Added to YB: 2026-03-12
Pitch date: 2026-03-10
CSU.TO [neutral]
Constellation Software Inc.
-9.63%
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 2.9K
Price Target
N/A
Dividend
0.18%
EV/EBITDA
18.73
P/E
89.65
EV/Sales
4.23
Sector
Software
Category
value
Constellation Software has fallen by -50%
CSU.TO (update): Down 50%+ from highs on AI fears disrupting vertical software moat. Bull case: 1000+ cos in portfolio, 97.5% TAM unconsolidated, 17.5% FCFA2S CAGR 7yr, 25% ROIC target (20% large deals), 70%+ recurring rev, <1% client revenue cost = high switching costs, decentralized structure w/ aligned incentives. Bear: AI lowering dev barriers, terminal value at risk. Market pricing bearish despite no data showing impact yet. Trading near historic low multiples. Core thesis: capital allocation discipline remains intact across 20yr track record.
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