87.89 USD
-0.68 (-0.77%)
87.89 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to DSGX. DSGX was compared to 277 industry peers in the Software industry. DSGX has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. DSGX is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, DSGX could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
- DSGX had positive earnings in the past year.
- In the past year DSGX had a positive cash flow from operations.
- In the past 5 years DSGX has always been profitable.
- DSGX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 8.54%, DSGX belongs to the best of the industry, outperforming 81.16% 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 73.55% of its industry peers.
- DSGX has a Return On Invested Capital of 9.58%. This is amongst the best in the industry. DSGX outperforms 83.33% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for DSGX is in line with the industry average of 10.78%.
- The last Return On Invested Capital (9.58%) for DSGX is above the 3 year average (8.86%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
- DSGX's Profit Margin of 22.10% is amongst the best of the industry. DSGX outperforms 85.51% of its industry peers.
- In the last couple of years the Profit Margin of DSGX has grown nicely.
- DSGX's Operating Margin of 28.79% is amongst the best of the industry. DSGX outperforms 92.39% of its industry peers.
- In the last couple of years the Operating Margin of DSGX has grown nicely.
- Looking at the Gross Margin, with a value of 76.80%, DSGX is in the better half of the industry, outperforming 71.38% of the companies in the same industry.
- In the last couple of years the Gross Margin of DSGX has remained more or less at the same level.
| Industry Rank | Sector 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%
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
- 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.
2.2 Solvency
- An Altman-Z score of 18.22 indicates that DSGX is not in any danger for bankruptcy at the moment.
- DSGX has a better Altman-Z score (18.22) than 95.65% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 18.22 |
ROIC/WACC0.96
WACC10%
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 of 1.83. This is comparable to the rest of the industry: DSGX outperforms 55.43% of 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 has a Quick ratio (1.83) which is in line with 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 11.32% over the past year.
- The Earnings Per Share has been growing by 30.86% on average over the past years. This is a very strong growth
- Looking at the last year, DSGX shows a quite strong growth in Revenue. The Revenue has grown by 11.39% in the last year.
- 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)11.32%
EPS 3Y18.17%
EPS 5Y30.86%
EPS Q2Q%19.05%
Revenue 1Y (TTM)11.39%
Revenue growth 3Y15.3%
Revenue growth 5Y14.85%
Sales Q2Q%11.23%
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
- DSGX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.56% yearly.
EPS Next Y45.31%
EPS Next 2Y25.36%
EPS Next 3Y22.6%
EPS Next 5Y21.86%
Revenue Next Year10.76%
Revenue Next 2Y10.77%
Revenue Next 3Y10.77%
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.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 49.66, DSGX can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of DSGX is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 27.47, DSGX is valued quite expensively.
- With a Price/Forward Earnings ratio of 33.89, DSGX can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Forward Earnings ratio as DSGX.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. DSGX is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.66 | ||
| Fwd PE | 33.89 |
4.2 Price Multiples
- DSGX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DSGX is cheaper than 72.46% of the companies in the same industry.
- 67.75% of the companies in the same industry are more expensive than DSGX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.95 | ||
| EV/EBITDA | 25.45 |
4.3 Compensation for Growth
- DSGX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- DSGX has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as DSGX's earnings are expected to grow with 22.60% in the coming years.
PEG (NY)1.1
PEG (5Y)1.61
EPS Next 2Y25.36%
EPS Next 3Y22.6%
5. Dividend
5.1 Amount
- No dividends for DSGX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
87.89
-0.68 (-0.77%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-03 2025-12-03/amc
Earnings (Next)03-03 2026-03-03/amc
Inst Owners86.36%
Inst Owner Change-0.01%
Ins Owners0.21%
Ins Owner ChangeN/A
Market Cap7.56B
Revenue(TTM)703.71M
Net Income(TTM)155.53M
Analysts77.78
Price Target98.8 (12.41%)
Short Float %0.86%
Short Ratio1.32
Dividend
| Industry Rank | Sector 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)-0.3%
EPS NQ rev (3m)0.6%
EPS NY rev (1m)31.01%
EPS NY rev (3m)30.88%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)0.76%
Revenue NY rev (1m)0.48%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.66 | ||
| Fwd PE | 33.89 | ||
| P/S | 10.74 | ||
| P/FCF | 30.95 | ||
| P/OCF | 30.16 | ||
| P/B | 4.87 | ||
| P/tB | 40.99 | ||
| EV/EBITDA | 25.45 |
EPS(TTM)1.77
EY2.01%
EPS(NY)2.59
Fwd EY2.95%
FCF(TTM)2.84
FCFY3.23%
OCF(TTM)2.91
OCFY3.32%
SpS8.18
BVpS18.04
TBVpS2.14
PEG (NY)1.1
PEG (5Y)1.61
Graham Number26.81
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 18.22 |
F-Score6
WACC10%
ROIC/WACC0.96
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)11.32%
EPS 3Y18.17%
EPS 5Y30.86%
EPS Q2Q%19.05%
EPS Next Y45.31%
EPS Next 2Y25.36%
EPS Next 3Y22.6%
EPS Next 5Y21.86%
Revenue 1Y (TTM)11.39%
Revenue growth 3Y15.3%
Revenue growth 5Y14.85%
Sales Q2Q%11.23%
Revenue Next Year10.76%
Revenue Next 2Y10.77%
Revenue Next 3Y10.77%
Revenue Next 5Y10.56%
EBIT growth 1Y21.35%
EBIT growth 3Y19.76%
EBIT growth 5Y27.58%
EBIT Next Year75.09%
EBIT Next 3Y30.9%
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 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 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.
Can you provide the PE and PB ratios for DSGX stock?
The Price/Earnings (PE) ratio for DESCARTES SYSTEMS GRP/THE (DSGX) is 49.66 and the Price/Book (PB) ratio is 4.87.