Should I buy Constellation Software stock in 2025?

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At HelloSafe, our expert has been monitoring Constellation Software’s performance for over three years. Each month, hundreds of thousands of Canadians rely on us to interpret market trends and pinpoint the best investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. As per our code of ethics, we have never received, and will never accept, compensation from Constellation Software.

What is Constellation Software?

How much is Constellation Software stock?

The price of Constellation Software stock is falling this week. As of now, CSU trades at CAD 4,968.35, showing a 0.27% decrease over the past 24 hours and down for the week. The company's market capitalization stands at CAD 105.58 billion, with a three-month average trading volume of approximately 40,060 shares.

With a high valuation and moderate market volatility, investors may find both risk and long-term growth potential in this TSX-listed giant.

Our full analysis on Constellation Software stock

We have thoroughly reviewed Constellation Software’s latest financial results alongside the stock’s outstanding performance trajectory over the past three years, deploying a blend of financial indicators, technical signals, comparative market data, and peer analysis refined through our proprietary algorithms. This holistic approach has yielded actionable insights into the sustainability of Constellation’s growth model, its valuation context, and near-term trading dynamics. So, why might Constellation Software once again become a strategic entry point into Canada’s technology sector in 2025?

Recent Performance and Market Context

Constellation Software (TSX:CSU) continues to command attention as one of the foremost Canadian technology stocks, with its market capitalization recently eclipsing CAD 105.6 billion and a current share price of CAD 4,968.35 (as of April 30, 2025). Over the last twelve months, shares have surged from a trough of CAD 3,535.00 to touch an all-time high of CAD 5,040.00, reflecting impressive resilience and investor confidence amid broader capital market volatility. This robust trend is underpinned by consistent top-line and bottom-line expansion, with revenue up 19.7% and net income surging by 29.4% year-on-year.

Recent catalysts have further reinforced market sentiment. The acquisition of Asseco in February 2025 and Valeyo in April 2024 have meaningfully expanded the firm’s addressable markets, adding recurring revenue streams while diversifying operational risk. Externally, the ongoing recovery of IT spending across public and private sectors and a favorable macro backdrop—characterized by secular digitalization trends and resilient enterprise software budgets—have provided fertile ground for continued growth within vertical software segments.

Technical Analysis

Technically, Constellation Software’s chart structure gives cause for optimism. The price is trading comfortably above the 20-day (CAD 4,744.41), 50-day (CAD 4,699.80), 100-day (CAD 4,660.50), and 200-day (CAD 4,501.25) moving averages, confirming both medium- and long-term bullish momentum. The relative strength index (RSI) of 61.87 signals healthy, but not overheated, buying interest, while the MACD remains deeply in bullish territory (+77.59), supporting the narrative of sustained upward pressure.

Support appears robust near CAD 4,724.00 and CAD 4,802.15—levels where buyers have repeatedly stepped in—while the 52-week high of CAD 5,040.00 is a logical resistance zone. Notably, moving averages are aligned to the upside, and trend-following indicators (13 buy signals vs. 1 sell among moving averages) further reinforce the argument that the stock may be poised for renewed upside, especially if upcoming financial catalysts materialize favorably.

Fundamental Analysis

On the fundamentals, Constellation Software demonstrates rare quality and consistency. With TTM revenues at CAD 14.48 billion and net income exceeding CAD 1.05 billion, the company’s 7.3% profit margin and 29.3% return on equity signal disciplined operational execution. Free cash flow stands at a robust CAD 1.32 billion, underpinning its acquisition strategy and providing ample flexibility for further investments or shareholder returns.

While the trailing P/E ratio of 100.42 may initially appear rich, the forward P/E of 38.27 and Price/Sales ratio of 7.56 reflect a more nuanced story: investors are willing to pay a premium for an enterprise with proven scalability, a fortress-like recurring revenue model, and stellar management. The structural strengths—portfolio diversification, high switching costs, and decentralized governance—yield attractive long-term risk-adjusted returns.

