2 Stocks I Like Better Than Constellation Software at Today’s Price

CSU’s founder exit rattled markets, but cheaper spin‑offs Lumine (LMN) and Topicus (TOI) deliver similar growth and cash flow momentum at better prices.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published September 26, 2025 3:30 pm EDT

| More on: CSULMNTOI

Key Points

Lumine (LMN) rebounded strongly with Q2 operating income up 71%, CFO up 705%, and low leverage, making it a cheaper, improving CSU‑style play.
Topicus (TOI) grew revenue 20% and net income 54% in Q2, driven by acquisitions with solid six‑month cash conversion.
If you like CSU’s business model but not its price or uncertainty, TOI and LMN offer comparable fundamentals at more attractive valuations.

Constellation Software (TSX: CSU) shares slumped this week after long-time founder and CEO Mark Leonard resigned over health concerns. The tech titan left investors fearful about what might be happening next, and with share prices still in the four-digit range, many are questioning it as a long-term investment.

That being said, not only is CSU still strong given its solid moat as a niche-software acquiring company, but there are other spin-offs that have proven we don’t necessarily need Mark Leonard anymore. Therefore, not only can we let him focus on his health, but we can also continue to support those companies — ones that offer a far better price.

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LMN

The first spin-off from CSU to consider is Lumine Group (TSXV: LMN), which focuses on acquiring communications and media software companies. Once acquired, the company does the same as CSU, allowing businesses to maintain autonomy while receiving capital support. And that support has been strong, and then some.

During the most recent earnings, Lumine reported revenue was up 13%, with operating income up 71%. Its net income rebounded from a loss last year to income of US$23.6 million. Furthermore, cash flow from operations (CFO) materially improved, up 705% to US$78.4 million in the second quarter. Not only were there improvements, but the balance sheet and leverage remain well supported. Lumine holds just 34% debt to equity and positive cash balances.

With so much improvement and a solid balance sheet, LMN is a strong tech stock for investors to consider. In fact, it looks downright undervalued at these levels. Therefore, it could certainly be a stock to buy as CSU struggles to regain its share price.

TOI

Next up, we have Topicus.com (TSXV: TOI), which is more directly like CSU, though with one major difference: it operates in Europe. The tech stock builds and acquires software in niche markets like education, healthcare, social services, the public sector and more. It operates especially in the Netherlands, integrating these software companies into its platform.

And again, this tech stock has been showing strength. During its second-quarter earnings, revenue climbed 20% with net income up 54% to €41.5 million. This was clearly positive earnings momentum that came alongside continued acquisition growth. Granted, its CFO was negative from seasonal billing; however, its six-month CFO rose to €256.5 million. Therefore, there were strong mid-year cash conversions to help support the latest quarter.

Overall, TOI looks far cheaper than CSU, but with the same strength and near-term margin expansion. Basically, these are tech stocks doing exactly what CSU already does, but at a cheaper price for investors. And there’s so much evidence TOI is doing it well, with acquisitions driving 20% growth in revenue.

Bottom line

While CSU is the headline stock, these tech stocks are doing just as well, if not better. And all while trading at a share price that offers far more value than the four-digit investment. So, while CSU is certainly still a high-quality platform with scale and a long track record, it does come with a price.