Lumine Stock Deep Dive w/ Clay Finck | Constellation Software + Topicus

[@WeStudyBillionaires]

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[@InvestingShow]

Lumine is one of my core nine. Growing faster than TOI and CSI.

[@yazanasad7811]

Thanks. Did you mention why lumine over topicus?

[@clayfinck431]

I own both. Topicus is certainly making moves to start the new year, which is great to see.

[@Mri881]

Is it listed in nyse ?

[@ottoliaandrea2690]

Look forward for the Teqnion analysis

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[@joeindo9174]

does anyone have a video or writeup on the argument for holding the spinoffs rather than just holding the mothership ?

[@rajeshrai3652]

Hi, wanted to check your reinvestment rate is the % of EBIT Lumine would deploy on acquisitions? Shouldn't we consider FCF as the amount of cash available to Lumine before the management decides to allocate it to acquisitions? Thanks

[@clayfinck431]

Hi Rajesh - to your first question, the answer is yes. The reinvestment rate here is based on how much is reinvested in new acquisitions relative to EBIT. I used the FCFF line as the amount of cash that isn't deployed through acquisitions. If you shoot me an email, I'd be happy to share the model.

[@bradleyhope3652]

I now own some Lumine! Bought on my own right before watching this!

[@WeStudyBillionaires]

Hope you found the video valuable! 🙏

[@faronskelton4085]

Thank you sir

[@WeStudyBillionaires]

Thanks for watching! 💯

[@michaelfriend3990]

I hold Topicus. Truth be told it's a small position as I don't know how they'll be able to easily replicate Constellation performance. It's a monitor and add.

[@alksandrew]

Isnt 30% growth too high if you take into account GDP growth is usually less than 10%?

[@prulleman2]

Any concerns about Nyland's temporary leave of absence?

[@clayfinck431]

I don't expect it to cause issues, but it is something to monitor. I hope everything is okay with David and hope he's back soon.

[@shortclimberbeta]

How did you get the 30% EBIT margin? In 2023, it's about 13% (1-expenses/revenue). In addition, the share counts seems going up year after year

[@clayfinck431]

When looking at the Q3 2024 report - $481.3M in revenue YTD and $141.7M in operating income YTD. That gives us a 29.4% margin. As far as the share count goes, there was some share issuance related to the spinoff transaction, but I don't expect any further dilution from here.

[@shortclimberbeta]

@ I see. This is adjusted EBIT after adding back amortization. I haven’t looked into this but it would require some digging to know if this is justified. Nonetheless I believe cash flow tells a much clearer story than accounting earnings. Thanks!

[@sage81564]

It seems they could be in competition with Constellation.

[@fabien7123]

I would be concerned with disruption risks due to AI. Some of these VMS are extremely simple to re-create with AI coding tools. The customer still incurs some switching cost though.

[@brianbirnbaum9760]

Highly doubt they’re not aware of this.

[@crysisgoty]

any examples?

[@MusaHazan]

2025