Constellation Software Inc.

CSU-T

TSE:CSU

1,292.15
28.97 (2.29%)
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.
More at Wikipedia

Analysis and Opinions about CSU-T

Signal
Opinion
Expert
PAST TOP PICK
PAST TOP PICK
February 8, 2016

(Top Pick Mar 19/15, Down 0.74%) The sale worked out well and one of his stop losses kicked in and he sold. He is continuing to watch it before repurchasing.

Show full opinionHide full opinion

(Top Pick Mar 19/15, Down 0.74%) The sale worked out well and one of his stop losses kicked in and he sold. He is continuing to watch it before repurchasing.

COMMENT
COMMENT
February 8, 2016

This is a serial acquirer in the software space and have done fantastically well with that business model. It has had a great 10 year run. He is generally very cynical about serial acquirers, so didn’t go into this. Doesn’t feel he can know this name as well as he would like to, because it is hard to see what the true organic growth is when they are making acquisitions. He wouldn’t look at this at these levels.

Show full opinionHide full opinion

This is a serial acquirer in the software space and have done fantastically well with that business model. It has had a great 10 year run. He is generally very cynical about serial acquirers, so didn’t go into this. Doesn’t feel he can know this name as well as he would like to, because it is hard to see what the true organic growth is when they are making acquisitions. He wouldn’t look at this at these levels.

TOP PICK
TOP PICK
January 29, 2016

The challenge is that the stock just keeps going up and it is very difficult to find an entry point. It is now down about 15% since January, and is at an entry point that many have waited for. Their core business is niche acquisition strategy, so they are acquiring small software companies. The average acquisition size is about $3 million, and they are focusing on a space that the bigger players are not interested in.

Show full opinionHide full opinion

The challenge is that the stock just keeps going up and it is very difficult to find an entry point. It is now down about 15% since January, and is at an entry point that many have waited for. Their core business is niche acquisition strategy, so they are acquiring small software companies. The average acquisition size is about $3 million, and they are focusing on a space that the bigger players are not interested in.

TOP PICK
TOP PICK
January 15, 2016

They do a lot of healthcare/government payroll sorts of things. They make organizations work more efficiently through software. This company is a huge acquirer. The founder still works at the company and has $500 million worth of stock. They don’t issue stock, the cash flow is great, balance sheet is really, really strong, they deliver on expectations, but they trade only in Canada and their earnings are in US$. They have had 11 days in a row where their earnings have gone up. Dividend yield of 1.06%.

Show full opinionHide full opinion

They do a lot of healthcare/government payroll sorts of things. They make organizations work more efficiently through software. This company is a huge acquirer. The founder still works at the company and has $500 million worth of stock. They don’t issue stock, the cash flow is great, balance sheet is really, really strong, they deliver on expectations, but they trade only in Canada and their earnings are in US$. They have had 11 days in a row where their earnings have gone up. Dividend yield of 1.06%.

SELL
SELL
January 13, 2016

Had been a long-term holder of this, but recently sold it when it broke down technically. This also has a lot to do with where we are in the market. Has been a fantastic performer, but doesn’t trade at a cheap multiple, so could be susceptible to lower prices.

Show full opinionHide full opinion

Had been a long-term holder of this, but recently sold it when it broke down technically. This also has a lot to do with where we are in the market. Has been a fantastic performer, but doesn’t trade at a cheap multiple, so could be susceptible to lower prices.

SELL
SELL
January 6, 2016

(Market Call Minute.) This would be a Sell at this time, on valuation and a slowdown on deals.

Show full opinionHide full opinion

(Market Call Minute.) This would be a Sell at this time, on valuation and a slowdown on deals.

HOLD
HOLD
December 23, 2015

There are certain business industries where you have recurring revenue, where clients are very, very sticky, and getting organic growth is relatively difficult, so it is cheaper to acquire.

