Added to YB: 2026-10-15
Pitch date: 2026-10-13
CSU.TO [bullish]
Constellation Software Inc.
+5.67%
current return
Author Info
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Company Info
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.
Market Cap
CAD 44.6B
Pitch Price
CAD 3.1K
Price Target
N/A
Dividend
0.19%
EV/EBITDA
19.54
P/E
46.44
EV/Sales
3.82
Sector
Software
Category
value
Constellation Software Built a Fortune on Boring Code. Now It Has a Size Problem.
CSU.TO (overview): Constellation Software is a larger, slower but still strong compounder: vertical-market software provides durable recurring cash flow, while acquisitions redeploy ~95% of cash. At C$2,896, the shares trade at 15.3x trailing FCF, a 6.5% yield, supporting a central five-year return estimate of ~13% annually. The risk is whether $2B of annual cash can still be invested near 14% as larger deals attract more competition.
Read full article (8 min)