81.485 USD
+1.61 (+2.01%)
81.485 USD
0 (0%)
Taking everything into account, DSGX scores 7 out of 10 in our fundamental rating. DSGX was compared to 281 industry peers in the Software industry. DSGX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. DSGX is not overvalued while it is showing excellent growth. This is an interesting combination. This makes DSGX very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year DSGX was profitable.
In the past year DSGX had a positive cash flow from operations.
In the past 5 years DSGX has always been profitable.
In the past 5 years DSGX always reported a positive cash flow from operatings.
1.2 Ratios
DSGX's Return On Assets of 8.46% is amongst the best of the industry. DSGX outperforms 81.14% of its industry peers.
Looking at the Return On Equity, with a value of 9.91%, DSGX is in the better half of the industry, outperforming 75.44% of the companies in the same industry.
The Return On Invested Capital of DSGX (9.19%) is better than 82.56% of its industry peers.
DSGX had an Average Return On Invested Capital over the past 3 years of 8.86%. This is below the industry average of 12.04%.
The last Return On Invested Capital (9.19%) for DSGX is above the 3 year average (8.86%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.46% | ||
| ROE | 9.91% | ||
| ROIC | 9.19% |
ROA(3y)8.11%
ROA(5y)7.3%
ROE(3y)9.67%
ROE(5y)8.67%
ROIC(3y)8.86%
ROIC(5y)7.93%
1.3 Margins
DSGX's Profit Margin of 21.70% is amongst the best of the industry. DSGX outperforms 86.48% of its industry peers.
In the last couple of years the Profit Margin of DSGX has grown nicely.
DSGX's Operating Margin of 27.36% is amongst the best of the industry. DSGX outperforms 90.75% of its industry peers.
DSGX's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 76.06%, DSGX is in the better half of the industry, outperforming 70.82% of the companies in the same industry.
DSGX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.36% | ||
| PM (TTM) | 21.7% | ||
| GM | 76.06% |
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%
2. Health
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
The number of shares outstanding for DSGX has been increased compared to 5 years ago.
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.
2.2 Solvency
DSGX has an Altman-Z score of 17.27. This indicates that DSGX is financially healthy and has little risk of bankruptcy at the moment.
DSGX has a better Altman-Z score (17.27) than 94.31% of its industry peers.
DSGX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 17.27 |
ROIC/WACC0.91
WACC10.14%
2.3 Liquidity
DSGX has a Current Ratio of 1.70. This is a normal value and indicates that DSGX is financially healthy and should not expect problems in meeting its short term obligations.
DSGX has a Current ratio (1.70) which is comparable to the rest of the industry.
A Quick Ratio of 1.70 indicates that DSGX should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.70, DSGX perfoms like the industry average, outperforming 54.45% of the companies in the same industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.7 |
3. Growth
3.1 Past
DSGX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.19%, which is quite good.
Measured over the past years, DSGX shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.86% on average per year.
Looking at the last year, DSGX shows a quite strong growth in Revenue. The Revenue has grown by 12.68% in the last year.
DSGX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.85% yearly.
EPS 1Y (TTM)14.19%
EPS 3Y18.17%
EPS 5Y30.86%
EPS Q2Q%7.5%
Revenue 1Y (TTM)12.68%
Revenue growth 3Y15.3%
Revenue growth 5Y14.85%
Sales Q2Q%10.05%
3.2 Future
Based on estimates for the next years, DSGX will show a very strong growth in Earnings Per Share. The EPS will grow by 21.92% on average per year.
The Revenue is expected to grow by 10.60% on average over the next years. This is quite good.
EPS Next Y10.91%
EPS Next 2Y15.63%
EPS Next 3Y24.27%
EPS Next 5Y21.92%
Revenue Next Year10.23%
Revenue Next 2Y10.74%
Revenue Next 3Y10.27%
Revenue Next 5Y10.6%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 48.22, which means the current valuation is very expensive for DSGX.
DSGX's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of DSGX to the average of the S&P500 Index (25.45), we can say DSGX is valued expensively.
A Price/Forward Earnings ratio of 36.94 indicates a quite expensive valuation of DSGX.
The rest of the industry has a similar Price/Forward Earnings ratio as DSGX.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.46, DSGX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.22 | ||
| Fwd PE | 36.94 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DSGX indicates a somewhat cheap valuation: DSGX is cheaper than 75.09% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DSGX indicates a somewhat cheap valuation: DSGX is cheaper than 68.68% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.22 | ||
| EV/EBITDA | 24.56 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DSGX does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of DSGX may justify a higher PE ratio.
