Based on the measurements of profitability obtained from Constellation Software's financial statements, Constellation Software's profitability may be sliding down. It has an above-average chance of reporting lower numbers next quarter. Profitability indicators assess Constellation Software's ability to earn profits and add value for shareholders.
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.
By analyzing Constellation Software's earnings estimates, investors can diagnose different trends across Constellation Software's analyst sentiment over time as well as compare current EPS estimates against different timeframes. Please be aware that the consensus of earnings estimates for Constellation Software is based on EPS before non-recurring items and includes expenses related to employee stock options.
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Constellation Software is projected to generate 27.96 in earnings per share on the 31st of December 2025. Constellation Software earnings estimates show analyst consensus about projected Constellation Software EPS (Earning Per Share). It derives the highest and the lowest estimates based on Constellation Software's historical volatility. Many public companies, such as Constellation Software, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm. By analyzing Constellation Software's earnings estimates, investors can diagnose different trends across Constellation Software's analyst sentiment over time as well as compare current estimates against different timeframes.
Please note, there is a significant difference between Constellation Software's value and its price as these two are different measures arrived at by different means. Investors typically determine if Constellation Software is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Constellation Software's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Constellation Software Market Capitalization vs. Operating Margin 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 fourth in operating margin category among its peers. It is number one stock in market capitalization category among its peers creating about 400,005,000,653 of Market Capitalization per Operating Margin. At this time, Constellation Software's Operating Profit Margin 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 Market Capitalization vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Constellation Software
Operating Margin
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Operating Income
Revenue
X
100
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0.17 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Market Capitalization is the total market value of a company's equity. It is one of many ways to value a company and is calculated by multiplying the price of the stock by the number of shares issued. If a firm has one type of stock its market capitalization will be the current market share price multiplied by the number of shares. However, if a company has multiple types of equities then the market cap will be the total of the market caps of the different types of shares.
Constellation Software
Market Cap
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Shares Outstanding
X
Share Price
=
68.64 B
In most publications or references market cap is broken down into the mega-cap, large-cap, mid-cap, small-cap, micro-cap, and nano-cap. Market Cap is a measurement of business as total market value of all of the outstanding shares at a given time, and can be used to compare different companies based on their size.
Constellation Market Capitalization vs Competition
Constellation Software is number one stock in market capitalization category among its peers. Market capitalization of Information Technology industry is currently estimated at about 160.28 Billion. Constellation Software totals roughly 68.64 Billion in market capitalization claiming about 43% of equities under Information Technology industry.
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.
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 Earnings per Share Projection vs Actual
Use Constellation Software in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Constellation Software position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Constellation Software will appreciate offsetting losses from the drop in the long position's value.
Constellation Software Pair Trading
Constellation Software Pair Trading Analysis
The ability to find closely correlated positions to Constellation Software could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Constellation Software when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Constellation Software - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Constellation Software to buy it.
The correlation of Constellation Software is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Constellation Software moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Constellation Software moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Constellation Software can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Use Investing Themes to Complement your Constellation Software position
In addition to having Constellation Software in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.
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Sports
Companies in sporting activities arena as well as manufacturers of sporting goods and sport retailers. The Sports theme has 25 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Sports Theme or any other thematic opportunities.
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.
Potential Constellation Software investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Constellation Software investors may work on each financial statement separately, they are all related. The changes in Constellation Software's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Constellation Software's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
