DESCARTES SYSTEMS GRP/THE (DSGX) Fundamental Analysis & Valuation

NASDAQ:DSGX • CA2499061083

Current stock price

72.46 USD
+0.48 (+0.67%)
At close:
72.46 USD
0 (0%)
After Hours:

This DSGX fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. DSGX Profitability Analysis

1.1 Basic Checks

  • In the past year DSGX was profitable.
  • DSGX had a positive operating cash flow in the past year.
  • In the past 5 years DSGX has always been profitable.
  • In the past 5 years DSGX always reported a positive cash flow from operatings.
DSGX Yearly Net Income VS EBIT VS OCF VS FCFDSGX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M

1.2 Ratios

  • With an excellent Return On Assets value of 8.54%, DSGX belongs to the best of the industry, outperforming 83.03% of the companies in the same industry.
  • DSGX's Return On Equity of 10.02% is fine compared to the rest of the industry. DSGX outperforms 74.37% of its industry peers.
  • DSGX has a Return On Invested Capital of 9.58%. This is amongst the best in the industry. DSGX outperforms 84.48% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for DSGX is below the industry average of 10.89%.
  • The 3 year average ROIC (8.86%) for DSGX is below the current ROIC(9.58%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 8.54%
ROE 10.02%
ROIC 9.58%
ROA(3y)8.11%
ROA(5y)7.3%
ROE(3y)9.67%
ROE(5y)8.67%
ROIC(3y)8.86%
ROIC(5y)7.93%
DSGX Yearly ROA, ROE, ROICDSGX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • DSGX's Profit Margin of 22.10% is amongst the best of the industry. DSGX outperforms 88.45% of its industry peers.
  • DSGX's Profit Margin has improved in the last couple of years.
  • DSGX's Operating Margin of 28.79% is amongst the best of the industry. DSGX outperforms 93.50% of its industry peers.
  • In the last couple of years the Operating Margin of DSGX has grown nicely.
  • DSGX has a Gross Margin of 76.80%. This is in the better half of the industry: DSGX outperforms 71.12% of its industry peers.
  • In the last couple of years the Gross Margin of DSGX has remained more or less at the same level.
Industry RankSector Rank
OM 28.79%
PM (TTM) 22.1%
GM 76.8%
OM growth 3Y3.87%
OM growth 5Y11.08%
PM growth 3Y2.7%
PM growth 5Y14.15%
GM growth 3Y-0.17%
GM growth 5Y0.52%
DSGX Yearly Profit, Operating, Gross MarginsDSGX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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8

2. DSGX Health Analysis

2.1 Basic Checks

  • DSGX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • Compared to 1 year ago, DSGX has more shares outstanding
  • Compared to 5 years ago, DSGX has more shares outstanding
  • There is no outstanding debt for DSGX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
DSGX Yearly Shares OutstandingDSGX Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M
DSGX Yearly Total Debt VS Total AssetsDSGX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

2.2 Solvency

  • DSGX has an Altman-Z score of 15.14. This indicates that DSGX is financially healthy and has little risk of bankruptcy at the moment.
  • DSGX's Altman-Z score of 15.14 is amongst the best of the industry. DSGX outperforms 95.31% of its industry peers.
  • There is no outstanding debt for DSGX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 15.14
ROIC/WACC0.95
WACC10.12%
DSGX Yearly LT Debt VS Equity VS FCFDSGX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

2.3 Liquidity

  • A Current Ratio of 1.83 indicates that DSGX should not have too much problems paying its short term obligations.
  • DSGX has a Current ratio (1.83) which is in line with its industry peers.
  • DSGX has a Quick Ratio of 1.83. This is a normal value and indicates that DSGX is financially healthy and should not expect problems in meeting its short term obligations.
  • DSGX's Quick ratio of 1.83 is in line compared to the rest of the industry. DSGX outperforms 54.87% of its industry peers.
  • The current and quick ratio evaluation for DSGX is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 1.83
Quick Ratio 1.83
DSGX Yearly Current Assets VS Current LiabilitesDSGX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. DSGX Growth Analysis

