Is Constellation Software (TSE:CSU) Using Too Much Debt?
Jun 13
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Canadian (TSX) Software Industry Analysis
UpdatedJul 03, 2025
DataAggregated Company Financials
Companies74
- 7D2.8%
- 3M17.3%
- 1Y21.9%
- YTD9.9%
Over the last 7 days, the Software industry has risen 1.9%, driven by gains from Constellation Software of 1.3%. During this same period, the BlackBerry underperformed, falling 14%. In the last 12 months, the industry was up 21%. As for the next few years, earnings are expected to grow by 20% per annum.
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 |
|---|---|---|---|---|---|---|
| Fri, 04 Jul 2025 | CA$165.5b | CA$24.1b | CA$189.2m | 45.5x | 875.1x | 6.9x |
| Sun, 01 Jun 2025 | CA$165.8b | CA$24.2b | CA$152.2m | 44.9x | 1089.4x | 6.8x |
| Tue, 29 Apr 2025 | CA$159.3b | CA$23.9b | CA$437.0m | 31.4x | 364.6x | 6.7x |
| Thu, 27 Mar 2025 | CA$154.7b | CA$24.6b | CA$85.7m | 27.2x | 1805.4x | 6.3x |
| Sat, 22 Feb 2025 | CA$159.5b | CA$23.9b | -CA$2,316,119,722.26 | 28.1x | -68.9x | 6.7x |
| Mon, 20 Jan 2025 | CA$151.1b | CA$24.2b | -CA$2,421,620,289.42 | 41.7x | -62.4x | 6.3x |
| Wed, 18 Dec 2024 | CA$156.4b | CA$23.9b | -CA$2,377,562,515.27 | 43.4x | -65.8x | 6.5x |
| Fri, 15 Nov 2024 | CA$154.4b | CA$23.4b | -CA$2,340,720,421.52 | 40.3x | -66x | 6.6x |
| Sun, 13 Oct 2024 | CA$145.4b | CA$22.3b | -CA$2,501,459,353.17 | 42.3x | -58.1x | 6.5x |
| Tue, 10 Sep 2024 | CA$139.4b | CA$22.0b | -CA$2,504,755,323.16 | 40.9x | -55.7x | 6.3x |
| Thu, 08 Aug 2024 | CA$135.0b | CA$21.6b | -CA$3,358,241,191.65 | 43.5x | -40.2x | 6.3x |
| Sat, 06 Jul 2024 | CA$137.9b | CA$21.3b | -CA$3,426,092,493.68 | 44.1x | -40.3x | 6.5x |
| Mon, 03 Jun 2024 | CA$131.0b | CA$21.6b | -CA$3,394,625,672.18 | 42.9x | -38.6x | 6.1x |
| Wed, 01 May 2024 | CA$125.3b | CA$20.9b | -CA$4,101,254,415.78 | 39.6x | -30.6x | 6x |
| Fri, 29 Mar 2024 | CA$130.9b | CA$20.7b | -CA$4,791,783,074.80 | 28.6x | -27.3x | 6.3x |
| Sun, 25 Feb 2024 | CA$123.6b | CA$19.8b | -CA$2,760,886,481.82 | 25x | -44.8x | 6.2x |
| Tue, 23 Jan 2024 | CA$122.8b | CA$19.9b | -CA$3,978,883,270.00 | 26.1x | -30.9x | 6.2x |
| Thu, 21 Dec 2023 | CA$112.5b | CA$19.9b | -CA$4,053,622,692.00 | 26.7x | -27.8x | 5.7x |
| Sat, 18 Nov 2023 | CA$109.7b | CA$20.3b | -CA$4,240,203,199.00 | 46.5x | -25.9x | 5.4x |
| Mon, 16 Oct 2023 | CA$99.4b | CA$19.4b | -CA$4,196,524,153.00 | 55.2x | -23.7x | 5.1x |
| Wed, 13 Sep 2023 | CA$103.5b | CA$19.4b | -CA$4,091,521,398.00 | 55.7x | -25.3x | 5.3x |
| Fri, 11 Aug 2023 | CA$102.4b | CA$18.8b | -CA$4,290,975,213.00 | 57.3x | -23.9x | 5.5x |
| Sun, 09 Jul 2023 | CA$101.1b | CA$18.2b | -CA$3,700,383,678.00 | 71x | -27.3x | 5.5x |
| Tue, 06 Jun 2023 | CA$102.3b | CA$18.1b | -CA$3,995,681,785.00 | 75.4x | -25.6x | 5.6x |
| Thu, 04 May 2023 | CA$99.1b | CA$17.4b | -CA$3,346,007,170.00 | 62.2x | -29.6x | 5.7x |
| Sat, 01 Apr 2023 | CA$96.4b | CA$17.0b | -CA$2,490,454,166.00 | 38.2x | -38.7x | 5.7x |
| Mon, 27 Feb 2023 | CA$87.7b | CA$16.4b | -CA$2,467,015,974.00 | 35.9x | -35.5x | 5.3x |
| Wed, 25 Jan 2023 | CA$87.2b | CA$16.1b | -CA$663,996,880.00 | 29.2x | -131.3x | 5.4x |
| Fri, 23 Dec 2022 | CA$79.0b | CA$16.3b | -CA$677,004,039.00 | 33.5x | -116.7x | 4.8x |
| Sun, 20 Nov 2022 | CA$76.9b | CA$16.0b | -CA$532,093,814.00 | 38.9x | -144.6x | 4.8x |
| Tue, 18 Oct 2022 | CA$72.5b | CA$15.6b | -CA$277,375,405.00 | 43.8x | -261.3x | 4.6x |
| Thu, 15 Sep 2022 | CA$78.4b | CA$15.0b | -CA$429,088,098.00 | 40.2x | -182.7x | 5.2x |
| Sat, 13 Aug 2022 | CA$86.6b | CA$14.5b | -CA$53,739,770.00 | 49.1x | -1610.7x | 6x |
| Mon, 11 Jul 2022 | CA$79.0b | CA$13.9b | CA$513.3m | 44.3x | 153.9x | 5.7x |
Price to Earnings Ratio
153.9x
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 875x which is higher than its 3-year average PE of 32.3x.
- The 3-year average PS ratio of 5.9x is lower than the industry's current PS ratio of 6.9x.
Past Earnings Growth
- The earnings for companies in the Software industry have declined 28% 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 | 1.10% | |
| Tech | 2.97% | |
| Software | 2.85% | |
| Application Software | 2.94% | |
| Systems Software | 0.17% | |
Industry PE
- Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings growth of 19.9%, which is lower than the prior year's growth of 24.1% per year.
- Investors are most pessimistic about the Systems Software industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average.
Forecasted Growth
- Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 42% over the next 5 years.
- However this is lower than its past earnings growth rate of 141% per year.
- In contrast, the Application Software industry is expected to see its earnings grow by 20% 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 | |
|---|---|---|---|---|---|
| CSU Constellation Software | CA$5.03k | 2.1% +CA$2.2b | 24.6% | PE105.9x | |
| TOI Topicus.com | CA$174.30 | 6.6% +CA$900.1m | 44.2% | PE92.3x | |
| LMN Lumine Group | CA$49.12 | 7.6% +CA$887.9m | 31.2% | PE140.2x | |
| BTQ BTQ Technologies | CA$8.49 | 46.4% +CA$356.6m | 1,829.5% | PS1227.7x | |
| BITF Bitfarms | CA$1.43 | 31.2% +CA$189.0m | -57.1% | PS2.8x |
