Constellation Software Inc.

CSU-T

TSE:CSU

1,568.81
2.07 (0.13%)
Constellation Software is a diversified software company. It is based in Toronto, Canada, is listed on the Toronto Stock Exchange, and is a constituent of the S&P/TSX 60. The company was founded by Mark Leonard, a former venture capitalist, in 1995.
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Analysis and Opinions about CSU-T

Signal
Opinion
Expert
TOP PICK
TOP PICK
July 6, 2020
It is his largest position and he has owned it since 2014. The management team is one of the best on the planet. They continue to acquire and integrate software companies. Roll up strategies can be disastrous, but some do it very well, not getting distracted. (Analysts’ price target is $1598.11)
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It is his largest position and he has owned it since 2014. The management team is one of the best on the planet. They continue to acquire and integrate software companies. Roll up strategies can be disastrous, but some do it very well, not getting distracted. (Analysts’ price target is $1598.11)
PAST TOP PICK
PAST TOP PICK
June 15, 2020
(A Top Pick Jun 24/19, Up 21%) The whole group has gone up and so has this one. It made a bigger acquisition in Europe and wants to now spin off this company to make more acquisitions. It is not expensive.
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(A Top Pick Jun 24/19, Up 21%) The whole group has gone up and so has this one. It made a bigger acquisition in Europe and wants to now spin off this company to make more acquisitions. It is not expensive.
BUY WEAKNESS
BUY WEAKNESS
May 28, 2020
He has added to his portfolios over the last 6 months. It is an interesting software company. They sell niche products. It grows by acquisition. They are a cash cow and could pay a dividend but they are rolling up the industry successfully. Don’t chase it here. Buy a quarter of your position and then the rest on a check back in the markets.
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He has added to his portfolios over the last 6 months. It is an interesting software company. They sell niche products. It grows by acquisition. They are a cash cow and could pay a dividend but they are rolling up the industry successfully. Don’t chase it here. Buy a quarter of your position and then the rest on a check back in the markets.
COMMENT
COMMENT
May 6, 2020

Canadian tech? OTEX and SHOP would be good Canadian tech companies, along with CSU. All well situated for the cloud and e-commerce. He expects to see a market correction, so would wait for lower pricing.

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Canadian tech? OTEX and SHOP would be good Canadian tech companies, along with CSU. All well situated for the cloud and e-commerce. He expects to see a market correction, so would wait for lower pricing.

PAST TOP PICK
PAST TOP PICK
May 5, 2020
(A Top Pick May 02/19, Up 16%) A huge fan. Amazing management. They continue to buy software companies. They see a large runway for growth ahead and want to buy more. 3.5% is their free cash flow yield. Watch their upcoming AGM.
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(A Top Pick May 02/19, Up 16%) A huge fan. Amazing management. They continue to buy software companies. They see a large runway for growth ahead and want to buy more. 3.5% is their free cash flow yield. Watch their upcoming AGM.
TOP PICK
TOP PICK
April 15, 2020
You want software companies with good revenues streams and good balance sheets. About 69% of their revenue is recurring. They have done good acquisition and have ammunition to do more in this distressed environment. He thinks earnings will grow by over 20% going forward. Yield 0.42% (Analysts’ price target is $1566.22)
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You want software companies with good revenues streams and good balance sheets. About 69% of their revenue is recurring. They have done good acquisition and have ammunition to do more in this distressed environment. He thinks earnings will grow by over 20% going forward. Yield 0.42% (Analysts’ price target is $1566.22)
WAIT
WAIT
March 31, 2020
He once owned it, did well, and took profits in late-2019. Will be interesting to see how CSU maneuvers the next few months. They acquire lucrative runway companies at a discount--and those are now trading at discount. He expects CSU to buy in coming months. An interesting play, but a little early to enter CSU.
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He once owned it, did well, and took profits in late-2019. Will be interesting to see how CSU maneuvers the next few months. They acquire lucrative runway companies at a discount--and those are now trading at discount. He expects CSU to buy in coming months. An interesting play, but a little early to enter CSU.
HOLD
HOLD
February 26, 2020
One of his favorites. Volatility is common with this one. They are a vertical market software company, having very specific software for niche customers. This makes it very hard to compete against them. The contracts tend to be higher margin as well. The concern people have is that now they are as big as they are, can they keep the runway going? He thinks so.
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One of his favorites. Volatility is common with this one. They are a vertical market software company, having very specific software for niche customers. This makes it very hard to compete against them. The contracts tend to be higher margin as well. The concern people have is that now they are as big as they are, can they keep the runway going? He thinks so.
HOLD
HOLD
February 14, 2020
He does not own this one. He sold it about $120 ago and he kicks himself for it. Their business thesis is about business acquisitions and when he say them slowing down on that front he decided to take profit. A holder may consider some option strategies like covered calls.
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He does not own this one. He sold it about $120 ago and he kicks himself for it. Their business thesis is about business acquisitions and when he say them slowing down on that front he decided to take profit. A holder may consider some option strategies like covered calls.
COMMENT
COMMENT
February 14, 2020

CGI has been on a monster tear. There are rare non-commodity, utility or financial companies. There is a premium on these. They missed on a quarter and organic growth is slowing. It is an acquisition story, however. He would prefer Constellation Software that they own.

