# Constellation Software (CSU.TO)

Canonical: https://gigainvestors.com/s/CSU.TO

Analysis as of: 2026-10-16T07:33:57.940Z. Financial observations: FY2003–FY2025.

Listing currency: CAD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CAD 3,283.76 per share; close as of 2026-10-15.

Estimated value: low CAD 1,759.84 per share, central CAD 1,981.86 per share, high CAD 2,277.42 per share. Buy at or below the central value CAD 1,981.86 per share. Valuation as of 2026-10-16T07:33:57.940Z; scenarios are not confidence intervals.

Expected annual return: 7.0% at the stated quote. About 7.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CA 10-year bond 3.8% + 4 points).

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.49×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.05×

- FY2017: 0.05×

- FY2018: 0.05×

- FY2019: 0.06×

- FY2020: 0.09×

- FY2021: 0.08×

- FY2022: 0.05×

- FY2023: 0.05×

- FY2024: 0.06×

- FY2025: 0.16×

### moat: pass

- ROIC, median of available years: 28.4%

- ROIC, second-lowest year: 11.4%

- Typical minus recent gross margin: 1.1 pp

- Typical gross margin (annual median): 37.0%

- Recent gross margin (lower of latest and 3-year median): 35.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 0.6%

- ROIC including acquisitions, ten-year median: 53.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 33.7%

- FY2017: 44.7%

- FY2018: 32.2%

- FY2019: 20.2%

- FY2020: 47.2%

- FY2021: 27.3%

- FY2022: 12.1%

- FY2023: 7.4%

- FY2024: 11.4%

- FY2025: 29.5%

### economics: pass

- Owner earnings / net income, 5-yr: 2.68×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $7.1B

- Net income, five-year total: $2.6B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.1 pp

- Working capital / revenue, change between three-year averages: -0.8 pp

- Working capital / revenue, final three-year average: 3.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 2.80×

- FY2022: 2.30×

- FY2023: 2.61×

- FY2024: 2.42×

- FY2025: 3.41×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 33.7% vs 11.4%

- Per-share earnings: 9.76 to 26.65 (three-year endpoint medians)

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.0%

- Ordinary dilution, 5-year annual growth: 0.0%

- Market cap gain: $40B

- Cumulative retained earnings: $2.9B

- Diluted shares, 10-year annual growth: 0.0%

- Diluted shares, 5-year annual growth: 0.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 13.4%

- Per-share value change: $16.89

- Per-share value, starting three-year median: $9.76

- Per-share value, ending three-year median: $26.65

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: $7.4B

- Cumulative net income, 10 years: $4.2B

- ROIC, first three-year median: 33.7%

- ROIC, last three-year median: 11.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: $9.76

- FY2017: $10.47

- FY2018: $17.88

- FY2019: $15.71

- FY2020: $20.57

- FY2021: $14.63

- FY2022: $24.16

- FY2023: $26.65

- FY2024: $34.49

- FY2025: $24.57

### accounting: pass

- Sloan accruals: -13.1%

- Receivables to sales index (DSRI): 0.98×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 5.06×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 2.35×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -13.5%

- FY2017: -13.9%

- FY2018: -7.9%

- FY2019: -12.4%

- FY2020: -17.1%

- FY2021: -16.2%

- FY2022: -8.6%

- FY2023: -10.3%

- FY2024: -9.5%

- FY2025: -13.1%

## Holders

## Price story

Down 34% since Jun 2025 · sales +17.5%

Story as of 2026-10-16T09:59:58.500Z; price observation 2026-10-15.

Price needs cash profits to grow 7.6% a year for ten years

- 2026-05-07: Constellation Software Expands With Keypoint Deal As Topicus Revenue Climbs ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/constellation-software-expands-keypoint-deal-211927332.html))

### Sales · FY2024–2025

sales +17.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: $2.1B 

- FY2017: $2.5B 

- FY2018: $3.1B 

- FY2019: $3.5B 

- FY2020: $4.0B 

- FY2021: $5.1B 

- FY2022: $6.6B 

- FY2023: $8.4B 

- FY2024: $10B 

- FY2025: $12B 

### Gross margin · FY2025

gross margin 39.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 37.2% 

- FY2017: 37.8% 

- FY2018: 37.1% 

- FY2019: 37.0% 

- FY2020: 37.6% 

- FY2021: 36.8% 

- FY2022: 35.1% 

- FY2023: 35.0% 

- FY2024: 35.9% 

- FY2025: 39.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software application; annual sales are USD 11.8 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:57.940Z); FY2025: revenue 11826466817; grossProfit 4680525454; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CSU.TO: Constellation Software Inc., together with its subsidiaries, acquires, builds, and manages vertical market software businesses to develop mission-critical software solutions for public and private sector markets. It is involved in the software licensing; and sale of hardware activities. The company also offers professional services consist of implementation services, custom programming, product training, managed services, and consulting services; maintenance and customer support services, and hosted software-as-a-service products; and other recurring services. It operates in Canada, the United States, the United Kingdom, Europe, and internationally. The company was incorporated in 1995 and is headquartered in Toronto, Canada.