Constellation’s competitive advantage stems not just from its disciplined capital allocation and M&A expertise, but from an embedded culture of innovation and an expanding global footprint. As larger rivals chase growth in more commoditized areas, CSU has carved out a distinctive leadership position in niche vertical software, building a brand reputation for reliability, excellence, and relentless focus on value accretive opportunities.

Volume and Liquidity

Constellation Software’s liquidity profile remains excellent, with daily trading volumes (circa 39,784 shares) closely matching the 20-day average. This consistency points to robust institutional interest and a healthy, active float. The market capitalization and regular trading also support an efficient pricing environment, reducing volatility associated with thinly traded equities and creating more opportunities for dynamic valuation adjustments. Sustained volume at these price levels typically signals a high degree of market confidence—often a precursor to continued capital inflows and upward price re-ratings.

Catalysts and Positive Outlook

Looking ahead, several visible and emerging catalysts enhance the stock’s appeal. The upcoming Q1 earnings release (scheduled for May 12, 2025) is expected to showcase another quarter of double-digit growth, fortifying the company’s track record of over-delivering on guidance. Active M&A is likely to continue—recent moves, like the Asseco and Valeyo integrations, suggest a renewed appetite for value-accretive deals and geographic expansion. Moreover, management’s commitment to disciplined acquisition processes and the ongoing search for complementary verticals may unlock material cross-selling synergies and operational leverage.

Industry currents remain highly constructive. Software spending is projected to outpace broader IT growth, as enterprise and government clients prioritize mission-critical applications. In addition, regulatory environments in North America and Europe are generally supportive, and ESG-focused initiatives (from ethical AI to decarbonization of digital infrastructure) are set to further widen CSU’s competitive moat. All told, these drivers point to a continuation of, or even acceleration in, top- and bottom-line growth.

Investment Strategies

Constellation Software presents compelling arguments across multiple time frames:

• Short-term positioning: The stock is holding just below all-time highs but above key support. Entering at these levels ahead of Q1 results may allow investors to participate in a potential upside surprise while managing downside risk using the CAD 4,724.00 zone as a technical stop.
• Medium-term perspective: The cadence of acquisitions and possible guidance upgrades could drive a sustained re-rating, particularly if integration synergies play out faster than anticipated. This timeframe may also benefit from post-earnings momentum and positive analyst revisions.
• Long-term horizon: Investors focusing on compounding over years—and less sensitive to interim volatility or short-term valuation swings—will find Constellation’s structural strengths, recurring revenues, and highly capable capital allocators particularly attractive. The stock appears poised to remain a core Canadian technology holding, offering asymmetric upside and a rare blend of growth and resilience.

Given the stock’s position above major moving averages and proximity to key support zones, a staged accumulation around current levels could offer an optimal risk/reward profile—especially for investors seeking exposure ahead of likely positive catalysts.

Is it the Right Time to Buy Constellation Software?

In summary, Constellation Software currently combines robust technical momentum, enviable market leadership, and a proven acquisition-driven growth engine—all underscored by sector-wide tailwinds and multiple near-term catalysts. The fundamentals justify renewed interest, with sustained revenue and earnings expansion, superior free cash flow, and demonstrated discipline in both capital allocation and operational integration. Technical indicators suggest the stock may be entering a new bullish phase, and the liquidity environment is highly supportive of efficient market participation.

While valuation multiples remain elevated, these are increasingly validated by the company’s durable competitive advantages, impressive returns on equity, and the ongoing structural shift toward mission-critical enterprise software investments. For investors with a bias toward quality growth and a desire for exposure to one of Canada’s premier technology franchises, Constellation Software seems to represent an excellent opportunity—potentially ahead of its next phase of expansion and innovation.

In an environment where quality and consistency are at a premium, Constellation Software stands out as a stock deserving of close attention for those seeking to capitalize on Canada’s technology sector leadership and global software transformation.

How to buy Constellation Software stock in Canada?

Buying shares of Constellation Software (TSX:CSU) online is both straightforward and secure when you use a regulated Canadian broker. Whether you're a first-time investor or experienced trader, you can own shares directly (spot buying) or choose to speculate on the stock’s price movements via Contracts for Difference (CFDs). Spot buying means you become a shareholder, while CFDs let you take advantage of price changes with added flexibility and leverage. Each method involves different risks and fees—so it’s important to compare brokers' options (see our comparator lower on the page) before you invest.

