-0.94%
6.93%
13.19%
9.11%
27.91%
117.10%
241.69%
AI Spotlight on CSU
Company Description
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 Inc.was incorporated in 1995 and is headquartered in Toronto, Canada.
Market Data
| Last Price | 4753.02 |
| Change Percentage | -0.94% |
| Open | 4798.13 |
| Previous Close | 4798.13 |
| Market Cap ( Millions) | 100724 |
| Volume | 45916 |
| Year High | 4879.19 |
| Year Low | 3535 |
| M A 50 | 4532.79 |
| M A 200 | 4196.43 |
Financial Ratios
| FCF Yield | 2.85% |
| Dividend Yield | 0.12% |
| ROE | 27.34% |
| Debt / Equity | 169.83% |
| Net Debt / EBIDTA | 118.46% |
| Price To Book | 26.07 |
| Price Earnings Ratio | 108.94 |
| Price To FCF | 35.08 |
| Price To sales | 7.15 |
| EV / EBITDA | 34.75 |
News
- Jan -21 - Constellation Software Inc. Announces Annual Interest Rate for Series 1 Debentures
- Jan -21 - Omegro Acquires Data Consulting
- Jan -16 - 3 Stocks That May Be Trading Below Estimated Value In January 2025
- Jan -14 - Topicus.com Inc. Reaches Agreement to acquire Cipal Schaubroeck in Belgium
- Jan -10 - High Growth Tech Stocks to Watch in January 2025
- Jan -03 - The Stock Market Is Like a Fashion Show, and Here’s One of Its Hot Must-Haves
- Dec -18 - 3 Stocks That Could Be Undervalued By Up To 49.5%
- Dec -12 - High Growth Tech And 2 Other Prominent Stocks with Strong Potential
- Nov -26 - Omegro Acquires Dassian
- Nov -20 - Perseus Operating Group of Constellation Software Inc. Completes Acquisition of Matrix Sistemas e Serviços Ltda
- Nov -19 - Omegro Expands its Presence in the Retail Vertical with the Acquisition of 4R Systems
- Nov -18 - Three Stocks Estimated To Be Undervalued In November 2024
- Nov -13 - High Growth Tech Stocks To Watch This November 2024
- Nov -08 - Constellation Software Inc. Announces Results for the Third Quarter Ended September 30, 2024 and Declares Quarterly Dividend
- Nov -08 - Five9 (FIVN) Q3 Earnings and Revenues Beat Estimates
- Nov -04 - Are Investors Undervaluing Constellation Software Inc. (TSE:CSU) By 23%?
- Nov -01 - PayPal Looks Beyond Payments
- Oct -31 - Constellation Software Inc. and Topicus.com Inc. Announce Results for Topicus.com Inc. for the Third Quarter Ended September 30, 2024
- Oct -30 - Rimini Street (RMNI) Beats Q3 Earnings and Revenue Estimates
- Oct -21 - Exploring High Growth Canadian Tech Stocks In October 2024
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Maintenance and Other Recurring
Expected Growth : 15 %
What the company do ?
Maintenance and Other Recurring from Constellation Software Inc. refers to the revenue generated from ongoing support, maintenance, and subscription-based services offered by the company.
Why we expect these perspectives ?
Constellation Software Inc.'s 15% growth in Maintenance and Other Recurring is driven by increasing demand for software maintenance services, high customer retention rates, and strategic acquisitions. Additionally, the company's focus on vertical market software and expanding product offerings contribute to the growth. Furthermore, the shift towards subscription-based models and increasing adoption of cloud-based solutions also support the segment's growth.
Segment n°2 -> Professional Services
Expected Growth : 12 %
What the company do ?
Constellation Software Inc.'s Professional Services provide implementation, consulting, and training services to help customers maximize the value of their software investments.
Why we expect these perspectives ?
Constellation Software Inc.'s Professional Services segment growth of 12% is driven by increasing demand for digital transformation, cloud adoption, and cybersecurity services. The company's strategic acquisitions, expanded service offerings, and strong relationships with existing customers also contribute to growth. Additionally, the segment benefits from the trend towards outsourcing IT services, allowing Constellation to capitalize on its expertise and scale.
