Constellation Software Inc. CSU

Information TechnologySoftware & IT ServicesCanada

Last close 3,393.39 CAD on Nov 1, 2026, +3.0% year to date

Quant rating

Quant rating B Rank 5 of 26 in Information Technology

Growth C 11 of 26
Valuation C 11 of 26
Quality B 8 of 26
Revisions B 8 of 26
Momentum B 6 of 26

Wall Street consensus Buy (2.00)Average target 3,844.40 CAD +13.3%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 71.9B
Enterprise value: 76.3B
52-week range: 2,196.00 – 3,710.88
3-year range: 2,196.00 – 5,181.96
Dividend yield: 0.16%
Beta (5 years): 0.75
Shares outstanding: 21.2M
Next earnings: Nov 6, 2026

About the company

Constellation Software Inc. is a Canada-based provider of software and services to several industries. The Company acquires, manages and builds vertical market software (VMS) businesses that provide mission-critical software solutions. It is principally engaged in the development, installation, and customization of software as well as in the provisioning of related professional services and support for customers globally. Its professional services include the installation, implementation, training and customization of software and other services. The Company sells on-premises software licenses on both a perpetual and specified-term basis. It has six operating groups, which service customers in over 100 different markets around the world. The six operating groups include Volaris, Harris, Topicus.com, Vela, Jonas, and Perseus Group. It operates offices in North America, Continental Europe, the United Kingdom, South America, Africa, and Australia.

Growth and profitability fiscal year ends December 31

Growth and profitability by fiscal year
	2025	2024	2023	2022	2021	5Y avg
Revenue (mil)	15,951	14,475	11,135	8,972	6,451	–
Revenue growth	10.2%	30.0%	24.1%	39.1%	27.7%	25.9%
EPS (basic, normalized)	109.30	118.84	85.81	70.35	56.35	–
EPS growth	−8.0%	38.5%	22.0%	24.9%	–	–
Gross margin	98.1%	98.3%	98.1%	98.0%	98.1%	98.1%
Net margin	4.4%	7.3%	6.7%	7.7%	6.1%	6.4%
ROE	16.1%	31.3%	31.4%	36.9%	29.4%	29.0%

Balance sheet, last quarter
Cash & short-term investments (mil)	4,105
Current ratio	0.90x
Long-term debt (mil)	5,441
Net debt (mil)	4,501
Total equity (mil)	5,864
Net debt / equity	0.77x
Net debt / EBITDA	1.01x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2025 actual	15,951	+10.2%	4.8x	4,453	+15.1%	17.1x	109.30	−8.0%	31.0x
2026	19,658	+23.2%	3.9x	5,358	+20.3%	14.3x	165.89	+51.8%	20.5x
2027	22,202	+12.9%	3.4x	6,374	+19.0%	12.0x	193.65	+16.7%	17.5x
2028	25,516	+14.9%	3.0x	7,445	+16.8%	10.3x	239.41	+23.6%	14.2x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2026	19,658	+0.1%	0.0%	+1.9%	165.89	−0.9%	−1.4%	+0.2%
2027	22,202	0.0%	+0.4%	+3.2%	193.65	0.0%	−1.9%	−2.4%
2028	25,516	0.0%	+0.3%	+3.1%	239.41	0.0%	−0.9%	−6.9%

Earnings surprises EPS beat in 3 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Sales reported (mil)	2,354	2,468	2,541	2,703	2,654	2,844	2,947	3,177	3,181	3,335
Sales mean (mil)	2,349	2,478	2,575	2,731	2,760	2,866	2,966	3,141	3,125	3,362
Surprise	+0.2%	−0.4%	−1.3%	−1.0%	−3.8%	−0.8%	−0.6%	+1.1%	+1.8%	−0.8%
EPS reported	15.67	17.89	23.28	29.12	16.17	23.87	28.93	21.58	38.22	31.71
EPS mean	17.62	19.39	20.38	22.98	20.54	22.11	25.18	28.02	25.16	27.81
Surprise	−11.1%	−7.8%	+14.2%	+26.7%	−21.3%	+8.0%	+14.9%	−23.0%	+51.9%	+14.0%

Peer comparison Software & IT Services

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
CSU Constellation Software Inc.	71.9B	1.01x	4.4%	12.46x	20.5x	17.5x	14.3x	12.0x
PLTR Palantir Technologies Inc.	618.9B	−4.08x	36.3%	45.26x	115.0x	79.2x	87.2x	57.0x
ORCL Oracle Corporation	554.1B	2.81x	26.6%	5.92x	16.0x	11.9x	9.4x	6.6x
SHOP Shopify Inc.	283.4B	−2.48x	10.7%	16.01x	83.1x	64.3x	70.8x	53.4x
NOW ServiceNow, Inc.	152.6B	0.61x	13.2%	8.33x	26.5x	21.9x	17.8x	15.1x
DDOG Datadog Inc	118.2B	−4.89x	3.1%	19.34x	92.1x	78.1x	72.0x	56.7x
Mean		−1.17x	15.7%	17.89x	58.9x	45.5x	45.2x	33.5x
Median		−0.93x	11.9%	14.23x	54.8x	43.1x	44.3x	34.3x

