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

TSX:CSU • CA21037X1006

Current stock price

2663.43 CAD
+36.98 (+1.41%)
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.
  • CSU had a positive operating cash flow in the past year.
  • Each year in the past 5 years CSU has 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 2025 500M 1B 1.5B 2B 2.5B

1.2 Ratios

  • With a decent Return On Assets value of 3.04%, CSU is doing good in the industry, outperforming 68.18% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 13.73%, CSU belongs to the top of the industry, outperforming 80.30% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 12.98%, CSU belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
  • 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 13.06%.
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

  • The Profit Margin of CSU (4.22%) is better than 71.21% of its industry peers.
  • 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 81.82% of its industry peers.
  • In the last couple of years the Operating Margin of CSU has remained more or less at the same level.
  • With an excellent Gross Margin value of 98.13%, CSU belongs to the best of the industry, outperforming 96.97% 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 16.31%
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

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CSU 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.
  • 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 3.34. 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 3.34, CSU is in the better half of the industry, outperforming 69.70% 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.
  • CSU has a better Debt to FCF ratio (2.00) than 74.24% of its industry peers.
  • CSU has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
  • Looking at the Debt to Equity ratio, with a value of 1.07, CSU is doing worse than 60.61% 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 1.07
Debt/FCF 2
Altman-Z 3.34
ROIC/WACC1.36
WACC9.58%
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.
  • The Current ratio of CSU (0.96) is comparable to the rest of the industry.
  • 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 46.97% 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

  • The Earnings Per Share has been growing slightly by 5.34% over the past year.
  • CSU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.26% yearly.
  • CSU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.47%.
  • 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 27.20% yearly.
  • CSU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.48% yearly.
EPS Next Y33.62%
EPS Next 2Y26%
EPS Next 3Y27.2%
EPS Next 5YN/A
Revenue Next Year17.05%
Revenue Next 2Y16.14%
Revenue Next 3Y15.27%
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 2028 50 100 150

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7

4. CSU.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 21.48, which indicates a rather expensive current valuation of CSU.
  • Compared to the rest of the industry, the Price/Earnings ratio of CSU indicates a somewhat cheap valuation: CSU is cheaper than 78.79% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of CSU to the average of the S&P500 Index (27.95), we can say CSU is valued slightly cheaper.
  • A Price/Forward Earnings ratio of 16.07 indicates a correct valuation of CSU.
  • Based on the Price/Forward Earnings ratio, CSU is valued a bit cheaper than 72.73% of the companies in the same industry.
  • CSU's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 38.68.
Industry RankSector Rank
PE 21.48
Fwd PE 16.07
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

  • 63.64% of the companies in the same industry are more expensive than CSU, based on the Enterprise Value to EBITDA ratio.
  • 80.30% of the companies in the same industry are more expensive than CSU, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 15.47
EV/EBITDA 13.22
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 27.20% in the coming years.
PEG (NY)0.64
PEG (5Y)1.01
EPS Next 2Y26%
EPS Next 3Y27.2%

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5

5. CSU.CA Dividend Analysis

5.1 Amount

  • CSU has a yearly dividend return of 0.22%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.48, CSU pays a better dividend. On top of this CSU pays more dividend than 86.36% of the companies listed in the same industry.
  • With a Dividend Yield of 0.22, CSU pays less dividend than the S&P500 average, which is at 1.81.
Industry RankSector Rank
Dividend Yield 0.22%

5.2 History

  • CSU has paid a dividend for at least 10 years, which is 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 Years18
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%
EPS Next 3Y27.2%
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 (4/20/2026, 7:00:00 PM)

2663.43

+36.98 (+1.41%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)03-09
Earnings (Next)05-12
Inst Owners38.11%
Inst Owner ChangeN/A
Ins Owners2.26%
Ins Owner ChangeN/A
Market Cap56.44B
Revenue(TTM)11.62B
Net Income(TTM)491.00M
Analysts78.75
Price Target4280.29 (60.71%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.22%
Yearly Dividend5.48
Dividend Growth(5Y)0%
DP17.31%
Div Incr Years0
Div Non Decr Years18
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)-6.36%
PT rev (3m)-15.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.88%
EPS NY rev (1m)1.03%
EPS NY rev (3m)2.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)0.62%
Revenue NY rev (3m)0.07%
Valuation
Industry RankSector Rank
PE 21.48
Fwd PE 16.07
P/S 3.55
P/FCF 15.47
P/OCF 15.08
P/B 11.53
P/tB N/A
EV/EBITDA 13.22
EPS(TTM)124.01
EY4.66%
EPS(NY)165.7
Fwd EY6.22%
FCF(TTM)172.17
FCFY6.46%
OCF(TTM)176.56
OCFY6.63%
SpS751.17
BVpS231.05
TBVpS-311.06
PEG (NY)0.64
PEG (5Y)1.01
Graham Number802.914 (-69.85%)
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 3.34
F-Score5
WACC9.58%
ROIC/WACC1.36
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 Y33.62%
EPS Next 2Y26%
EPS Next 3Y27.2%
EPS Next 5YN/A
Revenue 1Y (TTM)15.47%
Revenue growth 3Y20.63%
Revenue growth 5Y23.97%
Sales Q2Q%17.54%
Revenue Next Year17.05%
Revenue Next 2Y16.14%
Revenue Next 3Y15.27%
Revenue Next 5Y13.48%
EBIT growth 1Y29.51%
EBIT growth 3Y29.13%
EBIT growth 5Y22.68%
EBIT Next Year107.33%
EBIT Next 3Y37.51%
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 7 / 10 to CSU.CA.


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

ChartMill assigns a valuation rating of 7 / 10 to CONSTELLATION SOFTWARE INC (CSU.CA). This can be considered as Undervalued.


Can you provide the profitability details for CONSTELLATION SOFTWARE INC?

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


Can you provide the PE and PB ratios for CSU stock?

The Price/Earnings (PE) ratio for CONSTELLATION SOFTWARE INC (CSU.CA) is 21.48 and the Price/Book (PB) ratio is 11.53.


Can you provide the financial health for CSU stock?

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