Constellation Software Inc. (CSU.TO) Buy,…

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Constellation Software Inc. (CSU.TO)

2,855.53

+53.39 (1.91%)

as of Jul 13, 2026, 8:00:00 pm Market Open.

636 watching

Investor Insights

Jul 13, 2026, 12:00 am

This summary was created by AI, based on 86 opinions in the last 12 months.

Constellation Software Inc. (CSU) has faced significant challenges recently, particularly concerning the departure of its long-serving CEO, Mark Leonard, and increasing fears about AI's potential disruption of traditional software businesses. Many analysts believe the company's strong acquisition model and established market presence position it well for future growth, although concerns about its ability to sustain its roll-up strategy persist, especially in light of competitive pressures and market sentiment around software. The consensus from various experts suggests that while the current valuation is attractive, especially compared to historical levels, caution is advised given the potential for continued volatility and the need for the company to demonstrate sustained organic growth. Overall, despite the mixed sentiments regarding its immediate future, a substantial number of analysts remain bullish on CSU's long-term growth prospects, reflecting confidence in its business model and management team.

Consensus

Mixed

Valuation

Undervalued

Similar

Shopify,SHOP

COMMENT

Lots of Canadians seem to pour money into Constellation Software but for him, there is no real strategy. For Open Text there is a taxation issue with the IRS and also they need another acquisition. For an acquisition and control point of view, although CSU has outperformed, he thinks OTEX is the better choice. Has OTEX stocks and would buy at these levels.

PAST TOP PICK

(A Top Pick Apr 15/20, Up 48%) At the time, even with the expensive price, price to growth perspective was good. Acquisitions are going well. It is getting a little rich at 37x 2022. Still holds it but there are better tech names to put new capital to work.

BUY

One of the few companies in the world that respects shareholders and employees. Loves the company. A core holding. Excited about the spinoff Topicus. They're going to put more cash to work as they see opportunities. Fine over the long term.

BUY ON WEAKNESS

Fabulously run. Acquisition strategy. A 10-year ROIC of 32%. Price target of $1800, so not much runway left. Buy on a pullback between $1550-1600. Just be patient.

BUY

They have shown they can consistently grow. He would combine it with SHOP-T as well in his TFSA portfolio.

BUY ON WEAKNESS

CSU-T incl. TOI-T. They acquire other software companies. He thinks TOI-T, which CSU-T spun out, may outperform CSU-T over time. He kept TOI-T and thought he might add to it, but it is a bit expensive right now. If you have a five or ten year horizon you would do well owning either one.

TOP PICK

Management willing to do interesting things to increase shareholder value. This is a team you can trust to reinvest your capital. Next few years will still be really bright. Yield is 0.30%. (Analysts’ price target is $1793.13)

PAST TOP PICK

(A Top Pick Jan 20/20, Up 20%) He bought more in the fall 2020 after a brief stumble around $1,400. It's run by one of the top 10 management teams in the world. They boast free cash flow return on invested capital (after all expenses) is an astonishing 59%, and have a free cash flow of 23%. They've increased their cash flow by 30% average over recent decades. Free cash flow yield now is over 4%. Tremendous value. CSU is his largest position. Eager to see how their Feb. 1 spin out will do.

BUY

A tech pick? CSU are great acquirers and integrators. Why buy a US tech stock when you can buy a Canadian one at half the price (in terms of valuation)? Software will take over the world.

BUY ON WEAKNESS

He took profits recently. Fantastic Canadian tech story. Acquires software startups around the world. Multiple segments. He'd love to be able to pick it up on a correction in thirds at $1600, 1500, and 1400.

PAST TOP PICK

(A Top Pick Jan 20/20, Up 24%) Fantastic company. Recently bought more on a dip. Does acquisitions better than anyone. Extremely well run.

TOP PICK

Exceptional. Holds its own and shines when stacked up against the greatest companies in the world. High stock price just means that they haven't split their shares. His #1 position in client portfolios. Yield is 0.31%. (Analysts’ price target is $1685.63)

TOP PICK

Has one of Canada's greatest CEOs. Best growth days are probably behind it, but still a great business. It buys companies and uses the free cashflow to keep buying more. He thinks eventually its businesses will spin off. Great balance sheet. Yield is 0.32%. (Analysts’ price target is $1679.38)

RISKY

Volatile. He trades it, but doesn't treat it as an investment. Business strategy is all about acquiring software startups and keeping them. Fantastic company. They've done extremely well. ROC of 32%. Into agriculture, financial services, construction, and more. He has a price target of around $1700 CAD.

BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company has seen a drop recently, and the spin out of Topicus will happen shortly. It has a strong balance sheet and it should see more upside in the medium term. Unlock Premium - Try 5i Free

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Constellation Software Inc. (CSU.TO)