Constellation Software Inc "Bottoming amidst Value Creation Optionality" (Buy)

研报英文原文证据摘录

Constellation Software Inc "Bottoming amidst Value Creation Optionality" (Buy)

Global Research

13 May 2026ab

Constellation Software Inc Equities

CanadaBottoming amidst Value Creation Optionality

Software

12-month rating Buy

Bottom Line

We believe the CSU stock is bottoming—following a very strong Q1 with the company 12m price target C$3,850.00

suggesting recent inorganic activity is sustainable. The market continues to mismark its

track record of disciplined M&A—acquiring companies for an estimated ~1x revenue

Price (13 May 2026) C$2,398.44

historically—with AI uncertainty creating more NOT less opportunity. With less than

~15% market share in small/medium vertical market software [VMS] we see increased RIC: CSU.TO BBG: CSU CN

optionality as Constellation enhances inorganic opportunities with its permanent

Trading data and key metrics

engaged minority shareholder [PEMS] strategy. As AI implementation efforts surface, we

52-wk range C$5,066.89-2,258.18

believe its moats—wide access to data and preferred acquirer data—are unlikely to fade

as enterprise AI reaches wider adoption. We remain Buy with C$3,850 target and Market cap. C$50.8b/US$37.1b

highlight Q1 key call takes as follows: Shares o/s 21.2m (COM)

Free float 93%

Margin—declined slightly YoY amid recent acquisitions and increased use of third Avg. daily volume ('000) 80.5

party providers—including external coding. Constellation committed $809m— Avg. daily value (m) C$204.4

$697m cash + $112m deferred payments—to M&A in Q1 with $786m—$627m +

Common s/h equity (12/26E) US$4.75b

$159m deferred payments—since 3/31 suggesting M&A momentum likely

P/BV (12/26E) 7.8x

continues.

Net debt to EBITDA (12/26E) 0.5x

AI tools—deploying internally to run portfolios and develop more software in an

EPS (UBS, diluted) (USD)