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Constellation Software

TSX:CSU
Snowflake Description

Solid track record with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CSU
TSX
CA$25B
Market Cap
  1. Home
  2. CA
  3. Software
Company 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. The last earnings update was 67 days ago. More info.


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CSU Share Price and Events
7 Day Returns
-1.3%
TSX:CSU
-0.9%
CA Software
0.8%
CA Market
1 Year Returns
33.9%
TSX:CSU
17.6%
CA Software
3.9%
CA Market
CSU Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Constellation Software (CSU) -1.3% 7.1% 28.7% 33.9% 125% 351%
CA Software -0.9% 4.1% 22.2% 17.6% 89.3% 186%
CA Market 0.8% 2.3% 7.8% 3.9% 15.4% 7.5%
1 Year Return vs Industry and Market
  • CSU outperformed the Software industry which returned 17.6% over the past year.
  • CSU outperformed the Market in Canada which returned 3.9% over the past year.
Price Volatility
CSU
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Constellation Software undervalued based on future cash flows and its price relative to the stock market?

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Constellation Software.

TSX:CSU Discounted Cash Flow Data Sources
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%
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.

Calculation of Discount Rate/ Cost of Equity for TSX:CSU
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 0.77
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.769 (1 + (1- 26.5%) (1.97%))
0.853
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.85
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (0.853 * 5.96%)
7.03%

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.

TSX:CSU DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.03%)
2019 732.29 Analyst x3 684.20
2020 858.37 Analyst x4 749.33
2021 958.43 Est @ 11.66% 781.74
2022 1,042.24 Est @ 8.74% 794.27
2023 1,112.12 Est @ 6.71% 791.87
2024 1,170.82 Est @ 5.28% 778.91
2025 1,220.91 Est @ 4.28% 758.90
2026 1,264.61 Est @ 3.58% 734.44
2027 1,303.68 Est @ 3.09% 707.40
2028 1,339.48 Est @ 2.75% 679.10
Present value of next 10 years cash flows $7,460.15
TSX:CSU DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,339.48 × (1 + 1.95%) ÷ (7.03% – 1.95%)
$26,872.31
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $26,872.31 ÷ (1 + 7.03%)10
$13,623.97
TSX:CSU Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $7,460.15 + $13,623.97
$21,084.12
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $21,084.12 / 21.19
$994.93
TSX:CSU Discount to Share Price
Calculation Result
Exchange Rate USD/CAD
(Reporting currency to currency of TSX:CSU)
1.339
Value per Share
(CAD)
= Value per Share in USD x Exchange Rate (USD/CAD)
= $994.93 x 1.339
CA$1332.25
Value per share (CAD) From above. CA$1,332.25
Current discount Discount to share price of CA$1,181.49
= -1 x (CA$1,181.49 - CA$1,332.25) / CA$1,332.25
11.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Constellation Software is available for.
Intrinsic value
11%
Share price is CA$1181.49 vs Future cash flow value of CA$1332.25
Current Discount Checks
For Constellation Software to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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?
Raw Data
TSX:CSU PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $17.90
TSX:CSU Share Price ** TSX (2019-04-18) in CAD CA$1181.49
TSX:CSU Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.747 $882.34
Canada Software Industry PE Ratio Median Figure of 15 Publicly-Listed Software Companies 49.3x
Canada Market PE Ratio Median Figure of 557 Publicly-Listed Companies 15.08x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Constellation Software.

TSX:CSU PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:CSU Share Price ÷ EPS (both in USD)

= 882.34 ÷ 17.90

49.3x

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?
Raw Data
TSX:CSU PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 49.3x
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 3.43x
Canada Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.21x

*Line of best fit is calculated by linear regression .

TSX:CSU PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 49.3x ÷ 8.9%

5.52x

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?
Raw Data
TSX:CSU PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $40.87
TSX:CSU Share Price * TSX (2019-04-18) in CAD CA$1181.49
TSX:CSU Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.747 $882.34
Canada Software Industry PB Ratio Median Figure of 72 Publicly-Listed Software Companies 3.05x
Canada Market PB Ratio Median Figure of 2,379 Publicly-Listed Companies 1.5x
TSX:CSU PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:CSU Share Price ÷ Book Value per Share (both in USD)

= 882.34 ÷ 40.87

21.59x

* 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.
X
Value checks
We assess Constellation Software's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. 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

 How is Constellation Software expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

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!
Annual Growth Rate
8.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Constellation Software expected to grow at an attractive rate?
  • 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
Raw Data
TSX:CSU Future Growth Rates Data Sources
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 13.5%
Canada Software Industry Earnings Growth Rate Market Cap Weighted Average 0.2%
Canada Software Industry Revenue Growth Rate Market Cap Weighted Average 13.5%
Canada Market Earnings Growth Rate Market Cap Weighted Average 18%
Canada Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*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
Raw Data
TSX:CSU Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:CSU Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 4,715 1
2020-12-31 4,070 907 452 8
2019-12-31 3,558 737 385 7
TSX:CSU Past Financials Data
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.