### Why customers stay

Margins ranged from 35% to 39.6% during 2023–25; it earns 28.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:57.940Z); FY2023: grossProfit / revenue = 35%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:57.940Z); FY2024: grossProfit / revenue = 35.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:57.940Z); FY2025: grossProfit / revenue = 39.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:57.940Z); 10-year return on capital observations [[2016,0.33732879883646005],[2017,0.4466818166589797],[2018,0.3219087951000096],[2019,0.20219651952461798],[2020,0.47233858153979497],[2021,0.27256038647342995],[2022,0.1211918312688316],[2023,0.07402399738616205],[2024,0.11354874185850627],[2025,0.2948633618541289]]; median 0.2837118741637794. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 35% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:57.940Z); Gross margin observations: [[2021,0.36799843321582454],[2022,0.3508003624282694],[2023,0.3504222671583204]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:57.940Z); FY2016: growth capex 0; upkeep 18716589; owner earnings 401017411. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:57.940Z); FY2017: growth capex 0; upkeep 20115826; owner earnings 454884174. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:57.940Z); FY2018: growth capex 0; upkeep 24081587; owner earnings 660918413. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:57.940Z); FY2019: growth capex 0; upkeep 34000000; owner earnings 672200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:57.940Z); FY2020: growth capex 0; upkeep 25000000; owner earnings 864000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:57.940Z); FY2021: growth capex 0; upkeep 28513005; owner earnings 866686995. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:57.940Z); FY2022: growth capex 0; upkeep 39779704; owner earnings 1179108348.2763636. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:57.940Z); FY2023: growth capex 0; upkeep 42680988; owner earnings 1473719012. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:57.940Z); FY2024: growth capex 0; upkeep 63783082; owner earnings 1768712082.21382. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:57.940Z); FY2025: growth capex 0; upkeep 69190375; owner earnings 1774382609. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:57.940Z); Dividend observations: [[2016,83075083],[2017,86508981],[2018,80716154],[2019,509000000],[2020,85000000],[2021,83572613],[2022,89261774],[2023,86378191],[2024,80918835],[2025,86487970]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 4.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CSU.TO SharesStats.PercentInsiders = 4.403 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 7.6% yearly over ten years; actual growth was 17.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:57.940Z); Ten-year compound average after fade. Initial solved rate 0.09658135024946579. Price 3283.76; FX 1.4190435646374344; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 17.121460645526614 → FY2025 83.69729287735849. Closing-price date 2026-10-15.

