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Constellation Software Inc T.CSU

Alternate Symbol(s):  CNSWF | T.CSU.DB

Constellation Software Inc. is a provider of software and services to a select group of public and private sector markets. The Company acquires, manages, and builds vertical market software (VMS) businesses, which provide specialized, mission-critical software solutions that address the specific needs of its customers. It is engaged principally in the development, installation, and customization of software as well as in the provisioning of related professional services and support for customers globally. It sells on-premises software licenses on both a perpetual and specified-term basis. It has six operating groups, which service customers in over 100 different markets around the world. The six operating groups include Volaris, Harris, Topicus, Vela, Jonas, and Perseus Group. The Company operates offices in North America, Europe, Australia, South America and Africa.


TSX:CSU - Post by User

Bullboard Posts
Post by lotus1on Oct 26, 2015 10:34pm
373 Views
Post# 24229253

Why Constellation Software Inc. Is Canada’s Tech Giant

Why Constellation Software Inc. Is Canada’s Tech GiantThe Motley Fool - By Doug Watt - October 26, 2015 | More on: CSU : Investors looking longingly at stellar earnings results from Amazon and Alphabet Inc. (Googles new holding company) have a Canadian option to consider: Constellation Software Inc. (TSX:CSU) ___ The software-business giants stock is up 66% year-to-date, with a stunning five-year return of 1,200%. The company gets little media attention, but will be in the news this week when it releases its third-quarter results on October 29. Investors will be hoping for similar results compared with the second quarter, when Constellation grew its revenue by 7% to $444 million and reported adjusted net income of $80 million, up 23% from the prior years second quarter. ___ Analysts are keen on Constellation, even though the triple-digit stock is expensive by Canadian standards. Jason Donville, president and CEO at Donville Kent Asset Management, expects the company to grow by at least 25% in 2015 and to once again generate superior, risk adjusted returns for its shareholders. ___ Other analysts also like Constellation. Morningstar recently listed the company as a favourite of institutional investors, with an annual earnings momentum of 44%. ___ Constellation is known for its shrewd acquisitions. Although Q3 has been relatively quiet, in September the company closed a deal through its Perseus division to acquire the Market Leader business from Zillow Group. Market Leader is a CRM software system for the real estate industry. The deal cost Constellation US$23 million; its not a bad price when you consider that two years ago, the Market Leader group sold for $355 million when Zillow purchased Trulia, the former owner of Market Leader. Constellation completed eight smaller acquisitions in Q2 worth $112 million. Constellation pays a quarterly dividend of $1 per share, a number that could be considered low considering the company has a market cap of $12.31 billion and an enterprise value of $12.6 billion. The company has maintained its dividend at this price since it began paying a dividend in April 2012. Constellation may be a stock for investors with deep pockets, but considering its track record, its unlikely to be a company youll regret buying.
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