CONSTELLATION SOFTWARE INC (CSU.CA) Stock Fundamental Analysis

TSX:CSU • CA21037X1006

2376.98 CAD
+118.8 (+5.26%)
Last: Feb 18, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to CSU. CSU was compared to 69 industry peers in the Software industry. While CSU belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CSU is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, CSU could be worth investigating further for growth investing!.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • In the past year CSU was profitable.
  • In the past year CSU had a positive cash flow from operations.
  • CSU had positive earnings in each of the past 5 years.
  • In the past 5 years CSU always reported a positive cash flow from operatings.
CSU.CA Yearly Net Income VS EBIT VS OCF VS FCFCSU.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's Return On Assets of 4.35% is fine compared to the rest of the industry. CSU outperforms 73.91% of its industry peers.
  • The Return On Equity of CSU (19.20%) is better than 85.51% of its industry peers.
  • CSU has a better Return On Invested Capital (9.25%) than 75.36% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for CSU 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.CA Yearly ROA, ROE, ROICCSU.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

1.3 Margins

  • With a decent Profit Margin value of 5.97%, CSU is doing good in the industry, outperforming 73.91% of the companies in the same industry.
  • CSU's Profit Margin has declined in the last couple of years.
  • CSU has a Operating Margin of 16.15%. This is amongst the best in the industry. CSU outperforms 81.16% of its industry peers.
  • In the last couple of years the Operating Margin of CSU has remained more or less at the same level.
  • Looking at the Gross Margin, with a value of 98.30%, CSU belongs to the top of the industry, outperforming 98.55% of the companies in the same industry.
  • In the last couple of years the Gross Margin of CSU 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.CA Yearly Profit, Operating, Gross MarginsCSU.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

5

2. Health

2.1 Basic Checks

  • CSU has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • CSU has about the same amout of shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, CSU has about the same amount of shares outstanding.
  • The debt/assets ratio for CSU is higher compared to a year ago.
CSU.CA Yearly Shares OutstandingCSU.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M 20M
CSU.CA Yearly Total Debt VS Total AssetsCSU.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

  • An Altman-Z score of 3.29 indicates that CSU is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 3.29, CSU is doing good in the industry, outperforming 69.57% of the companies in the same industry.
  • The Debt to FCF ratio of CSU is 2.13, which is a good value as it means it would take CSU, 2.13 years of fcf income to pay off all of its debts.
  • CSU's Debt to FCF ratio of 2.13 is fine compared to the rest of the industry. CSU outperforms 75.36% of its industry peers.
  • CSU 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 is doing worse than 63.77% of the companies in the same industry.
  • Even though the debt/equity ratio score it not favorable for CSU, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry RankSector Rank
Debt/Equity 1.2
Debt/FCF 2.13
Altman-Z 3.29
ROIC/WACC0.93
WACC9.96%
CSU.CA Yearly LT Debt VS Equity VS FCFCSU.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 should not have too much problems paying its short term obligations.
  • CSU has a Current ratio (1.02) which is comparable to the rest of the industry.
  • CSU has a Quick Ratio of 1.00. This is a normal value and indicates that CSU is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 1.00, CSU is in line with its industry, outperforming 46.38% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.02
Quick Ratio 1
CSU.CA Yearly Current Assets VS Current LiabilitesCSU.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

  • CSU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.60%, which is quite impressive.
  • Measured over the past years, CSU shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.67% on average per year.
  • The Revenue has grown by 15.10% in the past year. This is quite good.
  • Measured over the past years, CSU 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

  • The Earnings Per Share is expected to grow by 19.01% on average over the next years. This is quite good.
  • CSU 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

  • 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.
CSU.CA Yearly Revenue VS EstimatesCSU.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B
CSU.CA Yearly EPS VS EstimatesCSU.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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6

