This investor explains why he loves Topicus stock

Baskin Wealth Management president and chief investment officer Barry Schwartz named Topicus.com (Topicus.com Stock Quote, Chart, News, Analysts, Financials TSX:TOI) one of his top picks, citing its growth potential and discounted valuation relative to Constellation Software.

Speaking on BNN Bloomberg’s Market Call on Oct. 27, Schwartz said Topicus offers investors exposure to the acquisition-driven software business model established by Constellation, but at an even more attractive valuation.

“What got us interested in Topicus as a top pick today is it’s trading at a— now at a discount to Constellation Software, yet it’s growing faster,” Schwartz said.

Topicus, which was spun out of Constellation Software, focuses on acquiring and operating specialized software businesses, primarily in Europe.

Schwartz said the company was particularly active in acquisitions during 2025, although deal activity has slowed this year. “It had a tremendous year in 2025, very aggressive, lots of acquisitions. This year it’s been quieter for the company, but it’s fits and starts,” he said.

The investor expects Topicus to maintain double-digit growth as it continues expanding through acquisitions and organic growth. “We can’t believe we’re able to buy Constellation and Topicus here at such a pedestrian valuation for the potential growth and how much they respect the shareholders,” Schwartz said.

In August, Topicus reported second-quarter revenue of €437.3-million, up 18% from €372-million a year earlier, including 4% organic growth. Net income increased 14% to €47.3-million, or €0.36 per diluted share, from €41.5-million, or €0.31 per share. Free cash flow available to shareholders improved to €14.6-million from negative €16.7-million a year earlier. The company completed acquisitions representing total consideration of approximately €40.2-million during the quarter, including deferred payments. For the first six months of 2026, Topicus generated revenue of €872.9-million, up 20%, with organic growth of 5%. Free cash flow available to shareholders increased 24% to €180.1-million.

Separately, Topicus announced a leadership change in September, appointing Ramon Zanders as CEO effective Oct. 1, replacing Robin van Poelje, who remains chairman of the board.

Zanders previously served as group CEO of the company’s Total Specific Solutions Blue operating group.

Topicus is scheduled to release its third-quarter results Nov. 4.

Disclsoure: Nick Waddell owns shares of Constellation Software

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