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CGI has been on a monster tear. There are rare non-commodity, utility or financial companies. There is a premium on these. They missed on a quarter and organic growth is slowing. It is an acquisition story, however. He would prefer Constellation Software that they own.

BUY WEAKNESS
BUY WEAKNESS
February 13, 2020
They are probably one of the best in making acquisitions in Canada and in the US. This stock has been consolidating and he thinks there could be a re-acceleration up. You would have a chance to buy it now before it moves up.
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They are probably one of the best in making acquisitions in Canada and in the US. This stock has been consolidating and he thinks there could be a re-acceleration up. You would have a chance to buy it now before it moves up.
PAST TOP PICK
PAST TOP PICK
January 23, 2020
(A Top Pick Feb 20/19, Up 25%) It is slow and steady. They make good acquisitions and they have never issued new stock. He likes it a lot.
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(A Top Pick Feb 20/19, Up 25%) It is slow and steady. They make good acquisitions and they have never issued new stock. He likes it a lot.
TOP PICK
TOP PICK
January 20, 2020
This one had an excellent run. It is one of the two strongest stocks on the TSX over the last 10 years. Their CEO is considered one of the best capital allocators in the world, not just in Canada. This is in his view a forever-hold stock. (Analysts’ price target is $1423.00)
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This one had an excellent run. It is one of the two strongest stocks on the TSX over the last 10 years. Their CEO is considered one of the best capital allocators in the world, not just in Canada. This is in his view a forever-hold stock. (Analysts’ price target is $1423.00)
PAST TOP PICK
PAST TOP PICK
December 24, 2019
(A Top Pick Dec 28/18, Up 52%) Really likes infotech. CSU is now consolidating, a little choppy, but it remains a core holding. He expects near-time weakness along with the overall market in January.
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(A Top Pick Dec 28/18, Up 52%) Really likes infotech. CSU is now consolidating, a little choppy, but it remains a core holding. He expects near-time weakness along with the overall market in January.
COMMENT
COMMENT
December 20, 2019
It’s a surprising story that has gone up. An expensive stock in terms of overall price. However, it is a project-by-project company so as long as the economics of the internet continues to grow, they will be fine. A good acquirer with positive results that will continue to show capital appreciation.
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It’s a surprising story that has gone up. An expensive stock in terms of overall price. However, it is a project-by-project company so as long as the economics of the internet continues to grow, they will be fine. A good acquirer with positive results that will continue to show capital appreciation.
BUY WEAKNESS
BUY WEAKNESS
December 17, 2019
Tremendous managers who acquire well and have a strong business strategy. More acquisitions to come. They deploy capital well at high rates of return. Buy on any weakness. This won't slow down; growth to come. A core long-term holding.
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Tremendous managers who acquire well and have a strong business strategy. More acquisitions to come. They deploy capital well at high rates of return. Buy on any weakness. This won't slow down; growth to come. A core long-term holding.
BUY WEAKNESS
BUY WEAKNESS
December 9, 2019
They pulled back today, which happens time to time. Their business is so diverse, so he's not worried. He would buy this on a downturn. They invest their free cash flow well. They've had a great run-up.
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They pulled back today, which happens time to time. Their business is so diverse, so he's not worried. He would buy this on a downturn. They invest their free cash flow well. They've had a great run-up.
HOLD
HOLD
December 6, 2019
A perfect medium term hold and he owns a 2% holding in his portfolio. They acquire software startups and hold them for the long term. They have acquired of 260 startups. Their 10 year return on capital is 32% annually. His price target is $1425.
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A perfect medium term hold and he owns a 2% holding in his portfolio. They acquire software startups and hold them for the long term. They have acquired of 260 startups. Their 10 year return on capital is 32% annually. His price target is $1425.
COMMENT
COMMENT
November 26, 2019
Constantly acquiring. Great Canadian name. Margins are very strong, but some are concerned with the organic growth. They have cash, and he'd say M&A will pick up next year. Complementary US name is Roper Technologies.
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Constantly acquiring. Great Canadian name. Margins are very strong, but some are concerned with the organic growth. They have cash, and he'd say M&A will pick up next year. Complementary US name is Roper Technologies.
TOP PICK
TOP PICK
November 25, 2019
A company that grows by acquisition. A $30B market cap company that grew free cash flow by 42% yoy. 16% increase in sales. Their return on capital is good and we could see 11% upside. (Analysts’ price target is $1423.00)
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A company that grows by acquisition. A $30B market cap company that grew free cash flow by 42% yoy. 16% increase in sales. Their return on capital is good and we could see 11% upside. (Analysts’ price target is $1423.00)
BUY
BUY
November 7, 2019
He really likes it. One of the best management teams. It is pretty steady up and to the right so it looks pretty nice. They acquire 'old' tech companies and share best practices. Then they take the cash flows that those companies spin out and then go and invest that cash. You can sit back and trust management.
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He really likes it. One of the best management teams. It is pretty steady up and to the right so it looks pretty nice. They acquire 'old' tech companies and share best practices. Then they take the cash flows that those companies spin out and then go and invest that cash. You can sit back and trust management.
DON'T BUY
DON'T BUY
November 7, 2019
Growth by acquisition. Appreciation slows down as acquisitions slow down. Need organic growth to keep the story going. Valuation high. The law of large numbers eventually catches up with you. Other opportunities at better valuations.
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Growth by acquisition. Appreciation slows down as acquisitions slow down. Need organic growth to keep the story going. Valuation high. The law of large numbers eventually catches up with you. Other opportunities at better valuations.
BUY WEAKNESS
BUY WEAKNESS
October 4, 2019

