r/valueinvesting
The market is wrong about CSU unless I’m missing something major.
CSU is undervalued despite a 40% drop; strong cash flow and acquisitions continue while bear cases regarding AI and leadership are overstated.
- Stock is trading significantly below its peak (-40%) despite continued business growth and robust cash generation.
- The company maintains a rapid pace of acquisitions, indicating active capital deployment and expansion.
- Bear cases are weak: core software systems are deeply embedded and resistant to AI disruption, and the business is structured to operate independently of founder Mark Leonard.
Stock is down 40% from its peak. The business is still growing, still printing cash, and still acquiring at a rapid pace.
The two bear cases are AI kills their software and Mark Leonard is gone. But these are boring, essential, deeply embedded systems that nobody is ripping out and Leonard designed the company to run without him from day one.
Still working on my full write up with the data to back this up, but wanted to gauge what others that have actually looked at this company besides only the P/E ratio think.
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