3.1 Past

  • DSGX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.73%, which is quite good.
  • DSGX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.86% yearly.
  • The Revenue has grown by 13.63% in the past year. This is quite good.
  • Measured over the past years, DSGX shows a quite strong growth in Revenue. The Revenue has been growing by 14.85% on average per year.
EPS 1Y (TTM)12.73%
EPS 3Y18.17%
EPS 5Y30.86%
EPS Q2Q%20.93%
Revenue 1Y (TTM)13.63%
Revenue growth 3Y15.3%
Revenue growth 5Y14.85%
Sales Q2Q%15.08%

3.2 Future

  • The Earnings Per Share is expected to grow by 21.86% on average over the next years. This is a very strong growth
  • Based on estimates for the next years, DSGX will show a quite strong growth in Revenue. The Revenue will grow by 10.56% on average per year.
EPS Next Y40.02%
EPS Next 2Y26.33%
EPS Next 3Y22.6%
EPS Next 5Y21.86%
Revenue Next Year10.8%
Revenue Next 2Y10.88%
Revenue Next 3Y10.9%
Revenue Next 5Y10.56%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
DSGX Yearly Revenue VS EstimatesDSGX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 500M 1B 1.5B
DSGX Yearly EPS VS EstimatesDSGX Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6

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5

4. DSGX Valuation Analysis

4.1 Price/Earnings Ratio

  • DSGX is valuated quite expensively with a Price/Earnings ratio of 38.96.
  • DSGX's Price/Earnings ratio is in line with the industry average.
  • DSGX's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.70.
  • DSGX is valuated quite expensively with a Price/Forward Earnings ratio of 27.52.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of DSGX is on the same level as its industry peers.
  • DSGX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.84, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 38.96
Fwd PE 27.52
DSGX Price Earnings VS Forward Price EarningsDSGX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • 75.09% of the companies in the same industry are more expensive than DSGX, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, DSGX is valued a bit cheaper than the industry average as 66.06% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 25.53
EV/EBITDA 20.66
DSGX Per share dataDSGX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • DSGX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The excellent profitability rating of DSGX may justify a higher PE ratio.
  • DSGX's earnings are expected to grow with 22.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.97
PEG (5Y)1.26
EPS Next 2Y26.33%
EPS Next 3Y22.6%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. DSGX Dividend Analysis

5.1 Amount

  • No dividends for DSGX!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

DSGX Fundamentals: All Metrics, Ratios and Statistics

DESCARTES SYSTEMS GRP/THE

NASDAQ:DSGX (3/13/2026, 8:21:37 PM)

After market: 72.46 0 (0%)

