When Should You Buy Constellation Software Inc. (TSE:CSU)?
Jun 01
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Canadian (TSX) Software Industry Analysis
UpdatedJun 08, 2025
DataAggregated Company Financials
Companies72
- 7D-1.9%
- 3M5.0%
- 1Y23.8%
- YTD6.9%
Over the last 7 days, the Software industry has dropped 1.9%, driven by pullbacks in Descartes Systems Group and Constellation Software of 12% and 1.3%, respectively. Meanwhile, Lightspeed Commerce actually outperformed within the industry, gaining 9.8% in the last week. In the past year, the industry has gained 24%. Looking forward, earnings are forecast to grow by 25% annually.
Industry Valuation and Performance
Has the Canadian Software Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 08 Jun 2025 | CA$162.7b | CA$24.2b | CA$155.1m | 42.6x | 1049.1x | 6.7x |
| Tue, 06 May 2025 | CA$163.5b | CA$23.9b | CA$866.6m | 33.5x | 188.6x | 6.8x |
| Thu, 03 Apr 2025 | CA$150.9b | CA$24.6b | CA$447.7m | 29.1x | 337x | 6.1x |
| Sat, 01 Mar 2025 | CA$159.6b | CA$24.3b | -CA$2,368,413,840.08 | 27.2x | -67.4x | 6.6x |
| Mon, 27 Jan 2025 | CA$156.6b | CA$24.0b | -CA$2,401,242,860.77 | 40.8x | -65.2x | 6.5x |
| Wed, 25 Dec 2024 | CA$154.2b | CA$24.0b | -CA$2,411,270,582.59 | 41.9x | -64x | 6.4x |
| Fri, 22 Nov 2024 | CA$151.6b | CA$23.3b | -CA$2,336,531,721.03 | 40.7x | -64.9x | 6.5x |
| Sun, 20 Oct 2024 | CA$146.2b | CA$22.3b | -CA$2,509,370,938.61 | 42.2x | -58.3x | 6.6x |
| Tue, 17 Sep 2024 | CA$141.8b | CA$22.0b | -CA$2,507,428,597.09 | 40.8x | -56.5x | 6.4x |
| Thu, 15 Aug 2024 | CA$137.0b | CA$22.3b | -CA$2,523,514,614.18 | 44.5x | -54.3x | 6.2x |
| Sat, 13 Jul 2024 | CA$138.1b | CA$21.3b | -CA$3,376,358,356.58 | 44.5x | -40.9x | 6.5x |
| Mon, 10 Jun 2024 | CA$131.9b | CA$21.7b | -CA$3,409,641,321.72 | 40.1x | -38.7x | 6.1x |
| Wed, 08 May 2024 | CA$130.9b | CA$20.9b | -CA$3,590,918,191.06 | 47.2x | -36.4x | 6.3x |
| Fri, 05 Apr 2024 | CA$127.2b | CA$20.8b | -CA$4,204,632,033.49 | 28.3x | -30.3x | 6.1x |
| Sun, 03 Mar 2024 | CA$126.8b | CA$19.9b | -CA$2,775,860,333.02 | 24.9x | -45.7x | 6.4x |
| Tue, 30 Jan 2024 | CA$123.9b | CA$19.8b | -CA$3,961,238,672.00 | 27.7x | -31.3x | 6.2x |
| Thu, 28 Dec 2023 | CA$117.0b | CA$19.7b | -CA$4,011,358,422.00 | 27.1x | -29.2x | 5.9x |
| Sat, 25 Nov 2023 | CA$110.7b | CA$20.2b | -CA$4,183,949,233.00 | 43.1x | -26.5x | 5.5x |
| Mon, 23 Oct 2023 | CA$98.8b | CA$19.5b | -CA$4,205,331,232.00 | 54.2x | -23.5x | 5.1x |
| Wed, 20 Sep 2023 | CA$101.5b | CA$19.2b | -CA$4,148,672,089.00 | 55.6x | -24.5x | 5.3x |
| Fri, 18 Aug 2023 | CA$101.1b | CA$19.4b | -CA$4,140,119,985.00 | 56.1x | -24.4x | 5.2x |
