Constellation Software Inc
TSX:CSU

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Constellation Software Inc
TSX:CSU
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Price: 5 066.8901 CAD 0.07% Market Closed
Market Cap: 107.4B CAD

ROE
Return on Equity

27.7%
Current
34%
Average
4.6%
Industry

ROE, or Return on Equity, is a key financial ratio that measures a company's profitability. Specifically, it measures how many dollars of profit are generated for each dollar of shareholder's equity. A higher ROE indicates better financial performance and effective use of capital, making it a valuable metric for investors assessing a company's earning potential.

ROE
27.7%
=
Net Income
741m
/
Equity
2.7B

ROE Across Competitors

Country Company Market Cap ROE
CA
Constellation Software Inc
TSX:CSU
107.4B CAD
28%
US
Ezenia! Inc
OTC:EZEN
567B USD
-1 024%
DE
SAP SE
XETRA:SAP
308.4B EUR
13%
US
Palantir Technologies Inc
NYSE:PLTR
296.3B USD
12%
US
Salesforce Inc
NYSE:CRM
275.3B USD
10%
US
Intuit Inc
NASDAQ:INTU
187.7B USD
17%
US
Adobe Inc
NASDAQ:ADBE
183B USD
46%
US
NCR Corp
LSE:0K45
140.3B USD
134%
US
Applovin Corp
NASDAQ:APP
125.4B USD
287%
US
Microstrategy Inc
NASDAQ:MSTR
101.6B USD
-11%
US
Cadence Design Systems Inc
NASDAQ:CDNS
87.5B USD
26%

Constellation Software Inc
Glance View

Economic Moat
Narrow
Market Cap
107.4B 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
3 949.105 CAD
Overvaluation 22%
Intrinsic Value
Price
What is Return on Equity?

ROE, or Return on Equity, is a key financial ratio that measures a company's profitability. Specifically, it measures how many dollars of profit are generated for each dollar of shareholder's equity. A higher ROE indicates better financial performance and effective use of capital, making it a valuable metric for investors assessing a company's earning potential.

ROE
27.7%
=
Net Income
741m
/
Equity
2.7B
What is the ROE of Constellation Software Inc?

Based on Constellation Software Inc's most recent financial statements, the company has ROE of 27.7%.

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