Constellation Software Inc.

CSU-T

TSE:CSU

1,304.47
47.21 (3.49%)
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
COMMENT
COMMENT
June 7, 2017

A growth rollup strategy. They have grown a lot by acquisition as well as some organic growth. Trading at close to 50X earnings. It only needs to stumble a little in order to cause a great deal of disappointment. In order to continue the growth and the appreciation that we have seen, they have to continue to surprise people on the upside and continue on the growth pattern.

A growth rollup strategy. They have grown a lot by acquisition as well as some organic growth. Trading at close to 50X earnings. It only needs to stumble a little in order to cause a great deal of disappointment. In order to continue the growth and the appreciation that we have seen, they have to continue to surprise people on the upside and continue on the growth pattern.

Michael Sprung
President, Sprung Investment Management
Price
$700.280
Owned
No
COMMENT
COMMENT
May 3, 2017

Essentially a serial acquirer of companies, which they roll into their product offering. Focused on smaller size companies. He bought this at $100 a share, and sold it last year at $629. It is going to become increasingly difficult for them to move the share price higher.

Essentially a serial acquirer of companies, which they roll into their product offering. Focused on smaller size companies. He bought this at $100 a share, and sold it last year at $629. It is going to become increasingly difficult for them to move the share price higher.

Kash Pashootan
CEO & Chief Investment Officer, First Avenue Investment Counsel
Price
$660.100
Owned
No
BUY
BUY
March 29, 2017

He likes them a lot. It is bullish when you see a company consolidate. They are forming another base or handle around $650. It would just take a large acquisition in order to move higher.

He likes them a lot. It is bullish when you see a company consolidate. They are forming another base or handle around $650. It would just take a large acquisition in order to move higher.

Jason Del Vicario
Portfolio Manager, HollisWealth
Price
$654.490
Owned
Yes
PAST TOP PICK
PAST TOP PICK
March 14, 2017

(A Top Pick Jan 29/16. Up 29%.) Focused in software and they have traditionally made acquisitions of smaller software companies. The challenge is that this is a $13 billion company, so they need to do 40-50 acquisitions yearly to really move the needle.

(A Top Pick Jan 29/16. Up 29%.) Focused in software and they have traditionally made acquisitions of smaller software companies. The challenge is that this is a $13 billion company, so they need to do 40-50 acquisitions yearly to really move the needle.

Kash Pashootan
CEO & Chief Investment Officer, First Avenue Investment Counsel
Price
$651.540
Owned
No
HOLD
HOLD
March 9, 2017

A fabulously run company. A great case study if you want to study how a company can grow through acquisition. When they started off, the idea was to buy companies between $5-$7 million. They focused on smaller companies, because in that way they were not competing with private equity. However, today the company is a $13 billion company, and they are still going after these small $5-$7 million companies. If it pulled back, he would consider buying it then.

A fabulously run company. A great case study if you want to study how a company can grow through acquisition. When they started off, the idea was to buy companies between $5-$7 million. They focused on smaller companies, because in that way they were not competing with private equity. However, today the company is a $13 billion company, and they are still going after these small $5-$7 million companies. If it pulled back, he would consider buying it then.

Teal Linde
Portfolio Manager & Publisher, Linde Equity Report, Linde Equity Report
Price
$648.990
Owned
No
HOLD
HOLD
February 23, 2017

We should see it fall back due to it getting to the end of the period of seasonality. He would put a stop in place. It was going down then the market is going up.

We should see it fall back due to it getting to the end of the period of seasonality. He would put a stop in place. It was going down then the market is going up.

Brooke Thackray
Research Analyst, Horizons ETFs (Canada) Inc.
Price
$630.440
Owned
Unknown
COMMENT
COMMENT
January 24, 2017

Recently added to his position as it broke through previous resistance in the high $500s. This has been the best performing stock on the TSX over the past 10 years. Their compound average growth rate of the stock price has been over 40% during those 10 years. Feels management are among the top 5 capital allocators in Canada. They feel there are more Canadian software companies that they could take over. Also, owns their debenture, and the interest rate is tied to inflation, so it is at 6.5% plus the trailing CPI.

Recently added to his position as it broke through previous resistance in the high $500s. This has been the best performing stock on the TSX over the past 10 years. Their compound average growth rate of the stock price has been over 40% during those 10 years. Feels management are among the top 5 capital allocators in Canada. They feel there are more Canadian software companies that they could take over. Also, owns their debenture, and the interest rate is tied to inflation, so it is at 6.5% plus the trailing CPI.

Jason Del Vicario
Portfolio Manager, HollisWealth
Price
$611.460
Owned
Yes
PAST TOP PICK
PAST TOP PICK
January 18, 2017

(A Top Pick Jan 15/16. Up 17.36%.) This has been one of the greatest stocks in Canada over the last 10 years. They haven’t issued any more shares. Earnings have gone up tenfold. They’ve done great acquisitions. They have 100 people dedicated to acquisitions full-time in software.

