Canadian stock alert


CLOSING UPDATE: Constellation Software increased further 0.5% 24 July 2017 18:21 EDT


This is an end of day Alert, produced after today's Canadian market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Constellation Software, Canada's 2nd largest application software company by market capitalisation, traded on volume of 0.9 times average today while the price lifted CAD18.35 (or 2.8%) to trade at CAD682.05. Compared with the S&P/TSX 60 Index which fell 3.2 points (or 0.4%) in the day, this represented a relative price increase of 3.1%.

Technical indicators complementing today's significant uptrend:

+ In the last three months the stock has hit a new 52-week high nine times, pointing to a significant uptrend.

Fundamental measures by comparison with the sector average [in brackets] indicate:


+ Return on Equity 45.2% [16.1%]

+ Return on Assets 11% [7.9%]

+ Return on Capital Employed 30.5% [9.7%]

Other Bullish Signals include:

+ Interest cover is less leveraged at 14.3 times.

+ Total Liabilities/EBITDA of 2.7 is comfortably below the Joseph Piotroski benchmark of <5.

+ As per the Du Pont analysis, Return on Equity is high at 45.2%.


The stock has outperformed 78% of the Canadian market over the past 6 months.

Bearish Signals:

The negative 5.32 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

The price dropped 3.8% in the last month.

Tobin's Q Ratio is 6.1. Compared with the rest of the market the stock is overvalued and ranks in the bottom quartile of stocks by value of Q Ratio.

Net profit margin has averaged 8.5% in the last 3 years. This is lower than the sector average of 9.4% and suggests a low margin of safety.

Fundamental measures by comparison with the sector average [in brackets] indicate:


Price/Earnings of 50.5 [24.9]

Price/Earnings/Growth of 1.65 [0.4]

Price/Sales of 5.2 [2.6]


Afternoon Alert: Constellation Software lifts 2.2% on firm volume

24 July 2017 14:52 EDT

Constellation Software Inc. (TSX:CSU) traded on heavy volume of 1.2 times average so far today while the price lifted CAD14.76 (or 2.2%) to trade at CAD678.46.

Constellation Software Inc. (T:CSU; TSE:CSU; N:CSU; CN:CSU)

ISIN: CA21037X1006

PermID: 4295861824

CIK: Constellation Software Inc.