Spot Buying

A cash, or spot, purchase means you buy actual Constellation Software shares on the Toronto Stock Exchange and become a part-owner of the company. Most Canadian brokers charge a fixed commission per order, generally around CAD $5–$10. For example, with CSU stock currently at CAD $4,968.35 per share, a $1,000 investment (including a $5 commission) gives you approximately 0.20 shares (since the price is high, you can purchase fractional shares with some brokers).

Gain scenario

Gain scenario: If the share price increases by 10%, your holdings are now worth $1,100.
Result: That’s a gross gain of $100, or +10% on your initial investment (excluding other fees and taxes).

Trading via CFD

CFDs (Contracts for Difference) allow you to speculate on Constellation Software’s price without actually owning the shares. With CFDs, you only need to deposit a portion of the total value (the margin) and can trade with leverage, magnifying both gains and losses. Typical fees include the variable spread (difference between buy and sell prices) and overnight financing costs if you keep positions longer than a day. For example, if you deposit $1,000 and trade CSU CFDs with 5x leverage, your market exposure is $5,000.

Gain scenario

Gain scenario: If CSU rises by 8%, your position gains 8% × 5 = 40%.
Result: That means a $400 gain on your $1,000 stake, before fees.

Final Advice

Before investing, it's vital to compare broker fees, available account types, and trading conditions. This step can make a big difference in your total returns. Ultimately, choosing between spot buying or CFD trading depends on your risk profile, investment horizon, and financial objectives. For detailed comparisons, check the broker overview further down the page.

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Our 7 tips for buying Constellation Software stock

The latest news about Constellation Software

Constellation Software reported year-over-year revenue growth of nearly 20% and earnings growth above 29% for 2024. This robust financial performance places the company among the fastest-growing large-cap tech firms in Canada, further cemented by its record CAD 14.48 billion in trailing-twelve-month revenue and over CAD 1 billion in net income. The company’s ability to deliver double-digit growth amid broader market volatility signals strong operational execution and effective integration of acquisitions, factors closely watched by Canadian institutional investors and portfolio managers.

The stock is trading above all major moving averages, confirming a sustained medium- to long-term bullish trend. Recent technical analysis demonstrates Constellation Software’s resilience, with its share price positioned comfortably above the 20-day, 50-day, 100-day, and 200-day moving averages. The MACD indicator also flashed a bullish signal, and the stock enjoys a “Strong Buy” recommendation from moving averages. These technical strengths are particularly noteworthy on the Toronto Stock Exchange, where Constellation’s price action is considered a bellwether for Canadian technology equities.

Constellation Software’s ongoing acquisition strategy remains active, highlighted by the recent Asseco transaction. In the past quarter, the company acquired treasury shares of Asseco in February 2025, underlining its commitment to strategic M&A as a core pillar of growth. These transactions are crucial for Canadian investors as they expand Constellation’s footprint across diversified verticals, increase recurring revenues, and demonstrate strong deal execution. The maintenance of a disciplined acquisition approach—targeting established, high-retention software businesses—continues to differentiate Constellation in the Canadian market landscape.

The company's financial stability and capital allocation are supported by strong free cash flow and sector-leading returns on equity. Free cash flow for the trailing twelve months reached CAD 1.32 billion, reinforcing the firm’s ability to fund future acquisitions without overleveraging. A return on equity of 29.27%, well above the industry average, signals operational excellence and disciplined management—metrics highly prized among Canadian pension funds and long-term institutional investors. This ongoing financial health is integral to sustaining Constellation Software’s aggressive yet prudent capital deployment.

As anticipation builds for the Q1 2025 earnings release on May 12, analysts maintain a broadly positive outlook. With the next earnings date imminent, sentiment in the Canadian analyst community is constructive, reflecting confidence in management’s guidance and the potential for further outperformance. Recent dividend stability—despite a modest yield—further reassures investors seeking stable capital returns. The stock’s performance and outlook continue to make it a cornerstone for Canadian technology-focused portfolios, particularly for those prioritizing growth and capital appreciation.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.