# Constellation Software, Inc. (CSU.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Technology / Software. Price C$3023.96, market value C$64.1 billion.

## Valuation
- **P/E (trailing): 48.1×** (5-yr avg 126.3×, 3-yr avg 128.5×). Constellation Software, Inc. trades at 48.1× trailing earnings, well below its own five-year average of 126.3×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×. Forward P/E is 16.6×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 3.7×**. Each dollar of revenue is priced at 3.7×.
- **Price / book: 11.2×**. The shares trade at 11.2× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 15.5×**. Enterprise value is 15.5× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 5.8%** (5-yr avg 2.6%). Free cash flow equals 5.8% of the market value, above its five-year average of 2.6%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 2.1%**. The inverse of the P/E: 2.1% of the price is earned each year.

## Profitability
- **Gross margin: 43.1%**. Constellation Software, Inc. keeps 43.1% of revenue after the direct cost of what it sells.
- **Operating margin: 16.9%**. 16.9% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 4.4%**. 4.4% of each dollar of sales reaches the bottom line.
- **Return on equity: 14.6%**. 14.6% on shareholders' equity is solid.
- **Return on invested capital: 26.0%**. Return on all capital, debt included, is 26.0%: comfortably above what that capital costs.
- **Return on assets: 5.9%**. Each dollar of assets produces 5.9% of profit.

## Growth
- **Revenue growth (1 yr): 17.5%** (3-yr 21.3%/yr, 5-yr 24.4%/yr). Revenue grew 17.5% over the last year, against 24.4% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -28.7%** (3-yr 0.6%/yr, 5-yr 3.6%/yr). Earnings per share fell 28.7%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 30.6%/yr**. Free cash flow has compounded at 30.6% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 1.62**. Debt is 1.62 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 0.8×**. It would take 0.8 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 7.2×**. Operating profit covers interest 7.2× over, a safe margin.
- **Current ratio: 0.96** (quick 0.94). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 4.65**. A Z-score of 4.65 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 0.18%** (C$5.57 per share, trailing). Constellation Software, Inc. yields 0.18%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 17%** (3% of free cash flow). 17% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 4**. 4 straight years of increases.
- **Dividend growth (5 yr): 0.8%/yr** (1-yr 0.7%). The dividend has grown 0.8% a year over five years.

## Analyst view
- **Analyst consensus: buy** (12 analysts). 12 analysts cover Constellation Software, Inc.; the consensus is buy, with an average price target of C$3932.13 (+30% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -34.2%** (YTD -8.3%, 3-mo 1.9%). The shares are down 34.2% over twelve months including dividends.
- **From 52-week high: -34.2%** (37.7% above the low). Trading 34% below its 52-week high, deep in a drawdown.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 48**. An RSI of 48 is neutral.
- **Beta (1 yr): 0.52** (volatility 45%). Beta of 0.52 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=CSU.TO · Page: https://foliofundamentals.com/stocks/csu.to

Not investment advice.