Constellation Software
Constellation Software Inc., together with its subsidiaries, engages in the development, installation, and customization of software to various markets in the United States, Canada, the United Kingdom, Europe, and internationally. The last earnings update was 36 days ago. More info.
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- Constellation Software has significant price volatility in the past 3 months.
CSU Share Price and Events
7 Day Returns
1 Year Returns
CSU Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Constellation Software (CSU) | 1.2% | -1.9% | 34.7% | 27.3% | 109.2% | 320.6% |
| CA Software | -1.2% | 1.6% | 22.9% | 5.5% | 79.5% | 146.2% |
| CA Market | 0.3% | 2% | 13.2% | 0.7% | 16.6% | 5.6% |
1 Year Return vs Industry and Market
- CSU outperformed the Software industry which returned 5.5% over the past year.
- CSU outperformed the Market in Canada which returned 0.7% over the past year.
Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Constellation Software
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Constellation Software.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 8 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 7.1% |
| Perpetual Growth Rate | 10-Year CA Government Bond Rate | 1.9% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year CA Govt Bond Rate | 1.9% |
| Equity Risk Premium | S&P Global | 6% |
| Software Unlevered Beta | Simply Wall St/ S&P Global | 0.78 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.778 (1 + (1- 26.5%) (2.09%)) |
0.859 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.86 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (0.859 * 5.96%) |
7.07% |
Discounted Cash Flow Calculation for TSX:CSU using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Constellation Software is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 7.07%) |
|
|---|---|---|---|
| 2019 | 743.83 | Analyst x3 | 694.72 |
| 2020 | 858.17 | Analyst x4 | 748.60 |
| 2021 | 948.75 | Est @ 10.56% | 772.99 |
| 2022 | 1,024.40 | Est @ 7.97% | 779.52 |
| 2023 | 1,087.56 | Est @ 6.17% | 772.95 |
| 2024 | 1,140.85 | Est @ 4.9% | 757.29 |
| 2025 | 1,186.64 | Est @ 4.01% | 735.69 |
| 2026 | 1,226.91 | Est @ 3.39% | 710.44 |
| 2027 | 1,263.23 | Est @ 2.96% | 683.18 |
| 2028 | 1,296.78 | Est @ 2.66% | 655.03 |
| Present value of next 10 years cash flows | $7,310.41 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $1,296.78 × (1 + 1.95%) ÷ (7.07% – 1.95%) |
$25,814.66 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $25,814.66 ÷ (1 + 7.07%)10 |
$13,039.49 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $7,310.41 + $13,039.49 |
$20,349.89 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $20,349.89 / 21.19 |
$960.28 |
| Calculation | Result | |
|---|---|---|
| Exchange Rate | USD/CAD
(Reporting currency to currency of TSX:CSU) |
1.333 |
| Value per Share (CAD) |
= Value per Share in USD x Exchange Rate (USD/CAD)
= $960.28 x 1.333 |
CA$1280.13 |
| Value per share (CAD) | From above. | CA$1,280.13 |
| Current discount | Discount to share price of
CA$1,110.32
= -1 x (CA$1,110.32 - CA$1,280.13) / CA$1,280.13 |
13.3% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Constellation Software's share price is below the future cash flow value, but not at a moderate discount (< 20%).
- Constellation Software's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Constellation Software's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Constellation Software's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $17.90 |
| TSX:CSU Share Price ** | TSX (2019-03-20) in CAD | CA$1110.32 |
| TSX:CSU Share Price converted to USD reporting currency | Exchange rate (CAD/ USD) 0.75 | $832.9 |
| Canada Software Industry PE Ratio | Median Figure of 14 Publicly-Listed Software Companies | 64.97x |
| Canada Market PE Ratio | Median Figure of 542 Publicly-Listed Companies | 14.78x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Constellation Software.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = TSX:CSU Share Price ÷ EPS (both in USD) = 832.9 ÷ 17.90 |
46.53x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Constellation Software is good value based on earnings compared to the CA Software industry average.
