Jas Gill

Value investor and Canadian tax lawyer. Writing about business quality, capital allocation, valuation and after-tax returns. Not financial or legal advice.

[Jas Gill @gilljas12]

The valuation gap between $CSU.TO and $TOI.V has flipped.

P/FCFA2S over the period shown:

CSU, excluding IRGA: ~32× → ~20×
Topicus: ~37× → ~18×
Topicus went from a premium to a discount.

The case for that premium: a smaller capital base gives successful acquisitions more room to move the needle. If Topicus can reinvest at attractive returns, it could compound faster.

The question now: has that growth runway genuinely deteriorated, or have investors simply become less willing to pay for it?

A lower multiple is clear. Whether the long-term opportunity has shrunk as much is the investment question.

[Jas Gill @gilljas12]

$CSU.TO’s reported FCFA2S understates the growth in cash generation attributable to long-term shareholders.

Adjust for the IRGA charge and include the $TOI.V + $LMN.V shares spun out to shareholders:

2015: ~$366M
2025: ~$2.1B
That’s ~19% CAGR in owner-adjusted FCFA2S. Nearly 5.8x in 10 years.

Some of CSU’s value creation left the parent company.

It didn’t leave the shareholder.

[Jas Gill @gilljas12]

$CSU.TO nearly doubled its annual cash flow available to shareholders in three years.

2022: US$0.85B
2023: US$1.16B, up 36%
2024: US$1.47B, up 27%
2025: US$1.68B, up 14%

That growth shows how much more cash CSU generates. To assess value creation, we also need to know what it earns on the capital invested.

That is where Mark Leonard’s ROIC + organic net revenue growth framework comes in.

ROIC measures what invested capital earns. Organic growth captures expanding earning power, assuming margins hold.

Software can often deliver that organic expansion with little additional capital, leaving more cash available for the next acquisition.

The goal: grow cash flow per share while earning attractive returns on every dollar reinvested.

That is value creation worth tracking. ( $TOI.V ; $LMN.V )

[Jas Gill @gilljas12]

$TOI.V incremental ROIC*:

2023: 18.0%
2024: 37.8%
2025: 16.7%**

Meanwhile, TOI now trades at only ~17x TTM FCFA2S.

*Incremental ROIC = YoY increase in normalized FCFA2S-adjusted earnings ÷ increase in average invested capital.

**2025 includes Asseco by adding Topicus’ attributable Asseco earnings and the capital invested in Asseco.

[Jas Gill @gilljas12]

@MohnishPabrai shared this calculation with Charlie Munger.

Charlie said the conclusion was obvious once you understood compounding.

Warren Buffett’s response was even better:

“Let’s not test it out.”

($BRK.A; $BRK.B)

[Andrew Lokenauth @FluentInFinance]

Warren Buffett took Berkshire from $19 a share in 1965 to $764,000 today, up over 4,000,000%.

Berkshire could fall 98% tomorrow and Buffett would still have beaten the S&P 500 over the 61 years since he took over.

[Jas Gill @gilljas12]

$LMN.V ’s reported FCFA2S is noisy because of large working-capital swings, so I normalized them out.

FCFA2S/share growth:
2023 +81%
2024 +55%
2025 +43%
TTM Q2’26 +23% YoY

At ~16x normalized TTM FCFA2S, the key question is whether the underlying business fundamentals remain intact.

So far, the organic growth profile suggests they largely are.

[Jas Gill @gilljas12]

The CRA can turn a simple investing mistake into a 1% monthly tax.

Overcontribute to your TFSA? The tax starts from the first $1.

RRSP? You generally get a $2,000 cushion.

The part many Canadians miss: CRA can waive the tax where the mistake was reasonable and you acted quickly to fix it.

[Jas Gill @gilljas12]

$UBER insiders are putting real money behind the bull case.

CEO Dara Khosrowshahi just bought ~$10M of stock.

Days earlier, COO Andrew Macdonald bought ~$5.3M.

More than $15M of insider buying while the market worries that Waymo and Tesla will disrupt Uber.

Either management is badly underestimating the AV threat, or the market is badly underestimating Uber’s place in an autonomous future.

[Jas Gill @gilljas12]

CRA reassessed you for $300,000.

That does NOT mean CRA is right.

Auditors make factual assumptions. They misunderstand transactions. They apply the law incorrectly.

The reassessment is CRA’s position.

Not the final word.

[Jas Gill @gilljas12]

$TOI.V FCFA2S grew ~2.5× from 2021 to 2025.

The Mark Leonard thesis ($CSU.TO / $LMN.V): generate cash, reinvest it well, repeat.

Buying growth is easy. Growing cash flow per share is the test.

[Jas Gill @gilljas12]

$LULU reported a 60.5% gross margin, but a tariff refund added 560 bps.

Without it, gross margin was roughly 54.9%, down 360 bps YoY.

The real warning: this quarter revenue fell 4%, comparable sales fell 9%, and Q3 revenue is expected to decline 10% to 11%.