CONSTELLATION SOFTWARE (CSU-DB.CA) Stock Price, Forecast & Analysis
Canada - Toronto Stock Exchange - TSX:CSU-DB - CA21037XAA87
117.61 CAD
+0.59 (+0.5%)
We assign a fundamental rating of 6 out of 10 to CSU-DB. CSU-DB was compared to 65 industry peers in the Software industry. CSU-DB has an excellent profitability rating, but there are some minor concerns on its financial health. CSU-DB is growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
CSU-DB had positive earnings in the past year.
In the past year CSU-DB had a positive cash flow from operations.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.35%, CSU-DB is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
The Return On Equity of CSU-DB (19.20%) is better than 89.23% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.25%, CSU-DB is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
CSU-DB had an Average Return On Invested Capital over the past 3 years of 10.12%. This is in line with the industry average of 11.86%.
| 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 better Profit Margin (5.97%) than 80.00% of its industry peers.
CSU-DB's Profit Margin has declined in the last couple of years.
CSU-DB has a better Operating Margin (16.15%) than 86.15% 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.
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.
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 | 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
CSU-DB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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.
Compared to 1 year ago, CSU-DB has a worse debt to assets ratio.
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.
Looking at the Altman-Z score, with a value of 1.51, CSU-DB is in line with its industry, outperforming 49.23% of the companies in the same industry.
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 78.46% 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.
Looking at the Debt to Equity ratio, with a value of 1.20, CSU-DB is doing worse than 61.54% 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 | 1.2 | ||
| Debt/FCF | 2.13 | ||
| Altman-Z | 1.51 |
ROIC/WACC1.32
WACC7.02%
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 has a Quick ratio (1.00) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 1 |
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.
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 15.10%.
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
CSU-DB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.00% yearly.
CSU-DB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.69% yearly.
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 0.88 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's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.59.
A Price/Forward Earnings ratio of 0.73 indicates a rather cheap valuation of CSU-DB.
100.00% of the companies in the same industry are more expensive than CSU-DB, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.03, CSU-DB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.88 | ||
| Fwd PE | 0.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CSU-DB is valued cheaply inside the industry as 96.92% of the companies are valued more expensively.
CSU-DB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CSU-DB is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.71 | ||
| EV/EBITDA | 1.41 |
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 18.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.05
PEG (5Y)0.04
EPS Next 2Y17.03%
EPS Next 3Y18%
5. Dividend
5.1 Amount
With a yearly dividend of 0.17%, CSU-DB is not a good candidate for dividend investing.
CSU-DB's Dividend Yield is rather good when compared to the industry average which is at 0.23. CSU-DB pays more dividend than 87.69% of the companies in the same industry.
With a Dividend Yield of 0.17, CSU-DB pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.17% |
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 (12/23/2025, 7:00:00 PM)
117.61
+0.59 (+0.5%)
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 Cap2.49B
Revenue(TTM)11.15B
Net Income(TTM)666.00M
Analysts78.75
Price Target177.29 (50.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.17% |
Yearly Dividend5.53
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)-9.5%
PT rev (3m)16.38%
EPS NQ rev (1m)0.53%
EPS NQ rev (3m)-0.29%
EPS NY rev (1m)7.14%
EPS NY rev (3m)7.34%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)-0.96%
Revenue NY rev (1m)-0.77%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.88 | ||
| Fwd PE | 0.73 | ||
| 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)134.39
EY114.27%
EPS(NY)161.3
Fwd EY137.15%
FCF(TTM)165.01
FCFY140.3%
OCF(TTM)169.66
OCFY144.26%
SpS720.87
BVpS224.3
TBVpS-295.87
PEG (NY)0.05
PEG (5Y)0.04
Graham Number823.55
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
WACC7.02%
ROIC/WACC1.32
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 117.61 CAD. The price increased by 0.5% in the last trading session.
What is the ChartMill rating of CONSTELLATION SOFTWARE stock?
CSU-DB.CA has a ChartMill Technical rating of 2 out of 10 and a ChartMill Fundamental rating of 6 out of 10.