ScoreWhy is Constellation Software, Inc. ?
1
Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 40.20%
- Healthy long term growth as Net Sales has grown by an annual rate of 24.71% and Operating profit at 25.25%
- Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 9.15
2
Positive results in Jun 25
- OPERATING CASH FLOW(Y) Highest at CAD 3,311.93 MM
- NET SALES(Q) Highest at CAD 3,935.82 MM
- INTEREST COVERAGE RATIO(Q) Highest at 1,133.8
3
With ROE of 27.87%, it has a very expensive valuation with a 20.52 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -10.99%, its profits have risen by 59.2% ; the PEG ratio of the company is 1.2
4
Majority shareholders : FIIs
5
Underperformed the market in the last 1 year
- Even though the market (S&P/TSX 60) has generated returns of 22.54% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -10.99% returns
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Constellation Software, Inc. should be less than 10%
- Overall Portfolio exposure to Software Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Constellation Software, Inc. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Constellation Software, Inc.
-30.1%
10.45
27.80%
S&P/TSX 60
19.1%
1.54
14.62%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
24.71%
EBIT Growth (5y)
25.25%
EBIT to Interest (avg)
9.15
Debt to EBITDA (avg)
0.59
Net Debt to Equity (avg)
0.65
Sales to Capital Employed (avg)
1.45
Tax Ratio
20.40%
Dividend Payout Ratio
11.69%
Pledged Shares
0
Institutional Holding
0.16%
ROCE (avg)
40.20%
ROE (avg)
40.38%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
67
Industry P/E
Price to Book Value
18.71
EV to EBIT
37.35
EV to EBITDA
21.09
EV to Capital Employed
11.45
EV to Sales
5.82
PEG Ratio
1.13
Dividend Yield
0.00%
ROCE (Latest)
30.65%
ROE (Latest)
27.87%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
Bullish
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CAD 3,311.93 MM
NET SALES(Q)
Highest at CAD 3,935.82 MM
INTEREST COVERAGE RATIO(Q)
Highest at 1,133.8
DIVIDEND PAYOUT RATIO(Y)
Highest at 37.54%
RAW MATERIAL COST(Y)
Fallen by -15.99% (YoY
CASH AND EQV(HY)
Highest at CAD 7,097.17 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 78.34 %
OPERATING PROFIT(Q)
Highest at CAD 1,114.04 MM
OPERATING PROFIT MARGIN(Q)
Highest at 28.31 %
-7What is not working for the Company
INTEREST(9M)
At CAD 302.22 MM has Grown at 13.41%
ROCE(HY)
Lowest at 22%
NET PROFIT(Q)
Lowest at CAD 173.32 MM
EPS(Q)
Lowest at CAD 3.66
Here's what is working for Constellation Software, Inc.
Operating Cash Flow
Highest at CAD 3,311.93 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CAD MM)
Net Sales
Highest at CAD 3,935.82 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (CAD MM)
Interest Coverage Ratio
Highest at 1,133.8
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit
Highest at CAD 1,114.04 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (CAD MM)
Operating Profit Margin
Highest at 28.31 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Cash and Eqv
Highest at CAD 7,097.17 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at 78.34 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Dividend Payout Ratio
Highest at 37.54%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by -15.99% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at CAD 464.99 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (CAD MM)
Here's what is not working for Constellation Software, Inc.
Interest
At CAD 302.22 MM has Grown at 13.41%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CAD MM)
Net Profit
Lowest at CAD 173.32 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (CAD MM)
Net Profit
Fallen at -33.42%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (CAD MM)
EPS
Lowest at CAD 3.66
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (CAD)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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