Executive Summary
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.
Snowflake
Fundamentals
Outstanding track record with adequate balance sheet.
Similar Companies
Share Price & News
How has Constellation Software's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
-3.0%
CSU
-3.6%
CA Software
0.2%
CA Market
1 Year Return
50.1%
CSU
17.3%
CA Software
3.5%
CA Market
Return vs Industry: CSU exceeded the Canadian Software industry which returned 17.3% over the past year.
Return vs Market: CSU exceeded the Canadian Market which returned 3.5% over the past year.
Shareholder returns
| CSU | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.0% | -3.6% | 0.2% |
| 30 Day | -0.6% | -4.4% | -3.3% |
| 90 Day | 2.0% | -4.1% | -1.9% |
| 1 Year | 54.5%50.1% | 19.3%17.3% | 7.3%3.5% |
| 3 Year | 129.1%119.5% | 70.9%66.8% | 14.7%4.4% |
| 5 Year | 356.8%328.5% | 149.5%142.0% | 26.2%7.7% |
Price Volatility Vs. Market
How volatile is Constellation Software's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 days ago | Simply Wall St
Constellation Software Inc. (TSE:CSU) Earns A Nice Return On Capital Employed2 weeks ago | Simply Wall St
Calculating The Fair Value Of Constellation Software Inc. (TSE:CSU)3 weeks ago | Simply Wall St
Why Constellation Software Inc.'s (TSE:CSU) High P/E Ratio Isn't Necessarily A Bad ThingValuation
Is Constellation Software undervalued compared to its fair value and its price relative to the market?
51.69x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CSU (CA$1290.94) is trading above our estimate of fair value (CA$1115.71)
Significantly Below Fair Value: CSU is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CSU is poor value based on its PE Ratio (51.7x) compared to the Software industry average (21.7x).
PE vs Market: CSU is poor value based on its PE Ratio (51.7x) compared to the Canadian market (13.7x).
Price to Earnings Growth Ratio
PEG Ratio: CSU's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: CSU is overvalued based on its PB Ratio (37.1x) compared to the CA Software industry average (2.4x).
Next Steps
Future Growth
How is Constellation Software forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
-2.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CSU's earnings are forecast to decline over the next 3 years (-2% per year).
Earnings vs Market: CSU's earnings are forecast to decline over the next 3 years (-2% per year).
High Growth Earnings: CSU's earnings are forecast to decline over the next 3 years.
Revenue vs Market: CSU's revenue (14.2% per year) is forecast to grow faster than the Canadian market (5.5% per year).
High Growth Revenue: CSU's revenue (14.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if CSU's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Constellation Software performed over the past 5 years?
25.6%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: CSU's earnings have grown significantly by 25.6% per year over the past 5 years.
Accelerating Growth: CSU's earnings growth over the past year (52.4%) exceeds its 5-year average (25.6% per year).
Earnings vs Industry: CSU earnings growth over the past year (52.4%) exceeded the Software industry 19.4%.
Return on Equity
High ROE: CSU's Return on Equity (71.7%) is considered outstanding.
Return on Assets
ROA vs Industry: CSU has a higher Return on Assets than the Software industry average last year.
Return on Capital Employed
ROCE Improving: CSU has improved its Return on Capital Employed over the past 3 years.
Next Steps
Financial Health
How is Constellation Software's financial position?
Financial Position Analysis
Short Term Liabilities: CSU's short term assets ($915.0M) do not cover its short term liabilities ($1.5B)
Long Term Liabilities: CSU's short term assets (915.0M) exceeds its long term liabilities (913.0M)
Debt to Equity History and Analysis
Debt Level: CSU's debt to equity ratio (60.1%) is considered high
Reducing Debt: CSU's debt to equity ratio has reduced from 170.9% to 60.1% over the past 5 years.
Debt Coverage: CSU's debt is well covered by operating cash flow (202.1%).
Interest Coverage: CSU's interest payments on its debt are well covered by EBIT (18x coverage).
Balance Sheet
Inventory Level: CSU has a low level of unsold assets or inventory.
Debt Coverage by Assets: CSU's debt is covered by short term assets (assets are 2.7x debt).
Next Steps
Dividend
What is Constellation Software's current dividend yield, its reliability and sustainability?
0.40%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: CSU's dividend (0.41%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.98%).
High Dividend: CSU's dividend (0.41%) is low compared to the top 25% of dividend payers in the Canadian market (5.92%).
Stable Dividend: CSU is not paying a notable dividend for the Canadian market, therefore no need to check if payments are stable.
Growing Dividend: CSU is not paying a notable dividend for the Canadian market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: CSU is not paying a notable dividend for the Canadian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of CSU's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.
Next Steps
Management
What is the CEO of Constellation Software's salary, the management and board of directors tenure and is there insider trading?
6.6yrs
Average management tenure
CEO
Mark Leonard (63yo)
0yrs
Tenure
US$1
Compensation
Mr. Mark Henri Leonard founded Constellation Software Inc. in 1995 and serves as its President. Mr. Leonard worked in the venture capital business for eleven years. He served in the United States and Canad ...
