CONSTELLATION SOFTWARE INC (CSU.CA) Fundamental Analysis & Valuation

TSX:CSU • CA21037X1006

Current stock price

2567.93 CAD
-27.18 (-1.05%)
Last:

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

7

1. CSU.CA Profitability Analysis

1.1 Basic Checks

  • CSU had positive earnings in the past year.
  • CSU had a positive operating cash flow in the past year.
  • Each year in the past 5 years CSU has been profitable.
  • Each year in the past 5 years CSU had a positive operating cash flow.
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 2025 500M 1B 1.5B 2B 2.5B

1.2 Ratios

  • CSU's Return On Assets of 3.04% is fine compared to the rest of the industry. CSU outperforms 69.01% of its industry peers.
  • CSU has a better Return On Equity (13.73%) than 83.10% of its industry peers.
  • CSU has a Return On Invested Capital of 12.98%. This is amongst the best in the industry. CSU outperforms 85.92% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for CSU 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.CA Yearly ROA, ROE, ROICCSU.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 is in the better half of the industry, outperforming 76.06% of the companies in the same industry.
  • In the last couple of years the Profit Margin of CSU has declined.
  • CSU's Operating Margin of 16.31% is amongst the best of the industry. CSU outperforms 83.10% of its industry peers.
  • In the last couple of years the Operating Margin of CSU has remained more or less at the same level.
  • The Gross Margin of CSU (98.13%) is better than 98.59% of its industry peers.
  • CSU's Gross Margin has been stable in the last couple of years.
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.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 2025 20 40 60 80

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5

2. CSU.CA Health Analysis

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.
  • The number of shares outstanding for CSU remains at a similar level compared to 5 years ago.
  • CSU has a better debt/assets ratio than last year.
CSU.CA Yearly Shares OutstandingCSU.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 5B 10B 15B

2.2 Solvency

  • CSU has an Altman-Z score of 3.27. This indicates that CSU is financially healthy and has little risk of bankruptcy at the moment.
  • With a decent Altman-Z score value of 3.27, CSU is doing good in the industry, outperforming 70.42% of the companies in the same industry.
  • The Debt to FCF ratio of CSU is 2.00, which is a good value as it means it would take CSU, 2.00 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 2.00, CSU is doing good in the industry, outperforming 76.06% of the companies in the same industry.
  • CSU has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
  • With a Debt to Equity ratio value of 1.07, CSU is not doing good in the industry: 60.56% of the companies in the same industry are doing better.
  • Although CSU'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 3.27
ROIC/WACC1.33
WACC9.75%
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 2025 1B 2B 3B

2.3 Liquidity

  • A Current Ratio of 0.96 indicates that CSU may have some problems paying its short term obligations.
  • CSU has a Current ratio of 0.96. This is comparable to the rest of the industry: CSU outperforms 45.07% of its industry peers.
  • A Quick Ratio of 0.94 indicates that CSU may have some problems paying its short term obligations.
  • CSU has a Quick ratio of 0.94. This is comparable to the rest of the industry: CSU outperforms 45.07% of its industry peers.
Industry RankSector Rank
Current Ratio 0.96
Quick Ratio 0.94
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 2025 2B 4B 6B

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8

3. CSU.CA Growth Analysis

3.1 Past

  • CSU shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.34%.
  • CSU 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 shows a quite strong growth in Revenue. The Revenue has grown by 15.47% in the last year.
  • The Revenue has been growing by 23.97% on average over the past years. This is a very strong growth!
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

  • The Earnings Per Share is expected to grow by 26.33% on average over the next years. This is a very strong growth
  • The Revenue is expected to grow by 13.48% on average over the next years. This is quite good.
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.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. CSU.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 20.68, which indicates a rather expensive current valuation of CSU.
  • Based on the Price/Earnings ratio, CSU is valued a bit cheaper than the industry average as 77.46% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 25.79, CSU is valued at the same level.
  • The Price/Forward Earnings ratio is 15.63, 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 73.24% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of CSU to the average of the S&P500 Index (23.80), we can say CSU is valued slightly cheaper.
Industry RankSector Rank
PE 20.68
Fwd PE 15.63
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

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, CSU is valued a bit cheaper than the industry average as 66.20% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, CSU is valued cheaper than 80.28% of the companies in the same industry.
Industry RankSector Rank
P/FCF 14.89
EV/EBITDA 12.75
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

  • CSU'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 may justify a higher PE ratio.
  • A more expensive valuation may be justified as CSU's earnings are expected to grow with 26.33% in the coming years.
PEG (NY)0.64
PEG (5Y)0.97
EPS Next 2Y26.33%
EPS Next 3YN/A

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5

5. CSU.CA Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.22%, CSU is not a good candidate for dividend investing.
  • The stock price of CSU dropped by -23.91% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
  • CSU's Dividend Yield is rather good when compared to the industry average which is at 0.44. CSU pays more dividend than 87.32% of the companies in the same industry.
  • With a Dividend Yield of 0.22, CSU pays less dividend than the S&P500 average, which is at 1.91.
Industry RankSector Rank
Dividend Yield 0.22%

5.2 History

  • CSU has been paying a dividend for at least 10 years, so it has a reliable track record.
  • CSU has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0%
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 2026 0 0 0 0 0

5.3 Sustainability

  • CSU pays out 17.31% of its income as dividend. This is a sustainable payout ratio.
DP17.31%
EPS Next 2Y26.33%
EPS Next 3YN/A
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 2025 500M 1B 1.5B 2B 2.5B
CSU.CA Dividend Payout.CSU.CA Dividend Payout, showing the Payout Ratio.CSU.CA Dividend Payout.PayoutRetained Earnings

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CSU.CA Fundamentals: All Metrics, Ratios and Statistics

CONSTELLATION SOFTWARE INC

TSX:CSU (3/18/2026, 7:00:00 PM)

2567.93

-27.18 (-1.05%)

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 Cap54.41B
Revenue(TTM)11.62B
Net Income(TTM)491.00M
Analysts78.75
Price Target4570.81 (78%)
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 Years17
Ex-Date03-27
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)-5.19%
PT rev (3m)-10.22%
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 20.68
Fwd PE 15.63
P/S 3.41
P/FCF 14.89
P/OCF 14.52
P/B 11.1
P/tB N/A
EV/EBITDA 12.75
EPS(TTM)124.2
EY4.84%
EPS(NY)164.26
Fwd EY6.4%
FCF(TTM)172.44
FCFY6.72%
OCF(TTM)176.85
OCFY6.89%
SpS752.37
BVpS231.41
TBVpS-311.55
PEG (NY)0.64
PEG (5Y)0.97
Graham Number804.17
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 3.27
F-Score5
WACC9.75%
ROIC/WACC1.33
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 INC / CSU.CA Fundamental Analysis 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 32.25% in the next year.