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

TSX:CSU • CA21037X1006

Current stock price

2442.51 CAD
+1.24 (+0.05%)
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.
  • In the past 5 years CSU always reported a positive cash flow from operatings.
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 70.31% of its industry peers.
  • CSU has a Return On Equity of 13.73%. This is in the better half of the industry: CSU outperforms 79.69% of its industry peers.
  • With an excellent Return On Invested Capital value of 12.98%, CSU belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for CSU is in line with the industry average of 12.99%.
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's Profit Margin of 4.22% is fine compared to the rest of the industry. CSU outperforms 73.44% 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 81.25% 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 98.13% is amongst the best of the industry. CSU outperforms 96.88% 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 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.
  • The number of shares outstanding for CSU remains at a similar level compared to 1 year ago.
  • CSU has about the same amout of shares outstanding than it did 5 years ago.
  • The debt/assets ratio for CSU has been reduced compared to a year ago.
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 3.15. This indicates that CSU is financially healthy and has little risk of bankruptcy at the moment.
  • CSU has a better Altman-Z score (3.15) than 68.75% 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.
  • The Debt to FCF ratio of CSU (2.00) is better than 73.44% 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 65.63% 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 3.15
ROIC/WACC1.34
WACC9.69%
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's Current ratio of 0.96 is in line compared to the rest of the industry. CSU outperforms 42.19% of its industry peers.
  • A Quick Ratio of 0.94 indicates that CSU may have some problems paying its short term obligations.
  • CSU's Quick ratio of 0.94 is in line compared to the rest of the industry. CSU outperforms 42.19% 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.
  • Measured over the past years, CSU shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.26% on average per year.
  • The Revenue has grown by 15.47% 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 23.97% on average per year.
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

  • Based on estimates for the next years, CSU will show a very strong growth in Earnings Per Share. The EPS will grow by 26.33% on average per year.
  • The Revenue is expected to grow by 13.48% on average over the next years. This is quite good.
EPS Next Y32.25%
EPS Next 2Y26.33%
EPS Next 3YN/A
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.
  • 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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7

4. CSU.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 19.39, CSU is valued on the expensive side.
  • Based on the Price/Earnings ratio, CSU is valued a bit cheaper than the industry average as 79.69% of the companies are valued more expensively.
  • CSU's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.21.
  • CSU is valuated correctly with a Price/Forward Earnings ratio of 14.66.
  • Based on the Price/Forward Earnings ratio, CSU is valued a bit cheaper than 71.88% of the companies in the same industry.
  • CSU's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.10.
Industry RankSector Rank
PE 19.39
Fwd PE 14.66
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

  • 64.06% of the companies in the same industry are more expensive than CSU, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of CSU indicates a rather cheap valuation: CSU is cheaper than 81.25% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 13.97
EV/EBITDA 12
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 26.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.6
PEG (5Y)0.91
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 0.24%, which is pretty low.
  • In the last 3 months the price of CSU has falen by -26.54%. 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 0.53, CSU pays a better dividend. On top of this CSU pays more dividend than 85.94% 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 0.24%

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 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

  • 17.31% of the earnings are spent on dividend by CSU. This is a low number and 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 (4/6/2026, 7:00:00 PM)

2442.51

+1.24 (+0.05%)

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 Cap51.76B
Revenue(TTM)11.62B
Net Income(TTM)491.00M
Analysts78.75
Price Target4303.47 (76.19%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.24%
Yearly Dividend5.58
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)-5.85%
PT rev (3m)-15.13%
EPS NQ rev (1m)8.88%
EPS NQ rev (3m)8.88%
EPS NY rev (1m)0%
EPS NY rev (3m)1.72%
Revenue NQ rev (1m)0.35%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)0.62%
Revenue NY rev (3m)0.07%
Valuation
Industry RankSector Rank
PE 19.39
Fwd PE 14.66
P/S 3.2
P/FCF 13.97
P/OCF 13.62
P/B 10.41
P/tB N/A
EV/EBITDA 12
EPS(TTM)125.95
EY5.16%
EPS(NY)166.57
Fwd EY6.82%
FCF(TTM)174.86
FCFY7.16%
OCF(TTM)179.33
OCFY7.34%
SpS762.92
BVpS234.66
TBVpS-315.92
PEG (NY)0.6
PEG (5Y)0.91
Graham Number815.47
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 3.15
F-Score5
WACC9.69%
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 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 Year107.17%
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 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 19.39 and the Price/Book (PB) ratio is 10.41.


Can you provide the financial health for CSU stock?

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