CONSTELLATION SOFTWARE (CSU-DB.CA) Fundamental Analysis & Valuation

TSX:CSU-DB • CA21037XAA87

Current stock price

117.25 CAD
-0.3 (-0.26%)
Last:

This CSU-DB.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. CSU-DB.CA Profitability Analysis

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.
  • In the past 5 years CSU-DB has always 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 2025 500M 1B 1.5B 2B 2.5B

1.2 Ratios

  • CSU-DB has a Return On Assets of 3.04%. This is in the better half of the industry: CSU-DB outperforms 70.42% of its industry peers.
  • With an excellent Return On Equity value of 13.73%, CSU-DB belongs to the best of the industry, outperforming 84.51% of the companies in the same industry.
  • CSU-DB's Return On Invested Capital of 12.98% is amongst the best of the industry. CSU-DB outperforms 87.32% 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 12.41%.
Industry RankSector Rank
ROA 3.04%
ROE 13.73%
ROIC 12.98%
ROA(3y)4.68%
ROA(5y)5.19%
ROE(3y)23.53%
ROE(5y)25.94%
ROIC(3y)13.53%
ROIC(5y)14.66%
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 2025 10 20 30 40

1.3 Margins

  • Looking at the Profit Margin, with a value of 4.22%, CSU-DB is in the better half of the industry, outperforming 77.46% of the companies in the same industry.
  • CSU-DB's Profit Margin has declined in the last couple of years.
  • Looking at the Operating Margin, with a value of 16.31%, CSU-DB belongs to the top of the industry, outperforming 84.51% of the companies in the same industry.
  • CSU-DB's Operating Margin has been stable in the last couple of years.
  • CSU-DB has a Gross Margin of 98.13%. 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 16.31%
PM (TTM) 4.22%
GM 98.13%
OM growth 3Y7.05%
OM growth 5Y-1.05%
PM growth 3Y-17.1%
PM growth 5Y-16.7%
GM growth 3Y0.05%
GM growth 5Y0.12%
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 2025 20 40 60 80

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4

2. CSU-DB.CA Health Analysis

2.1 Basic Checks

  • CSU-DB has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • The number of shares outstanding for CSU-DB remains at a similar level compared to 1 year ago.
  • The number of shares outstanding for CSU-DB remains at a similar level compared to 5 years ago.
  • The debt/assets ratio for CSU-DB has been reduced 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 2025 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 2025 5B 10B 15B

2.2 Solvency

  • Based on the Altman-Z score of 1.46, we must say that CSU-DB is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of CSU-DB (1.46) is comparable to the rest of the industry.
  • CSU-DB has a debt to FCF ratio of 2.00. This is a good value and a sign of high solvency as CSU-DB would need 2.00 years to pay back of all of its debts.
  • CSU-DB has a better Debt to FCF ratio (2.00) than 77.46% of its industry peers.
  • CSU-DB has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
  • Looking at the Debt to Equity ratio, with a value of 1.07, CSU-DB is in line with its industry, outperforming 40.85% of the companies in the same industry.
  • Although CSU-DB's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 1.07
Debt/FCF 2
Altman-Z 1.46
ROIC/WACC1.85
WACC7%
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 2025 1B 2B 3B

2.3 Liquidity

  • CSU-DB has a Current Ratio of 0.96. 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.
  • CSU-DB's Current ratio of 0.96 is in line compared to the rest of the industry. CSU-DB outperforms 46.48% of its industry peers.
  • A Quick Ratio of 0.94 indicates that CSU-DB may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.94, CSU-DB is in line with its industry, outperforming 46.48% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.96
Quick Ratio 0.94
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 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. CSU-DB.CA Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 5.34% 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 21.26% yearly.
  • Looking at the last year, CSU-DB shows a quite strong growth in Revenue. The Revenue has grown by 15.47% in the last year.
  • Measured over the past years, CSU-DB shows a very strong growth in Revenue. The Revenue has been growing by 23.97% on average per year.
EPS 1Y (TTM)5.34%
EPS 3Y16.89%
EPS 5Y21.26%
EPS Q2Q%-25.89%
Revenue 1Y (TTM)15.47%
Revenue growth 3Y20.63%
Revenue growth 5Y23.97%
Sales Q2Q%17.54%

3.2 Future

  • CSU-DB is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.33% yearly.
  • Based on estimates for the next years, CSU-DB will show a quite strong growth in Revenue. The Revenue will grow by 13.48% on average per year.
EPS Next Y32.25%
EPS Next 2Y26.33%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year16.33%
Revenue Next 2Y16.03%
Revenue Next 3Y15.87%
Revenue Next 5Y13.48%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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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9

4. CSU-DB.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 0.95, 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 97.18% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.96. CSU-DB is valued rather cheaply when compared to this.
  • The Price/Forward Earnings ratio is 0.72, which indicates a rather cheap valuation of CSU-DB.
  • Based on the Price/Forward Earnings ratio, CSU-DB is valued cheaply inside the industry as 97.18% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, CSU-DB is valued rather cheaply.
Industry RankSector Rank
PE 0.95
Fwd PE 0.72
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

  • Based on the Enterprise Value to EBITDA ratio, CSU-DB is valued cheaper than 94.37% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, CSU-DB is valued cheaper than 98.59% of the companies in the same industry.
Industry RankSector Rank
P/FCF 0.68
EV/EBITDA 1.21
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.
  • A more expensive valuation may be justified as CSU-DB's earnings are expected to grow with 26.33% in the coming years.
PEG (NY)0.03
PEG (5Y)0.04
EPS Next 2Y26.33%
EPS Next 3YN/A

