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

NASDAQ:DSGX • CA2499061083

Current stock price

75.8 USD
+3.2 (+4.41%)
At close:
75.8 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

  • 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.
  • 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 2026 50M 100M 150M 200M 250M

1.2 Ratios

  • The Return On Assets of DSGX (8.64%) is better than 84.13% of its industry peers.
  • With a decent Return On Equity value of 10.12%, DSGX is doing good in the industry, outperforming 74.91% of the companies in the same industry.
  • DSGX has a Return On Invested Capital of 8.73%. This is amongst the best in the industry. DSGX outperforms 81.18% of its industry peers.
  • DSGX had an Average Return On Invested Capital over the past 3 years of 8.98%. This is in line with the industry average of 10.91%.
Industry RankSector Rank
ROA 8.64%
ROE 10.12%
ROIC 8.73%
ROA(3y)8.4%
ROA(5y)8.05%
ROE(3y)9.94%
ROE(5y)9.55%
ROIC(3y)8.98%
ROIC(5y)8.58%
DSGX Yearly ROA, ROE, ROICDSGX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6 8 10

1.3 Margins

  • Looking at the Profit Margin, with a value of 22.46%, DSGX belongs to the top of the industry, outperforming 89.67% of the companies in the same industry.
  • DSGX's Profit Margin has improved in the last couple of years.
  • DSGX has a Operating Margin of 26.68%. This is amongst the best in the industry. DSGX outperforms 91.51% 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 77.08%, DSGX is in the better half of the industry, outperforming 71.22% of the companies in the same industry.
  • DSGX's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 26.68%
PM (TTM) 22.46%
GM 77.08%
OM growth 3Y1.26%
OM growth 5Y6.3%
PM growth 3Y2.22%
PM growth 5Y8.5%
GM growth 3Y0.17%
GM growth 5Y0.76%
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 2026 20 40 60

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8

2. DSGX Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DSGX is destroying value.
  • The number of shares outstanding for DSGX has been increased compared to 1 year ago.
  • The number of shares outstanding for DSGX has been increased compared to 5 years ago.
  • DSGX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
DSGX Yearly Shares OutstandingDSGX Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 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 2026 500M 1B 1.5B

2.2 Solvency

  • DSGX has an Altman-Z score of 14.82. This indicates that DSGX is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 14.82, DSGX belongs to the top of the industry, outperforming 93.73% of the companies in the same industry.
  • DSGX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 14.82
ROIC/WACC0.92
WACC9.52%
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 2026 500M 1B 1.5B

2.3 Liquidity

  • DSGX has a Current Ratio of 2.16. This indicates that DSGX is financially healthy and has no problem in meeting its short term obligations.
  • DSGX has a better Current ratio (2.16) than 61.62% of its industry peers.
  • A Quick Ratio of 2.16 indicates that DSGX has no problem at all paying its short term obligations.
  • DSGX has a Quick ratio of 2.16. This is in the better half of the industry: DSGX outperforms 61.99% of its industry peers.
Industry RankSector Rank
Current Ratio 2.16
Quick Ratio 2.16
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 2026 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.
  • The Earnings Per Share has been growing by 25.39% 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 11.98% in the last year.
  • DSGX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.89% yearly.
EPS 1Y (TTM)12.73%
EPS 3Y16.05%
EPS 5Y25.39%
EPS Q2Q%20.93%
Revenue 1Y (TTM)11.98%
Revenue growth 3Y14.47%
Revenue growth 5Y15.89%
Sales Q2Q%15.1%

3.2 Future

  • DSGX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.72% yearly.
  • The Revenue is expected to grow by 10.40% on average over the next years. This is quite good.
EPS Next Y28.97%
EPS Next 2Y21.78%
EPS Next 3Y28.86%
EPS Next 5Y21.72%
Revenue Next Year11.44%
Revenue Next 2Y11.12%
Revenue Next 3Y10.97%
Revenue Next 5Y10.4%

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in 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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4

4. DSGX Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 40.75, which means the current valuation is very expensive for DSGX.
  • Compared to the rest of the industry, the Price/Earnings ratio of DSGX is on the same level as its industry peers.
  • When comparing the Price/Earnings ratio of DSGX to the average of the S&P500 Index (27.53), we can say DSGX is valued slightly more expensively.
  • The Price/Forward Earnings ratio is 31.60, which means the current valuation is very expensive for 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 37.95, DSGX is valued at the same level.
Industry RankSector Rank
PE 40.75
Fwd PE 31.6
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DSGX indicates a somewhat cheap valuation: DSGX is cheaper than 72.69% of the companies listed in the same industry.
  • DSGX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DSGX is cheaper than 66.42% of the companies in the same industry.
Industry RankSector Rank
P/FCF 25.03
EV/EBITDA 20.91
DSGX Per share dataDSGX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The excellent profitability rating of DSGX may justify a higher PE ratio.
  • DSGX's earnings are expected to grow with 28.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.41
PEG (5Y)1.6
EPS Next 2Y21.78%
EPS Next 3Y28.86%

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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 (4/16/2026, 8:26:19 PM)

