Added to YB: 2026-02-05
Pitch date: 2026-02-03
CSU.TO [neutral]
Constellation Software Inc.
+5.01%
current return
Author Info
Drew Cohen is a Portfolio Manager at Davidson Kahn Capital Management. Sign up for the newsletter.
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 36.7B
Pitch Price
CAD 2.3K
Price Target
N/A
Dividend
0.23%
EV/EBITDA
19.52
P/E
53.40
EV/Sales
3.58
Sector
Software
Category
value
Broken Compounder or Rare Sale? Constellation Software Stock Explained
CSU.TO (quick overview): Down 47% from peak despite FCF rising from $1.1B to $2B+ annually. Bears cite AI disruption risk & Mark Leonard stepping down as CEO. Bulls argue vertical software moats remain strong (switching costs, mission-critical nature), AI may benefit incumbents, new CEO Mark Miller 20+ yr veteran. Trading ~19x FCF vs historical premium.
Read full article (4 min)