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

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Constellation Software Inc. (CSU.TO)

2,827.94

+68.70 (2.49%)

as of Sep 11, 2026, 8:00:01 pm Market Open.

640 watching

Investor Insights

Sep 13, 2026, 12:00 am

This summary was created by AI, based on 87 opinions in the last 12 months.

Constellation Software Inc. is facing a challenging environment amid fears of AI disrupting the software sector. Experts are divided; while many acknowledge the company's solid management and acquisition strategy, there are concerns about the impact of artificial intelligence on their business model. The stock has seen significant volatility, with some analysts believing it has reached attractive valuation levels for long-term investors. The sentiment surrounding AI has led to negative market perceptions, but several analysts argue that CSU's niche in vertical market software could benefit from AI advancements rather than be harmed by them. Despite the uncertainty, CSU's historical performance and potential for future growth keep it on the radar for those looking to invest.

Consensus

Mixed

Valuation

Undervalued

Similar

Shopify, SHOP

TOP PICK

Largest position and believes company is very well run. Predictable business with very good capital allocation record. Founder led company. Financial metrics very strong (return on equity, cash flow). Good time to buy with recent selloff.

BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. A steady and historically solid performer. The business model is strong and the management team is good. They reinvest free cash flow into acquiring more businesses to generate free cash flow. Low volatility. Unlock Premium - Try 5i Free

PAST TOP PICK

(A Top Pick Nov 25/20, Up 47%) Still plans for acquisitions. High free cashflow. Still opportunities. Spun off Topicus.com. Many speculate there will be more spinoffs.

HOLD

Fabulous management. Its companies are spread through 6 operating segments. Acquires software startups and holds for the long term. 10-year ROIC of 32%. Money machine. 12-month price target of $2600. Terrific Canadian company.

DON'T BUY

Likes it. A top pick in the past. Has done very well but it is no longer cheap. As expensive as Microsoft. Likes Topicus a lot. Would not chase CSU at these levels.

PAST TOP PICK

(A Top Pick Jul 06/20, Up 35%) Canadians should be really proud of this one. It stacks up with the best. Extremely well run. Founder is still involved. Doesn't spend a lot of money. Not a lot of debt. High and consistent ROIC. Doesn't issue shares. His largest position.

COMMENT

SHOP vs. Constellation Software E-commerce continues to proliferate our economy, and SHOP grows organically. In contrast, CSU is more of a growth-by-acquisition story, buying software companies to grow in size. Therefore, CSU is safer, but SHOP has much better growth prospects. SHOP recently did a deal with Facebook. SHOP and CSU are apples vs. oranges. SHOP has more pricing power in the stock than people think as they gain market share, but he isn't sure about this with CSU. CSU has great managers and acquire well.

BUY ON WEAKNESS

A wonderful software company. They focus on buying smaller companies. They are disciplined and buy a lot of companies and integrate them well. They compound capital very well over time. Loves it. The only caveat is its high valuation. They tend to have lumpy quarters, disappoint shareholders, so that is the moment to swoop in and buy. Because it has bought so many companies, it doesn't offer a dominant software, so it's not vulnerable if something happens to a particular software.

HOLD

Business model is great, scalable, and repeatable. Disciplined process for capital investment. With high tech valuations, he was scared off by the growth by acquisition model, but shouldn't have been. A good long-term hold.

PAST TOP PICK

(A Top Pick Jul 06/20, Up 13%) The best capital-allocating managers in the world anywhere. A Canadian gem. Still holds and likes it.

TOP PICK

Always a top pick for him. Hold these types of companies for a long, long time and add on weakness, like now. (Analysts’ price target is $1997.50)

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.

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Constellation Software Inc. (CSU.TO)