Constellation Software Inc
TSX:CSU
ROIC
Return on Invested Capital
ROIC, or Return on Invested Capital, tells you how good a company is at turning its invested money into profits. In simple terms, ROIC shows how many dollars of profit the company makes for each dollar it has invested. A higher ROIC usually means the company is using its money wisely to grow and make more profits, which is a good sign for investors.
ROIC Across Competitors
| Country | Company | Market Cap | ROIC | ||
|---|---|---|---|---|---|
| CA |
|
Constellation Software Inc
TSX:CSU
|
105.6B CAD |
12%
|
|
| US |
|
Ezenia! Inc
OTC:EZEN
|
567B USD |
-232%
|
|
| DE |
|
SAP SE
XETRA:SAP
|
301B EUR |
11%
|
|
| US |
|
Palantir Technologies Inc
NYSE:PLTR
|
306.6B USD |
35%
|
|
| US |
|
Salesforce Inc
NYSE:CRM
|
262.3B USD |
9%
|
|
| US |
|
Intuit Inc
NASDAQ:INTU
|
216.7B USD |
14%
|
|
| US |
|
Adobe Inc
NASDAQ:ADBE
|
164.4B USD |
28%
|
|
| US |
N
|
NCR Corp
LSE:0K45
|
154.3B USD |
1%
|
|
| US |
|
Applovin Corp
NASDAQ:APP
|
112.9B USD |
53%
|
|
| US |
|
Microstrategy Inc
NASDAQ:MSTR
|
102.2B USD |
0%
|
|
| US |
|
Cadence Design Systems Inc
NASDAQ:CDNS
|
83.3B USD |
23%
|
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
ROIC, or Return on Invested Capital, tells you how good a company is at turning its invested money into profits. In simple terms, ROIC shows how many dollars of profit the company makes for each dollar it has invested. A higher ROIC usually means the company is using its money wisely to grow and make more profits, which is a good sign for investors.
Based on Constellation Software Inc's most recent financial statements, the company has ROIC of 12.4%.
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