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 17.76, which indicates a rather expensive current valuation of CSU.
  • CSU's Price/Earnings ratio is a bit cheaper when compared to the industry. CSU is cheaper than 78.26% of the companies in the same industry.
  • CSU's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.27.
  • The Price/Forward Earnings ratio is 14.55, which indicates a correct valuation of CSU.
  • CSU's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CSU is cheaper than 73.91% of the companies in the same industry.
  • CSU is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 28.16, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 17.76
Fwd PE 14.55
CSU.CA Price Earnings VS Forward Price EarningsCSU.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, CSU is valued a bit cheaper than 69.57% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, CSU is valued a bit cheaper than the industry average as 79.71% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 14.46
EV/EBITDA 12.61
CSU.CA Per share dataCSU.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.
  • CSU has a very decent profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as CSU's earnings are expected to grow with 19.01% in the coming years.
PEG (NY)0.91
PEG (5Y)0.72
EPS Next 2Y18.01%
EPS Next 3Y19.01%

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

5

5. Dividend

5.1 Amount

  • With a yearly dividend of 0.25%, CSU is not a good candidate for dividend investing.
  • In the last 3 months the price of CSU has falen by -27.78%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • CSU's Dividend Yield is rather good when compared to the industry average which is at 0.29. CSU pays more dividend than 88.41% of the companies in the same industry.
  • With a Dividend Yield of 0.25, CSU pays less dividend than the S&P500 average, which is at 1.85.
Industry RankSector Rank
Dividend Yield 0.25%

5.2 History

  • The dividend of CSU decreases each year by -30.09%.
  • CSU has been paying a dividend for at least 10 years, so it has a reliable track record.
  • CSU has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-30.09%
Div Incr Years0
Div Non Decr Years17
CSU.CA Yearly Dividends per shareCSU.CA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 0 0 0 0

5.3 Sustainability

  • 12.76% of the earnings are spent on dividend by CSU. This is a low number and sustainable payout ratio.
DP12.76%
EPS Next 2Y18.01%
EPS Next 3Y19.01%
CSU.CA Yearly Income VS Free CF VS DividendCSU.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.CA Dividend Payout.CSU.CA Dividend Payout, showing the Payout Ratio.CSU.CA Dividend Payout.PayoutRetained Earnings

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CONSTELLATION SOFTWARE INC

TSX:CSU (2/18/2026, 7:00:00 PM)

2376.98

+118.8 (+5.26%)

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 Cap50.37B
Revenue(TTM)11.15B
Net Income(TTM)666.00M
Analysts78.75
Price Target4821.17 (102.83%)
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 Years17
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)-4.92%
PT rev (3m)-13.79%
EPS NQ rev (1m)2.8%
EPS NQ rev (3m)2.49%
EPS NY rev (1m)2.15%
EPS NY rev (3m)9.44%
Revenue NQ rev (1m)-0.5%
Revenue NQ rev (3m)-1.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.77%
Valuation
Industry RankSector Rank
PE 17.76
Fwd PE 14.55
P/S 3.31
P/FCF 14.46
P/OCF 14.07
P/B 10.64
P/tB N/A
EV/EBITDA 12.61
EPS(TTM)133.86
EY5.63%
EPS(NY)163.36
Fwd EY6.87%
FCF(TTM)164.35
FCFY6.91%
OCF(TTM)168.98
OCFY7.11%
SpS717.99
BVpS223.4
TBVpS-294.69
PEG (NY)0.91
PEG (5Y)0.72
Graham Number820.28
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 3.29
F-Score5
WACC9.96%
ROIC/WACC0.93
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 INC / CSU.CA FAQ

What is the fundamental rating for CSU stock?

ChartMill assigns a fundamental rating of 6 / 10 to CSU.CA.


What is the valuation status of CONSTELLATION SOFTWARE INC (CSU.CA) stock?

ChartMill assigns a valuation rating of 6 / 10 to CONSTELLATION SOFTWARE INC (CSU.CA). This can be considered as Fairly Valued.


How profitable is CONSTELLATION SOFTWARE INC (CSU.CA) stock?

CONSTELLATION SOFTWARE INC (CSU.CA) has a profitability rating of 7 / 10.


How financially healthy is CONSTELLATION SOFTWARE INC?

The financial health rating of CONSTELLATION SOFTWARE INC (CSU.CA) is 5 / 10.


What is the expected EPS growth for CONSTELLATION SOFTWARE INC (CSU.CA) stock?

The Earnings per Share (EPS) of CONSTELLATION SOFTWARE INC (CSU.CA) is expected to grow by 19.54% in the next year.