CSU Stock Analysis: Constellation Software | TO
Software - Application | TO, Canada | Market Cap: 71.911m CAD | 12M Return: -3.7% | CA21037X1006 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 188M
EPS Trend: 95.0%
Qual. Beats: 0
Rev. Trend: 99.7%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 11.8 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Constellation Software acquires, builds, and manages vertical market software businesses that provide mission-critical applications to public- and private-sector customers. Its offerings include software licenses, hosted SaaS, implementation and consulting, and ongoing maintenance and support.
Vertical market software is designed for the specific needs of industries or customer groups. Recurring revenue from maintenance, support, and hosted services complements the company’s software licensing business. Constellation operates internationally and is headquartered in Toronto, Canada.
- Acquisition pace and purchase prices drive long-term returns
- Recurring maintenance revenue supports resilient cash flow
- Organic growth and operating costs shape software margins
| Net Income: 949.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.15 > 0.02 and ΔFCF/TA -0.09 > 1.0 |
| NWC/Revenue: -5.04% < 20% (prev -1.34%; Δ -3.71% < -1%) |
| CFO/TA 0.16 > 3% & CFO 2.79b > Net Income 949.6m |
| Net Debt (3.38b) to EBITDA (3.16b): 1.07 < 3 |
| Current Ratio: 0.90 > 1.5 & < 3 |
| Outstanding Shares: last quarter (21.2m) vs 12m ago 0.0% < -2% |
| Gross Margin: 40.01% > 18% (prev 36.92%; Δ 3.09% > 0.5%) |
| Asset Turnover: 77.75% > 50% (prev 73.09%; Δ 4.66% > 0%) |
| Interest Coverage Ratio: 5.41 > 6 (EBIT TTM 1.66b / Interest Expense TTM 306.8m) |
| A: -0.04 (Total Current Assets 5.92b - Total Current Liabilities 6.55b) / Total Assets 17.6b |
| B: 0.22 (Retained Earnings 3.94b / Total Assets 17.6b) |
| C: 0.10 (EBIT TTM 1.66b / Avg Total Assets 16.1b) |
| D: 0.32 (Book Value of Equity 4.12b / Total Liabilities 12.7b) |
| Altman-Z'' = 1.52 = BB |
| DSRI: 1.04 (Receivables 2.47b/2.04b, Revenue 12.6b/10.7b) |
| GMI: 0.92 (GM 36.92% / 40.01%) |
| AQI: 1.02 (AQ_t 0.63 / AQ_t-1 0.61) |
| SGI: 1.17 (Revenue 12.6b / 10.7b) |
| TATA: -0.10 (NI 949.6m - CFO 2.79b) / TA 17.6b) |
| Beneish M = -2.94 (Cap -4..+1) = A |
As of November 03, 2026, the stock is trading at CAD 3447.02 with a total of 48,468 shares traded. Over the past week, the price has changed by +2.55%, over one month by +15.62%, over three months by +6.94% and over the past year by -3.65%.
Current recommended Stop Loss: 3286.90 (which is 4.6% or 1.5 ATR below the current price).
Constellation Software has no consensus analysts rating.
Market Cap USD = 51.4b (71.9b CAD * 0.7147 CAD.USD)
P/E Trailing = 54.1642
P/E Forward = 18.4843
P/S = 5.6887
P/B = 12.2966
P/EG = 0.6141
Revenue TTM = 12.6b USD
EBIT TTM = 1.66b USD
EBITDA TTM = 3.16b USD
Long Term Debt = 4.05b USD (from longTermDebt, last quarter)
Short Term Debt = 1.48b USD (from shortTermDebt, last quarter)
Debt = 6.26b USD (from shortLongTermDebtTotal, last quarter) + Leases 445.0m
Net Debt = 3.38b USD (calculated: Debt 6.26b - CCE 2.89b)
Enterprise Value = 54.8b USD (51.4b + Debt 6.26b - CCE 2.89b)
Interest Coverage Ratio = 5.41 (Ebit TTM 1.66b / Interest Expense TTM 306.8m)
EV/FCF = 20.18x (Enterprise Value 54.8b / FCF TTM 2.71b)
FCF Yield = 4.96% (FCF TTM 2.71b / Enterprise Value 54.8b)
FCF Margin = 21.62% (FCF TTM 2.71b / Revenue TTM 12.6b)
Net Margin = 7.57% (Net Income TTM 949.6m / Revenue TTM 12.6b)
Gross Margin = 40.01% ((Revenue TTM 12.6b - Cost of Revenue TTM 7.53b) / Revenue TTM)
Gross Margin QoQ = 25.13% (prev 23.39%)
Tobins Q-Ratio = 3.11 (Enterprise Value 54.8b / Total Assets 17.6b)
Interest Expense / Debt = 4.90% (Interest Expense 306.8m / Debt 6.26b)
Taxrate = 23.45% (312.2m / 1.33b)
NOPAT = 1.27b (EBIT 1.66b * (1 - 23.45%))
Current Ratio = 0.90 (Total Current Assets 5.92b / Total Current Liabilities 6.55b)
Debt / Equity = 1.52 (Debt 6.26b / totalStockholderEquity, last quarter 4.12b)
Debt / EBITDA = 1.07 (Net Debt 3.38b / EBITDA 3.16b)
Debt / FCF = 1.24 (Net Debt 3.38b / FCF TTM 2.71b)
Total Stockholder Equity = 3.76b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.88% (Net Income 949.6m / Total Assets 17.6b)
RoE = 25.24% (Net Income TTM 949.6m / Total Stockholder Equity 3.76b)
RoCE = 21.24% (EBIT 1.66b / Capital Employed (Equity 3.76b + L.T.Debt 4.05b))
RoIC = 10.67% (NOPAT 1.27b / Invested Capital 11.9b)
WACC = 4.79% (E(51.4b)/V(57.7b) * Re(4.92%) + D(6.26b)/V(57.7b) * Rd(4.90%) * (1-Tc(0.23)))
Discount Rate = 4.92% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 29.01 | Cagr: 0.0%
[DCF] Terminal Value 77.97% ; FCFF base≈2.54b ; Y1≈2.91b ; Y5≈4.29b
[DCF] Fair Price = 2.88k (EV 64.5b - Net Debt 3.38b = Equity 61.1b / Shares 21.2m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 94.97 | EPS CAGR: 23.64% | SUE: -0.06 | # QB: 0
Revenue Correlation: 99.74 | Revenue CAGR: 17.56% | SUE: -0.24 | # QB: 0
EPS current Quarter (2026-09-30): EPS=29.62 | Chg30d=-1.44% | Revisions=+17% | Analysts=6
EPS current Year (2026-12-31): EPS=117.69 | Chg30d=+1.89% | Revisions=-22% | GrowthEPS=+46.2% | GrowthRev=+19.0%
EPS next Year (2027-12-31): EPS=131.97 | Chg30d=+0.00% | Revisions=-44% | GrowthEPS=+12.1% | GrowthRev=+16.7%
[Analyst] Revisions Ratio: -28% (up=5, down=10)