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 hold?
- 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.
-46.89%
10.45
27.80%
S&P/TSX 60
27.28%
1.54
14.62%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
25.01%
EBIT Growth (5y)
23.96%
EBIT to Interest (avg)
9.15
Debt to EBITDA (avg)
0.59
Net Debt to Equity (avg)
0.65
Sales to Capital Employed (avg)
1.37
Tax Ratio
20.40%
Dividend Payout Ratio
16.46%
Pledged Shares
0
Institutional Holding
0.09%
ROCE (avg)
40.20%
ROE (avg)
40.38%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
46
Industry P/E
Price to Book Value
11.22
EV to EBIT
21.98
EV to EBITDA
12.71
EV to Capital Employed
7.15
EV to Sales
3.59
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
32.54%
ROE (Latest)
24.39%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend17What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CAD 3,557.39 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 67.43 %
DIVIDEND PER SHARE(HY)
Highest at CAD 5.71
NET SALES(Q)
Highest at CAD 4,059.77 MM
INTEREST COVERAGE RATIO(Q)
Highest at 1,152.7
RAW MATERIAL COST(Y)
Fallen by -10.09% (YoY
CASH AND EQV(HY)
Highest at CAD 7,833.83 MM
OPERATING PROFIT(Q)
Highest at CAD 1,174.69 MM
OPERATING PROFIT MARGIN(Q)
Highest at 28.93 %
PRE-TAX PROFIT(Q)
Highest at CAD 612.82 MM
-3What is not working for the Company
ROCE(HY)
Lowest at 22.1%
DIVIDEND PAYOUT RATIO(Y)
Lowest at 10.09%
Here's what is working for Constellation Software, Inc.
Operating Cash Flow
Highest at CAD 3,557.39 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 4,059.77 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 1,152.7
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Debt-Equity Ratio
Lowest at 67.43 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Dividend per share
Highest at CAD 5.71 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (CAD)
Operating Profit
Highest at CAD 1,174.69 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (CAD MM)
Operating Profit Margin
Highest at 28.93 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at CAD 612.82 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CAD MM)
Pre-Tax Profit
At CAD 612.82 MM has Grown at 58.2%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CAD MM)
Cash and Eqv
Highest at CAD 7,833.83 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -10.09% (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 494.39 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.
Dividend Payout Ratio
Lowest at 10.09%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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