(A Top Pick Jan 15/16. Up 17.36%.) This has been one of the greatest stocks in Canada over the last 10 years. They haven’t issued any more shares. Earnings have gone up tenfold. They’ve done great acquisitions. They have 100 people dedicated to acquisitions full-time in software.

Peter Hodson
CEO & Head of Research, 5i Research Inc.
Price
$599.690
Owned
No
BUY
BUY
January 12, 2017

(Market Call Minute.) You can’t bet against this company. One of these days they won’t find deals to do, but a very high quality company with lots of return on invested capital.

(Market Call Minute.) You can’t bet against this company. One of these days they won’t find deals to do, but a very high quality company with lots of return on invested capital.

James Telfser
Partner & Portfolio Manager, Aventine Management Group
Price
$589.190
Owned
Unknown
COMMENT
COMMENT
November 4, 2016

This has been a very interesting company over the years. It is one of the companies that has progressed on a rollup strategy through acquisitions. You have to give them credit for having made some very, very sharp purchases. Multiples are sort of dependent on that growth continuing. As a value investor, these are very difficult companies for him to Buy, because the multiple on the growth aspect is far ahead of the immediate fundamentals that underlie the earnings. Not one that he would purchase.

This has been a very interesting company over the years. It is one of the companies that has progressed on a rollup strategy through acquisitions. You have to give them credit for having made some very, very sharp purchases. Multiples are sort of dependent on that growth continuing. As a value investor, these are very difficult companies for him to Buy, because the multiple on the growth aspect is far ahead of the immediate fundamentals that underlie the earnings. Not one that he would purchase.

Michael Sprung
President, Sprung Investment Management
Price
$629.000
Owned
No
COMMENT
COMMENT
October 26, 2016

(Market Call Minute.) Their earnings are coming out right away and it will be interesting to see what happens. He likes it.

(Market Call Minute.) Their earnings are coming out right away and it will be interesting to see what happens. He likes it.

Bruce Campbell (2)
President & Portfolio Manager, Stone Castle Investment Management Inc.
Price
$588.000
Owned
Yes
TOP PICK
TOP PICK
October 20, 2016

This buys other software companies, and are now at the scale where they are really well diversified. Feels management is top in class if not the best management team in Canada. Excellent allocators of capital. They are in a whole slew of verticals. Very disciplined in terms of their acquisition strategies. Have just gone through a period of consolidation, and look to be set to head to new highs. Dividend yield of 0.89%

This buys other software companies, and are now at the scale where they are really well diversified. Feels management is top in class if not the best management team in Canada. Excellent allocators of capital. They are in a whole slew of verticals. Very disciplined in terms of their acquisition strategies. Have just gone through a period of consolidation, and look to be set to head to new highs. Dividend yield of 0.89%

Jason Del Vicario
Portfolio Manager, HollisWealth
Price
$590.370
Owned
Yes
COMMENT
COMMENT
September 1, 2016

The CEO is right up there with the top capital allocators ever. He’s done a remarkable job of growing the company, and using free cash flow for making more and more software acquisitions. They essentially own companies that have a lot of service and annuity revenue. The free cash flow comes back into that office, and they go out and buy more. Too expensive for him. Thinks the big run is over.

The CEO is right up there with the top capital allocators ever. He’s done a remarkable job of growing the company, and using free cash flow for making more and more software acquisitions. They essentially own companies that have a lot of service and annuity revenue. The free cash flow comes back into that office, and they go out and buy more. Too expensive for him. Thinks the big run is over.

Barry Schwartz
CIO & Portfolio Manager, Baskin Wealth Management
Price
$577.990
Owned
No
BUY WEAKNESS
BUY WEAKNESS
August 29, 2016

He likes it. $400 model price, but they could do a lot of things to increase the model price, such as a stock split.

He likes it. $400 model price, but they could do a lot of things to increase the model price, such as a stock split.

Brian Acker, CA
Chief Executive Officer, President and Chief Inves, Acker Finley Inc.
Price
$559.860
Owned
Yes
COMMENT
COMMENT
July 26, 2016

This has done extremely well. The 5-year chart shows a big range, and right now he is just neutral. The stock is not hanging around its highs. He suspects there will be some sellers coming in. It might have good support at around $380-$400, but then you have resistance from $500 and up with a very, very slight bearish bias.

This has done extremely well. The 5-year chart shows a big range, and right now he is just neutral. The stock is not hanging around its highs. He suspects there will be some sellers coming in. It might have good support at around $380-$400, but then you have resistance from $500 and up with a very, very slight bearish bias.

William Chin
Portfolio manager, Caldwell Investment Management
Price
$514.010
Owned
Unknown
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