Constellation Software Stock Buy Hold or Sell Recommendation
| CSU Stock | CAD 4,645 141.48 3.14% |
Assuming the 90 days trading horizon and your complete indifference towards market risk, our recommendation regarding Constellation Software is 'Strong Buy'. The recommendation algorithm takes into account all of Constellation Software's available fundamental, technical, and predictive indicators you will find on this site.
Check out Constellation Software Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. In addition, we conduct extensive research on individual companies such as Constellation and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Constellation Software. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
Constellation |
Execute Constellation Software Buy or Sell Advice
The Constellation recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Constellation Software. Macroaxis does not own or have any residual interests in Constellation Software or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Constellation Software's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Buy
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Constellation Software Trading Alerts and Improvement Suggestions
| Constellation Software has accumulated 3.68 B in total debt with debt to equity ratio (D/E) of 0.72, which is about average as compared to similar companies. Constellation Software has a current ratio of 0.72, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Constellation Software until it has trouble settling it off, either with new capital or with free cash flow. So, Constellation Software's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Constellation Software sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Constellation to invest in growth at high rates of return. When we think about Constellation Software's use of debt, we should always consider it together with cash and equity. | |
| On 10th of October 2024 Constellation Software paid C$ 1.356 per share dividend to its current shareholders | |
| Latest headline from news.google.com: Constellation Software initiated with a Buy at UBS - TipRanks |
Constellation Software Returns Distribution Density
The distribution of Constellation Software's historical returns is an attempt to chart the uncertainty of Constellation Software's future price movements. The chart of the probability distribution of Constellation Software daily returns describes the distribution of returns around its average expected value. We use Constellation Software price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Constellation Software returns is essential to provide solid investment advice for Constellation Software.
| Mean Return | 0.15 | Value At Risk | -1.85 | Potential Upside | 2.24 | Standard Deviation | 1.34 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Constellation Software historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Constellation Software Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | 5M | 8M | 1M | (9M) | 4M | 4.2M | |
| Change In Cash | (273M) | 442M | 5M | 48M | 473M | 496.7M | |
| Free Cash Flow | 733M | 1.2B | 1.3B | 1.3B | 1.7B | 1.8B | |
| Depreciation | 423M | 508M | 639M | 819M | 1.0B | 1.1B | |
| Other Non Cash Items | 44M | 105M | 485M | (187M) | 860M | 903M | |
| Dividends Paid | 84.8M | 509M | 85M | 107M | 115M | 84.8M | |
| Capital Expenditures | 34M | 25M | 29M | 41M | 42M | 44.1M | |
| Net Income | 333M | 436M | 169M | 551M | 62M | 58.9M | |
| End Period Cash Flow | 316M | 758M | 763M | 811M | 1.3B | 1.3B | |
| Investments | (544M) | (512M) | (31M) | (1.7B) | (1.6B) | (1.6B) | |
| Net Borrowings | 63M | 66M | (120M) | 117M | 105.3M | 110.6M | |
| Change To Netincome | (38M) | 38M | 123M | 304M | 349.6M | 367.1M |
Constellation Software Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Constellation Software or Software sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Constellation Software's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Constellation stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.11 | |
β | Beta against Dow Jones | 0.32 | |
σ | Overall volatility | 1.35 | |
Ir | Information ratio | 0.03 |
Constellation Software Volatility Alert
Constellation Software has relatively low volatility with skewness of -0.08 and kurtosis of 0.1. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Constellation Software's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Constellation Software's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Constellation Software Fundamentals Vs Peers
Comparing Constellation Software's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Constellation Software's direct or indirect competition across all of the common fundamentals between Constellation Software and the related equities. This way, we can detect undervalued stocks with similar characteristics as Constellation Software or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Constellation Software's fundamental indicators could also be used in its relative valuation, which is a method of valuing Constellation Software by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Constellation Software to competition |
| Fundamentals | Constellation Software | Peer Average |
| Return On Equity | 0.14 | -0.31 |
| Return On Asset | 0.0774 | -0.14 |
| Profit Margin | 0.06 % | (1.27) % |
| Operating Margin | 0.15 % | (5.51) % |
| Current Valuation | 101.95 B | 16.62 B |
| Shares Outstanding | 21.19 M | 571.82 M |
| Shares Owned By Insiders | 5.69 % | 10.09 % |
| Shares Owned By Institutions | 42.36 % | 39.21 % |
| Number Of Shares Shorted | 87.46 K | 4.71 M |
| Price To Earning | 82.46 X | 28.72 X |
| Price To Book | 28.65 X | 9.51 X |
| Price To Sales | 10.16 X | 11.42 X |
| Revenue | 8.4 B | 9.43 B |
| Gross Profit | 2.32 B | 27.38 B |
| EBITDA | 1.46 B | 3.9 B |
| Net Income | 62 M | 570.98 M |
| Cash And Equivalents | 574 M | 2.7 B |
| Cash Per Share | 27.09 X | 5.01 X |
| Total Debt | 3.68 B | 5.32 B |
| Debt To Equity | 0.71 % | 48.70 % |
| Current Ratio | 0.73 X | 2.16 X |
| Book Value Per Share | 125.43 X | 1.93 K |
| Cash Flow From Operations | 1.78 B | 971.22 M |
| Short Ratio | 3.33 X | 4.00 X |
| Earnings Per Share | 42.73 X | 3.12 X |
| Price To Earnings To Growth | 1.21 X | 4.89 X |
| Target Price | 3441.97 | |
| Beta | 0.8 | -0.15 |
| Market Capitalization | 98.42 B | 19.03 B |
| Total Asset | 10.9 B | 29.47 B |
| Retained Earnings | 1.88 B | 9.33 B |
| Working Capital | (2.15 B) | 1.48 B |
| Current Asset | 556.3 M | 9.34 B |
Constellation Software Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Constellation . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Accumulation Distribution | 0.0319 | |||
| Daily Balance Of Power | 0.9515 | |||
| Rate Of Daily Change | 1.03 | |||
| Day Median Price | 4580.65 | |||
| Day Typical Price | 4601.95 | |||
| Market Facilitation Index | 148.69 | |||
| Price Action Indicator | 134.65 | |||
| Period Momentum Indicator | 141.48 | |||
| Relative Strength Index | 61.28 |
About Constellation Software Buy or Sell Advice
When is the right time to buy or sell Constellation Software? Buying financial instruments such as Constellation Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Other Information on Investing in Constellation Stock
Constellation Software financial ratios help investors to determine whether Constellation Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Constellation with respect to the benefits of owning Constellation Software security.