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

TSX:CSU • CA21037X1006

Current stock price

2441.11 CAD
-96.79 (-3.81%)
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

  • 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.
  • 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 has a Return On Assets of 3.04%. This is in the better half of the industry: CSU outperforms 71.64% of its industry peers.
  • CSU's Return On Equity of 13.73% is amongst the best of the industry. CSU outperforms 80.60% of its industry peers.
  • CSU's Return On Invested Capital of 12.98% is amongst the best of the industry. CSU outperforms 85.07% of its industry peers.
  • CSU had an Average Return On Invested Capital over the past 3 years of 13.53%. This is in line with the industry average of 12.43%.
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

  • CSU has a Profit Margin of 4.22%. This is in the better half of the industry: CSU outperforms 74.63% of its industry peers.
  • In the last couple of years the Profit Margin of CSU has declined.
  • CSU has a better Operating Margin (16.31%) than 82.09% 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 98.13%, CSU belongs to the top of the industry, outperforming 97.01% of the companies in the same industry.
  • 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.
  • Compared to 1 year ago, CSU has about the same amount of shares outstanding.
  • Compared to 5 years ago, CSU has about the same amount of shares outstanding.
  • Compared to 1 year ago, CSU has an improved debt to assets ratio.
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 3.17. This indicates that CSU is financially healthy and has little risk of bankruptcy at the moment.
  • CSU's Altman-Z score of 3.17 is fine compared to the rest of the industry. CSU outperforms 70.15% of its industry peers.
  • CSU has a debt to FCF ratio of 2.00. This is a good value and a sign of high solvency as CSU would need 2.00 years to pay back of all of its debts.
  • CSU has a Debt to FCF ratio of 2.00. This is in the better half of the industry: CSU outperforms 74.63% of its industry peers.
  • A Debt/Equity ratio of 1.07 is on the high side and indicates that CSU has dependencies on debt financing.
  • CSU's Debt to Equity ratio of 1.07 is on the low side compared to the rest of the industry. CSU is outperformed by 64.18% of its industry peers.
  • 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 3.17
ROIC/WACC1.34
WACC9.71%
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 41.79% of its industry peers.
  • CSU has a Quick Ratio of 0.96. This is a bad value and indicates that CSU is not financially healthy enough and could expect problems in meeting its short term obligations.
  • CSU's Quick ratio of 0.94 is in line compared to the rest of the industry. CSU outperforms 41.79% 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

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

  • CSU 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 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

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • 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. CSU.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 19.61 indicates a rather expensive valuation of CSU.
  • Based on the Price/Earnings ratio, CSU is valued a bit cheaper than the industry average as 79.10% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 25.50, CSU is valued a bit cheaper.
  • CSU is valuated correctly with a Price/Forward Earnings ratio of 14.83.
  • Based on the Price/Forward Earnings ratio, CSU is valued a bit cheaper than 71.64% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of CSU to the average of the S&P500 Index (22.67), we can say CSU is valued slightly cheaper.
Industry RankSector Rank
PE 19.61
Fwd PE 14.83
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 64.18% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, CSU is valued a bit cheaper than the industry average as 79.10% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 14.12
EV/EBITDA 12.13
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.
  • 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 26.33% in the coming years.
PEG (NY)0.61
PEG (5Y)0.92
EPS Next 2Y26.33%
EPS Next 3YN/A

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5

5. CSU.CA Dividend Analysis

5.1 Amount

  • CSU has a yearly dividend return of 0.23%, which is pretty low.
  • In the last 3 months the price of CSU has falen by -26.39%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • Compared to an average industry Dividend Yield of 0.50, CSU pays a better dividend. On top of this CSU pays more dividend than 86.57% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, CSU's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.23%

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 their dividend for at least 10 years, which is a reliable track record.
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 (3/24/2026, 7:00:00 PM)

2441.11

-96.79 (-3.81%)

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 Cap51.73B
Revenue(TTM)11.62B
Net Income(TTM)491.00M
Analysts78.75
Price Target4570.81 (87.24%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.23%
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)8.88%
EPS NQ rev (3m)8.88%
EPS NY rev (1m)0.04%
EPS NY rev (3m)1.72%
Revenue NQ rev (1m)-0.54%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.56%
Valuation
Industry RankSector Rank
PE 19.61
Fwd PE 14.83
P/S 3.24
P/FCF 14.12
P/OCF 13.77
P/B 10.52
P/tB N/A
EV/EBITDA 12.13
EPS(TTM)124.49
EY5.1%
EPS(NY)164.65
Fwd EY6.74%
FCF(TTM)172.85
FCFY7.08%
OCF(TTM)177.26
OCFY7.26%
SpS754.13
BVpS231.96
TBVpS-312.28
PEG (NY)0.61
PEG (5Y)0.92
Graham Number806.05
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 3.17
F-Score5
WACC9.71%
ROIC/WACC1.34
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.