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

TSX:CSU • CA21037X1006

2524.08 CAD
-176 (-6.52%)
Last: Mar 13, 2026, 07:00 PM
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This CSU.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

6

Overall CSU gets a fundamental rating of 6 out of 10. We evaluated CSU against 68 industry peers in the Software industry. CSU scores excellent on profitability, but 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! This makes CSU very considerable for growth investing!


Dividend Valuation Growth Profitability Health

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.
  • In the past 5 years CSU has always been profitable.
  • CSU had a positive operating cash flow in each of the past 5 years.
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 72.06% of its industry peers.
  • CSU's Return On Equity of 19.20% is amongst the best of the industry. CSU outperforms 85.29% of its industry peers.
  • With a decent Return On Invested Capital value of 9.25%, CSU is doing good in the industry, outperforming 73.53% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for CSU is below the industry average of 12.17%.
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

  • CSU has a Profit Margin of 5.97%. This is in the better half of the industry: CSU outperforms 75.00% of its industry peers.
  • In the last couple of years the Profit Margin of CSU has declined.
  • CSU's Operating Margin of 16.15% is amongst the best of the industry. CSU outperforms 82.35% of its industry peers.
  • CSU's Operating Margin has been stable in the last couple of years.
  • With an excellent Gross Margin value of 98.30%, CSU belongs to the best of the industry, outperforming 98.53% of the companies in the same industry.
  • CSU's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 16.15%
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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5

2. CSU.CA Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CSU is still 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.
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

  • CSU has an Altman-Z score of 3.48. This indicates that CSU is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 3.48, CSU is in the better half of the industry, outperforming 70.59% 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 75.00% of its industry peers.
  • A Debt/Equity ratio of 1.20 is on the high side and indicates that CSU has dependencies on debt financing.
  • CSU's Debt to Equity ratio of 1.20 is on the low side compared to the rest of the industry. CSU is outperformed by 60.29% 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 1.2
Debt/FCF 2.13
Altman-Z 3.48
ROIC/WACC0.94
WACC9.83%
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.
  • CSU has a Quick ratio of 1.00. This is comparable to the rest of the industry: CSU outperforms 48.53% of its industry peers.
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

7

3. CSU.CA Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 5.34% over the past year.
  • The Earnings Per Share has been growing by 24.67% on average over the past years. This is a very strong growth
  • The Revenue has grown by 19.73% 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)5.34%
EPS 3Y24.73%
EPS 5Y24.67%
EPS Q2Q%-25.89%
Revenue 1Y (TTM)19.73%
Revenue growth 3Y25.39%
Revenue growth 5Y23.6%
Sales Q2Q%17.54%

3.2 Future

  • The Earnings Per Share is expected to grow by 18.91% on average over the next years. This is quite good.
  • 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 Y16.2%
EPS Next 2Y18.03%
EPS Next 3Y18.91%
EPS Next 5YN/A
Revenue Next Year15.13%
Revenue Next 2Y15.72%
Revenue Next 3Y15.73%
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.
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

  • With a Price/Earnings ratio of 20.49, CSU is valued on the expensive side.
  • Based on the Price/Earnings ratio, CSU is valued a bit cheaper than 76.47% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.70, CSU is valued a bit cheaper.
  • CSU is valuated correctly with a Price/Forward Earnings ratio of 15.50.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of CSU indicates a somewhat cheap valuation: CSU is cheaper than 72.06% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, CSU is valued a bit cheaper.
Industry RankSector Rank
PE 20.49
Fwd PE 15.5
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 66.18% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, CSU is valued cheaper than 80.88% of the companies in the same industry.
Industry RankSector Rank
P/FCF 15.41
EV/EBITDA 13.85
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 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.
  • A more expensive valuation may be justified as CSU's earnings are expected to grow with 18.91% in the coming years.
PEG (NY)1.27
PEG (5Y)0.83
EPS Next 2Y18.03%
EPS Next 3Y18.91%

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

5

5. CSU.CA Dividend Analysis

5.1 Amount

  • CSU has a yearly dividend return of 0.21%, which is pretty low.
  • In the last 3 months the price of CSU has falen by -20.28%. 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 0.27. CSU pays more dividend than 88.24% of the companies in the same industry.
  • With a Dividend Yield of 0.21, CSU pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.21%

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
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 2Y18.03%
EPS Next 3Y18.91%
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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CSU.CA Fundamentals: All Metrics, Ratios and Statistics

CONSTELLATION SOFTWARE INC

TSX:CSU (3/13/2026, 7:00:00 PM)

2524.08

-176 (-6.52%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)03-09
Earnings (Next)N/A
Inst Owners40.26%
Inst Owner ChangeN/A
Ins Owners2.26%
Ins Owner ChangeN/A
Market Cap53.49B
Revenue(TTM)10.07B
Net Income(TTM)666.00M
Analysts78.75
Price Target4570.81 (81.09%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.21%
Yearly Dividend5.48
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)-5.19%
PT rev (3m)-10.22%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)2.91%
EPS NY rev (1m)-2.79%
EPS NY rev (3m)-0.71%
Revenue NQ rev (1m)-0.47%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.09%
Valuation
Industry RankSector Rank
PE 20.49
Fwd PE 15.5
P/S 3.53
P/FCF 15.41
P/OCF 14.99
P/B 11.34
P/tB N/A
EV/EBITDA 13.85
EPS(TTM)123.16
EY4.88%
EPS(NY)162.89
Fwd EY6.45%
FCF(TTM)163.81
FCFY6.49%
OCF(TTM)168.43
OCFY6.67%
SpS715.65
BVpS222.67
TBVpS-293.73
PEG (NY)1.27
PEG (5Y)0.83
Graham Number785.53
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 3.48
F-Score5
WACC9.83%
ROIC/WACC0.94
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)5.34%
EPS 3Y24.73%
EPS 5Y24.67%
EPS Q2Q%-25.89%
EPS Next Y16.2%
EPS Next 2Y18.03%
EPS Next 3Y18.91%
EPS Next 5YN/A
Revenue 1Y (TTM)19.73%
Revenue growth 3Y25.39%
Revenue growth 5Y23.6%
Sales Q2Q%17.54%
Revenue Next Year15.13%
Revenue Next 2Y15.72%
Revenue Next 3Y15.73%
Revenue Next 5Y14.09%
EBIT growth 1Y30.04%
EBIT growth 3Y19.59%
EBIT growth 5Y23.43%
EBIT Next Year145.85%
EBIT Next 3Y49.44%
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 16.2% in the next year.