72.46

+0.48 (+0.67%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)03-11
Earnings (Next)06-02
Inst Owners88.87%
Inst Owner Change9.91%
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap6.23B
Revenue(TTM)651.00M
Net Income(TTM)155.53M
Analysts77.78
Price Target98.8 (36.35%)
Short Float %1.52%
Short Ratio1.97
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.72%
Min EPS beat(2)-1.85%
Max EPS beat(2)7.29%
EPS beat(4)2
Avg EPS beat(4)-0.23%
Min EPS beat(4)-6.83%
Max EPS beat(4)7.29%
EPS beat(8)5
Avg EPS beat(8)0.38%
EPS beat(12)7
Avg EPS beat(12)0.32%
EPS beat(16)9
Avg EPS beat(16)0.57%
Revenue beat(2)2
Avg Revenue beat(2)0.98%
Min Revenue beat(2)0.67%
Max Revenue beat(2)1.29%
Revenue beat(4)2
Avg Revenue beat(4)-0.63%
Min Revenue beat(4)-2.69%
Max Revenue beat(4)1.29%
Revenue beat(8)5
Avg Revenue beat(8)0.18%
Revenue beat(12)8
Avg Revenue beat(12)0.02%
Revenue beat(16)11
Avg Revenue beat(16)0.39%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.36%
EPS NY rev (1m)0%
EPS NY rev (3m)26.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.51%
Valuation
Industry RankSector Rank
PE 38.96
Fwd PE 27.52
P/S 8.86
P/FCF 25.53
P/OCF 24.88
P/B 4.02
P/tB 33.8
EV/EBITDA 20.66
EPS(TTM)1.86
EY2.57%
EPS(NY)2.63
Fwd EY3.63%
FCF(TTM)2.84
FCFY3.92%
OCF(TTM)2.91
OCFY4.02%
SpS8.18
BVpS18.04
TBVpS2.14
PEG (NY)0.97
PEG (5Y)1.26
Graham Number27.48
Profitability
Industry RankSector Rank
ROA 8.54%
ROE 10.02%
ROCE 12.65%
ROIC 9.58%
ROICexc 11.59%
ROICexgc N/A
OM 28.79%
PM (TTM) 22.1%
GM 76.8%
FCFM 34.7%
ROA(3y)8.11%
ROA(5y)7.3%
ROE(3y)9.67%
ROE(5y)8.67%
ROIC(3y)8.86%
ROIC(5y)7.93%
ROICexc(3y)11.36%
ROICexc(5y)9.99%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)11.7%
ROCE(5y)10.48%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y6.45%
ROICexc growth 5Y18.03%
OM growth 3Y3.87%
OM growth 5Y11.08%
PM growth 3Y2.7%
PM growth 5Y14.15%
GM growth 3Y-0.17%
GM growth 5Y0.52%
F-Score6
Asset Turnover0.39
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 7.46%
Cap/Sales 0.91%
Interest Coverage 250
Cash Conversion 86.93%
Profit Quality 157%
Current Ratio 1.83
Quick Ratio 1.83
Altman-Z 15.14
F-Score6
WACC10.12%
ROIC/WACC0.95
Cap/Depr(3y)8.9%
Cap/Depr(5y)8.08%
Cap/Sales(3y)1.09%
Cap/Sales(5y)1.1%
Profit Quality(3y)168.32%
Profit Quality(5y)189.61%
High Growth Momentum
Growth
EPS 1Y (TTM)12.73%
EPS 3Y18.17%
EPS 5Y30.86%
EPS Q2Q%20.93%
EPS Next Y40.02%
EPS Next 2Y26.33%
EPS Next 3Y22.6%
EPS Next 5Y21.86%
Revenue 1Y (TTM)13.63%
Revenue growth 3Y15.3%
Revenue growth 5Y14.85%
Sales Q2Q%15.08%
Revenue Next Year10.8%
Revenue Next 2Y10.88%
Revenue Next 3Y10.9%
Revenue Next 5Y10.56%
EBIT growth 1Y21.35%
EBIT growth 3Y19.76%
EBIT growth 5Y27.58%
EBIT Next Year75.09%
EBIT Next 3Y30.66%
EBIT Next 5Y23.12%
FCF growth 1Y21.44%
FCF growth 3Y7.45%
FCF growth 5Y16.41%
OCF growth 1Y20.72%
OCF growth 3Y7.57%
OCF growth 5Y16.02%

DESCARTES SYSTEMS GRP/THE / DSGX Fundamental Analysis FAQ

What is the ChartMill fundamental rating of DESCARTES SYSTEMS GRP/THE (DSGX) stock?

ChartMill assigns a fundamental rating of 7 / 10 to DSGX.


What is the valuation status for DSGX stock?

ChartMill assigns a valuation rating of 5 / 10 to DESCARTES SYSTEMS GRP/THE (DSGX). This can be considered as Fairly Valued.


What is the profitability of DSGX stock?

DESCARTES SYSTEMS GRP/THE (DSGX) has a profitability rating of 8 / 10.


Can you provide the PE and PB ratios for DSGX stock?

The Price/Earnings (PE) ratio for DESCARTES SYSTEMS GRP/THE (DSGX) is 38.96 and the Price/Book (PB) ratio is 4.02.