Constellation SoftwareMEX:CSUN -9.71%65 Pretax Margin % is 15.50% as of Mar. 2026, which is 30% above its 10-year median of 11.95. GuruFocus rates MEX:CSUN with a GF Score™ of 65/100 and a GF Value™ of MXN67,444.26 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,823 Software companies, Constellation Software ranks better than 68.15% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Constellation Software Pretax Margin % Related Terms
Constellation Software Pretax Margin % Historical Data
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The historical data trend for Constellation Software's Pretax Margin % 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.
MEX:CSUN vs CRM, SHOP, UBER: Pretax Margin % Comparison
For the Software - Application subindustry, Constellation Software's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Pretax Margin % vs Software Industry
For the Software industry and Technology sector, Constellation Software's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Constellation Software's Pretax Margin % falls into.
* 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 (MEX:CSUN) has a Pretax Margin % of 15.50% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Constellation Software and its competitors. This is 30% above median its historical median of 11.95. Over the past decade, Constellation Software's Pretax Margin % has ranged from 3.15 to 15.88. According to the industry distribution chart, Constellation Software ranks #899 out of 2823 companies in the Software industry, placing it in the top 31.8%.
Is Constellation Software's Pretax Margin % too high?
Constellation Software's current Pretax Margin % of 15.50% is 30% above median its 10-year median of 11.95. Over the past 10 years, this metric has ranged from a low of 3.15 to a high of 15.88. The Software industry median Pretax Margin % is 3.54. Constellation Software's value of 15.50% is 337.9% above this industry median. Based on the distribution chart, Constellation Software ranks #899 out of 2823 companies in the Software industry, which is above the industry midpoint. Overall, Constellation Software has a GF Score™ of 65/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Constellation Software's Pretax Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Constellation Software ranks #899 out of 2823 companies for Pretax Margin %. This puts Constellation Software in the upper half of its industry. The industry median Pretax Margin % is 3.54. Constellation Software's value of 15.50% is 337.9% above this benchmark. Historically, Constellation Software's own Pretax Margin % has ranged from 3.15 to 15.88 over the past decade. While the company's 10-year median is 11.95 vs. the industry median of 3.54, Constellation Software has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Software company?
The median Pretax Margin % among Software companies is 3.54, based on 2,823 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Constellation Software's current Pretax Margin % of 15.50% is 337.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Constellation Software and its competitors. For the Software industry, the median Pretax Margin % is 3.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Constellation Software's current Pretax Margin % is 15.50%, which is 30% above median its own 10-year median of 11.95. 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 (MEX:CSUN) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN67,444.26, compared to a current price of MXN33,833.42 — trading 49.8% below its estimated fair value. The current Pretax Margin % is 15.50%, which is 30% above median its 10-year median of 11.95 and 337.9% above the Software industry median of 3.54. Constellation Software's overall GF Score™ is 65/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Constellation Software (MEX:CSUN), the current Pretax Margin % is 15.50% as of Mar. 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 (MEX:CSUN) Overvalued in 2026?
Based on GuruFocus' analysis, Constellation Software stock appears to be undervalued.
The current stock price of MXN33,833.42 is trading 49.8% below its estimated GF Value™ of MXN67,444.26.
GuruFocus considers Constellation Software to be Significantly Undervalued.
Key valuation signals for MEX:CSUN:
Pretax Margin %: 15.50% (30% above median its 10-year median of 11.95)
GF Value™: MXN67,444.26 vs. price of MXN33,833.42 (49.8% below fair value)
Industry Position: 337.9% above the Software median (#899 of 2823)
No single metric tells the full story. See the MEX:CSUN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
65GF Score
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