Segment n°3 -> License
Expected Growth : 20 %
What the company do ?
Constellation Software Inc.'s license allows use of its software products, with terms governing support, maintenance, and intellectual property.
Why we expect these perspectives ?
Constellation Software Inc.'s 20% growth driven by increasing demand for vertical market software, strategic acquisitions, and expansion into new geographies. Recurring revenue streams from maintenance and support services, cross-selling opportunities, and high customer retention rates also contribute to growth.
Segment n°4 -> Hardware and Other
Expected Growth : 10 %
What the company do ?
Hardware and Other from Constellation Software Inc. refers to revenue generated from sales of hardware products and other miscellaneous sources, excluding software licenses and services.
Why we expect these perspectives ?
Constellation Software's Hardware and Other segment growth is driven by increasing demand for vertical market software, strategic acquisitions, and organic growth through cross-selling and upselling opportunities. The company's focus on niche markets, strong customer relationships, and ability to identify and capitalize on emerging trends also contribute to its 10% growth rate.
Constellation Software Inc. Products
| Product Range | What is it ? |
|---|---|
| Vela Operations | Vela Operations provides software solutions for the public sector, including case management, licensing, and permitting. |
| Harris ERP | Harris ERP offers enterprise resource planning software for the public sector, including financial management, human resources, and procurement. |
| Jonas Construction Software | Jonas Construction Software provides ERP solutions for the construction industry, including project management, accounting, and service management. |
| GHG Corporation | GHG Corporation offers software solutions for the healthcare industry, including practice management, billing, and electronic health records. |
| Volaris Group | Volaris Group provides software solutions for the communications industry, including billing, customer management, and network management. |
| Perseus Operating Group | Perseus Operating Group offers software solutions for the hospitality industry, including property management, point-of-sale, and revenue management. |
Constellation Software Inc.'s Porter Forces
Threat Of Substitutes
Constellation Software Inc. operates in a niche market with specialized software solutions, making it difficult for substitutes to emerge.
Bargaining Power Of Customers
While customers have some bargaining power due to the availability of alternative software solutions, Constellation Software Inc.'s strong brand reputation and customer loyalty mitigate this power.
Bargaining Power Of Suppliers
Constellation Software Inc. has a diversified supplier base, reducing dependence on individual suppliers and minimizing their bargaining power.
Threat Of New Entrants
While there are barriers to entry in the software industry, new entrants can still emerge, especially with the rise of cloud-based solutions and open-source software.
Intensity Of Rivalry
The software industry is highly competitive, with many established players and new entrants vying for market share, leading to intense rivalry.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 66.25% |
| Debt Cost | 7.94% |
| Equity Weight | 33.75% |
| Equity Cost | 7.94% |
| WACC | 7.94% |
| Leverage | 196.27% |
Constellation Software Inc. : Quality Control
Constellation Software Inc. passed 5 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| INTU | Intuit Inc. provides financial management and compliance products and services for consumers, small businesses, self-employed, and accounting professionals in the United States, Canada, and internationally. The company operates in four … |
| CDNS | Cadence Design Systems, Inc. provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. The company offers functional verification services, including emulation and prototyping hardware. Its functional verification … |
| CRM | Salesforce, Inc. provides customer relationship management technology that brings companies and customers together worldwide. Its Customer 360 platform empowers its customers to work together to deliver connected experiences for their … |
| FICO | Fair Isaac Corporation develops analytic, software, and data management products and services that enable businesses to automate, enhance, and connect decisions in the Americas, Europe, the Middle East, Africa, and … |
| NOW | ServiceNow, Inc. provides enterprise cloud computing solutions that defines, structures, consolidates, manages, and automates services for enterprises worldwide. It operates the Now platform for workflow automation, artificial intelligence, machine learning, … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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FICO
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Constellation Software
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ServiceNow
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Salesforce
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Cadence Design Systems
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