After market: 75.8 0 (0%)

75.8

+3.2 (+4.41%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)03-11
Earnings (Next)06-02
Inst Owners88.65%
Inst Owner Change-0.01%
Ins Owners0.22%
Ins Owner ChangeN/A
Market Cap6.52B
Revenue(TTM)728.99M
Net Income(TTM)163.77M
Analysts77.78
Price Target98.8 (30.34%)
Short Float %1.82%
Short Ratio2.13
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)2
Avg EPS beat(2)6.39%
Min EPS beat(2)5.5%
Max EPS beat(2)7.29%
EPS beat(4)2
Avg EPS beat(4)1.03%
Min EPS beat(4)-6.83%
Max EPS beat(4)7.29%
EPS beat(8)5
Avg EPS beat(8)1.06%
EPS beat(12)7
Avg EPS beat(12)-0.45%
EPS beat(16)10
Avg EPS beat(16)1.55%
Revenue beat(2)2
Avg Revenue beat(2)0.96%
Min Revenue beat(2)0.67%
Max Revenue beat(2)1.26%
Revenue beat(4)3
Avg Revenue beat(4)0.36%
Min Revenue beat(4)-1.77%
Max Revenue beat(4)1.29%
Revenue beat(8)5
Avg Revenue beat(8)0.09%
Revenue beat(12)8
Avg Revenue beat(12)0.09%
Revenue beat(16)11
Avg Revenue beat(16)0.36%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)4.67%
EPS NQ rev (3m)4.67%
EPS NY rev (1m)-8.91%
EPS NY rev (3m)-7.5%
Revenue NQ rev (1m)2.57%
Revenue NQ rev (3m)2.57%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)0.65%
Valuation
Industry RankSector Rank
PE 40.75
Fwd PE 31.6
P/S 8.94
P/FCF 25.03
P/OCF 24.49
P/B 4.03
P/tB 24.98
EV/EBITDA 20.91
EPS(TTM)1.86
EY2.45%
EPS(NY)2.4
Fwd EY3.16%
FCF(TTM)3.03
FCFY4%
OCF(TTM)3.1
OCFY4.08%
SpS8.47
BVpS18.82
TBVpS3.03
PEG (NY)1.41
PEG (5Y)1.6
Graham Number28.0646 (-62.98%)
Profitability
Industry RankSector Rank
ROA 8.64%
ROE 10.12%
ROCE 11.63%
ROIC 8.73%
ROICexc 11.1%
ROICexgc N/A
OM 26.68%
PM (TTM) 22.46%
GM 77.08%
FCFM 35.74%
ROA(3y)8.4%
ROA(5y)8.05%
ROE(3y)9.94%
ROE(5y)9.55%
ROIC(3y)8.98%
ROIC(5y)8.58%
ROICexc(3y)11.38%
ROICexc(5y)10.94%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)11.96%
ROCE(5y)11.42%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y0.98%
ROICexc growth 5Y12.22%
OM growth 3Y1.26%
OM growth 5Y6.3%
PM growth 3Y2.22%
PM growth 5Y8.5%
GM growth 3Y0.17%
GM growth 5Y0.76%
F-Score6
Asset Turnover0.38
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 6.58%
Cap/Sales 0.79%
Interest Coverage 250
Cash Conversion 94.54%
Profit Quality 159.08%
Current Ratio 2.16
Quick Ratio 2.16
Altman-Z 14.82
F-Score6
WACC9.52%
ROIC/WACC0.92
Cap/Depr(3y)8%
Cap/Depr(5y)8.16%
Cap/Sales(3y)0.93%
Cap/Sales(5y)1.04%
Profit Quality(3y)160.6%
Profit Quality(5y)172.52%
High Growth Momentum
Growth
EPS 1Y (TTM)12.73%
EPS 3Y16.05%
EPS 5Y25.39%
EPS Q2Q%20.93%
EPS Next Y28.97%
EPS Next 2Y21.78%
EPS Next 3Y28.86%
EPS Next 5Y21.72%
Revenue 1Y (TTM)11.98%
Revenue growth 3Y14.47%
Revenue growth 5Y15.89%
Sales Q2Q%15.1%
Revenue Next Year11.44%
Revenue Next 2Y11.12%
Revenue Next 3Y10.97%
Revenue Next 5Y10.4%
EBIT growth 1Y10.22%
EBIT growth 3Y15.91%
EBIT growth 5Y23.2%
EBIT Next Year71.14%
EBIT Next 3Y29.4%
EBIT Next 5Y22.08%
FCF growth 1Y22.58%
FCF growth 3Y11.82%
FCF growth 5Y15.38%
OCF growth 1Y21.42%
OCF growth 3Y11.44%
OCF growth 5Y15.2%

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.


Can you provide the valuation status for DESCARTES SYSTEMS GRP/THE?

ChartMill assigns a valuation rating of 4 / 10 to DESCARTES SYSTEMS GRP/THE (DSGX). This can be considered as Fairly Valued.


How profitable is DESCARTES SYSTEMS GRP/THE (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.