CONSTELLATION SOFTWARE INC (CSU.CA) Fundamental Analysis & Valuation
TSX:CSU • CA21037X1006
Current stock price
2441.11 CAD
-96.79 (-3.81%)
Last:
This CSU.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. CSU.CA Profitability Analysis
1.1 Basic Checks
- In the past year CSU was profitable.
- In the past year CSU had a positive cash flow from operations.
- CSU had positive earnings in each of the past 5 years.
- Each year in the past 5 years CSU had a positive operating cash flow.
1.2 Ratios
- CSU has a Return On Assets of 3.04%. This is in the better half of the industry: CSU outperforms 71.64% of its industry peers.
- CSU's Return On Equity of 13.73% is amongst the best of the industry. CSU outperforms 80.60% of its industry peers.
- CSU's Return On Invested Capital of 12.98% is amongst the best of the industry. CSU outperforms 85.07% of its industry peers.
- 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 12.43%.
| Industry Rank | Sector 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%
1.3 Margins
- CSU has a Profit Margin of 4.22%. This is in the better half of the industry: CSU outperforms 74.63% 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 82.09% of its industry peers.
- In the last couple of years the Operating Margin of CSU has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 98.13%, CSU belongs to the top of the industry, outperforming 97.01% of the companies in the same industry.
- CSU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. CSU.CA Health Analysis
2.1 Basic Checks
- CSU has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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.
- Compared to 1 year ago, CSU has an improved debt to assets ratio.
2.2 Solvency
- CSU has an Altman-Z score of 3.17. This indicates that CSU is financially healthy and has little risk of bankruptcy at the moment.
- CSU's Altman-Z score of 3.17 is fine compared to the rest of the industry. CSU outperforms 70.15% 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.
- CSU has a Debt to FCF ratio of 2.00. This is in the better half of the industry: CSU outperforms 74.63% 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 64.18% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 2 | ||
| Altman-Z | 3.17 |
ROIC/WACC1.34
WACC9.71%
2.3 Liquidity
- A Current Ratio of 0.96 indicates that CSU may have some problems paying its short term obligations.
- CSU has a Current ratio of 0.96. This is comparable to the rest of the industry: CSU outperforms 41.79% of its industry peers.
- 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 41.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.94 |
3. CSU.CA Growth Analysis
3.1 Past
- CSU shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.34%.
- CSU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.26% yearly.
- Looking at the last year, CSU shows a quite strong growth in Revenue. The Revenue has grown by 15.47% in the last year.
- 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 26.33% yearly.
- Based on estimates for the next years, CSU will show a quite strong growth in Revenue. The Revenue will grow by 13.48% on average per year.
EPS Next Y32.25%
EPS Next 2Y26.33%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year16.33%
Revenue Next 2Y16.03%
Revenue Next 3Y15.87%
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.
4. CSU.CA Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 19.61 indicates a rather expensive valuation of CSU.
- Based on the Price/Earnings ratio, CSU is valued a bit cheaper than the industry average as 79.10% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 25.50, CSU is valued a bit cheaper.
- CSU is valuated correctly with a Price/Forward Earnings ratio of 14.83.
- Based on the Price/Forward Earnings ratio, CSU is valued a bit cheaper than 71.64% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of CSU to the average of the S&P500 Index (22.67), we can say CSU is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.61 | ||
| Fwd PE | 14.83 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CSU is valued a bit cheaper than the industry average as 64.18% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, CSU is valued a bit cheaper than the industry average as 79.10% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.12 | ||
| EV/EBITDA | 12.13 |
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 26.33% in the coming years.
PEG (NY)0.61
PEG (5Y)0.92
EPS Next 2Y26.33%
EPS Next 3YN/A
5. CSU.CA Dividend Analysis
5.1 Amount
- CSU has a yearly dividend return of 0.23%, which is pretty low.
- In the last 3 months the price of CSU has falen by -26.39%. 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 0.50, CSU pays a better dividend. On top of this CSU pays more dividend than 86.57% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
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 Years17
5.3 Sustainability
- CSU pays out 17.31% of its income as dividend. This is a sustainable payout ratio.
DP17.31%
EPS Next 2Y26.33%
EPS Next 3YN/A
CSU.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:CSU (3/24/2026, 7:00:00 PM)
2441.11
-96.79 (-3.81%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)03-09 2026-03-09/bmo
Earnings (Next)05-11 2026-05-11
Inst Owners40.26%
Inst Owner ChangeN/A
Ins Owners2.26%
Ins Owner ChangeN/A
Market Cap51.73B
Revenue(TTM)11.62B
Net Income(TTM)491.00M
Analysts78.75
Price Target4570.81 (87.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
Yearly Dividend5.5
Dividend Growth(5Y)0%
DP17.31%
Div Incr Years0
Div Non Decr Years17
Ex-Date03-27 2026-03-27 (1)
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)-5.19%
PT rev (3m)-10.22%
EPS NQ rev (1m)8.88%
EPS NQ rev (3m)8.88%
EPS NY rev (1m)0.04%
EPS NY rev (3m)1.72%
Revenue NQ rev (1m)-0.54%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.61 | ||
| Fwd PE | 14.83 | ||
| P/S | 3.24 | ||
| P/FCF | 14.12 | ||
| P/OCF | 13.77 | ||
| P/B | 10.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.13 |
EPS(TTM)124.49
EY5.1%
EPS(NY)164.65
Fwd EY6.74%
FCF(TTM)172.85
FCFY7.08%
OCF(TTM)177.26
OCFY7.26%
SpS754.13
BVpS231.96
TBVpS-312.28
PEG (NY)0.61
PEG (5Y)0.92
Graham Number806.05
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 3.17 |
F-Score5
WACC9.71%
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 Year16.33%
Revenue Next 2Y16.03%
Revenue Next 3Y15.87%
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 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 32.25% in the next year.