CONSTELLATION SOFTWARE INC (CSU.CA) Stock Fundamental Analysis

Canada • Toronto Stock Exchange • TSX:CSU • CA21037X1006

2483.02 CAD
+28.77 (+1.17%)
Last: Feb 4, 2026, 07:00 PM
Fundamental Rating

6

CSU gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 66 industry peers in the Software industry. CSU has an excellent profitability rating, but there are some minor concerns on its financial health. CSU is not overvalued while it is showing excellent growth. This is an interesting combination. This makes CSU very considerable for growth investing!


Dividend Valuation Growth Profitability Health

7

1. Profitability

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 500M 1B 1.5B 2B

1.2 Ratios

  • With a decent Return On Assets value of 4.35%, CSU is doing good in the industry, outperforming 74.24% of the companies in the same industry.
  • CSU's Return On Equity of 19.20% is amongst the best of the industry. CSU outperforms 86.36% of its industry peers.
  • CSU has a Return On Invested Capital of 9.25%. This is in the better half of the industry: CSU outperforms 75.76% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for CSU is below the industry average of 12.50%.
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

  • With a decent Profit Margin value of 5.97%, CSU is doing good in the industry, outperforming 71.21% of the companies in the same industry.
  • CSU's Profit Margin has declined in the last couple of years.
  • CSU's Operating Margin of 16.15% is amongst the best of the industry. CSU outperforms 81.82% of its industry peers.
  • CSU's Operating Margin has been stable in the last couple of years.
  • CSU has a better Gross Margin (98.30%) than 98.48% of its industry peers.
  • 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. Health

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.
  • The number of shares outstanding for CSU remains at a similar level compared to 5 years ago.
  • Compared to 1 year ago, CSU has a worse debt to assets ratio.
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

  • An Altman-Z score of 3.22 indicates that CSU is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 3.22, CSU is doing good in the industry, outperforming 63.64% of the companies in the same industry.
  • CSU has a debt to FCF ratio of 2.13. This is a good value and a sign of high solvency as CSU would need 2.13 years to pay back of all of its debts.
  • CSU has a Debt to FCF ratio of 2.13. This is in the better half of the industry: CSU outperforms 74.24% 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.
  • With a Debt to Equity ratio value of 1.20, CSU is not doing good in the industry: 65.15% of the companies in the same industry are doing better.
  • 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 1.2
Debt/FCF 2.13
Altman-Z 3.22
ROIC/WACC0.93
WACC9.89%
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.
  • The Current ratio of CSU (1.02) 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 (1.00) which is in line with 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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8

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 35.60% over the past year.
  • 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.
  • The Revenue has grown by 15.10% in the past year. This is quite good.
  • The Revenue has been growing by 23.60% on average over the past years. This is a very strong growth!
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 19.01% 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 Y19.54%
EPS Next 2Y18.01%
EPS Next 3Y19.01%
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.
  • 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. Valuation

4.1 Price/Earnings Ratio

  • CSU is valuated rather expensively with a Price/Earnings ratio of 18.54.
  • Based on the Price/Earnings ratio, CSU is valued cheaper than 81.82% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 28.25. CSU is valued slightly cheaper when compared to this.
  • The Price/Forward Earnings ratio is 15.19, which indicates a correct valuation of CSU.
  • 72.73% of the companies in the same industry are more expensive than CSU, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 27.50. CSU is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 18.54
Fwd PE 15.19
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 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, CSU is valued a bit cheaper than the industry average as 69.70% of the companies are valued more expensively.
  • CSU's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CSU is cheaper than 80.30% of the companies in the same industry.
Industry RankSector Rank
P/FCF 15.1
EV/EBITDA 12.16
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 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.
  • CSU's earnings are expected to grow with 19.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.95
PEG (5Y)0.75
EPS Next 2Y18.01%
EPS Next 3Y19.01%

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5

5. Dividend

5.1 Amount

  • With a yearly dividend of 0.23%, CSU is not a good candidate for dividend investing.
  • In the last 3 months the price of CSU has falen by -32.40%. 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 0.25. CSU pays more dividend than 89.39% of the companies in the same industry.
  • With a Dividend Yield of 0.23, CSU pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.23%

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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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

  • CSU pays out 12.76% of its income as dividend. This is a sustainable payout ratio.
DP12.76%
EPS Next 2Y18.01%
EPS Next 3Y19.01%
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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CONSTELLATION SOFTWARE INC

TSX:CSU (2/4/2026, 7:00:00 PM)

2483.02

+28.77 (+1.17%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-07
Earnings (Next)02-05
Inst Owners39.78%
Inst Owner ChangeN/A
Ins Owners2.27%
Ins Owner ChangeN/A
Market Cap52.62B
Revenue(TTM)11.15B
Net Income(TTM)666.00M
Analysts78.75
Price Target5070.79 (104.22%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.23%
Yearly Dividend5.42
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%
PT rev (3m)-9.32%
EPS NQ rev (1m)2.8%
EPS NQ rev (3m)2.49%
EPS NY rev (1m)2.15%
EPS NY rev (3m)9.65%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.99%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.77%
Valuation
Industry RankSector Rank
PE 18.54
Fwd PE 15.19
P/S 3.46
P/FCF 15.1
P/OCF 14.68
P/B 11.11
P/tB N/A
EV/EBITDA 12.16
EPS(TTM)133.96
EY5.4%
EPS(NY)163.48
Fwd EY6.58%
FCF(TTM)164.47
FCFY6.62%
OCF(TTM)169.11
OCFY6.81%
SpS718.53
BVpS223.57
TBVpS-294.91
PEG (NY)0.95
PEG (5Y)0.75
Graham Number820.89
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 3.22
F-Score5
WACC9.89%
ROIC/WACC0.93
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 Y19.54%
EPS Next 2Y18.01%
EPS Next 3Y19.01%
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 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 19.54% in the next year.