A software company that's really come to the forefront in recent years. A great chart with constant growth. It's done a good job of finding good growth opportunity. This will be more volatile if the market is volatile. Not a big dividend payer so more of a capital appreciation play.

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A software company that's really come to the forefront in recent years. A great chart with constant growth. It's done a good job of finding good growth opportunity. This will be more volatile if the market is volatile. Not a big dividend payer so more of a capital appreciation play.

STRONG BUY
STRONG BUY
September 24, 2019
An amazing chart. It's still in its uptrend which is consistent while the market has been volatile. CSU is entering seasonality, too. This can go higher. It's "blue sky" and he can't tell when it will stop rising.
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An amazing chart. It's still in its uptrend which is consistent while the market has been volatile. CSU is entering seasonality, too. This can go higher. It's "blue sky" and he can't tell when it will stop rising.
SELL
SELL
September 9, 2019
Biggest winner in technology in the last 10 years. He shorted this stock in the last week. Harder time finding acquisitions at the right valuation. Getting squeezed. No organic growth.
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Biggest winner in technology in the last 10 years. He shorted this stock in the last week. Harder time finding acquisitions at the right valuation. Getting squeezed. No organic growth.
PAST TOP PICK
PAST TOP PICK
July 30, 2019
(A Top Pick Aug 29/18, Up 34%) Very difficult to analyze. They serially acquire companies that have only one family of software that addresses particular vertical need in the market. CSU says there are thousands like this and now own bunches of them. CSU knows how to buy them. Their return on invested capital is terrific. It's still an attractive stock at current prices.
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(A Top Pick Aug 29/18, Up 34%) Very difficult to analyze. They serially acquire companies that have only one family of software that addresses particular vertical need in the market. CSU says there are thousands like this and now own bunches of them. CSU knows how to buy them. Their return on invested capital is terrific. It's still an attractive stock at current prices.
BUY
BUY
July 25, 2019
Doesn't need to rely on bigger deals to keep growth up. Flexible, nimble. Can do many, many small deals. Governance and corporate strategy risk is a lot lower.
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Doesn't need to rely on bigger deals to keep growth up. Flexible, nimble. Can do many, many small deals. Governance and corporate strategy risk is a lot lower.
WATCH
WATCH
July 16, 2019
Possible split? He doesn't think they will split the stock. This company has done an excellent job, but the valuation is just too rich. The yield is just a little too small too. There is a risk for a sizable retracement in this stock. Be careful.
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Possible split? He doesn't think they will split the stock. This company has done an excellent job, but the valuation is just too rich. The yield is just a little too small too. There is a risk for a sizable retracement in this stock. Be careful.
BUY
BUY
July 8, 2019
He wishes he owned it. They have a roll-up strategy in software: buy companies and integrated them well. This way, they have created tons of value, but he prefers software companies are hands-on in creating product. CSU has been a great performer though.
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He wishes he owned it. They have a roll-up strategy in software: buy companies and integrated them well. This way, they have created tons of value, but he prefers software companies are hands-on in creating product. CSU has been a great performer though.
DON'T BUY
DON'T BUY
July 4, 2019
They consolidate various software companies. They have no debt so a pretty good balance sheet. He finds it is too rich at 20 times cash flow. Also there is no centralization of services among companies acquired.
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They consolidate various software companies. They have no debt so a pretty good balance sheet. He finds it is too rich at 20 times cash flow. Also there is no centralization of services among companies acquired.
Showing 1 to 30 of 177 entries

Constellation Software Inc.(CSU-T) Rating

Ranking : 5 out of 5

Bullish - Buy Signals / Votes : 14

Neutral - Hold Signals / Votes : 3

Bearish - Sell Signals / Votes : 3

Total Signals / Votes : 20

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, 20 stock analysts published opinions about CSU-T. 14 analysts recommended to BUY the stock. 3 analysts recommended to SELL the stock. The latest stock analyst recommendation is TOP PICK. 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 Jason Del Vicario on 2020-07-06. 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?

20 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 2020-07-07, Constellation Software Inc. (CSU-T) stock closed at a price of $1568.81.