Investor Insights

This summary was created by AI, based on 8 opinions in the last 12 months.

Topicus.Com Inc. (TOI-X), a spin-off of Constellation Software (CSU), has garnered attention for its strong growth potential in the European SaaS market. The company has shown a commendable organic growth rate of around 5% and is following a similar acquisition strategy as CSU, leading to optimistic long-term projections. While some analysts express concern over a recent slowdown in acquisition activity and revenue growth, many remain bullish on the long-term outlook, especially considering its potential to expand beyond European markets. The stock is viewed as an exciting compounder, capable of being held for an extended period, although it does not currently offer dividends. Overall, Topicus is recognized for having a solid track record of high returns on capital and a strong growth rate in profits and revenues, making it an appealing choice for long-term investors.

Consensus
Bullish
Valuation
Undervalued
TOP PICK

Does the same thing as CSU, but focusing on European markets. Nice 5% organic growth rate, which is very good. Deployed a lot of capital this year at really good rates of return. One of the most exciting compounders in Canada. Can hold for an extended period of time, as in 15-20 years. No dividend.

(Analysts’ price target is $163.00)
PAST TOP PICK
(A Top Pick Jan 23/24, Up 57%)

Following same playbook as CSU. A true compounder. No end to the companies it can acquire, now looking beyond Europe.

BUY

As a spin-off of Constellation Software. It has the same business model as CSU, only its focus is on the European SaaS market. It is growing well and its valuation is similar to CSU.

HOLD
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

The slowdown in TOI's acquisition pace and revenue growth is concerning for sure, given that a lot of optimism has been priced into the share price due to its involvement with CSU. That being said, one year does not make a trend, and historically, CSU also experienced a similar situation in one year where the company’s growth was only 10% (FY2015) and a few years of around 13% (FY2019 and FY2020). Companies are run by people, not machines, over the next ten years, there will be great years, bad years, and so-so years. We would remain bullish on TOI but, at the same time, we would be open enough to change our minds if the operating results do not improve over time.
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COMMENT

It follows the Constellation Software model. It is European focussed which is perceived to be a problem and North America is more in favour at the moment. However it could spin the European situation into a positive situation. Their accretive acquisition model should be good. Don't look at the quarters but instead rely on management and the overall strategy.

BUY

Excellent business with very high growth rate, profits & revenues. Europe tech exposure very strong. Would recommend investing if want a good long term investment. Very similar to Constellation Software. Owns shares in portfolio. Expecting 25% appreciation on stock price annually. 

SELL

He sold and put proceeds back into CSU, the mother ship. Reasons included CSU still owning part of the spinoff. So when you own CSU, you still own part of TOI and LMN. Plus, analysis became simpler. CSU will probably do further spinoffs.

Now, stock price of CSU is high if you aren't awash in funds. His kids collect bottles and cans for extra money, and they can afford and own TOI shares, but not CSU. They eat their own cooking in the Del Vicario family ;)

TOP PICK

This was the first Constellation Software spinoff and is essentially the CSU of Europe. It has a high ROC, high margins and just paid a special dividend. It has a great track record of acquisitions. It doesn't get a lot of attention and so is trading at a 20 to 25% discount to CSU and LMN and is the cheapest of the three.     Buy 0  Hold 1  Sell 0

(Analysts’ price target is $121.00)
DON'T BUY
TOI vs. CSU 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.

BUY

Very good business model. Would not wait for a buyout from Constellation Software - business strong on its own. High returns on capital. Excellent management team. Good business overall for the long term investor. 

PARTIAL BUY

Still a bit of runway to his price target of $126. Rolled over a bit. Wait for a pullback. You could buy a 1/3 position today around $104, but you can probably get it around $95, and then $90 if you're lucky.

TOP PICK

Exciting, because it's using the CSU playbook and growing faster. Acquires small software companies based in Europe, with lots of countries and lots of languages. Lots of runway. It's small, so small acquisitions can move the needle. Willing to take on more leverage. 8% organic growth. No dividend.

(Analysts’ price target is $99.00)
DON'T BUY

He holds shares from the CSU spinoff, but he hasn't bought any more. CSU has a unique business model, and you can't just easily replicate that in the spinoffs. He's more inclined to stay with CSU.

BUY
CSU vs. TOI vs. LMN.

CSU still owns 61% of Lumina, so they're still driving the bus. Lumina geared towards media side. LMN is supposed to be the mini-Constellation. 

CSU has gone through its price target. LMN is under its price target. So LMN is probably a little cheaper.

He'd invest in all 3. Say you had $100K. He'd put 60% in CSU, and split the rest between TOI and LMN.

PARTIAL BUY

Lots of runway ahead. However, its primary business lies in Europe where geopolitics have held TOI back. Still, you can buy it here, then add more at $83 and $79.

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Topicus.Com Inc.(TOI-X) Rating

Ranking : 4 out of 5

Star iconStar iconStar iconStar iconStar empty icon

Bullish - Buy Signals / Votes : 3

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 5

Stockchase rating for Topicus.Com 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.

Topicus.Com Inc.(TOI-X) Frequently Asked Questions

What is Topicus.Com Inc. stock symbol?

Topicus.Com Inc. is a Canadian stock, trading under the symbol TOI-X on the TSX Venture Exchange (TOI-CV). It is usually referred to as TSXV:TOI or TOI-X

Is Topicus.Com Inc. a buy or a sell?

In the last year, 5 stock analysts published opinions about TOI-X. 3 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 Topicus.Com Inc..

Is Topicus.Com Inc. a good investment or a top pick?

Topicus.Com Inc. was recommended as a Top Pick by on . Read the latest stock experts ratings for Topicus.Com Inc..

Why is Topicus.Com 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 Topicus.Com Inc. worth watching?

5 stock analysts on Stockchase covered Topicus.Com Inc. In the last year. It is a trending stock that is worth watching.

What is Topicus.Com Inc. stock price?

On 2025-04-03, Topicus.Com Inc. (TOI-X) stock closed at a price of $143.86.