Constellation Software (CSU) AI Stock Analysis

• Market Cap: C$48.64B
• Dividend Yield: 0.17%
• Average Volume (3M): 66.01K
• Price to Earnings (P/E): 97.8
• Beta (1Y): 0.86
• Revenue Growth: 18.24%
• EPS Growth: 7.72%
• Country: CA
• Employees: 45,000
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 25.30
• Shares Outstanding: 21,191,530
• 10 Day Avg. Volume: 56,132
• 30 Day Avg. Volume: 66,014
• PEG Ratio: -3.40
• Price to Book (P/B): 14.28
• Price to Sales (P/S): 4.31
• P/FCF Ratio: 19.84
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$4,094.29
• Price Target Upside: 78.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 116.48
• Revenue Forecast (FY): C$13.60B

• Rating: 60 Neutral
• Price Target: C$2,410.00 ▲(5.00% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is driven primarily by strong financial performance on cash flow generation and solid operating profitability, partially offset by slower 2025 growth, compressed net margins, and notable leverage. Technicals are mixed with longer-term weakness, and valuation is a key headwind due to the very high P/E and low yield.

Positive Factors

Strong free cash flow generation

Consistent FCF that closely tracks earnings provides durable internal funding for acquisitions, R&D, and working capital. High cash conversion supports the buy-and-hold VMS model, limits equity dilution, and underpins long-term capital allocation even if growth moderates.

Negative Factors

Notable leverage burden

Elevated leverage reduces financial flexibility and raises interest and refinancing risk over the medium term. With sizable debt on the balance sheet, the company has less capacity to absorb shocks or opportunistically deploy cash without prioritizing debt service and covenant considerations.

Constellation Software Business Overview & Revenue Model

Company Description

Constellation Software Inc., together with its subsidiaries, acquires, builds, and manages vertical market software businesses in Canada, the United States, the United Kingdom, and rest of Europe. Its industry specific software businesses provide ...

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Constellation Software Inc., together with its subsidiaries, acquires, builds, and manages vertical market software businesses in Canada, the United States, the United Kingdom, and rest of Europe. Its industry specific software businesses provide ...

How the Company Makes Money

Constellation Software makes money primarily by acquiring vertical market software companies and operating them for long-term cash flow. Its key revenue streams typically include: (1) Recurring software revenue from maintenance and support contrac...

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Constellation Software makes money primarily by acquiring vertical market software companies and operating them for long-term cash flow. Its key revenue streams typically include: (1) Recurring software revenue from maintenance and support contrac...

Constellation Software Financial Statement Overview

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.83B	10.07B	8.41B	6.62B	5.11B
Gross Profit	4.68B	3.62B	2.95B	2.32B	1.88B
EBITDA	3.34B	1.97B	1.60B	1.25B	1.11B
Net Income	520.96M	731.00M	565.00M	512.00M	310.00M
Balance Sheet
Total Assets	16.14B	12.86B	10.78B	7.95B	5.71B
Cash, Cash Equivalents and Short-Term Investments	3.14B	1.99B	1.29B	935.08M	794.46M
Total Debt	5.78B	4.53B	4.46B	2.31B	1.38B
Total Liabilities	11.88B	9.57B	8.84B	6.00B	4.21B
Stockholders Equity	3.57B	2.79B	1.86B	1.73B	1.05B
Cash Flow
Free Cash Flow	2.57B	1.89B	1.63B	1.15B	1.22B
Operating Cash Flow	2.64B	1.95B	1.68B	1.19B	1.24B
Investing Cash Flow	-1.97B	-1.52B	-1.67B	-1.65B	-1.22B
Financing Cash Flow	358.16M	277.98M	456.28M	540.42M	-983.21K

Constellation Software Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2295.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CSU, the sentiment is Negative. The current price of 2295.18 is below the 20-day moving average (MA) of 2449.50, below the 50-day MA of 2496.89, and below the 200-day MA of 3574.36, indicating a bearish trend. The MACD of -63.94 indicates Positive momentum. The RSI at 35.99 is Neutral, neither overbought nor oversold. The STOCH value of 29.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CSU.

Constellation Software Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENGH	72 Outperform	C$899.23M	14.62	12.17%	5.69%	-0.72%	-9.27%
DSG	71 Outperform	C$7.51B	38.38	10.76%	―	14.55%	15.55%
KXS	69 Neutral	C$3.71B	49.33	16.46%	―	15.11%	75.40%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CSU	60 Neutral	C$48.64B	97.79	15.35%	0.17%	18.24%	7.72%
OTEX	59 Neutral	C$7.22B	12.20	10.88%	3.27%	-5.01%	13.21%
LSPD	56 Neutral	C$1.61B	-12.26	-44.56%	―	17.23%	-435.45%

Constellation Software Corporate Events