Constellation Software Net Income vs. Return On Equity
| CSU Stock | CAD 4,659 9.38 0.20% |
Net Income | First Reported 2004-03-31 | Previous Quarter 105 M | Current Value 177 M | Quarterly Volatility 53.5 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.61 | 0.8848 |
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| Net Profit Margin | 0.061 | 0.0672 |
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| Operating Profit Margin | 0.11 | 0.1405 |
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| Pretax Profit Margin | 0.03 | 0.0315 |
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| Return On Assets | 0.0589 | 0.0518 |
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| Return On Equity | 0.23 | 0.3012 |
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For Constellation Software profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Constellation Software to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Constellation Software utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Constellation Software's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Constellation Software over time as well as its relative position and ranking within its peers.
Constellation |
Constellation Software Return On Equity vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Constellation Software's current stock value. Our valuation model uses many indicators to compare Constellation Software value to that of its competitors to determine the firm's financial worth. Constellation Software is rated fifth in net income category among its peers. It is rated fourth in return on equity category among its peers . The ratio of Net Income to Return On Equity for Constellation Software is about 452,224,654 . At this time, Constellation Software's Net Income is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Constellation Software by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Constellation Software's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Constellation Return On Equity vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Constellation Software |
| = | 62 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Constellation Software |
| = | 0.14 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Constellation Return On Equity Comparison
Constellation Software is currently under evaluation in return on equity category among its peers.
Constellation Software Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Constellation Software, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Constellation Software will eventually generate negative long term returns. The profitability progress is the general direction of Constellation Software's change in net profit over the period of time. It can combine multiple indicators of Constellation Software, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -99 M | -94 M | |
| Operating Income | 1.2 B | 1.2 B | |
| Total Other Income Expense Net | -916 M | -870.2 M | |
| Net Income | 62 M | 58.9 M | |
| Income Tax Expense | 204 M | 214.2 M | |
| Income Before Tax | 265 M | 238.2 M | |
| Net Income From Continuing Ops | 61 M | 58 M | |
| Net Income Applicable To Common Shares | 588.8 M | 304.9 M | |
| Interest Income | 4 M | 3.8 M | |
| Net Interest Income | -164 M | -155.8 M | |
| Change To Netincome | 349.6 M | 367.1 M | |
| Net Income Per Share | 26.66 | 27.99 | |
| Income Quality | 28.69 | 30.13 | |
| Net Income Per E B T | 2.13 | 1.65 |
Constellation Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Constellation Software. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Constellation Software position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Constellation Software's important profitability drivers and their relationship over time.
Use Constellation Software in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Constellation Software position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Constellation Software will appreciate offsetting losses from the drop in the long position's value.Constellation Software Pair Trading
Constellation Software Pair Trading Analysis
The ability to find closely correlated positions to Constellation Software could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Constellation Software when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Constellation Software - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Constellation Software to buy it.
The correlation of Constellation Software is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Constellation Software moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Constellation Software moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Constellation Software can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Constellation Software position
In addition to having Constellation Software in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Banks - Regional Thematic Idea Now
Banks - Regional
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Banks - Regional theme has 19 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Banks - Regional Theme or any other thematic opportunities.
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Other Information on Investing in Constellation Stock
To fully project Constellation Software's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Constellation Software at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Constellation Software's income statement, its balance sheet, and the statement of cash flows.