- Constellation Software is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does
Constellation Software's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 46.53x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts |
8.9%per year |
| Canada Software Industry PEG Ratio | Median Figure of 9 Publicly-Listed Software Companies | 3.25x |
| Canada Market PEG Ratio | Median Figure of 253 Publicly-Listed Companies | 1.2x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 46.53x ÷ 8.9% |
5.25x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Constellation Software is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Constellation Software's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $40.87 |
| TSX:CSU Share Price * | TSX (2019-03-20) in CAD | CA$1110.32 |
| TSX:CSU Share Price converted to USD reporting currency | Exchange rate (CAD/ USD) 0.75 | $832.9 |
| Canada Software Industry PB Ratio | Median Figure of 69 Publicly-Listed Software Companies | 3.21x |
| Canada Market PB Ratio | Median Figure of 2,349 Publicly-Listed Companies | 1.58x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = TSX:CSU Share Price ÷ Book Value per Share (both in USD) = 832.9 ÷ 40.87 |
20.38x |
* Primary Listing of Constellation Software.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Constellation Software is overvalued based on assets compared to the CA Software industry average.
Value checks
We assess Constellation Software's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Software industry average (and greater than 0)? (1 check) Constellation Software has a total score of 1/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Constellation Software's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
- Constellation Software's earnings growth is positive but not above the Canada market average.
- Constellation Software's revenue growth is expected to exceed the Canada market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| TSX:CSU Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts | 8.9% |
| TSX:CSU Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts | 13.4% |
| Canada Software Industry Earnings Growth Rate | Market Cap Weighted Average | -7.5% |
| Canada Software Industry Revenue Growth Rate | Market Cap Weighted Average | 11.9% |
| Canada Market Earnings Growth Rate | Market Cap Weighted Average | 17.8% |
| Canada Market Revenue Growth Rate | Market Cap Weighted Average | 6.9% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 8 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 4,715 | 1 | ||
| 2020-12-31 | 4,067 | 909 | 453 | 8 |
| 2019-12-31 | 3,554 | 745 | 407 | 7 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 3,060 | 662 | 379 |
| 2018-09-30 | 2,917 | 616 | 276 |
| 2018-06-30 | 2,795 | 596 | 265 |
| 2018-03-31 | 2,643 | 603 | 264 |
| 2017-12-31 | 2,479 | 528 | 222 |
| 2017-09-30 | 2,356 | 499 | 212 |
| 2017-06-30 | 2,265 | 514 | 225 |
| 2017-03-31 | 2,193 | 526 | 229 |
| 2016-12-31 | 2,125 | 491 | 207 |
| 2016-09-30 | 2,073 | 471 | 207 |
| 2016-06-30 | 1,988 | 438 | 185 |
| 2016-03-31 | 1,902 | 430 | 163 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 8 Analyst Estimates (S&P Global) | See Below |
All data from Constellation Software Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | ||||
| 2020-12-31 | 21.35 | 24.96 | 16.99 | 3.00 |
| 2019-12-31 | 19.21 | 19.70 | 18.72 | 2.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | 17.90 |
| 2018-09-30 | 13.04 |
| 2018-06-30 | 12.50 |
| 2018-03-31 | 12.46 |
| 2017-12-31 | 10.47 |
| 2017-09-30 | 9.98 |
| 2017-06-30 | 10.60 |
| 2017-03-31 | 10.78 |
| 2016-12-31 | 9.76 |
| 2016-09-30 | 9.77 |
| 2016-06-30 | 8.75 |
| 2016-03-31 | 7.69 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Constellation Software is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
Future performance checks
We assess Constellation Software's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Constellation Software has a total score of 3/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Constellation Software performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Constellation Software has delivered over 20% year on year earnings growth in the past 5 years.
- Constellation Software's 1-year earnings growth exceeds its 5-year average (70.9% vs 24.5%)
- Constellation Software's earnings growth has exceeded the CA Software industry average in the past year (70.9% vs 16.4%).