Technical analysis

1M+18.7%
3M+12.4%
1Y−9.4%
3Y+27.6%

Financial statements in millions of CAD

Income statement in millions of CAD, fiscal years

Income statement, Constellation Software Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Total revenue	15,951	14,475	11,135	8,972	6,451	5,053
Cost of revenue	298	243	209	182	125	123
Gross profit	15,654	14,232	10,926	8,791	6,326	4,929
Selling, general & administrative expenses	8,934	8,312	6,421	5,170	3,511	2,682
Research & development	2,216	2,066	1,609	1,284	925	737
Depreciation/amortization	1,898	1,763	1,352	1,110	807	647
Interest expense (income), operating	–	–	–	–	–	–
Unusual expense (income)	45.3	109	752	−14.9	364	−39.5
Other operating expenses	4.1	−14.4	−29.1	33.9	1.3	−5.1
Operating income	2,555	1,996	820	1,207	718	908
Net interest income (expense)	−758	−282	−266	−70.5	−64.4	−56.0
Gain (loss) on sale of assets	–	–	–	–	–	–
Other non-operating income (expense)	−509	−260	−203	−154	−181	−84.0
Net income before taxes	1,289	1,454	351	982	473	768
Provision for taxes	484	351	270	237	260	213
Minority interest	−102	−53.2	666	−51.5	179	–
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	703	1,050	747	694	392	555
Extraordinary items	–	–	–	–	–	–
Net income	703	1,050	747	694	392	555
EBIT, normalized	2,601	2,105	1,572	1,192	1,081	868
EBITDA, normalized	4,519	3,885	2,924	2,302	1,889	1,516
Basic EPS, normalized	109.30	118.84	85.81	70.35	56.35	–

Balance sheet in millions of CAD, fiscal years

Balance sheet, Constellation Software Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Assets
Cash & short-term investments	4,311	2,867	1,719	1,255	1,013	976
Receivables	3,044	2,768	2,268	1,719	1,064	859
Total inventory	93.3	80.5	67.5	65.0	44.2	34.4
Prepaid expenses	516	459	370	301	196	146
Other current assets	0	0	−1.3	0	1.3	1.3
Total current assets	7,964	6,175	4,423	3,340	2,318	2,018
Property, plant & equipment	858	792	601	557	427	429
Goodwill	2,444	2,102	1,672	1,077	771	550
Intangibles	9,067	8,640	7,170	5,246	3,560	2,410
Long-term investments	899	20.1	13.2	4.1	2.5	2.5
Note receivable	324	322	270	154	63.2	42.0
Other long-term assets	637	446	238	291	143	118
Total assets	22,193	18,497	14,387	10,670	7,285	5,569
Liabilities
Accounts payable	–	–	–	–	–	–
Payable/accrued	2,664	2,285	1,890	1,466	1,051	848
Accrued expenses	–	–	–	–	–	–
Short-term debt	0	0	0	0	0	0
Current portion of long-term debt	2,068	1,060	1,587	1,242	356	274
Other current liabilities	3,604	3,374	3,785	2,402	1,702	1,475
Total current liabilities	8,336	6,718	7,262	5,111	3,109	2,597
Long-term debt	5,245	5,459	3,290	1,858	1,396	793
Minority interest	950	709	113	299	581	–
Other liabilities	2,756	1,592	1,237	1,083	858	845
Total liabilities	17,287	14,478	11,902	8,350	5,944	4,235
Shareholders' equity
Preferred stock	–	–	–	–	–	–
Common stock	136	142	131	134	125	126
Additional paid-in capital	–	–	–	–	–	–
Retained earnings (accumulated deficit)	4,593	4,198	2,485	2,389	1,524	1,248
Treasury stock	–	–	–	–	–	–
Other equity	177	−321	−131	−203	−308	−39.5
Total equity	4,906	4,019	2,485	2,320	1,340	1,334
Total liabilities & shareholders' equity	22,193	18,497	14,387	10,670	7,285	5,569

Cash flow statement in millions of CAD, fiscal years

Cash flow statement, Constellation Software Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Operating activities
Net income	804	1,103	82.1	747	214	555
Depreciation, depletion & amortization	1,898	1,763	1,352	1,110	807	647
Deferred taxes	–	–	–	–	–	–
Non-cash items	1,820	1,020	1,491	450	891	364
Changes in working capital	−773	−726	−570	−547	−269	−56.0
Cash from operations	3,749	3,159	2,356	1,759	1,642	1,510
Investing activities
Capital expenditures	−93.3	−96.3	−55.6	−55.6	−36.6	−31.8
Other investing cash flows	−2,488	−2,157	−2,115	−2,240	−1,527	−620
Cash from investing	−2,581	−2,253	−2,171	−2,295	−1,564	−652
Financing activities
Financing cash flow items	−272	−590	−195	−160	−92.2	−53.5
Cash dividends paid	−117	−122	−113	−125	−107	−108
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	602	876	726	939	148	−153
Cash from financing	214	164	419	654	−51.8	−314
Foreign exchange effects	140	−69.0	22.5	−52.8	−20.2	19.1
Net change in cash	1,522	1,001	626	65.0	6.3	563
Free cash flow	3,656	3,063	2,301	1,703	1,606	1,478

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 1, 2026 after market close.