## Monthly share-price history (CAD per share)

- 2016-11: CAD 626.44 per share

- 2016-12: CAD 610.12 per share

- 2017-01: CAD 587.73 per share

- 2017-02: CAD 623.50 per share

- 2017-03: CAD 653.50 per share

- 2017-04: CAD 624.33 per share

- 2017-05: CAD 698.59 per share

- 2017-06: CAD 678.41 per share

- 2017-07: CAD 671.65 per share

- 2017-08: CAD 694.36 per share

- 2017-09: CAD 680.74 per share

- 2017-10: CAD 733.98 per share

- 2017-11: CAD 755.68 per share

- 2017-12: CAD 762.02 per share

- 2018-01: CAD 795.11 per share

- 2018-02: CAD 830.59 per share

- 2018-03: CAD 874.15 per share

- 2018-04: CAD 917.63 per share

- 2018-05: CAD 1,021.22 per share

- 2018-06: CAD 1,019.55 per share

- 2018-07: CAD 943.03 per share

- 2018-08: CAD 995.09 per share

- 2018-09: CAD 949.87 per share

- 2018-10: CAD 906.01 per share

- 2018-11: CAD 911.27 per share

- 2018-12: CAD 873.86 per share

- 2019-01: CAD 980.62 per share

- 2019-02: CAD 1,123.73 per share

- 2019-03: CAD 1,132.50 per share

- 2019-04: CAD 1,182.07 per share

- 2019-05: CAD 1,170.36 per share

- 2019-06: CAD 1,234.25 per share

- 2019-07: CAD 1,255.69 per share

- 2019-08: CAD 1,296.71 per share

- 2019-09: CAD 1,323.15 per share

- 2019-10: CAD 1,300.83 per share

- 2019-11: CAD 1,420.01 per share

- 2019-12: CAD 1,261.16 per share

- 2020-01: CAD 1,391.05 per share

- 2020-02: CAD 1,367.43 per share

- 2020-03: CAD 1,279.02 per share

- 2020-04: CAD 1,338.53 per share

- 2020-05: CAD 1,565.13 per share

- 2020-06: CAD 1,532.89 per share

- 2020-07: CAD 1,584.37 per share

- 2020-08: CAD 1,509.99 per share

- 2020-09: CAD 1,479.63 per share

- 2020-10: CAD 1,398.59 per share

- 2020-11: CAD 1,608.28 per share

- 2020-12: CAD 1,652.92 per share

- 2021-01: CAD 1,557.78 per share

- 2021-02: CAD 1,647.72 per share

- 2021-03: CAD 1,755.04 per share

- 2021-04: CAD 1,803.93 per share

- 2021-05: CAD 1,716.74 per share

- 2021-06: CAD 1,877.41 per share

- 2021-07: CAD 1,998.43 per share

- 2021-08: CAD 2,138.19 per share

- 2021-09: CAD 2,075.02 per share

- 2021-10: CAD 2,174.99 per share

- 2021-11: CAD 2,173.69 per share

- 2021-12: CAD 2,346.94 per share

- 2022-01: CAD 2,189.35 per share

- 2022-02: CAD 2,136.16 per share

- 2022-03: CAD 2,137.00 per share

- 2022-04: CAD 2,021.87 per share

- 2022-05: CAD 1,990.74 per share

- 2022-06: CAD 1,910.87 per share

- 2022-07: CAD 2,178.36 per share

- 2022-08: CAD 1,977.02 per share

- 2022-09: CAD 1,922.09 per share

- 2022-10: CAD 1,969.89 per share

- 2022-11: CAD 2,168.52 per share

- 2022-12: CAD 2,113.96 per share

- 2023-01: CAD 2,350.77 per share

- 2023-02: CAD 2,346.16 per share

- 2023-03: CAD 2,540.91 per share

- 2023-04: CAD 2,651.82 per share

- 2023-05: CAD 2,768.01 per share

- 2023-06: CAD 2,744.76 per share

- 2023-07: CAD 2,785.96 per share

- 2023-08: CAD 2,775.46 per share

- 2023-09: CAD 2,804.07 per share

- 2023-10: CAD 2,780.01 per share

- 2023-11: CAD 3,187.30 per share

- 2023-12: CAD 3,285.27 per share

- 2024-01: CAD 3,715.86 per share

- 2024-02: CAD 3,778.39 per share

- 2024-03: CAD 3,700.00 per share

- 2024-04: CAD 3,544.28 per share

- 2024-05: CAD 3,791.07 per share

- 2024-06: CAD 3,941.88 per share

- 2024-07: CAD 4,356.29 per share

- 2024-08: CAD 4,400.69 per share

- 2024-09: CAD 4,400.00 per share

- 2024-10: CAD 4,199.04 per share

- 2024-11: CAD 4,734.16 per share

- 2024-12: CAD 4,444.91 per share

- 2025-01: CAD 4,753.02 per share

- 2025-02: CAD 4,986.97 per share

- 2025-03: CAD 4,557.37 per share

- 2025-04: CAD 4,968.35 per share

- 2025-05: CAD 4,975.76 per share

- 2025-06: CAD 4,993.20 per share

- 2025-07: CAD 4,780.28 per share

- 2025-08: CAD 4,550.34 per share

- 2025-09: CAD 3,777.98 per share

- 2025-10: CAD 3,691.08 per share

- 2025-11: CAD 3,382.25 per share

- 2025-12: CAD 3,301.40 per share

- 2026-01: CAD 2,512.96 per share

- 2026-02: CAD 2,520.66 per share

- 2026-03: CAD 2,441.99 per share

- 2026-04: CAD 2,473.89 per share

- 2026-05: CAD 2,822.83 per share

- 2026-06: CAD 2,670.00 per share

- 2026-07: CAD 3,002.99 per share

- 2026-08: CAD 3,138.72 per share

- 2026-09: CAD 2,894.73 per share

- 2026-10: CAD 3,093.29 per share

## Annual estimated value (CAD per share)

- FY2016: low CAD 314.61 per share, central CAD 355.08 per share, high CAD 408.95 per share

- FY2017: low CAD 362.35 per share, central CAD 408.26 per share, high CAD 469.36 per share

- FY2018: low CAD 457.96 per share, central CAD 516.23 per share, high CAD 593.80 per share

- FY2019: low CAD 509.15 per share, central CAD 576.99 per share, high CAD 667.29 per share

- FY2020: low CAD 605.57 per share, central CAD 682.71 per share, high CAD 785.41 per share

- FY2021: low CAD 766.68 per share, central CAD 865.92 per share, high CAD 998.04 per share

- FY2022: low CAD 982.99 per share, central CAD 1,111.71 per share, high CAD 1,283.05 per share

- FY2023: low CAD 1,170.21 per share, central CAD 1,321.21 per share, high CAD 1,522.23 per share

- FY2024: low CAD 1,408.89 per share, central CAD 1,587.38 per share, high CAD 1,824.99 per share

- FY2025: low CAD 1,679.28 per share, central CAD 1,888.41 per share, high CAD 2,166.81 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:39:44.711Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.