CSU Stock Overview
Constellation Software Inc., together with its subsidiaries, acquires, builds, and manages vertical market software businesses in Canada, the United States, the United Kingdom, and rest of Europe.
Constellation Software Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||CA$2,150.51|
|52 Week High||CA$2,385.80|
|52 Week Low||CA$1,793.93|
|1 Month Change||9.02%|
|3 Month Change||8.65%|
|1 Year Change||5.51%|
|3 Year Change||70.00%|
|5 Year Change||210.04%|
|Change since IPO||11,683.62%|
Recent News & Updates
Is There An Opportunity With Constellation Software Inc.'s (TSE:CSU) 33% Undervaluation?
How far off is Constellation Software Inc. ( TSE:CSU ) from its intrinsic value? Using the most recent financial data...
Constellation Software (TSE:CSU) Seems To Use Debt Rather Sparingly
Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...
Is It Time To Consider Buying Constellation Software Inc. (TSE:CSU)?
Let's talk about the popular Constellation Software Inc. ( TSE:CSU ). The company's shares saw significant share price...
|CSU||CA Software||CA Market|
Return vs Industry: CSU exceeded the Canadian Software industry which returned -26.3% over the past year.
Return vs Market: CSU exceeded the Canadian Market which returned -1.9% over the past year.
|CSU Average Weekly Movement||3.7%|
|Software Industry Average Movement||13.5%|
|Market Average Movement||10.8%|
|10% most volatile stocks in CA Market||19.4%|
|10% least volatile stocks in CA Market||4.4%|
Stable Share Price: CSU is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: CSU's weekly volatility (4%) has been stable over the past year.
About the Company
Constellation Software Inc., together with its subsidiaries, acquires, builds, and manages vertical market software businesses in Canada, the United States, the United Kingdom, and rest of Europe. Its industry specific software businesses provide specialized and mission-critical software solutions. The company serves public and private sector markets.
Constellation Software Fundamentals Summary
|CSU fundamental statistics|
Is CSU overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|CSU income statement (TTM)|
|Cost of Revenue||US$3.66b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||21.42|
|Net Profit Margin||7.92%|
How did CSU perform over the long term?See historical performance and comparison
0.3%Current Dividend Yield
Is CSU undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 3/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for CSU?
Other financial metrics that can be useful for relative valuation.
|What is CSU's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does CSU's PE Ratio compare to its peers?
|CSU PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
DSG Descartes Systems Group
ENGH Enghouse Systems
CVO Coveo Solutions
MAGT Magnet Forensics
CSU Constellation Software
Price-To-Earnings vs Peers: CSU is good value based on its Price-To-Earnings Ratio (77.5x) compared to the peer average (93.2x).
Price to Earnings Ratio vs Industry
How does CSU's PE Ratio compare vs other companies in the CA Software Industry?
Price-To-Earnings vs Industry: CSU is expensive based on its Price-To-Earnings Ratio (77.5x) compared to the Canadian Software industry average (51.4x)
Price to Earnings Ratio vs Fair Ratio
What is CSU's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||77.5x|
|Fair PE Ratio||37.1x|
Price-To-Earnings vs Fair Ratio: CSU is expensive based on its Price-To-Earnings Ratio (77.5x) compared to the estimated Fair Price-To-Earnings Ratio (37.1x).
Share Price vs Fair Value
What is the Fair Price of CSU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: CSU (CA$2150.51) is trading below our estimate of fair value (CA$3492.98)
Significantly Below Fair Value: CSU is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is less than 20% higher than the current share price.
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How is Constellation Software forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Future Growth Score4/6
Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CSU's forecast earnings growth (27.1% per year) is above the savings rate (1.6%).
Earnings vs Market: CSU's earnings (27.1% per year) are forecast to grow faster than the Canadian market (7.6% per year).
High Growth Earnings: CSU's earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: CSU's revenue (18.5% per year) is forecast to grow faster than the Canadian market (6% per year).
High Growth Revenue: CSU's revenue (18.5% 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
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How has Constellation Software performed over the past 5 years?
Past Performance Score5/6
Past Performance Score 5/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CSU has high quality earnings.
Growing Profit Margin: CSU's current net profit margins (7.9%) are higher than last year (7.7%).
Past Earnings Growth Analysis
Earnings Trend: CSU's earnings have grown by 9.5% per year over the past 5 years.
Accelerating Growth: CSU's earnings growth over the past year (29.7%) exceeds its 5-year average (9.5% per year).
Earnings vs Industry: CSU earnings growth over the past year (29.7%) exceeded the Software industry 26.3%.
Return on Equity
High ROE: Whilst CSU's Return on Equity (30.54%) is high, this metric is skewed due to their high level of debt.
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How is Constellation Software's financial position?
Financial Health Score2/6
Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: CSU's short term assets ($2.2B) do not cover its short term liabilities ($3.5B).
Long Term Liabilities: CSU's short term assets ($2.2B) do not cover its long term liabilities ($2.3B).
Debt to Equity History and Analysis
Debt Level: CSU's net debt to equity ratio (72.2%) is considered high.
Reducing Debt: CSU's debt to equity ratio has increased from 69.8% to 112.7% over the past 5 years.
Debt Coverage: CSU's debt is well covered by operating cash flow (64.2%).
Interest Coverage: CSU's interest payments on its debt are well covered by EBIT (14x coverage).
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What is Constellation Software current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CSU's dividend (0.31%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.96%).
High Dividend: CSU's dividend (0.31%) is low compared to the top 25% of dividend payers in the Canadian market (5.36%).
Stability and Growth of Payments
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.
Earnings Payout to Shareholders
Earnings Coverage: CSU is not paying a notable dividend for the Canadian market.
Cash Payout to Shareholders
Cash Flow Coverage: CSU is not paying a notable dividend for the Canadian market.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mark Leonard (66 yo)
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: Insufficient data to establish whether Mark's total compensation is reasonable compared to companies of similar size in the Canadian market.
Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.
Experienced Management: CSU's management team is considered experienced (2.4 years average tenure).
Experienced Board: CSU's board of directors are considered experienced (4.5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CSU insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Constellation Software Inc.'s employee growth, exchange listings and data sources
- Name: Constellation Software Inc.
- Ticker: CSU
- Exchange: TSX
- Founded: 1995
- Industry: Application Software
- Sector: Software
- Implied Market Cap: CA$45.573b
- Shares outstanding: 21.19m
- Website: https://www.csisoftware.com
Number of Employees
- Constellation Software Inc.
- 20 Adelaide Street East
- Suite 1200
- M5C 2T6
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/08/06 00:00|
|End of Day Share Price||2022/08/05 00:00|
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.