Constellation Software (TSX:CSU) Beneish M-Score: -2.70 (As of Jun. 25, 2026)

What is Constellation Software Beneish M-Score?

Constellation Software TSX:CSU -3.65% 82 Beneish M-Score is -2.70 as of Jun. 25, 2026. GuruFocus rates TSX:CSU with a GF Score™ of 82/100 and a GF Value™ of C$5,566.41 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,633 Software companies, Constellation Software ranks better than 61.34% on this metric.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.7 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Constellation Software's Beneish M-Score or its related term are showing as below:

TSX:CSU' s Beneish M-Score Range Over the Past 10 Years
Min: -3.57 Med: -2.64 Max: 5.45
Current: -2.7

During the past 13 years, the highest Beneish M-Score of Constellation Software was 5.45. The lowest was -3.57. And the median was -2.64.

Constellation Software Beneish M-Score Related Terms

Constellation Software Beneish M-Score Historical Data

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The historical data trend for Constellation Software's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Constellation Software Beneish M-Score Chart

Constellation Software Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

Beneish M-Score

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-2.59

-2.34

-2.36

-2.67

-2.75

Constellation Software Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
Beneish M-Score	Get a 7-Day Free Trial															-2.53	-2.76	-2.74	-2.75	-2.70

TSX:CSU vs CRM, SHOP, UBER: Beneish M-Score Comparison

For the Software - Application subindustry, Constellation Software's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Constellation Software Beneish M-Score vs Software Industry

For the Software industry and Technology sector, Constellation Software's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Constellation Software's Beneish M-Score falls into.

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82GF Score

Constellation Software Inc TSX:CSU

Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.

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Constellation Software Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Constellation Software for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.9832

0.528 * 0.9677

0.404 * 1.014

0.892 * 1.1534

0.115 * 0.9794

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0208

4.679 * -0.071866

0.327 * 0.9662

-2.70

This Year (Mar26) TTM:

Last Year (Mar25) TTM:

Total Receivables was C$3,333 Mil.
Revenue was 4364.332 + 4382.672 + 4076.88 + 3885.812 = C$16,710 Mil.
Gross Profit was 1543.5 + 1681.611 + 1554.942 + 1469.31 = C$6,249 Mil.
Total Current Assets was C$8,172 Mil.
Total Assets was C$23,281 Mil.
Property, Plant and Equipment(Net PPE) was C$863 Mil.
Depreciation, Depletion and Amortization(DDA) was C$1,989 Mil.
Selling, General, & Admin. Expense(SGA) was C$1,245 Mil.
Total Current Liabilities was C$8,962 Mil.
Long-Term Debt & Capital Lease Obligation was C$5,725 Mil.
Net Income was 503.524 + 151.745 + 290.514 + 76.541 = C$1,022 Mil.
Non Operating Income was 50.764 + -459.374 + -341.7 + -411.407 = C$-1,162 Mil.
Cash Flow from Operations was 1230.684 + 1087.046 + 947.629 + 591.824 = C$3,857 Mil.

Total Receivables was C$2,939 Mil.
Revenue was 3808.647 + 3850.964 + 3443.393 + 3383.764 = C$14,487 Mil.
Gross Profit was 1359.513 + 1457.468 + 1246.232 + 1180 = C$5,243 Mil.
Total Current Assets was C$7,095 Mil.
Total Assets was C$19,949 Mil.
Property, Plant and Equipment(Net PPE) was C$815 Mil.
Depreciation, Depletion and Amortization(DDA) was C$1,757 Mil.
Selling, General, & Admin. Expense(SGA) was C$1,057 Mil.
Total Current Liabilities was C$7,543 Mil.
Long-Term Debt & Capital Lease Obligation was C$5,483 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(3332.588 / 16709.696)	/	(2938.673 / 14486.768)
	=	0.19944	/	0.202852
	=	0.9832

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(5243.213 / 14486.768)	/	(6249.363 / 16709.696)
	=	0.361931	/	0.373996
	=	0.9677

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (8171.632 + 862.988) / 23281.468)	/	(1 - (7094.735 + 815.421) / 19949.098)
	=	0.611939	/	0.603483
	=	1.014

