Constellation Software Inc. (CSU.TO) stock analysis

In our weekly check, Constellation Software Inc. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 19 pass, warnings: 5, red flags: 1.

About Constellation Software Inc.

Constellation Software Inc. is a Technology company (Software - Application) based in Canada, listed on TSX as CSU.TO.

What our checks show for CSU.TO

Red flags

• Thinly traded (about 61 thousand shares a day): buying and selling can move the price.

Warning signs

• Net debt is 0.9x a year of EBITDA (debt/equity 1.41). That limits room in a downturn and raises refinancing risk.
• The net margin is only 7.6%: little room if costs rise.
• The price swings a lot: 45% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 56% from a peak. Would you have held through that?
• The stock is still below its previous peak.

Strengths

• The net margin rose by 1.5 points over 5 years, to 7.6%.
• The gross margin is 40% and has risen by 3.2 points: pricing power is holding.
• Operating cash flow is 2.94x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 32.2% a year over the next years.
• Analysts expect revenue to grow about 16.1% a year over the next years.
• Analysts expect the net margin to improve by 2.6 points from today's 7.6%.

Next earnings report: 2026-11-06

Similar companies

CDNS · APP · MSTR · TEAM · INTU · DDOG

Questions

What grade does Constellation Software Inc. (CSU.TO) have?

In our weekly check, Constellation Software Inc. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 19 pass, warnings: 5, red flags: 1. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of CSU.TO stock?

This week's biggest flags for Constellation Software Inc.: Thinly traded, High debt, Thin margins. In total 6 of 25 checks show a warning or a red flag.

What does Constellation Software Inc. do?

Constellation Software Inc. is a Technology company (Software - Application) based in Canada, listed on TSX as CSU.TO.

When does Constellation Software Inc. report earnings next?

The next earnings report is expected on 2026-11-06. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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