TSE:CSU

Constellation Software Inc. (CSU-T)

4,393.00
-77.99 (1.74%)
as of Aug 26, 2025, 8:00:01 pm Market Open.
596 watching
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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
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Most recent Opinions go here

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COMMENT

The challenge he always had with CSU is the continuous rush to buy small companies that don't add value. He wants to see spin-outs and silos to get rid of non-core businesses.

HOLD

Utmost confidence in management. Massive compounding shareholder value over time. Recent results were good. Behind the pace on M&A goal for the year. Could be getting lost amidst AI-driven stories. Vertical markets mean its organic growth rate is low.

He continues to be long and strong, not concerned by recent pullback.

WATCH
Is sudden drop a chance to buy or a signal to stay away?

Very aggressive M&A strategy. Some of the best capital allocators in the business. Optimizes costs in acquisitions to increase margins, but doesn't necessarily invest in growth. So organic revenue has struggled, and we need to analyze how long this will last. Vertical synergy strategy works well.

Key metric to look for is reacceleration of organic revenue, rather than just M&A revenue.

BUY ON WEAKNESS

Really big move, a leader to the upside. Now showing signs of stalling and breaking down. Reaffirms his view that we're in a corrective phase. Moved below the 200-day MA, not a great sign. Doesn't mind nibbling here, but expects a better opportunity in the next 1-2 months as we get through September and even into October.

He'd definitely be looking to add around $4250, the support level of the tariff tantrum back in April. 

BUY ON WEAKNESS

12-month price target of $5290. Definitely can buy it here, but also around $4200. Don't go all in today. Fantastic report on Monday. The slide is probably due to people taking some profits plus options trading.

BUY

It is a really good name to own and is a champion in Canadian equities. He is not concerned about a dwindling number of software companies for it to buy and feels there are still plenty.

HOLD

Can't argue with the chart. Now hitting its old high. Sort of levelling off, might be in one of those consolidation periods. It did this back in 2022. Net-net the stock's been in an uptrend for a long time, no reason to be concerned. 

HOLD

The chart shows a definite uptrend, but the most recent high has stalled at the early-2025 high. That's okay. It's consolidating. Normal. If we break the current level, we're likely in for another run upwards. Hold if you already own. If not, keep an eye on the last low of $4,500.

HOLD
CSU vs. CLS

He'd pick CLS, as it's in a nice upward trend with more potential upside a year from now. CSU is at a record high, which might be hard to get above.

BUY ON WEAKNESS

Phenomenal compounder. Unique business model. Via its capital allocation infrastructure, king of doing the small deals that private equity can't do. Grows at an exceptionally high rate, rarely goes on sale. Look at its price to cashflow, with 3% being his threshold free cashflow yield. Right now, it's around 2.3-2.5%, which is above his buy price.

Definitely buy on a pullback, and hold for a very long time.

BUY

She really likes it . It has done a good job of acquiring and managing niche companies in the vertical market business. Also organic growth has increased. Has strong free cash flow. Return on Capital is one of the best in the market. Scores 9 out of 10 on fundamentals.

BUY ON WEAKNESS

Founder-run, founder-owned. Very strong and consistent ROIC. Doesn't require a lot of capital growth. Uses a bit of debt, but it's done very effectively because it's able to generate such strong returns. Decentralized model lets them download capital allocation decisions from head office to the business units. Only drawback now is valuation, but quality does cost.

For long-term-focused investors, there really is no better company on the planet. High-quality, exceptional business.

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.

Showing 1 to 15 of 358 entries

Constellation Software Inc.(CSU-T) Rating

Ranking : 5 out of 5

Star iconStar iconStar iconStar iconStar icon

Bullish - Buy Signals / Votes : 19

Neutral - Hold Signals / Votes : 8

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. 19 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 2025-08-26, Constellation Software Inc. (CSU-T) stock closed at a price of $4393.