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	16709.696	/	14486.768
	=	1.1534

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(1757.094 / (1757.094 + 815.421))	/	(1989.033 / (1989.033 + 862.988))
	=	0.683026	/	0.697412
	=	0.9794

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(1244.894 / 16709.696)	/	(1057.29 / 14486.768)
	=	0.074501	/	0.072983
	=	1.0208

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((5725.356 + 8961.904) / 23281.468)	/	((5482.556 + 7542.642) / 19949.098)
	=	0.630856	/	0.652922
	=	0.9662

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(1022.324 - -1161.717	-	3857.183)	/	23281.468
	=	-0.071866

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Constellation Software has a M-score of -2.70 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →

What does a Beneish M-Score of -2.70 mean?

Constellation Software (TSX:CSU) has a Beneish M-Score of -2.70 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Constellation Software and its competitors. According to the industry distribution chart, Constellation Software ranks #1018 out of 2633 companies in the Software industry, placing it in the top 38.7%.

Is Constellation Software's Beneish M-Score too high?

Constellation Software's current Beneish M-Score is -2.70. Based on the distribution chart, Constellation Software ranks #1018 out of 2633 companies in the Software industry, which is above the industry midpoint. Overall, Constellation Software has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.

How does Constellation Software's Beneish M-Score compare to CRM and SHOP?

According to the Software industry distribution chart, Constellation Software ranks #1018 out of 2633 companies for Beneish M-Score. This puts Constellation Software in the upper half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good Beneish M-Score for a Software company?

A good Beneish M-Score depends on the Software industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high Beneish M-Score mean?

A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Constellation Software and its competitors. Constellation Software's current Beneish M-Score is -2.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Constellation Software stock overvalued right now?

Based on GuruFocus' analysis, Constellation Software (TSX:CSU) is currently considered Significantly Undervalued. The stock's GF Value™ is C$5,566.41, compared to a current price of C$2,764.23 — trading 50.3% below its estimated fair value. The current Beneish M-Score is -2.70. Constellation Software's overall GF Score™ is 82/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is Beneish M-Score calculated?

Beneish M-Score is calculated from a company's financial statements. For Constellation Software (TSX:CSU), the current Beneish M-Score is -2.70 as of Jun. 25, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Constellation Software (TSX:CSU) Overvalued in 2026?

Based on GuruFocus' analysis, Constellation Software stock appears to be undervalued. The current stock price of C$2,764.23 is trading 50.3% below its estimated GF Value™ of C$5,566.41. GuruFocus considers Constellation Software to be Significantly Undervalued.

Key valuation signals for TSX:CSU:

Beneish M-Score: -2.70
GF Value™: C$5,566.41 vs. price of C$2,764.23 (50.3% below fair value)
GF Score™: 82/100 with 3 warning signs

No single metric tells the full story. See the TSX:CSU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Constellation Software Business Description

Industry Technology Software

Comparable Companies TSX:DSG TSX:OTEX TSXV:LMN TSX:KXS NEOE:ABXX TSX:LSPD TSX:ENGH TSX:BLN TSX:DCBO TSX:TCS XTER:SAP CRM SHOP UBER NOW ADBE CDNS INTU ADP SNOW

Other Exchanges CNSWY:USA CNSWF:USA CSUN:Mexico W9C:Germany

Address 66 Wellington Street West, Suite 5300, Td Bank Tower, Toronto, ON, CAN, M5K 1E6

Website https://www.csisoftware.com

Constellation Software is an acquirer, manager, and developer of vertical market software, or VMS, businesses globally. VMS differentiates from horizontal software in that it provides mission critical solutions within a specific industry for customers in a particular market. Constellation operates through a decentralized model in which each business operates as its own independent entity. Managers of individual businesses are incentivized to optimize their business for returns on invested capital and revenue growth. Excess cash generated by the individual businesses is repatriated to portfolio managers who focus on allocating as much capital as possible on new acquisitions. As of 2026, Constellation consisted of over 1,000 individual businesses.

82GF Score

Get the complete analysis for TSX:CSU

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

C$2,764.23

Price

C$5,566.41

GF Value

View TSX:CSU Analysis

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