Added to YB: 2026-03-12
Pitch date: 2026-03-09
CSU.TO [neutral]
Constellation Software Inc.
-11.41%
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 45.9B
Pitch Price
CAD 3.0K
Price Target
N/A
Dividend
0.18%
EV/EBITDA
18.73
P/E
89.65
EV/Sales
4.23
Sector
Software
Category
growth
New Horizons - Constellation Software Inc.
CSU.TO (earnings): Q4 rev +15% YoY, margin expansion as staff costs +11% vs rev. Organic growth 2% (6% in maintenance/recurring), no AI impact yet on rev or churn. OCF +24%, FCFA2S +27% ex-IRGA revaluation. Deployed $2.1B FY25 (90% reinvestment rate), $802M in 2 months post-Q4. New PMS strategy for minority stakes (Sabre) driven by public market AI dislocation vs private. AI boosting dev productivity but not yet differentiation. Buybacks considered but hurdle >20% IRR not met. Trading 4.6% FCF yield with mid-teens+ growth.
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