88.57 USD
+2.08 (+2.4%)
88.47 USD
-0.1 (-0.11%)
We assign a fundamental rating of 7 out of 10 to DSGX. DSGX was compared to 276 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes DSGX very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
- In the past year DSGX was profitable.
- DSGX had a positive operating cash flow in the past year.
- Each year in the past 5 years DSGX has been profitable.
- DSGX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of DSGX (8.54%) is better than 81.16% of its industry peers.
- DSGX has a Return On Equity of 10.02%. This is in the better half of the industry: DSGX outperforms 73.55% of its industry peers.
- DSGX's Return On Invested Capital of 9.58% is amongst the best of 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 3 year average ROIC (8.86%) for DSGX is below the current ROIC(9.58%), indicating increased profibility in the last year.
| 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
- With an excellent Profit Margin value of 22.10%, DSGX belongs to the best of the industry, outperforming 85.51% of the companies in the same industry.
- DSGX's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 28.79%, DSGX belongs to the top of the industry, outperforming 92.39% of the companies in the same industry.
- DSGX's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 76.80%, DSGX is doing good in the industry, outperforming 71.38% 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 | 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DSGX is destroying value.
- DSGX has more shares outstanding than it did 1 year ago.
- 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.
2.2 Solvency
- An Altman-Z score of 17.83 indicates that DSGX is not in any danger for bankruptcy at the moment.
- DSGX has a Altman-Z score of 17.83. This is amongst the best in the industry. DSGX outperforms 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 | 17.83 |
ROIC/WACC0.96
WACC10.01%
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.
- A Quick Ratio of 1.83 indicates that DSGX should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.83, DSGX is in line with its industry, outperforming 55.80% of the companies in the same industry.
- DSGX does not score too well on the current and quick ratio evaluation. However, as it has 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
- DSGX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.39%.
- The Revenue has been growing by 14.85% on average over the past years. This is quite good.
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
- DSGX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.86% yearly.
- 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
- The Price/Earnings ratio is 50.04, 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 (27.54), we can say DSGX is valued expensively.
- Based on the Price/Forward Earnings ratio of 34.16, the valuation of DSGX can be described as expensive.
- The rest of the industry has a similar Price/Forward Earnings ratio as DSGX.
- DSGX's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.04 | ||
| Fwd PE | 34.16 |
4.2 Price Multiples
- 72.83% of the companies in the same industry are more expensive than DSGX, based on the Enterprise Value to EBITDA ratio.
- 68.84% 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 | 31.19 | ||
| EV/EBITDA | 24.83 |
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 22.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.1
PEG (5Y)1.62
EPS Next 2Y25.36%
EPS Next 3Y22.6%
5. Dividend
5.1 Amount
- DSGX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
88.57
+2.08 (+2.4%)
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 Cap7.62B
Revenue(TTM)703.71M
Net Income(TTM)155.53M
Analysts77.78
Price Target98.8 (11.55%)
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 | 50.04 | ||
| Fwd PE | 34.16 | ||
| P/S | 10.82 | ||
| P/FCF | 31.19 | ||
| P/OCF | 30.4 | ||
| P/B | 4.91 | ||
| P/tB | 41.31 | ||
| EV/EBITDA | 24.83 |
EPS(TTM)1.77
EY2%
EPS(NY)2.59
Fwd EY2.93%
FCF(TTM)2.84
FCFY3.21%
OCF(TTM)2.91
OCFY3.29%
SpS8.18
BVpS18.04
TBVpS2.14
PEG (NY)1.1
PEG (5Y)1.62
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 | 17.83 |
F-Score6
WACC10.01%
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 50.04 and the Price/Book (PB) ratio is 4.91.