Earnings and Revenue History
All data from Constellation Software Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 3,060.10 | 379.30 | 341.00 | |
| 2018-09-30 | 2,917.13 | 276.36 | 327.90 | |
| 2018-06-30 | 2,794.52 | 264.92 | 315.81 | |
| 2018-03-31 | 2,642.55 | 264.08 | 297.02 | |
| 2017-12-31 | 2,479.40 | 221.90 | 277.10 | |
| 2017-09-30 | 2,355.66 | 211.51 | 262.04 | |
| 2017-06-30 | 2,264.85 | 224.70 | 249.90 | |
| 2017-03-31 | 2,193.43 | 228.55 | 243.15 | |
| 2016-12-31 | 2,125.09 | 206.78 | 235.73 | |
| 2016-09-30 | 2,072.85 | 207.08 | 229.04 | |
| 2016-06-30 | 1,987.56 | 185.33 | 219.12 | |
| 2016-03-31 | 1,902.40 | 162.99 | 210.49 | |
| 2015-12-31 | 1,838.31 | 177.25 | 201.69 | |
| 2015-09-30 | 1,766.52 | 150.61 | 196.65 | |
| 2015-06-30 | 1,724.97 | 136.82 | 196.30 | |
| 2015-03-31 | 1,697.39 | 127.13 | 192.09 | |
| 2014-12-31 | 1,669.34 | 103.10 | 190.31 | |
| 2014-09-30 | 1,569.87 | 106.24 | 180.18 | |
| 2014-06-30 | 1,466.94 | 96.56 | 167.86 | |
| 2014-03-31 | 1,349.19 | 92.83 | 155.27 | |
| 2013-12-31 | 1,210.78 | 93.14 | 141.10 | |
| 2013-09-30 | 1,131.50 | 90.73 | 131.14 | |
| 2013-06-30 | 1,041.60 | 89.55 | 119.91 | |
| 2013-03-31 | 952.38 | 87.91 | 107.37 | |
| 2012-12-31 | 891.23 | 92.63 | 98.33 | |
| 2012-09-30 | 828.58 | 71.98 | 88.40 | |
| 2012-06-30 | 804.86 | 70.22 | 84.32 | |
| 2012-03-31 | 790.99 | 108.61 | 83.84 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Constellation Software made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
- Constellation Software used its assets more efficiently than the CA Software industry average last year based on Return on Assets.
- Constellation Software's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Constellation Software's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Constellation Software has a total score of 5/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Constellation Software's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Constellation Software's finances.
The net worth of a company is the difference between its assets and liabilities.
- Constellation Software's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
- Constellation Software's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 3.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Constellation Software Company Filings, last reported 2 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 866.10 | 368.40 | 588.60 |
| 2018-09-30 | 712.56 | 399.27 | 456.03 |
| 2018-06-30 | 666.11 | 286.80 | 343.57 |
| 2018-03-31 | 637.95 | 270.45 | 347.53 |
| 2017-12-31 | 604.20 | 332.90 | 489.00 |
| 2017-09-30 | 548.85 | 313.57 | 414.59 |
| 2017-06-30 | 514.78 | 359.96 | 429.76 |
| 2017-03-31 | 479.38 | 349.89 | 474.89 |
| 2016-12-31 | 457.51 | 346.57 | 376.51 |
| 2016-09-30 | 423.10 | 364.91 | 323.70 |
| 2016-06-30 | 371.88 | 367.49 | 256.00 |
| 2016-03-31 | 338.41 | 375.49 | 271.10 |
| 2015-12-31 | 337.28 | 355.18 | 178.47 |
| 2015-09-30 | 294.24 | 368.61 | 148.26 |
| 2015-06-30 | 272.16 | 367.15 | 132.01 |
| 2015-03-31 | 259.48 | 275.98 | 131.82 |
| 2014-12-31 | 259.83 | 294.62 | 70.68 |
| 2014-09-30 | 250.93 | 359.55 | 81.60 |
| 2014-06-30 | 256.65 | 439.47 | 101.28 |
| 2014-03-31 | 253.88 | 483.77 | 142.91 |
| 2013-12-31 | 266.00 | 477.17 | 78.75 |
| 2013-09-30 | 244.73 | 147.05 | 45.59 |
| 2013-06-30 | 241.61 | 183.82 | 33.11 |
| 2013-03-31 | 244.26 | 107.49 | 44.89 |
| 2012-12-31 | 258.80 | 44.36 | 41.78 |
| 2012-09-30 | 255.91 | 39.23 | 61.89 |
| 2012-06-30 | 248.11 | 27.54 | 46.00 |
| 2012-03-31 | 252.68 | 11.20 | 72.20 |
- Constellation Software's level of debt (42.5%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has been reduced over the past 5 years (179.5% vs 42.5% today).
- Debt is well covered by operating cash flow (179.7%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 22.7x coverage).
Financial health checks
We assess Constellation Software's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Constellation Software has a total score of 4/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Constellation Software's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
CA$2,000 of
Constellation Software
shares you are expected to receive
CA$10
in your first year as a dividend.
Dividend Amount
- Constellation Software's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (2.02%).