Show full opinionHide full opinion

There are certain business industries where you have recurring revenue, where clients are very, very sticky, and getting organic growth is relatively difficult, so it is cheaper to acquire.

BUY
BUY
November 19, 2015

(Market Call Minute.) One of the best companies in Canada. They have never issued stock in 10 years and they just make money and cash flow.

Show full opinionHide full opinion

(Market Call Minute.) One of the best companies in Canada. They have never issued stock in 10 years and they just make money and cash flow.

COMMENT
COMMENT
November 2, 2015

At some point you get too big and the growth numbers come down. Maybe the pause in the last few months was the market seeing this coming. He is not sure on this one.

Show full opinionHide full opinion

At some point you get too big and the growth numbers come down. Maybe the pause in the last few months was the market seeing this coming. He is not sure on this one.

BUY
BUY
October 19, 2015

Still likes this and would have no problem recommending it. Stock seems to be performing well. An outstanding great buy and hold company.

Show full opinionHide full opinion

Still likes this and would have no problem recommending it. Stock seems to be performing well. An outstanding great buy and hold company.

HOLD
HOLD
September 8, 2015

This stock hits 2 of his biggest metrics, price momentum and value. Scores in the top 10% in momentum and in the top 20% on value. ROE is off the charts at 50%, and has historically had a strong Return on Equity for a long period of time. This doesn’t look expensive on a multiple basis.

Show full opinionHide full opinion

This stock hits 2 of his biggest metrics, price momentum and value. Scores in the top 10% in momentum and in the top 20% on value. ROE is off the charts at 50%, and has historically had a strong Return on Equity for a long period of time. This doesn’t look expensive on a multiple basis.

Jason Mann

Unlock Ratings

Price
$576.220
Owned
Unknown
PAST TOP PICK
PAST TOP PICK
August 25, 2015

(A Top Pick Oct 24/14. Up 84.82%.) The management team is so good at allocating capital.

Show full opinionHide full opinion

(A Top Pick Oct 24/14. Up 84.82%.) The management team is so good at allocating capital.

COMMENT
COMMENT
August 14, 2015

This continues to see all-time highs. It is really a story of making the right acquisitions and integrating them into their suite of other companies that they have. Have executed extremely well and doesn’t see any reason why that will not continue. The risk is that you are paying such a premium because the stock price has run up so much, but it is a growth name and you could have said that a year or 2 ago and missed out on some good gains. Trading at 26X estimated earnings, which is justified because of the future momentum or the acquisitions being digested.

Show full opinionHide full opinion

This continues to see all-time highs. It is really a story of making the right acquisitions and integrating them into their suite of other companies that they have. Have executed extremely well and doesn’t see any reason why that will not continue. The risk is that you are paying such a premium because the stock price has run up so much, but it is a growth name and you could have said that a year or 2 ago and missed out on some good gains. Trading at 26X estimated earnings, which is justified because of the future momentum or the acquisitions being digested.

COMMENT
COMMENT
July 30, 2015

This has been a great story. The caution for him is that it is growth by acquisition. The growth they have been showing really comes from a number of acquisitions, and most of them have gone extremely well. He prefers to have his technology investments in the US where there is a lot more geographical diversification and a lot more size and scale. He would be very cautious on this.

Show full opinionHide full opinion

This has been a great story. The caution for him is that it is growth by acquisition. The growth they have been showing really comes from a number of acquisitions, and most of them have gone extremely well. He prefers to have his technology investments in the US where there is a lot more geographical diversification and a lot more size and scale. He would be very cautious on this.

TOP PICK
TOP PICK
June 30, 2015

(A Top Pick June 19/14. Up 100.22%.) Currently this is correcting with the rest of the market. A fabulous business model and an extremely competent/astute management team. It has had a big correction, so you are getting in at about $500. They are raising debt right now, presumably to make some acquisitions. They are really smart allocators.

