CONSTELLATION SOFTWARE INC (CSU.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CSU - CA21037X1006 - Common Stock
3210.52 CAD
-117.31 (-3.53%)
Taking everything into account, CSU scores 6 out of 10 in our fundamental rating. CSU was compared to 67 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 not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, CSU could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
- In the past year CSU was profitable.
- CSU had a positive operating cash flow in the past year.
- CSU had positive earnings in each of the past 5 years.
- CSU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 4.35%, CSU is doing good in the industry, outperforming 73.13% of the companies in the same industry.
- CSU has a Return On Equity of 19.20%. This is amongst the best in the industry. CSU outperforms 86.57% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 9.25%, CSU is in the better half of the industry, outperforming 76.12% of the companies in the same industry.
- CSU had an Average Return On Invested Capital over the past 3 years of 10.12%. This is below the industry average of 12.48%.
| 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
- Looking at the Profit Margin, with a value of 5.97%, CSU is in the better half of the industry, outperforming 71.64% of the companies in the same industry.
- In the last couple of years the Profit Margin of CSU has declined.
- CSU has a better Operating Margin (16.15%) 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.
- CSU's Gross Margin of 98.30% is amongst the best of the industry. CSU outperforms 98.51% of its industry peers.
- In the last couple of years the Gross Margin of CSU 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 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.
- CSU has a worse debt/assets ratio than last year.
2.2 Solvency
- CSU has an Altman-Z score of 3.90. This indicates that CSU is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 3.90, CSU is doing good in the industry, outperforming 67.16% 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.
- The Debt to FCF ratio of CSU (2.13) is better than 74.63% 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 67.16% of the companies in the same industry.
- Although CSU 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 | 3.9 |
ROIC/WACC0.95
WACC9.78%
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 of 1.02. This is comparable to the rest of the industry: CSU outperforms 43.28% of its industry peers.
- 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.
- CSU has a Quick ratio of 1.00. This is comparable to the rest of the industry: CSU outperforms 43.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 1 |
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.
- CSU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.10%.
- CSU 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
- Based on estimates for the next years, CSU will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.00% on average per year.
- Based on estimates for the next years, CSU will show a quite strong growth in Revenue. The Revenue will grow by 14.09% on average per year.
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 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.
- 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
- The Price/Earnings ratio is 23.59, 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 79.10% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.30. CSU is around the same levels.
- A Price/Forward Earnings ratio of 19.65 indicates a rather expensive valuation of CSU.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CSU indicates a somewhat cheap valuation: CSU is cheaper than 71.64% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.04. CSU is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.59 | ||
| Fwd PE | 19.65 |
4.2 Price Multiples
- CSU's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CSU is cheaper than 68.66% of the companies in the same industry.
- CSU's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CSU is cheaper than 77.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.21 | ||
| EV/EBITDA | 16.47 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- CSU has a very decent profitability rating, which may justify a higher PE ratio.
- CSU's earnings are expected to grow with 18.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.39
PEG (5Y)0.96
EPS Next 2Y17.03%
EPS Next 3Y18%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.17%, CSU is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.20, CSU pays a better dividend. On top of this CSU pays more dividend than 89.55% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.92, CSU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.17% |
5.2 History
- The dividend of CSU decreases each year by -30.09%.
- CSU has paid a dividend for at least 10 years, which is 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
5.3 Sustainability
- CSU 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 (1/13/2026, 7:00:00 PM)
3210.52
-117.31 (-3.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-07 2025-11-07/amc
Earnings (Next)02-05 2026-02-05/amc
Inst Owners39.78%
Inst Owner ChangeN/A
Ins Owners2.27%
Ins Owner ChangeN/A
Market Cap68.03B
Revenue(TTM)11.15B
Net Income(TTM)666.00M
Analysts78.75
Price Target5070.79 (57.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.17% |
Yearly Dividend5.57
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)-0.4%
PT rev (3m)-9.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.29%
EPS NY rev (1m)0%
EPS NY rev (3m)7.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.96%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.59 | ||
| Fwd PE | 19.65 | ||
| P/S | 4.4 | ||
| P/FCF | 19.21 | ||
| P/OCF | 18.68 | ||
| P/B | 14.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.47 |
EPS(TTM)136.12
EY4.24%
EPS(NY)163.37
Fwd EY5.09%
FCF(TTM)167.12
FCFY5.21%
OCF(TTM)171.84
OCFY5.35%
SpS730.12
BVpS227.18
TBVpS-299.67
PEG (NY)1.39
PEG (5Y)0.96
Graham Number834.13
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 | 3.9 |
F-Score5
WACC9.78%
ROIC/WACC0.95
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 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 5 / 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 17.03% in the next year.