- Constellation Software's dividend is below the markets top 25% of dividend payers in Canada (5.61%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 8 Analyst Estimates (S&P Global) | See Below |
| North America Software Industry Average Dividend Yield | Market Cap Weighted Average of 28 Stocks | 1.5% |
| Canada Market Average Dividend Yield | Market Cap Weighted Average of 330 Stocks | 3.5% |
| Canada Minimum Threshold Dividend Yield | 10th Percentile | 1.1% |
| Canada Bottom 25% Dividend Yield | 25th Percentile | 2% |
| Canada Top 25% Dividend Yield | 75th Percentile | 5.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-12-31 | 4.00 | 1.00 |
| 2020-12-31 | 4.00 | 1.00 |
| 2019-12-31 | 24.00 | 1.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-02-14 | 4.000 | 0.471 |
| 2019-02-13 | 4.000 | 0.502 |
| 2018-10-25 | 4.000 | 0.582 |
| 2018-07-26 | 4.000 | 0.558 |
| 2018-04-25 | 4.000 | 0.513 |
| 2018-02-14 | 4.000 | 0.590 |
| 2017-10-27 | 4.000 | 0.664 |
| 2017-07-26 | 4.000 | 0.713 |
| 2017-04-27 | 4.000 | 0.779 |
| 2017-02-15 | 4.000 | 0.835 |
| 2016-10-26 | 4.000 | 0.876 |
| 2016-07-27 | 4.000 | 0.926 |
| 2016-04-27 | 4.000 | 1.014 |
| 2016-02-17 | 4.000 | 0.993 |
| 2016-01-28 | 4.000 | 1.152 |
| 2015-07-29 | 4.000 | 0.964 |
| 2015-04-29 | 4.000 | 0.964 |
| 2015-02-25 | 4.000 | 1.100 |
| 2014-10-30 | 4.000 | 1.373 |
| 2014-07-31 | 4.000 | 1.588 |
| 2014-04-30 | 4.000 | 1.722 |
| 2014-03-06 | 4.000 | 1.680 |
| 2013-10-30 | 4.000 | 1.985 |
| 2013-07-31 | 4.000 | 2.356 |
| 2013-05-01 | 4.000 | 2.855 |
| 2013-03-06 | 4.000 | 3.205 |
| 2012-10-31 | 4.000 | 3.326 |
| 2012-08-01 | 4.000 | 3.843 |
| 2012-05-02 | 4.000 | 4.484 |
| 2012-01-03 | 4.000 | 4.466 |
| 2011-03-02 | 2.000 | 2.865 |
| 2010-03-03 | 0.260 | 0.595 |
| 2009-03-23 | 0.216 | 0.694 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Constellation Software is not paying a notable dividend for Canada, therefore no need to check if the payments are stable.
- Constellation Software is not paying a notable dividend for Canada, therefore no need to check if the payments are increasing.
Income/ dividend checks
We assess Constellation Software's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Constellation Software afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Constellation Software has a total score of 1/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $1 |
| AGE | 62 |
CEO Bio
Mr. Mark Henri Leonard founded Constellation Software Inc. in 1995 and serves as its President. Mr. Leonard worked in the venture capital business for eleven years. He served in the United States and Canada as a Corporate Banker. He served as Senior Vice President of Ventures West Management Inc. and also was its partner. He serves as the Chairman of the Board at Constellation Software Inc. and has been its Director since 1995. He has been a Director of Gladstone plc since May 2010. He serves as a Director of Constellation Software (U.S.A.) Inc., Trapeze Software Inc., Trapeze Holdings Inc., Gary Jonas Computing Ltd., Common Cents Solutions Inc., N. Harris Computer Corporation, Gestion PG Govern Inc., 6677657 Canada Inc., PG Govern Inc., PG Govern QC Inc., PG Election Inc., PG Election North America Inc., PG Solutions Inc., Creative Computer Solutions, Inc., Systems and Software Inc., Schoolhouse Software, Inc., KnowledgeCore Software, Inc., Municipal Software Corporation, Municipal Software U.S., Inc., Harris Education Inc., Harris Education Consulting Inc., Harris (US) Computer Corporation, Constellation Homebuilder Systems Corp., Constellation Homebuilder Systems Inc., Constellation Web Solutions Inc., Constellation USA Financing Systems Inc., Friedman Corporation, Friedman Software Canada Inc., Varsity Logistics, Inc., Constellation Justice Systems, Inc., Emphasys Computer Solutions Inc., Sympro, Inc., 1388369 Ontario Inc., Medisolution (2009) Inc., Majiq Inc., G1440 Inc., Cascade Management Consultants Limited, Gladstone Corporate Services Limited, The Electronic Club Limited, The Fit Club Limited, GE.Clear Limited, Global Technology (Software) Limited, IN4MATION.NET Limited, JOB4LIFE.NET Limited, LIKE4LIKE.NET Limited, Membertrack Limited, Microcache (Scotland) Limited, Torstar Limited, Gladstone Education Limited, Gladstone MRM Limited, Gladstone MRM (Australia) PTY Ltd., Valuenetics A/S and Gladstone Health & Leisure (Denmark) ApS. He served as a Director of Cybermation Inc. and Canadian Software Investment Fund Inc. He served as a Director of numerous public and private software and technology companies. He served as a Non Executive Director of Bond International Software plc since November 2010 until March 21, 2014. Mr. Leonard served as a Director of Gennum Corporation since April 2002. Mr. Leonard holds a B.Sc. from the University of Guelph and M.B.A. from the University of Western Ontario.
