CONSTELLATION SOFTWARE INC (CSU.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CSU - CA21037X1006 - Common Stock
3375.08 CAD
+49.5 (+1.49%)
CSU gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 65 industry peers in the Software industry. While CSU has a great profitability rating, there are some minor concerns on its financial health. CSU is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make CSU a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year CSU was profitable.
In the past year CSU had a positive cash flow from operations.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.35%, CSU is in the better half of the industry, outperforming 78.46% of the companies in the same industry.
With an excellent Return On Equity value of 19.20%, CSU belongs to the best of the industry, outperforming 87.69% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.25%, CSU is in the better half of the industry, outperforming 78.46% 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 11.66%.
| 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 78.46% of the companies in the same industry.
In the last couple of years the Profit Margin of CSU has declined.
Looking at the Operating Margin, with a value of 16.15%, CSU belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
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 98.46% 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
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.
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.
2.2 Solvency
An Altman-Z score of 4.01 indicates that CSU is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.01, CSU is in the better half of the industry, outperforming 70.77% 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.
Looking at the Debt to FCF ratio, with a value of 2.13, CSU is in the better half of the industry, outperforming 75.38% of the companies in the same industry.
A Debt/Equity ratio of 1.20 is on the high side and indicates that CSU has dependencies on debt financing.
The Debt to Equity ratio of CSU (1.20) is worse than 64.62% of its industry peers.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 2.13 | ||
| Altman-Z | 4.01 |
ROIC/WACC0.96
WACC9.63%
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 worse than 61.54% of its industry peers.
A Quick Ratio of 1.00 indicates that CSU should not have too much problems paying its short term obligations.
CSU has a worse Quick ratio (1.00) than 61.54% 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.
CSU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.67% yearly.
The Revenue has grown by 15.10% in the past year. This is quite good.
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.
CSU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.69% yearly.
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 5Y15.69%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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.
4. Valuation
4.1 Price/Earnings Ratio
CSU is valuated rather expensively with a Price/Earnings ratio of 24.95.
84.62% of the companies in the same industry are more expensive than CSU, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.38, CSU is valued at the same level.
CSU is valuated rather expensively with a Price/Forward Earnings ratio of 20.79.
CSU's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CSU is cheaper than 73.85% of the companies in the same industry.
CSU's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.95 | ||
| Fwd PE | 20.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CSU is valued a bit cheaper than 70.77% 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 78.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.32 | ||
| EV/EBITDA | 17.14 |
4.3 Compensation for Growth
CSU's 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)1.47
PEG (5Y)1.01
EPS Next 2Y17.03%
EPS Next 3Y18%
5. Dividend
5.1 Amount
CSU has a yearly dividend return of 0.18%, which is pretty low.
The stock price of CSU dropped by -23.59% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 0.24, CSU pays a better dividend. On top of this CSU pays more dividend than 89.23% of the companies listed in the same industry.
With a Dividend Yield of 0.18, CSU pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.18% |
5.2 History
The dividend of CSU decreases each year by -30.09%.
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)-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 (12/19/2025, 7:00:00 PM)
3375.08
+49.5 (+1.49%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners40.3%
Inst Owner ChangeN/A
Ins Owners2.27%
Ins Owner ChangeN/A
Market Cap71.52B
Revenue(TTM)11.15B
Net Income(TTM)666.00M
Analysts78.75
Price Target5091.19 (50.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.18% |
Yearly Dividend5.52
Dividend Growth(5Y)-30.09%
DP12.76%
Div Incr Years0
Div Non Decr Years17
Ex-Date
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)-8.96%
PT rev (3m)-10.59%
EPS NQ rev (1m)-0.29%
EPS NQ rev (3m)-0.29%
EPS NY rev (1m)7.14%
EPS NY rev (3m)7.34%
Revenue NQ rev (1m)-0.96%
Revenue NQ rev (3m)-0.96%
Revenue NY rev (1m)-0.77%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.95 | ||
| Fwd PE | 20.79 | ||
| P/S | 4.65 | ||
| P/FCF | 20.32 | ||
| P/OCF | 19.76 | ||
| P/B | 14.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.14 |
EPS(TTM)135.27
EY4.01%
EPS(NY)162.35
Fwd EY4.81%
FCF(TTM)166.08
FCFY4.92%
OCF(TTM)170.77
OCFY5.06%
SpS725.58
BVpS225.76
TBVpS-297.81
PEG (NY)1.47
PEG (5Y)1.01
Graham Number828.93
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 | 4.01 |
F-Score5
WACC9.63%
ROIC/WACC0.96
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 5Y15.69%
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 for CSU 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.
What are the PE and PB ratios of CONSTELLATION SOFTWARE INC (CSU.CA) stock?
The Price/Earnings (PE) ratio for CONSTELLATION SOFTWARE INC (CSU.CA) is 24.95 and the Price/Book (PB) ratio is 14.95.
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.