more dividend than 89.06% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, CSU-DB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.13% |
5.2 History
The dividend of CSU-DB decreases each year by -30.08%.
CSU-DB has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)-30.08%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
CSU-DB pays out 13.71% of its income as dividend. This is a sustainable payout ratio.
DP13.71%
EPS Next 2Y16.02%
EPS Next 3Y14.03%
TSX:CSU-DB (9/16/2025, 7:00:00 PM)
119.01
+0.21 (+0.18%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners40.24%
Inst Owner ChangeN/A
Ins Owners2.12%
Ins Owner ChangeN/A
Market Cap2.52B
Analysts80
Price Target152.33 (28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.13% |
Yearly Dividend5.55
Dividend Growth(5Y)-30.08%
DP13.71%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.58%
Min EPS beat(2)-22.05%
Max EPS beat(2)6.89%
EPS beat(4)3
Avg EPS beat(4)5.85%
Min EPS beat(4)-22.05%
Max EPS beat(4)25.45%
EPS beat(8)4
Avg EPS beat(8)0.1%
EPS beat(12)7
Avg EPS beat(12)4.23%
EPS beat(16)9
Avg EPS beat(16)1.59%
Revenue beat(2)0
Avg Revenue beat(2)-3.27%
Min Revenue beat(2)-4.77%
Max Revenue beat(2)-1.76%
Revenue beat(4)0
Avg Revenue beat(4)-2.71%
Min Revenue beat(4)-4.77%
Max Revenue beat(4)-1.76%
Revenue beat(8)1
Avg Revenue beat(8)-1.68%
Revenue beat(12)3
Avg Revenue beat(12)-1.14%
Revenue beat(16)3
Avg Revenue beat(16)-1.05%
PT rev (1m)8.18%
PT rev (3m)14.09%
EPS NQ rev (1m)0.53%
EPS NQ rev (3m)9.64%
EPS NY rev (1m)-1.49%
EPS NY rev (3m)-1.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.19%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)-2.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.94 | ||
| Fwd PE | 0.75 | ||
| P/S | 0.17 | ||
| P/FCF | 0.77 | ||
| P/OCF | 0.75 | ||
| P/B | 0.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 1.48 |
EPS(TTM)127.15
EY106.84%
EPS(NY)159.15
Fwd EY133.73%
FCF(TTM)154.49
FCFY129.81%
OCF(TTM)159.35
OCFY133.9%
SpS697.26
BVpS213.94
TBVpS-299.3
PEG (NY)0.1
PEG (5Y)0.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.21% | ||
| ROE | 18.81% | ||
| ROCE | 17.78% | ||
| ROIC | 8.79% | ||
| ROICexc | 12.06% | ||
| ROICexgc | N/A | ||
| OM | 15.73% | ||
| PM (TTM) | 5.77% | ||
| GM | 98.32% | ||
| FCFM | 22.16% |
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%
ROICexcg growth 3YN/A
ROICexcg 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-Score6
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 2.17 | ||
| Debt/EBITDA | 1.41 | ||
| Cap/Depr | 5.81% | ||
| Cap/Sales | 0.7% | ||
| Interest Coverage | 8.09 | ||
| Cash Conversion | 82.35% | ||
| Profit Quality | 383.87% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 1.48 |
F-Score6
WACC7.17%
ROIC/WACC1.23
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)38.4%
EPS 3Y24.73%
EPS 5Y24.67%
EPS Q2Q%33.43%
EPS Next Y9.02%
EPS Next 2Y16.02%
EPS Next 3Y14.03%
EPS Next 5YN/A
Revenue 1Y (TTM)15.87%
Revenue growth 3Y25.39%
Revenue growth 5Y23.6%
Sales Q2Q%15.19%
Revenue Next Year16.13%
Revenue Next 2Y16.89%
Revenue Next 3Y17.36%
Revenue Next 5Y19.65%
EBIT growth 1Y27.74%
EBIT growth 3Y19.59%
EBIT growth 5Y23.43%
EBIT Next Year140.74%
EBIT Next 3YN/A
EBIT Next 5Y38.21%
FCF growth 1Y65.62%
FCF growth 3Y18.78%
FCF growth 5Y23.82%
OCF growth 1Y66.1%
OCF growth 3Y19.11%
OCF growth 5Y23.46%