Constellation Software Profitability Analysis
| CSU Stock | CAD 2,487 71.19 2.95% |
Net Income | First Reported 2004-03-31 | Previous Quarter 56 M | Current Value 210 M | Quarterly Volatility 61.2 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.48 | 0.41 |
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| Net Profit Margin | 0.0612 | 0.0654 |
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| Pretax Profit Margin | 0.0705 | 0.0905 |
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| Return On Assets | 0.0582 | 0.0512 |
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| Return On Equity | 0.23 | 0.24 |
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For Constellation Software profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Constellation Software to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Constellation Software utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Constellation Software's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Constellation Software over time as well as its relative position and ranking within its peers.
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Constellation Software Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Constellation Software's current stock value. Our valuation model uses many indicators to compare Constellation Software value to that of its competitors to determine the firm's financial worth. Constellation Software is rated second in return on equity category among its peers. It also is rated second in return on asset category among its peers reporting about 0.40 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Constellation Software is roughly 2.52 . At this time, Constellation Software's Return On Equity is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Constellation Software by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Constellation Software's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Constellation Return On Asset vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Constellation Software |
| = | 0.2 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
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| = | 0.0812 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Constellation Return On Asset Comparison
Constellation Software is currently under evaluation in return on asset category among its peers.
Constellation Software Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Constellation Software, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Constellation Software will eventually generate negative long term returns. The profitability progress is the general direction of Constellation Software's change in net profit over the period of time. It can combine multiple indicators of Constellation Software, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -200.6 M | -190.6 M | |
| Operating Income | 665.9 M | 699.1 M | |
| Total Other Income Expense Net | 497.9 M | 522.8 M | |
| Net Income | 799.2 M | 839.2 M | |
| Income Tax Expense | 280.6 M | 294.6 M | |
| Income Before Tax | 1.2 B | 1.2 B | |
| Net Income From Continuing Ops | 882 M | 926.2 M | |
| Net Income Applicable To Common Shares | 840.6 M | 882.7 M | |
| Interest Income | 225.4 M | 236.7 M | |
| Net Interest Income | -198 M | -188.1 M | |
| Change To Netincome | 349.6 M | 367.1 M | |
| Net Income Per Share | 31.05 | 32.60 | |
| Income Quality | 3.23 | 4.31 | |
| Net Income Per E B T | 0.83 | 1.63 |
Constellation Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Constellation Software. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Constellation Software position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Constellation Software's important profitability drivers and their relationship over time.
Constellation Software Profitability Trends
Constellation Software profitability trend refers to the progression of profit or loss within a business. An upward trend means that Constellation Software's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Constellation Software's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.
Constellation Software Profitability Drivers Correlations
One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Constellation Software different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Constellation Software in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Constellation Software's future profitability.
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Constellation Software Earnings per Share Projection vs Actual
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Other Information on Investing in Constellation Stock
To fully project Constellation Software's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Constellation Software at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Constellation Software's income statement, its balance sheet, and the statement of cash flows.