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

NASDAQ:DSGX • CA2499061083

Current stock price

73.13 USD
+1.02 (+1.41%)
At close:
73.13 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.
  • DSGX had positive earnings in each of the past 5 years.
  • DSGX had a positive operating cash flow in each of the past 5 years.
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 82.72% of its industry peers.
  • Looking at the Return On Equity, with a value of 10.12%, DSGX is in the better half of the industry, outperforming 74.26% of the companies in the same industry.
  • DSGX has a better Return On Invested Capital (8.73%) than 81.62% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for DSGX is below the industry average of 11.04%.
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

  • DSGX has a Profit Margin of 22.46%. This is amongst the best in the industry. DSGX outperforms 89.34% of its industry peers.
  • In the last couple of years the Profit Margin of DSGX has grown nicely.
  • DSGX has a Operating Margin of 26.68%. This is amongst the best in the industry. DSGX outperforms 91.54% of its industry peers.
  • In the last couple of years the Operating Margin of DSGX has grown nicely.
  • DSGX has a Gross Margin of 77.08%. This is in the better half of the industry: DSGX outperforms 73.16% 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 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

  • 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
  • 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

  • An Altman-Z score of 14.72 indicates that DSGX is not in any danger for bankruptcy at the moment.
  • DSGX has a Altman-Z score of 14.72. This is amongst the best in the industry. DSGX outperforms 92.65% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 14.72
ROIC/WACC0.88
WACC9.96%
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

  • A Current Ratio of 2.16 indicates that DSGX has no problem at all paying its short term obligations.
  • DSGX's Current ratio of 2.16 is fine compared to the rest of the industry. DSGX outperforms 61.40% of its industry peers.
  • DSGX has a Quick 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 Quick ratio (2.16) than 61.76% 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.
  • DSGX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.39% yearly.
  • DSGX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.98%.
  • The Revenue has been growing by 15.89% on average over the past years. This is quite good.
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 21.87% yearly.
  • The Revenue is expected to grow by 10.58% on average over the next years. This is quite good.
EPS Next Y48.24%
EPS Next 2Y32.58%
EPS Next 3Y25.99%
EPS Next 5Y21.87%
Revenue Next Year11.63%
Revenue Next 2Y11.33%
Revenue Next 3Y11.49%
Revenue Next 5Y10.58%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
  • 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

  • DSGX is valuated quite expensively with a Price/Earnings ratio of 39.32.
  • 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 (26.64), we can say DSGX is valued slightly more expensively.
  • The Price/Forward Earnings ratio is 26.52, which means the current valuation is very expensive for DSGX.
  • DSGX's Price/Forward Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 21.36. DSGX is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 39.32
Fwd PE 26.52
DSGX Price Earnings VS Forward Price EarningsDSGX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • DSGX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DSGX is cheaper than 71.32% of the companies 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 66.54% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 24.15
EV/EBITDA 20.76
DSGX Per share dataDSGX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 25.99% in the coming years.
PEG (NY)0.82
PEG (5Y)1.55
EPS Next 2Y32.58%
EPS Next 3Y25.99%

More info and screens

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 (5/1/2026, 8:22:21 PM)

After market: 73.13 0 (0%)

73.13

+1.02 (+1.41%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Industry Strength12.6
Industry Growth43.28
Earnings (Last)03-11
Earnings (Next)06-02
Inst Owners88.65%
Inst Owner Change-0.53%
Ins Owners0.22%
Ins Owner ChangeN/A
Market Cap6.29B
Revenue(TTM)728.99M
Net Income(TTM)163.77M
Analysts77.78
Price Target98.8 (35.1%)
Short Float %2.29%
Short Ratio2.94
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)0%
EPS NQ rev (3m)4.67%
EPS NY rev (1m)4.71%
EPS NY rev (3m)23.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.57%
Revenue NY rev (1m)0.61%
Revenue NY rev (3m)0.67%
Valuation
Industry RankSector Rank
PE 39.32
Fwd PE 26.52
P/S 8.63
P/FCF 24.15
P/OCF 23.63
P/B 3.89
P/tB 24.1
EV/EBITDA 20.76
EPS(TTM)1.86
EY2.54%
EPS(NY)2.76
Fwd EY3.77%
FCF(TTM)3.03
FCFY4.14%
OCF(TTM)3.1
OCFY4.23%
SpS8.47
BVpS18.82
TBVpS3.03
PEG (NY)0.82
PEG (5Y)1.55
Graham Number28.0646 (-61.62%)
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 14.72
F-Score6
WACC9.96%
ROIC/WACC0.88
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 Y48.24%
EPS Next 2Y32.58%
EPS Next 3Y25.99%
EPS Next 5Y21.87%
Revenue 1Y (TTM)11.98%
Revenue growth 3Y14.47%
Revenue growth 5Y15.89%
Sales Q2Q%15.1%
Revenue Next Year11.63%
Revenue Next 2Y11.33%
Revenue Next 3Y11.49%
Revenue Next 5Y10.58%
EBIT growth 1Y10.22%
EBIT growth 3Y15.91%
EBIT growth 5Y23.2%
EBIT Next Year79.58%
EBIT Next 3Y31.85%
EBIT Next 5Y23.33%
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.