Show full opinionHide full opinion

(A Top Pick June 19/14. Up 100.22%.) Currently this is correcting with the rest of the market. A fabulous business model and an extremely competent/astute management team. It has had a big correction, so you are getting in at about $500. They are raising debt right now, presumably to make some acquisitions. They are really smart allocators.

HOLD
HOLD
June 5, 2015

Looking at the chart, obviously this has been a good stock to own. There are no reasons to Sell. A great looking chart.

Show full opinionHide full opinion

Looking at the chart, obviously this has been a good stock to own. There are no reasons to Sell. A great looking chart.

COMMENT
COMMENT
May 20, 2015

This has done a phenomenal job. Probably one of the highest compound return stocks in the last 3-4 years. They can probably continue to do what they are doing, but not at the same rate. He is happy to continue holding this.

Show full opinionHide full opinion

This has done a phenomenal job. Probably one of the highest compound return stocks in the last 3-4 years. They can probably continue to do what they are doing, but not at the same rate. He is happy to continue holding this.

HOLD
HOLD
May 6, 2015

When he originally recommended this, it was on 7 or 8 times earnings, but is now on about 28 times earnings. Considers this management to be the best capital allocators in Canada. They are raising debt right now, and why would they be doing this if they were not going to be doing big acquisitions. You won’t know about these until the morning the press release comes out, and the stock will pop.

Show full opinionHide full opinion

When he originally recommended this, it was on 7 or 8 times earnings, but is now on about 28 times earnings. Considers this management to be the best capital allocators in Canada. They are raising debt right now, and why would they be doing this if they were not going to be doing big acquisitions. You won’t know about these until the morning the press release comes out, and the stock will pop.

SELL
SELL
May 4, 2015

Bought at the IPO and he kept selling half as it has had a fabulous run. He finally sold the rest of it. It is a growth by acquisition story and when you keep adding verticals you eventually run out of critical mass. Prefers OTC-T.

Show full opinionHide full opinion

Bought at the IPO and he kept selling half as it has had a fabulous run. He finally sold the rest of it. It is a growth by acquisition story and when you keep adding verticals you eventually run out of critical mass. Prefers OTC-T.

BUY
BUY
April 29, 2015

They go out and buy software companies and let them do their thing. It is like a private equity company. It is an acquisition story.

Show full opinionHide full opinion

They go out and buy software companies and let them do their thing. It is like a private equity company. It is an acquisition story.

TOP PICK
TOP PICK
March 19, 2015

Record high today. Has had an incredible run. Growth is still impressive. Organic and growth by acquisition. 3% free cash flow yield and 19% return on assets. The stock is less volatility than others on the market. 20% growth expected this year and 22% next year. 1.14% dividend yield.

Show full opinionHide full opinion

Record high today. Has had an incredible run. Growth is still impressive. Organic and growth by acquisition. 3% free cash flow yield and 19% return on assets. The stock is less volatility than others on the market. 20% growth expected this year and 22% next year. 1.14% dividend yield.

TOP PICK
TOP PICK
February 5, 2015

(A Top Pick March 18/14. Up 44.13%.) Still buying today. The risk is that at some point the growth slows down, but in this case, it won’t be like a hay stack where it rolls over, but will just slow down because they got to a certain size. Did a bond issue last fall indicating they could be making an acquisition. They are brilliant capital allocators.

Show full opinionHide full opinion

(A Top Pick March 18/14. Up 44.13%.) Still buying today. The risk is that at some point the growth slows down, but in this case, it won’t be like a hay stack where it rolls over, but will just slow down because they got to a certain size. Did a bond issue last fall indicating they could be making an acquisition. They are brilliant capital allocators.

COMMENT
COMMENT
January 27, 2015

This is a growth by acquisition. There is going to come a point where there is compression in the earnings, but the whole sector is not experiencing this right now. The whole sector’s in a bull market and it is going to stay there.