| Sun, 16 Jul 2023 | CA$102.8b | CA$18.2b | -CA$3,682,304,301.00 | 72.9x | -27.9x | 5.6x |
| Tue, 13 Jun 2023 | CA$101.6b | CA$18.1b | -CA$3,977,632,885.00 | 69.4x | -25.5x | 5.6x |
| Thu, 11 May 2023 | CA$98.9b | CA$17.3b | -CA$3,303,595,731.00 | 65.2x | -29.9x | 5.7x |
| Sat, 08 Apr 2023 | CA$96.0b | CA$17.0b | -CA$3,331,197,346.00 | 46.9x | -28.8x | 5.6x |
| Mon, 06 Mar 2023 | CA$88.6b | CA$16.5b | -CA$2,465,827,153.00 | 41.4x | -35.9x | 5.4x |
| Wed, 01 Feb 2023 | CA$88.4b | CA$16.0b | -CA$656,152,267.00 | 27.9x | -134.7x | 5.5x |
| Fri, 30 Dec 2022 | CA$79.4b | CA$16.3b | -CA$672,866,284.00 | 29.2x | -118x | 4.9x |
| Sun, 27 Nov 2022 | CA$78.9b | CA$16.0b | -CA$528,475,792.00 | 35.9x | -149.2x | 4.9x |
| Tue, 25 Oct 2022 | CA$74.5b | CA$15.5b | -CA$282,260,380.00 | 43x | -263.9x | 4.8x |
| Thu, 22 Sep 2022 | CA$75.3b | CA$15.2b | -CA$423,822,383.00 | 40.3x | -177.7x | 4.9x |
| Sat, 20 Aug 2022 | CA$83.9b | CA$14.8b | -CA$404,978,486.00 | 50.4x | -207.2x | 5.7x |
| Mon, 18 Jul 2022 | CA$75.7b | CA$14.0b | CA$517.5m | 45.3x | 146.2x | 5.4x |
| Wed, 15 Jun 2022 | CA$72.6b | CA$13.9b | CA$262.4m | 51.4x | 276.7x | 5.2x |
Price to Earnings Ratio
276.7x
Current Industry PE
- Investors are optimistic on the Canadian Software industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 1kx which is higher than its 3-year average PE of 12.9x.
- The 3-year average PS ratio of 5.8x is lower than the industry's current PS ratio of 6.7x.
Past Earnings Growth
- The earnings for companies in the Software industry have declined 16% per year over the last three years.
- Meanwhile revenues for these companies have grown 20% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the Canadian Tech industry?
| CA Market | 0.89% | |
| Tech | -0.96% | |
| Software | -1.87% | |
| Systems Software | 3.19% | |
| Application Software | -2.02% | |
Industry PE
- Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio.
- Analysts expect its future annual earnings growth (24.0%) to be largely in line with prior year's earnings growth.
Forecasted Growth
- Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 47% over the next 5 years.
- This is better than its past earnings growth rate of 12% per year.
- In contrast, the Application Software industry is expected to see its earnings grow by 24% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| LSPD Lightspeed Commerce | CA$15.75 | 9.8% +CA$192.3m | -22.3% | PS1.5x | |
| BB BlackBerry | CA$5.66 | 4.0% +CA$131.4m | 53.4% | PS4.6x | |
| KXS Kinaxis | CA$198.11 | 1.4% +CA$92.8m | 34.4% | PE419.2x | |
| ACT Aduro Clean Technologies | CA$13.49 | 18.8% +CA$62.4m | 219.3% | PS1526.8x | |
| CVO Coveo Solutions | CA$7.51 | 8.1% +CA$53.8m | 0.1% | PS4x |