A more expensive valuation may be justified as DSGX's earnings are expected to grow with 24.27% in the coming years.
PEG (NY)4.42
PEG (5Y)1.56
EPS Next 2Y15.63%
EPS Next 3Y24.27%
5. Dividend
5.1 Amount
DSGX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
81.485
+1.61 (+2.01%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners92.55%
Inst Owner Change5.81%
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap7.00B
Revenue(TTM)684.78M
Net Income(TTM)148.63M
Analysts77.5
Price Target98.8 (21.25%)
Short Float %0.91%
Short Ratio1.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)0
Avg EPS beat(2)-4.34%
Min EPS beat(2)-6.83%
Max EPS beat(2)-1.85%
EPS beat(4)2
Avg EPS beat(4)-1.34%
Min EPS beat(4)-6.83%
Max EPS beat(4)2.86%
EPS beat(8)4
Avg EPS beat(8)-1.75%
EPS beat(12)7
Avg EPS beat(12)0.74%
EPS beat(16)9
Avg EPS beat(16)0.6%
Revenue beat(2)1
Avg Revenue beat(2)-0.24%
Min Revenue beat(2)-1.77%
Max Revenue beat(2)1.29%
Revenue beat(4)2
Avg Revenue beat(4)-0.27%
Min Revenue beat(4)-2.69%
Max Revenue beat(4)2.1%
Revenue beat(8)4
Avg Revenue beat(8)-0.16%
Revenue beat(12)7
Avg Revenue beat(12)-0.19%
Revenue beat(16)11
Avg Revenue beat(16)0.38%
PT rev (1m)0%
PT rev (3m)-2.83%
EPS NQ rev (1m)-0.5%
EPS NQ rev (3m)-5%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-5.58%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)2.14%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.22 | ||
| Fwd PE | 36.94 | ||
| P/S | 10.23 | ||
| P/FCF | 30.22 | ||
| P/OCF | 29.4 | ||
| P/B | 4.67 | ||
| P/tB | 44.5 | ||
| EV/EBITDA | 24.56 |
EPS(TTM)1.69
EY2.07%
EPS(NY)2.21
Fwd EY2.71%
FCF(TTM)2.7
FCFY3.31%
OCF(TTM)2.77
OCFY3.4%
SpS7.97
BVpS17.45
TBVpS1.83
PEG (NY)4.42
PEG (5Y)1.56
Graham Number25.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.46% | ||
| ROE | 9.91% | ||
| ROCE | 12.13% | ||
| ROIC | 9.19% | ||
| ROICexc | 10.88% | ||
| ROICexgc | N/A | ||
| OM | 27.36% | ||
| PM (TTM) | 21.7% | ||
| GM | 76.06% | ||
| FCFM | 33.84% |
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-Score7
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 7.9% | ||
| Cap/Sales | 0.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.32% | ||
| Profit Quality | 155.89% | ||
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.7 | ||
| Altman-Z | 17.27 |
F-Score7
WACC10.14%
ROIC/WACC0.91
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)14.19%
EPS 3Y18.17%
EPS 5Y30.86%
EPS Q2Q%7.5%
EPS Next Y10.91%
EPS Next 2Y15.63%
EPS Next 3Y24.27%
EPS Next 5Y21.92%
Revenue 1Y (TTM)12.68%
Revenue growth 3Y15.3%
Revenue growth 5Y14.85%
Sales Q2Q%10.05%
Revenue Next Year10.23%
Revenue Next 2Y10.74%
Revenue Next 3Y10.27%
Revenue Next 5Y10.6%
EBIT growth 1Y21.76%
EBIT growth 3Y19.76%
EBIT growth 5Y27.58%
EBIT Next Year72.41%
EBIT Next 3Y29.84%
EBIT Next 5Y23.17%
FCF growth 1Y17.98%
FCF growth 3Y7.45%
FCF growth 5Y16.41%
OCF growth 1Y17.68%
OCF growth 3Y7.57%
OCF growth 5Y16.02%
DESCARTES SYSTEMS GRP/THE / DSGX 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 of DESCARTES SYSTEMS GRP/THE (DSGX) stock?
ChartMill assigns a valuation rating of 4 / 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.
How financially healthy is DESCARTES SYSTEMS GRP/THE?
The financial health rating of DESCARTES SYSTEMS GRP/THE (DSGX) is 8 / 10.
What is the earnings growth outlook for DESCARTES SYSTEMS GRP/THE?
The Earnings per Share (EPS) of DESCARTES SYSTEMS GRP/THE (DSGX) is expected to grow by 10.91% in the next year.