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

3

5. CSU-DB.CA Dividend Analysis

5.1 Amount

  • CSU-DB has a yearly dividend return of 0.22%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.44, CSU-DB pays a better dividend. On top of this CSU-DB pays more dividend than 85.92% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.91, CSU-DB's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.22%

5.2 History

  • CSU-DB has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)0%
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

  • 17.31% of the earnings are spent on dividend by CSU-DB. This is a low number and sustainable payout ratio.
DP17.31%
EPS Next 2Y26.33%
EPS Next 3YN/A
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 2025 500M 1B 1.5B 2B 2.5B
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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CSU-DB.CA Fundamentals: All Metrics, Ratios and Statistics

CONSTELLATION SOFTWARE

TSX:CSU-DB (3/16/2026, 7:00:00 PM)

117.25

-0.3 (-0.26%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)03-09
Earnings (Next)05-11
Inst Owners40.26%
Inst Owner ChangeN/A
Ins Owners2.26%
Ins Owner ChangeN/A
Market Cap2.48B
Revenue(TTM)11.62B
Net Income(TTM)491.00M
Analysts78.75
Price Target222.18 (89.49%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.22%
Yearly Dividend5.5
Dividend Growth(5Y)0%
DP17.31%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.99%
Min EPS beat(2)-23.76%
Max EPS beat(2)13.77%
EPS beat(4)2
Avg EPS beat(4)-6.29%
Min EPS beat(4)-23.76%
Max EPS beat(4)13.77%
EPS beat(8)4
Avg EPS beat(8)-0.9%
EPS beat(12)6
Avg EPS beat(12)1.08%
EPS beat(16)9
Avg EPS beat(16)3.39%
Revenue beat(2)1
Avg Revenue beat(2)-0.75%
Min Revenue beat(2)-1.64%
Max Revenue beat(2)0.13%
Revenue beat(4)1
Avg Revenue beat(4)-2.01%
Min Revenue beat(4)-4.77%
Max Revenue beat(4)0.13%
Revenue beat(8)1
Avg Revenue beat(8)-1.81%
Revenue beat(12)3
Avg Revenue beat(12)-1.29%
Revenue beat(16)4
Avg Revenue beat(16)-1.01%
PT rev (1m)-3.97%
PT rev (3m)23.99%
EPS NQ rev (1m)7.75%
EPS NQ rev (3m)7.75%
EPS NY rev (1m)0.04%
EPS NY rev (3m)1.72%
Revenue NQ rev (1m)-0.5%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)-0.56%
Revenue NY rev (3m)-0.56%
Valuation
Industry RankSector Rank
PE 0.95
Fwd PE 0.72
P/S 0.16
P/FCF 0.68
P/OCF 0.66
P/B 0.51
P/tB N/A
EV/EBITDA 1.21
EPS(TTM)123.88
EY105.65%
EPS(NY)163.84
Fwd EY139.73%
FCF(TTM)172
FCFY146.69%
OCF(TTM)176.39
OCFY150.44%
SpS750.42
BVpS230.81
TBVpS-310.74
PEG (NY)0.03
PEG (5Y)0.04
Graham Number802.09
Profitability
Industry RankSector Rank
ROA 3.04%
ROE 13.73%
ROCE 18.78%
ROIC 12.98%
ROICexc 18.84%
ROICexgc N/A
OM 16.31%
PM (TTM) 4.22%
GM 98.13%
FCFM 22.92%
ROA(3y)4.68%
ROA(5y)5.19%
ROE(3y)23.53%
ROE(5y)25.94%
ROIC(3y)13.53%
ROIC(5y)14.66%
ROICexc(3y)18.43%
ROICexc(5y)19.61%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)19.57%
ROCE(5y)21.21%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-0.55%
ROICexc growth 5Y-8.93%
OM growth 3Y7.05%
OM growth 5Y-1.05%
PM growth 3Y-17.1%
PM growth 5Y-16.7%
GM growth 3Y0.05%
GM growth 5Y0.12%
F-Score5
Asset Turnover0.72
Health
Industry RankSector Rank
Debt/Equity 1.07
Debt/FCF 2
Debt/EBITDA 1.17
Cap/Depr 4.92%
Cap/Sales 0.59%
Interest Coverage 8.94
Cash Conversion 83.32%
Profit Quality 542.57%
Current Ratio 0.96
Quick Ratio 0.94
Altman-Z 1.46
F-Score5
WACC7%
ROIC/WACC1.85
Cap/Depr(3y)4.83%
Cap/Depr(5y)4.81%
Cap/Sales(3y)0.58%
Cap/Sales(5y)0.59%
Profit Quality(3y)373.04%
Profit Quality(5y)354.93%
High Growth Momentum
Growth
EPS 1Y (TTM)5.34%
EPS 3Y16.89%
EPS 5Y21.26%
EPS Q2Q%-25.89%
EPS Next Y32.25%
EPS Next 2Y26.33%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)15.47%
Revenue growth 3Y20.63%
Revenue growth 5Y23.97%
Sales Q2Q%17.54%
Revenue Next Year16.33%
Revenue Next 2Y16.03%
Revenue Next 3Y15.87%
Revenue Next 5Y13.48%
EBIT growth 1Y29.51%
EBIT growth 3Y29.13%
EBIT growth 5Y22.68%
EBIT Next Year107.17%
EBIT Next 3Y43.45%
EBIT Next 5Y34.28%
FCF growth 1Y25.07%
FCF growth 3Y28.45%
FCF growth 5Y18.07%
OCF growth 1Y24.35%
OCF growth 3Y28.15%
OCF growth 5Y18.16%

CONSTELLATION SOFTWARE / CSU-DB.CA Fundamental Analysis 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 17.31%.