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Constellation Software Inc CSU

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Stock XTSE Rating as of
CA$2,970.00 +75.27 (2.60%)
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Hurdle Rate Discipline Is a Core Strength of Constellation's Acquisition Strategy

Jivyaa Vaidya

Constellation Software is a holding company that acquires small, niche vertical market software firms and reinvests the resulting cash flows into new acquisitions. Its more than 1,000 acquired companies are split across nine operating groups that encompass hundreds of business units. Constellation decentralizes both operational management and capital allocation, letting underlying businesses operate independently while their unit managers work to identify new acquisition targets.

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Price vs Fair Value

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CSU is trading at a LOCK|Xg%!!f premium.
Price
CA$2,970.00
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

The firm’s decentralized capital allocation system should enable it to identify and execute on high volumes of vertical market software at its desired rates of return.

Bears

Constellation’s growth model is reliant on higher acquisition volume as it scales. The firm will inevitably have to increase its share of large acquisitions and horizontal software, which can lower its growth prospects and returns profile.

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Trading Information

Previous Close Price
CA$2,894.73
Day Range
CA$2,920.03–3,045.18
52-Week Range
CA$2,196.00–4,110.00
Bid/Ask
CA$2,774.04 / CA$3,050.00
Shares Outstanding
21.19M
Market Cap
CA$62.94B
Volume/Avg
54,335 / 58,996

Key Statistics

Price/Earnings (Normalized)
20.86
Price/Sales
3.60
Dividend Yield (Trailing)
0.19%
Dividend Yield (Forward)
0.19%
Dividend Payment Schedule
Jan, Apr, Jul, Oct
Total Yield
0.19%

Company Profile

Constellation Software is a holding company that reinvests cash flows from its portfolio companies into further acquisitions. As of early 2026, Constellation has amassed a portfolio of over 1,000 companies across more than nine operating groups, including two spinoffs, primarily small, niche vertical market software companies with end-market exposure across a variety of industries. The firm "shops" for acquisitions from owner-operators, corporate carve-outs, and private equity firms, with owner-operators as the most common source. Constellation went public in 2006 and has operations and employees in more than 100 countries.
Sector
Technology
Industry
Software - Application
Stock Style Box
Large Core
Total Number of Employees
69,000
Website
https://www.csisoftware.com

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Valuation

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Metric
CSU
ORCL
CSCO
Price/Earnings (Normalized)
 20.8617.0925.18
Price/Book Value
 10.726.758.53
Price/Sales
 3.605.656.85
Price/Cash Flow
 16.9013.2923.40
Price/Earnings
CSU
ORCL
CSCO

Financial Strength

Metric
CSU
ORCL
CSCO
Quick Ratio
 0.821.020.64
Current Ratio
 0.901.170.93
Interest Coverage
 6.025.0711.30
Quick Ratio
CSU
ORCL
CSCO

Profitability

Metric
CSU
ORCL
CSCO
Return on Assets (Normalized)
 5.96%9.91%13.87%
Return on Equity (Normalized)
 26.23%63.39%35.85%
Return on Invested Capital (Normalized)
 11.32%15.17%22.89%
Return on Assets
CSU
ORCL
CSCO

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