CEO Compensation Analysis
Compensation vs. Market: Mark's total compensation ($USD0.00) is too low to compare against companies of similar size in the Canadian market ($USD7.07M).
Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.
Management Age and Tenure
6.6yrs
Average Tenure
Experienced Management: CSU's management team is seasoned and experienced (6.6 years average tenure).
Board Age and Tenure
5.6yrs
Average Tenure
59.5yo
Average Age
Experienced Board: CSU's board of directors are considered experienced (5.6 years average tenure).
Insider Trading
Insider Buying: CSU insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chief Executive Officer Founder |
| Shares | 100 |
| Max Price | US$1,303.00 |
| Entity | Individual |
| Role | Chief Executive Officer Founder |
| Shares | 100 |
| Max Price | US$1,264.92 |
| Entity | Individual |
| Role | Chief Financial Officer Chief Financial Officer |
| Shares | 230 |
| Max Price | US$1,316.82 |
| Entity | Individual |
| Role | Unit CEO Chief Executive Officer of Jonas Operating Group |
| Shares | 1,000 |
| Max Price | US$1,315.19 |
| Entity | Individual |
| Role | Chief Legal Officer General Counsel & Secretary |
| Shares | 1,344 |
| Max Price | US$1,203.00 |
| Entity | Individual |
| Role | Unit CEO Chief Executive Officer of Vela Operating Group |
| Shares | 2,000 |
| Max Price | US$1,167.50 |
| Entity | Individual |
| Role | Lead Director Lead Independent Director |
| Shares | 1,450 |
| Max Price | US$924.05 |
| Entity | Individual |
| Role | Lead Director Lead Independent Director |
| Shares | 1,450 |
| Max Price | US$924.05 |
| Entity | Individual |
| Role | Lead Director Lead Independent Director |
| Shares | 6,889 |
| Max Price | US$928.17 |
| Entity | Individual |
| Role | Lead Director Lead Independent Director |
| Shares | 6,889 |
| Max Price | US$928.17 |
| Entity | Individual |
| Role | Chief Financial Officer Chief Financial Officer |
| Shares | 900 |
| Max Price | US$910.12 |
| Entity | Individual |
| Role | Chief Legal Officer General Counsel & Secretary |
| Shares | 500 |
| Max Price | US$878.54 |
Ownership Breakdown
Management Team
Mark Leonard (63yo)
Founder
- Tenure: 0yrs
- Compensation: US$1.00
Barry Symons
Chief Executive Officer of Jonas Operating Group
- Tenure: 12.2yrs
- Compensation: US$1.10m
Bernard Anzarouth
Chief Investment Officer
- Tenure: 0yrs
Dexter Salna
President of Perseus Operating Group & Director
- Tenure: 0.08yrs
- Compensation: US$1.72m
Mark Dennison
General Counsel & Secretary
- Tenure: 0yrs
Mark Miller
COO & Director
- Tenure: 6.6yrs
- Compensation: US$1.85m
John Billowits (47yo)
Chief Executive Officer of Vela Operating Group
- Tenure: 6.6yrs
- Compensation: US$2.61m
Jamal Baksh
Chief Financial Officer
- Tenure: 6.6yrs
- Compensation: US$756.98k
Robin van Poelje
Director
- Tenure: 1.7yrs
Board Members
Mark Leonard (63yo)
Founder
- Tenure: 0yrs
- Compensation: US$1.00
Dexter Salna
President of Perseus Operating Group & Director
- Tenure: 0.08yrs
- Compensation: US$1.72m
Paul McFeeters (64yo)
Independent Director
- Tenure: 5yrs
- Compensation: US$80.00k
Mark Miller
COO & Director
- Tenure: 6.6yrs
- Compensation: US$1.85m
Jeff Bender
Director
- Tenure: 6.6yrs
- Compensation: US$1.81m
Rob Kittel (47yo)
Independent Director
- Tenure: 6.3yrs
- Compensation: US$100.00k
Steve Scotchmer
Lead Independent Director
- Tenure: 0yrs
- Compensation: US$80.00k
Sam Hayes
Independent Director
- Tenure: 6.8yrs
- Compensation: US$80.00k
Robin van Poelje
Director
- Tenure: 1.7yrs
Larry Cunningham (56yo)
Independent Vice Chairman of the Board
- Tenure: 0.6yrs
- Compensation: US$60.00k
Company Information
Constellation Software Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Constellation Software Inc.
- Ticker: CSU
- Exchange: TSX
- Founded: 1995
- Industry: Application Software
- Sector: Software
- Market Cap: CA$27.357b
- Shares outstanding: 21.19m
- Website: https://www.csisoftware.com
Number of Employees
Location
- Constellation Software Inc.
- 20 Adelaide Street East
- Suite 1200
- Toronto
- Ontario
- M5C 2T6
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CSU | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | May 2006 |
| CNSW.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | May 2006 |
| W9C | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | May 2006 |
Biography
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, Eur ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/23 23:56 |
| End of Day Share Price | 2019/10/23 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.