DESCARTES SYSTEMS GRP/THE (DSGX) Stock Fundamental Analysis
NASDAQ:DSGX • CA2499061083
64.66 USD
+1.08 (+1.7%)
At close: Feb 25, 2026
64.66 USD
0 (0%)
After Hours: 2/25/2026, 8:05:43 PM
DSGX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 274 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 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
- DSGX had positive earnings in the past year.
- In the past year DSGX had a positive cash flow from operations.
- 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
- With an excellent Return On Assets value of 8.54%, DSGX belongs to the best of the industry, outperforming 81.39% of the companies in the same industry.
- DSGX has a Return On Equity of 10.02%. This is in the better half of the industry: DSGX outperforms 73.36% of its industry peers.
- The Return On Invested Capital of DSGX (9.58%) is better than 83.21% 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 10.77%.
- 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 has a Profit Margin of 22.10%. This is amongst the best in the industry. DSGX outperforms 86.50% of its industry peers.
- In the last couple of years the Profit Margin of DSGX has grown nicely.
- DSGX has a better Operating Margin (28.79%) than 91.61% of its industry peers.
- 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 70.80% 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.
- 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 13.64. This indicates that DSGX is financially healthy and has little risk of bankruptcy at the moment.
- DSGX has a better Altman-Z score (13.64) than 95.26% 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 | 13.64 |
ROIC/WACC0.93
WACC10.32%
2.3 Liquidity
- DSGX has a Current 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.
- With a Current ratio value of 1.83, DSGX perfoms like the industry average, outperforming 55.11% of the companies in the same industry.
- 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 55.84% 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 | 1.83 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 11.32% over the past year.
- DSGX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.86% yearly.
- Looking at the last year, DSGX shows a quite strong growth in Revenue. The Revenue has grown by 11.39% 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)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
- Based on estimates for the next years, DSGX will show a very strong growth in Earnings Per Share. The EPS will grow by 21.86% on average per year.
- Based on estimates for the next years, DSGX will show a quite strong growth in Revenue. The Revenue will grow by 10.56% on average per year.
EPS Next Y40.02%
EPS Next 2Y26.33%
EPS Next 3Y22.6%
EPS Next 5Y21.86%
Revenue Next Year10.8%
Revenue Next 2Y10.88%
Revenue Next 3Y10.9%
Revenue Next 5Y10.56%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 36.53, which means the current valuation is very expensive for DSGX.
- The rest of the industry has a similar Price/Earnings ratio as DSGX.
- DSGX's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.05.
- A Price/Forward Earnings ratio of 24.56 indicates a rather expensive valuation of DSGX.
- The rest of the industry has a similar Price/Forward Earnings ratio as DSGX.
- DSGX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 28.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.53 | ||
| Fwd PE | 24.56 |
4.2 Price Multiples
- 74.09% of the companies in the same industry are more expensive than DSGX, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of DSGX indicates a somewhat cheap valuation: DSGX is cheaper than 69.34% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.78 | ||
| EV/EBITDA | 18.33 |
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 22.60% in the coming years.
PEG (NY)0.91
PEG (5Y)1.18
EPS Next 2Y26.33%
EPS Next 3Y22.6%
5. Dividend
5.1 Amount
- DSGX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
64.66
+1.08 (+1.7%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-03 2025-12-03/amc
Earnings (Next)03-11 2026-03-11/amc
Inst Owners86.36%
Inst Owner Change10.04%
Ins Owners0.21%
Ins Owner ChangeN/A
Market Cap5.56B
Revenue(TTM)703.71M
Net Income(TTM)155.53M
Analysts77.78
Price Target98.8 (52.8%)
Short Float %1.08%
Short Ratio1.44
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)1.67%
EPS NQ rev (3m)3.1%
EPS NY rev (1m)23.12%
EPS NY rev (3m)26.25%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)0.61%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.53 | ||
| Fwd PE | 24.56 | ||
| P/S | 7.9 | ||
| P/FCF | 22.78 | ||
| P/OCF | 22.2 | ||
| P/B | 3.58 | ||
| P/tB | 30.17 | ||
| EV/EBITDA | 18.33 |
EPS(TTM)1.77
EY2.74%
EPS(NY)2.63
Fwd EY4.07%
FCF(TTM)2.84
FCFY4.39%
OCF(TTM)2.91
OCFY4.51%
SpS8.18
BVpS18.04
TBVpS2.14
PEG (NY)0.91
PEG (5Y)1.18
Graham Number26.8
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 | 13.64 |
F-Score6
WACC10.32%
ROIC/WACC0.93
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 Y40.02%
EPS Next 2Y26.33%
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 Year10.8%
Revenue Next 2Y10.88%
Revenue Next 3Y10.9%
Revenue Next 5Y10.56%
EBIT growth 1Y21.35%
EBIT growth 3Y19.76%
EBIT growth 5Y27.58%
EBIT Next Year75.09%
EBIT Next 3Y30.66%
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 5 / 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 36.53 and the Price/Book (PB) ratio is 3.58.