CEO Compensation
- Mark's compensation has been consistent with company performance over the past year.
- Mark's remuneration is lower than average for companies of similar size in Canada.
Management Team Tenure
Average tenure of the Constellation Software management team in years:
- The average tenure for the Constellation Software management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team
Mark Leonard
Founder
$1
62
Jamal Baksh
Chief Financial Officer
$727K
6 yrs
Mark Miller
COO & Director
$2M
Dexter Salna
President of Perseus Operating Group
$1M
John Billowits
Chief Executive Officer of Vela Operating Group
$2M
46
6 yrs
Bernard Anzarouth
Chief Investment Officer
Mark Dennison
General Counsel & Secretary
Barry Symons
Chief Executive Officer of Jonas Operating Group
$1M
11.6 yrs
Robin van Poelje
Director
Board of Directors Tenure
Average tenure and age of the Constellation Software board of directors in years:
- The tenure for the Constellation Software board of directors is about average.
Board of Directors
Mark Leonard
Founder
$1
62
Mark Miller
COO & Director
$2M
6 yrs
Robin van Poelje
Director
1.1 yrs
Steve Scotchmer
Lead Independent Director
$80K
Jeff Bender
Director
$2M
6 yrs
Sam Hayes
Independent Director
$80K
6.2 yrs
Rob Kittel
Independent Director
$100K
46
5.7 yrs
Paul McFeeters
Independent Director
$80K
63
4.4 yrs
Lawrence Cunningham
Director
$25K
55
1.6 yrs
Lori O’Neill
Director
1 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (CA$) | Value (CA$) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 25. Jan 19 | Sell | Stephen Scotchmer | Individual | 21. Jan 19 | 21. Jan 19 | -1,450 | CA$924.05 | CA$-1,339,873 | ||
| 25. Jan 19 | Buy | Stephen Scotchmer | Individual | 21. Jan 19 | 21. Jan 19 | 1,450 | CA$924.05 | CA$1,339,873 | ||
| 10. Dec 18 | Sell | Stephen Scotchmer | Individual | 05. Dec 18 | 05. Dec 18 | -6,889 | CA$928.17 | CA$-6,394,163 | ||
| 10. Dec 18 | Buy | Stephen Scotchmer | Individual | 05. Dec 18 | 05. Dec 18 | 6,889 | CA$928.17 | CA$6,394,163 | ||
| 23. Nov 18 | Sell | Jamal Baksh | Individual | 22. Nov 18 | 22. Nov 18 | -900 | CA$910.12 | CA$-819,108 | ||
| 19. Nov 18 | Sell | Mark Dennison | Individual | 30. Oct 18 | 30. Oct 18 | -500 | CA$878.54 | CA$-439,270 | ||
| 29. May 18 | Sell | John Billowits | Individual | 28. May 18 | 28. May 18 | -900 | CA$1,017.00 | CA$-910,956 | ||
| 28. May 18 | Sell | John Billowits | Individual | 23. May 18 | 23. May 18 | -600 | CA$998.00 | CA$-598,800 | ||
| 15. May 18 | Buy | Lawrence Cunningham | Individual | 15. May 18 | 15. May 18 | 75 | CA$972.47 | CA$72,935 | ||
| 11. May 18 | Sell | Jamal Baksh | Individual | 09. May 18 | 09. May 18 | -425 | CA$960.92 | CA$-408,391 | ||
| 03. May 18 | Sell | Barry Symons | Individual | 02. May 18 | 02. May 18 | -1,000 | CA$942.99 | CA$-942,990 | ||
Management checks
We assess Constellation Software's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Constellation Software has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Why Constellation Software Inc. (TSE:CSU) Could Have A Place In Your Portfolio
As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … is a company with great financial health as well as a.