Show full opinionHide full opinion

This is a growth by acquisition. There is going to come a point where there is compression in the earnings, but the whole sector is not experiencing this right now. The whole sector’s in a bull market and it is going to stay there.

PAST TOP PICK
PAST TOP PICK
December 24, 2014

(A Top Pick Dec 24/13. Up 56.36%.) There has been no technical analyst that has pounded the table on this over the last 5 years, and yet it keeps going up and up and up.

Show full opinionHide full opinion

(A Top Pick Dec 24/13. Up 56.36%.) There has been no technical analyst that has pounded the table on this over the last 5 years, and yet it keeps going up and up and up.

COMMENT
COMMENT
December 19, 2014

Chart shows a strong uptrend from 2011. Anything technology driven tends to do quite well over the earlier part of the winter. He is very long on the tech stocks right now. It may be a tiny bit ahead of itself, but generally speaking up is good and down is bad.

Show full opinionHide full opinion

Chart shows a strong uptrend from 2011. Anything technology driven tends to do quite well over the earlier part of the winter. He is very long on the tech stocks right now. It may be a tiny bit ahead of itself, but generally speaking up is good and down is bad.

PAST TOP PICK
PAST TOP PICK
November 28, 2014

(A Top Pick Oct 18/13. Up 81.67%.) Showing a lot of vitality. The current year’s growth rate is something like 35%-40%, and is expecting them to grow by at least 20% next year.

Show full opinionHide full opinion

(A Top Pick Oct 18/13. Up 81.67%.) Showing a lot of vitality. The current year’s growth rate is something like 35%-40%, and is expecting them to grow by at least 20% next year.

COMMENT
COMMENT
November 10, 2014

Growth by acquisition. Have done a very good job historically of buying companies. Ranks in the top 25% of his quantitative database. On a price to cash flow basis, it is trading about 14X 2015 earnings estimates, which is above the typical company. There is about a 13% cash flow growth forecast for 2015. He thinks they will continue to have organic growth as well as growth by acquisition.

Show full opinionHide full opinion

Growth by acquisition. Have done a very good job historically of buying companies. Ranks in the top 25% of his quantitative database. On a price to cash flow basis, it is trading about 14X 2015 earnings estimates, which is above the typical company. There is about a 13% cash flow growth forecast for 2015. He thinks they will continue to have organic growth as well as growth by acquisition.

DON'T BUY
DON'T BUY
November 6, 2014

Does not own it, but it is a hard company to bet against. Very high return on invested capital. They’re acquiring smaller companies. Their valuation allows them to do very accretive deals. It is expensive for his taste. Over the long term this is probably a good bet, however. The PE is over 20 today and he would get more interested at 15 times. It has been a great winner for growth investors.

Show full opinionHide full opinion

Does not own it, but it is a hard company to bet against. Very high return on invested capital. They’re acquiring smaller companies. Their valuation allows them to do very accretive deals. It is expensive for his taste. Over the long term this is probably a good bet, however. The PE is over 20 today and he would get more interested at 15 times. It has been a great winner for growth investors.

TOP PICK
TOP PICK
October 24, 2014

(A Top Pick Oct 18/13. Up 61.96%.) His target price for the end of 2015 is $400. They are the best allocators. Have a strong balance sheet. If you are only going to own one stock in Canada right now, this would be it. Trading at 16.5X 2015 earnings, and is growing at 30% a year.

Show full opinionHide full opinion

(A Top Pick Oct 18/13. Up 61.96%.) His target price for the end of 2015 is $400. They are the best allocators. Have a strong balance sheet. If you are only going to own one stock in Canada right now, this would be it. Trading at 16.5X 2015 earnings, and is growing at 30% a year.

HOLD
HOLD
September 26, 2014

There is no sign of a top. He sees no reason to sell. Technology is a very good sector to be in.

Show full opinionHide full opinion

There is no sign of a top. He sees no reason to sell. Technology is a very good sector to be in.

Showing 91 to 120 of 171 entries