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This summary was created by AI, based on 46 opinions in the last 12 months.

Constellation Software Inc. (CSU-T) is widely regarded as one of the top compounding software companies in Canada, with a strong emphasis on growth through acquisitions. Analysts note its ability to apply tailored software solutions across various industries, enhancing its market position and reducing volatility. However, concerns about high valuations persist, with price-to-earnings ratios often being seen as excessive. Despite this, many experts emphasize the company's solid management, recurring revenue model, and historical success, indicating that it may continue to deliver strong returns for investors. There is also a consensus that while the stock has strong upward momentum, a correction might be anticipated in the near future, with various opinions on optimal entry points for new investors.

Consensus
Buy
Valuation
Overvalued
Similar
OpenText,OTEX

Most recent Opinions go here

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TOP PICK

Owns 1,000 software businesses through acquisition. Lots of growth going forward as it buys more. Sees more spinoffs to come. Mark Leonard is best capital allocator in the world, and partnering with them is how long-term investors make a lot of money. See his firm's deep-dive podcast on this name at baskinwealth.com. Yield is 0.11%.

(Analysts’ price target is $5394.92)
TOP PICK

A rather mysterious and opaque company. Well held, well owned, and people hold onto it for dear life. Massive compounder of 36,000% since the IPO in 2006. Acquires mission-critical, vertical market (narrow of scope -- such as an operating management system for a vet clinic or daycare or golf course) software companies. 

Tuck-in acquisitions are usually founder-led, mom & pop software companies. They keep the incumbent management team and equip them with operating efficiencies. Hundreds of acquisitions a year. Compound EPS growth at 24% over the last decade. Stock's richly valued as always at 40x PE. Fair combination of value and growth. Can't quarrel with the track record. Yield is 0.11%.

(Analysts’ price target is $5394.92)
BUY ON WEAKNESS

The chart looks mahvelous ;)  It's in an uptrend, and the trend is your friend till it ends. Try to buy on the dips that approach the trendline. He's near-term cautious on the markets, so it could pull back closer to trend; if it did, he'd be all over it. If you own it, don't bother selling on the dip.

DON'T BUY
Why no stock split?

She doesn't know why either :)  Valuation is pretty high. Strong management team. Her firm stays away from companies that are just focused on M&A growth. M&A works until it doesn't. As a company gets bigger, so do the acquisitions in order to move the needle.

HOLD
Why do fund managers continually ignore the nosebleed PE?

Claim to fame, and with tremendous success, has been to buy stable and cash-growing assets at the right price. One potential negative is whether it's hitting the law of large numbers? Now it needs larger deals to run the same playbook, and at a time when sophisticated private equity is starting to do the same thing.

Valuation is not cheap by any stretch, but you have to look at free cashflow per share and compare the growth. PE tends to be a bit messy with depreciation. Not as exorbitant as the PE ratio would suggest. Core position in Canadian portfolios.

TOP PICK

Can't buy it that often, as it typically trades at a very high valuation. He sets a limit order for this one, and on very volatile days it tends to get filled. For the long term. Yield is 0.1%.

(Analysts’ price target is $5286.45)
TOP PICK

One of a kind. One of the best compounders in the world. Big misconception is that the total addressable market is not that big. Fear that can't deploy capital for the same rate of return going forward as it has in the past. He very much disagrees with that. 

The addressable market is huge. Of course with a larger acquisition, you can't expect the same 25-30% after-tax rates of return. But on a blended basis, can still compound at very high rates of return. Yield is 0.13%.

(Analysts’ price target is $5259.18)
BUY

He targets $4,900. It hasn't been hit like Shopify or Celestica, because CSU has so many horizontals. Microsoft has a software that is applied in many ways, but CSU is different. CSU applies their various software to specific industries, like a healthcare vertical/software. This diversification lowers volatility. Likes it.

DON'T BUY

Best software company in Canada. Growth by acquisition makes him pause, as things go well until that final acquisition hurts. Great job buying and integrating businesses. Growth being priced at an excessive premium. Solid growth but high, 40x multiple. 

WAIT

Awesome compounder, strong uptrend. Only concern is that if we are, indeed, late cycle, infotech is going to be at risk. Don't put too much new $$ to work here. Wait for the bigger correction of a hefty 15-20%, likely later this year.

This name has a higher beta, and beta tells you how sensitive a stock is compared to the market.

BUY
Is $4,200 an entry point?

The 3-year chart shows an upward trend. The 1-year is also a good chart with support at $4,200. Importantly, the stock is bouncing off that support. Looks pretty good.

STRONG BUY

It is still growing by over 20% per year and trailing less than 20 X earnings. He is looking for a stock price 20 to 25% higher a year from now. It is getting international notice. Acquisitions are generally small and not big company changing ones. It is the best roll-up stock in Canada and one of the most attractive companies for new investors to buy. They don't do analyst calls.

HOLD

The chart is absolutely flowing, but don't buy it now. Don't write any calls, because the stock could take off. Try it at US$3,300 or $3,200 or $3,100. There's support at C$4,200, then $3,750--it shouldn't fall below this.

PARTIAL BUY

 A beautiful chart. Let it run. But next year, he expects a correction, 15-20%. However, you can nibble at this now to build a position.

DON'T BUY

The valuation is always high, that's the problem (88x trailing PE, 50x forward). CSU needs a lot of acquisitions, but it has rewarded shareholders. He prefers Open Text of CGI.

Showing 1 to 15 of 346 entries

Constellation Software Inc.(CSU-T) Rating

Ranking : 5 out of 5

Star iconStar iconStar iconStar iconStar icon

Bullish - Buy Signals / Votes : 22

Neutral - Hold Signals / Votes : 5

Bearish - Sell Signals / Votes : 7

Total Signals / Votes : 34

Stockchase rating for Constellation Software Inc. is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Constellation Software Inc.(CSU-T) Frequently Asked Questions

What is Constellation Software Inc. stock symbol?

Constellation Software Inc. is a Canadian stock, trading under the symbol CSU-T on the Toronto Stock Exchange (CSU-CT). It is usually referred to as TSX:CSU or CSU-T

Is Constellation Software Inc. a buy or a sell?

In the last year, 34 stock analysts published opinions about CSU-T. 22 analysts recommended to BUY the stock. 7 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Constellation Software Inc..

Is Constellation Software Inc. a good investment or a top pick?

Constellation Software Inc. was recommended as a Top Pick by on . Read the latest stock experts ratings for Constellation Software Inc..

Why is Constellation Software Inc. stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Constellation Software Inc. worth watching?

34 stock analysts on Stockchase covered Constellation Software Inc. In the last year. It is a trending stock that is worth watching.

What is Constellation Software Inc. stock price?

On 2025-06-04, Constellation Software Inc. (CSU-T) stock closed at a price of $4964.68.