Constellation Software Inc
TSX:CSU

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Constellation Software Inc
TSX:CSU
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Price: 4 960 CAD -0.32% Market Closed
Market Cap: 105.1B CAD

Net Margin
Constellation Software Inc

7.2%
Current
7%
Average
1.9%
Industry

Net Margin measures how much net income is generated as a percentage of revenues received. It helps investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Net Margin
7.2%
=
Net Income
741m
/
Revenue
10.4B

Net Margin Across Competitors

Constellation Software Inc
Glance View

Economic Moat
Narrow
Market Cap
105.1B CAD
Industry
Technology

In 1995, Constellation Software Inc. embarked on a journey that would redefine how niche software companies operate and grow in the technology landscape. Founded by Mark Leonard, a former venture capitalist with a visionary knack for identifying untapped potential, Constellation started acquiring small software firms that catered to specific vertical markets. These were companies with specialized software solutions tailored to unique industry needs, from healthcare to public transit, where the competitive landscape was less crowded. By focusing on these vertical markets, Constellation enabled its subsidiaries to flourish in their niche domains by providing them with the necessary financial backing, strategic direction, and operational expertise. Unlike traditional software behemoths that invest heavily in research and development to drive organic growth, Constellation's strength lies in its decentralized approach that empowers acquired companies to maintain their entrepreneurial spirit. By allowing these businesses to operate independently, Constellation fosters an environment where innovation and customer focus thrive. Their revenue model primarily revolves around the acquisition of firms with high retention rates and sustainable recurring revenues. This focus on recurrent revenue streams, such as licensing and maintenance agreements, ensures a steady cash flow that can be reinvested into further acquisitions. Through this disciplined acquisition strategy and a long-term investment horizon, Constellation has created a robust portfolio of diverse yet synergistic companies, driving lasting value creation and consistent financial performance.

CSU Intrinsic Value
3 912.3 CAD
Overvaluation 21%
Intrinsic Value
Price
What is Net Margin?

Net Margin measures how much net income is generated as a percentage of revenues received. It helps investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Net Margin
7.2%
=
Net Income
741m
/
Revenue
10.4B
What is the Net Margin of Constellation Software Inc?

Based on Constellation Software Inc's most recent financial statements, the company has Net Margin of 7.2%.

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