Super high growth metrics
High Growth Checks
  • Constellation Software's earnings are expected to grow by 8.9% yearly, however this is not considered high growth (20% yearly).
  • Constellation Software's revenue is expected to grow by 13.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:CSU Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 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 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:CSU Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 21.32 24.85 16.99 3.00
2019-12-31 18.19 18.72 17.66 2.00
TSX:CSU Past Financials Data
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%).
X
Future performance checks
We assess Constellation Software's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare Constellation Software's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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
Constellation Software's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Constellation Software Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:CSU Past Revenue, Cash Flow and Net Income Data
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

*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).
X
Past performance checks
We assess Constellation Software's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Constellation Software's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Raw Data

All data from Constellation Software Company Filings, last reported 3 months ago.

TSX:CSU Past Debt and Equity Data
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
  • 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).
X
Financial health checks
We assess Constellation Software's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Constellation Software has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
0.45%
Current annual income from Constellation Software dividends. Estimated to be 1.21% next year.
If you bought CA$2,000 of Constellation Software shares you are expected to receive CA$9 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Constellation Software's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (2.04%).
  • Constellation Software's dividend is below the markets top 25% of dividend payers in Canada (5.54%).
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.
Raw Data
TSX:CSU Annualized Past and Future Dividends
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 27 Stocks 1.5%
Canada Market Average Dividend Yield Market Cap Weighted Average of 331 Stocks 3.4%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2%
Canada Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:CSU Future Dividends Estimate Data
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
TSX:CSU Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-14 4.000 0.468
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
2009-04-22 0.216 0.673

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.
Current Payout to shareholders
What portion of Constellation Software's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Constellation Software's dividends as it is not paying a notable one for Canada.
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (13.3x coverage).
X
Income/ dividend checks
We assess Constellation Software's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

 What is the CEO of Constellation Software's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mark Leonard
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:

6.1
Average Tenure
  • The average tenure for the Constellation Software management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Jamal Baksh

TITLE
Chief Financial Officer
COMPENSATION
$757K
TENURE
6.1 yrs

Dexter Salna

TITLE
President of Perseus Operating Group
COMPENSATION
$2M

John Billowits

TITLE
Chief Executive Officer of Vela Operating Group
COMPENSATION
$3M
AGE
46
TENURE
6.1 yrs

Mark Leonard

TITLE
Founder
COMPENSATION
$1
AGE
62

Mark Miller

TITLE
COO & Director
COMPENSATION
$2M

Bernard Anzarouth

TITLE
Chief Investment Officer

Mark Dennison

TITLE
General Counsel & Secretary

Barry Symons

TITLE
Chief Executive Officer of Jonas Operating Group
COMPENSATION
$1M
TENURE
11.7 yrs

Robin van Poelje

TITLE
Director
Board of Directors Tenure

Average tenure and age of the Constellation Software board of directors in years:

5.1
Average Tenure
58.5
Average Age
  • The tenure for the Constellation Software board of directors is about average.
Board of Directors

Mark Leonard

TITLE
Founder
COMPENSATION
$1
AGE
62

Larry Cunningham

TITLE
Vice Chairman of the Board
COMPENSATION
$60K
AGE
55
TENURE
0.1 yrs

Mark Miller

TITLE
COO & Director
COMPENSATION
$2M
TENURE
6.1 yrs

Robin van Poelje

TITLE
Director
TENURE
1.2 yrs

Steve Scotchmer

TITLE
Lead Independent Director
COMPENSATION
$80K

Jeff Bender

TITLE
Director
COMPENSATION
$2M
TENURE
6.1 yrs

Sam Hayes

TITLE
Independent Director
COMPENSATION
$80K
TENURE
6.3 yrs

Rob Kittel

TITLE
Independent Director
COMPENSATION
$100K
AGE
46
TENURE
5.8 yrs

Paul McFeeters

TITLE
Independent Director
COMPENSATION
$80K
AGE
63
TENURE
4.5 yrs

Lori O’Neill

TITLE
Director
COMPENSATION
$50K
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
22. Mar 19 Buy Lawrence Cunningham Individual 15. May 18 15. May 18 75 CA$972.47 CA$72,935
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
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
X
Management checks
We assess Constellation Software's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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

Should You Be Excited About Constellation Software Inc.'s (TSE:CSU) 44% Return On Equity?

Constellation Software has a ROE of 44%, based on the last twelve months. … One way to conceptualize this, is that for each CA$1 of shareholders' equity it has, the company made CA$0.44 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Can We See Significant Insider Ownership On The Constellation Software Inc. (TSE:CSU) Share Register?

A look at the shareholders of Constellation Software Inc. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Companies of this size are usually well known to retail investors, too.

Simply Wall St -

Imagine Holding Constellation Software (TSE:CSU) Shares While The Price Zoomed 321% Higher

During five years of share price growth, Constellation Software achieved compound earnings per share (EPS) growth of 32% per year. … That makes the EPS growth particularly close to the yearly share price growth of 33%. … Rather, the share price has approximately tracked EPS growth.

Simply Wall St -

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 -

Don'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 -

How 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 -

Do 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 -

Should 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 -

An 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 -

What 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 -

Company 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$25,037,580,779
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
Staff numbers
19,000
Constellation Software employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/21 23:57
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/19
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.