
Constellation Software Inc
TSX:CSU

ROE
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 Across Competitors
Country | Company | Market Cap | ROE | ||
---|---|---|---|---|---|
CA |
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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 |
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Palantir Technologies Inc
NYSE:PLTR
|
296.3B USD |
12%
|
|
US |
![]() |
Salesforce Inc
NYSE:CRM
|
275.3B USD |
10%
|
|
US |
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Intuit Inc
NASDAQ:INTU
|
187.7B USD |
17%
|
|
US |
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Adobe Inc
NASDAQ:ADBE
|
183B USD |
46%
|
|
US |
N
|
NCR Corp
LSE:0K45
|
140.3B USD |
134%
|
|
US |
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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
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.

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