Topic: How To Invest

Q: Hi: What is your opinion regarding Constellation Software (CSU) for a long-term investment? Thanks.

Article Excerpt

A: Constellation Software, $577.46, symbol CSU on Toronto (Shares outstanding: 21.2 million; Market cap: $12.6 billion; www.csisoftware.com), sells software tailored to individual businesses and agencies. Its 125,000 customers operate in both the public and private sectors of more than 100 countries. Constellation’s software serves a wide variety of businesses and industries. For example, it creates software to automate the scheduling and routing of vehicles for public transit systems. It also develops software for retail businesses to manage their point-of-sale transactions, store and customer relationship management, and warehouse and head-office operations. In the three months ended September 30, 2016, the company’s revenue rose 18.5%, to $545.6 million from $460.4 million a year earlier. (All figures except share price and market cap in U.S. dollars.) Most of the revenue increase came from acquisitions. Excluding one-time items, earnings in the quarter rose 22.2%, to $121.0 million, or $5.70 a share, from $99.0 million, or $4.67. Constellation has low debt, and holds cash of $304.5 million, or $14.36…