ducovest

CSU:CA:TSX-Constellation Software Inc. (CAD)

EQUITY | Software—Application | Toronto Stock Exchange

Last Closing

CAD 1332.6801

Change

+40.53 (+3.14)%

Market Cap

CAD 13.14B

Volume

0.03M

Analyst Target

CAD 1,172.12
Analyst Rating

N/A

ducovest Verdict

Verdict

About

Constellation Software Inc is engaged principally in the development, installation and customization of software relating to the public and private sectors in Canada, USA, UK and Europe. It also provides related professional services and support.

Company Website : http://www.csisoftware.com

Currency: CAD

Country : Canada

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2020-04-08 )

Largest Industry Peers for Software—Application

ETFs Containing CSU:CA

RCE:CA 0.00 % 0.43 %

N/A

 N/A

Market Performance

  Market Performance vs. Industry/Classification (Software—Application) Market Performance vs. Exchange (Toronto Stock Exchange)
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain 5.67% 72% C 94% A
Dividend Return 0.11% 50% F 4% F
Total Return 5.78% 72% C 94% A
Trailing 12 Months  
Capital Gain 14.30% 72% C 91% A-
Dividend Return 0.38% 17% F 8% B-
Total Return 14.67% 72% C 91% A-
Trailing 5 Years  
Capital Gain 173.65% 85% B 96% N/A
Dividend Return 4.19% 17% F 11% F
Total Return 177.84% 85% B 97% N/A
Average Annual (5 Year Horizon)  
Capital Gain 25.38% 88% B+ 91% A-
Dividend Return 25.99% 88% B+ 91% A-
Total Return 0.61% 17% F 13% F
Risk Return Profile  
Volatility (Standard Deviation) 15.48% 88% B+ 49% F
Risk Adjusted Return 167.91% 94% A 98% N/A
Market Capitalization 13.14B 94% A 96% N/A

Key Financial Ratios

  Ratio vs. Industry/Classification (Software—Application) Ratio vs. Market (Toronto Stock Exchange)
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 46.70 58% 10%
Price/Book Ratio 37.99 7% 1%
Price / Cash Flow Ratio 35.70 60% 2%
Price/Free Cash Flow Ratio 33.10 50% 8%
Management Effectiveness  
Return on Equity 42.89% 93% 97%
Return on Invested Capital 34.54% 100% 98%
Return on Assets 10.12% 89% 95%
Debt to Equity Ratio 54.59% 50% 47%

Annual Financials (CAD)

Quarterly Financials (CAD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

High dividend returns

The stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis , for investors seeking high income yields.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

What to not like:
Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.