Simply Wall St - – Full articleDon't Sell Constellation Software Inc. (TSE:CSU) Before You Read This
How Do I Calculate Constellation Software's Price To Earnings Ratio … Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS) … P/E of 49.2 = $880.57 (Note: this is the share price in the reporting currency, namely, USD ) ÷ $17.9
Simply Wall St - – Full articleHow Much Are Constellation Software Inc. (TSE:CSU) Insiders Taking Off The Table?
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … So shareholders might well want to know whether insiders have been buying or selling shares in Constellation Software Inc. … In any event it's generally a positive if insiders are buying shares at around the current price
Simply Wall St - – Full articleDo You Know Constellation Software Inc.’s (TSE:CSU) Cash Situation?
(TSE:CSU), or considering investing in the stock, you need to examine how the business generates cash, and how it is reinvested. … I’ve analysed below, the health and outlook of Constellation Software’s cash flow, which will help you understand the stock from a cash standpoint. … Constellation Software generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating
Simply Wall St - – Full articleShould We Be Delighted With Constellation Software Inc.'s (TSE:CSU) ROE Of 39%?
With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows Constellation Software has a return on equity of 39% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleAn Intrinsic Calculation For Constellation Software Inc. (TSE:CSU) Shows It's 32.59% Undervalued
(TSE:CSU) from its intrinsic value? … by projecting its future cash flows and then discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model
Simply Wall St - – Full articleWhat Investors Should Know About Constellation Software Inc.'s (TSE:CSU) Financial Strength
Let’s take a look at Constellation Software’s leverage and assess its financial strength to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself … Check out our latest analysis for Constellation Software
Simply Wall St - – Full articleCould The Constellation Software Inc (TSE:CSU) Ownership Structure Tell Us Something Useful?
The big shareholder groups in Constellation Software Inc (TSE:CSU) have power over the company. … With a market capitalization of CA$19b, Constellation Software is rather large. … View our latest analysis for Constellation Software
Simply Wall St - – Full articleWhat Should You Know About Constellation Software Inc's (TSE:CSU) Capital Returns?
and looking to gauge the potential return on investment in Constellation Software Inc (TSE:CSU). … To understand Constellation Software’s capital returns we will look at a useful metric called return on capital employed. … Constellation Software's Return On Capital Employed
Simply Wall St - – Full articleWant To Invest In Constellation Software Inc (TSE:CSU)? Here's How It Performed Lately
After looking at Constellation Software Inc's (TSE:CSU) latest earnings announcement (30 September 2018), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. … Did CSU beat its long-term earnings growth trend and its industry. … CSU's trailing twelve-month earnings (from 30 September 2018) of US$276m has.
Simply Wall St - – Full articleCompany Info
Description
Constellation Software Inc., together with its subsidiaries, engages in the development, installation, and customization of software to various markets in the United States, Canada, the United Kingdom, Europe, and internationally. It operates through two segments, Public Sector and Private Sector. The Public Sector segment develops and distributes software solutions primarily to government and government-related customers. The Private Sector segment develops and distributes software solutions, principally to commercial customers. The company also provides related professional and support services. Constellation Software Inc. was founded in 1995 and is headquartered in Toronto, Canada.
Details
| Name: | Constellation Software Inc. |
| CSU | |
| Exchange: | TSX |
| Founded: | 1995 |
| CA$23,529,379,589 | |
| 21,191,530 | |
| Website: | http://www.csisoftware.com |
| Address: |
Constellation Software Inc. 20 Adelaide Street East, Suite 1200, Toronto, Ontario, M5C 2T6, Canada |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| TSX | CSU | Common Shares | The Toronto Stock Exchange | CA | CAD | 18. May 2006 | |
| OTCPK | CNSW.F | Common Shares | Pink Sheets LLC | US | USD | 18. May 2006 | |
| DB | W9C | Common Shares | Deutsche Boerse AG | DE | EUR | 18. May 2006 |
Number of employees
Current staff
Industry
| Application Software | |
| Software |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/03/21 00:06 |
| End of day share price update: | 2019/03/20 00:00 |
| Last estimates confirmation: | 2019/02/19 |
| Last earnings filing: | 2019/02/13 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.
