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Investor Insights

This summary was created by AI, based on 48 opinions in the last 12 months.

Constellation Software Inc. (CSU-T) is a vertical market software company with a strong track record of growth, acquisitions, and disciplined capital allocation. The company has consistently shown high margins and a steady business plan, making it a favorite among many experts. While some express concerns about overvaluation and high P/E ratios, others see the company as a long-term investment with potential for continued success. Overall, CSU-T is seen as a well-run, profitable company with a strong management team and a unique business model.

Consensus
Bullish
Valuation
Fair Value
BUY
CSU vs. TOI vs. LMN

He'd prefer CSU over TOI, but you should also look at LMN. LMN has done tremendously well since it was spun off. LMN was a vertical business that catered to agri, financial services, and education.

MSFT has software that goes horizontally across a whole bunch of industries, whereas CSU is more vertical. It's been very steady, even when the market goes into selloff mode. Has 5 operating segments.

TOI is out of Europe, and more on the engineering side.

computer software / processing
BUY

His fault for not owning this great growth company. They could a number of things like raise their dividend, split the stock or spin off a business. This will continue to do well.

computer software / processing
TOP PICK
No price target given

Grows 20% annually. Trades at 20x PE and has a fortress balance sheet. Well run.  Had grown quickly. Owns a ton of software companies.

computer software / processing
BUY

A good long term investment that will continue to own. Very strong business with high margins. Good at M&A and has proven business plan extensively. Founder led with CEO owning large amount of shares. Return in capital remains strong. Vertical market software very profitable and sticky. Friendly "off ramp" for entrepreneurs who are looking to sell. ~36% compounding return since 2006. 

computer software / processing
PAST TOP PICK
(A Top Pick Nov 09/23, Up 41%)

Very high margin business with strong management team. Very good at capital allocation. Recent stock price at all time high. 2024 looking to be strong year in M&A field. Earnings grew in 2023. Organic grown and margins increasing. Very disciplined management team. 

computer software / processing
BUY

Has grown 31%, on average, over the past 10 years. Chart looks really good. A darling. Paused in 2023, seems to be doing that again. Pauses can last 3-6 months. Buy and hold. Loves the business. You'd want to be out around $3400.

computer software / processing
HOLD

Overbought. Look at the chart and draw a trendline. As with a lot of stocks, has arced up and moved way above its 200-day MA. Good company, but may retreat to the trendline. Don't buy now. If you own it, hold.

computer software / processing
BUY ON WEAKNESS

Has owned shares since 2014. Once of the best companies across the globe. Excellent capital allocation skills. Problem is that valuation is very high. Excellent business model (software acquisition) with high returns on capital. #1 position in company and is favorite business. 

computer software / processing
DON'T BUY

Current valuation way too high for investors (~60x P/E). Too many companies that have been rolled into one. Does not like this business at this time. 

computer software / processing
BUY

Shares pulled back, but he didn't find a reason apart from broad-based selling in the market. He's owned this a long time. It's a leader in the vertical market in software, which is niche used for specific applications in contrast to wider horizontal markets, like Excel. CSU is a serial acquirer and are financially disciplined, buying small/medium-sized companies. 

computer software / processing
Unspecified

She feels it is over-valued at 40X earnings and only pays a 0.1% dividend. They acquire software companies and verticals - management has a phenomenal track record with this. Her concern is that they may have to start making larger acquisitions because of a possible shortage of the smaller ones they have been buying.

computer software / processing
HOLD

Owns in his value momentum strategy. Doubled in the last year or so, has done very well. Mission-critical software. Grows by acquisition, not an easy task, but they've made it work.

computer software / processing
PARTIAL BUY

Blown through analysts' average price target. He still owns it. Will get visibility once they report. Acquired 260 companies over 10 years, cross-sell, and keep on making money. Vertical market strategy as opposed to MSFT, which integrates horizontally. Buy 1/3 here around $3700, again at $3475, and $3300.

(Analysts’ price target is $3320.00)
computer software / processing
BUY ON WEAKNESS

Excellent business with very high margins. Very strong management team with excellent capital allocation skills. Software company roll up strategy has worked out very well. ROE around 30%. Share price not cheap, so would recommend waiting for weakness before buying. 

computer software / processing
WATCH

Have done a great job. The executive team is proving itself, are top managers. The PE is quite high, though lower than Shopify's. CSU is on his radar, despite that. They are consistent. Canadian tech rallied strongly last year, including CSU.

computer software / processing
Showing 1 to 15 of 288 entries

Constellation Software Inc.(CSU-T) Rating

Ranking : 5 out of 5

Bullish - Buy Signals / Votes : 31

Neutral - Hold Signals / Votes : 6

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 38

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, 38 stock analysts published opinions about CSU-T. 31 analysts recommended to BUY the stock. 1 analyst 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?

38 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 2024-03-28, Constellation Software Inc. (CSU-T) stock closed at a price of $3727.21.