66.78 USD
-1.11 (-1.63%)
At close: Feb 6, 2026
66.78 USD
0 (0%)
After Hours: 2/6/2026, 8:00:01 PM
Overall DSGX gets a fundamental rating of 7 out of 10. We evaluated DSGX against 278 industry peers in the Software industry. DSGX gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
- DSGX had a positive operating cash flow in the past year.
- 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 81.30% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 10.02%, DSGX is in the better half of the industry, outperforming 73.74% of the companies in the same industry.
- DSGX's Return On Invested Capital of 9.58% is amongst the best of the industry. DSGX outperforms 83.81% of its industry peers.
- DSGX had an Average Return On Invested Capital over the past 3 years of 8.86%. This 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
- DSGX has a better Profit Margin (22.10%) than 85.97% of its industry peers.
- DSGX's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 28.79%, DSGX belongs to the best of the industry, outperforming 92.09% of the companies in the same industry.
- DSGX's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 76.80%, DSGX is in the better half of the industry, outperforming 71.22% 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
- 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
- An Altman-Z score of 14.26 indicates that DSGX is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 14.26, DSGX belongs to the best of the industry, outperforming 95.68% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 14.26 |
ROIC/WACC0.94
WACC10.18%
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.
- DSGX's Current ratio of 1.83 is in line compared to the rest of the industry. DSGX outperforms 55.04% 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's Quick ratio of 1.83 is in line compared to the rest of the industry. DSGX outperforms 55.40% of its industry peers.
- 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
- DSGX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.32%, which is quite good.
- 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%.
- 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
- DSGX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.86% yearly.
- The Revenue is expected to grow by 10.56% on average over the next years. This is quite good.
EPS Next Y13.72%
EPS Next 2Y16.22%
EPS Next 3Y17.6%
EPS Next 5Y21.86%
Revenue Next Year10.76%
Revenue Next 2Y10.85%
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
- Based on the Price/Earnings ratio of 37.73, the valuation of DSGX can be described as expensive.
- DSGX's Price/Earnings ratio is in line with the industry average.
- DSGX is valuated rather expensively when we compare the Price/Earnings ratio to 27.92, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 29.96 indicates a quite expensive valuation of DSGX.
- DSGX's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 27.78. DSGX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.73 | ||
| Fwd PE | 29.96 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DSGX is valued a bit cheaper than 73.02% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, DSGX is valued a bit cheaper than the industry average as 68.35% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.52 | ||
| EV/EBITDA | 19.29 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of DSGX may justify a higher PE ratio.
- DSGX's earnings are expected to grow with 17.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.75
PEG (5Y)1.22
EPS Next 2Y16.22%
EPS Next 3Y17.6%
5. Dividend
5.1 Amount
- No dividends for DSGX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
66.78
-1.11 (-1.63%)
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-2.4%
Ins Owners0.21%
Ins Owner ChangeN/A
Market Cap5.74B
Revenue(TTM)703.71M
Net Income(TTM)155.53M
Analysts77.78
Price Target98.8 (47.95%)
Short Float %1.26%
Short Ratio2.01
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%
EPS NQ rev (3m)1.41%
EPS NY rev (1m)0%
EPS NY rev (3m)2.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.73 | ||
| Fwd PE | 29.96 | ||
| P/S | 8.16 | ||
| P/FCF | 23.52 | ||
| P/OCF | 22.92 | ||
| P/B | 3.7 | ||
| P/tB | 31.14 | ||
| EV/EBITDA | 19.29 |
EPS(TTM)1.77
EY2.65%
EPS(NY)2.23
Fwd EY3.34%
FCF(TTM)2.84
FCFY4.25%
OCF(TTM)2.91
OCFY4.36%
SpS8.18
BVpS18.04
TBVpS2.14
PEG (NY)2.75
PEG (5Y)1.22
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 | 14.26 |
F-Score6
WACC10.18%
ROIC/WACC0.94
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 Y13.72%
EPS Next 2Y16.22%
EPS Next 3Y17.6%
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 2Y10.85%
Revenue Next 3Y10.9%
Revenue Next 5Y10.56%
EBIT growth 1Y21.35%
EBIT growth 3Y19.76%
EBIT growth 5Y27.58%
EBIT Next Year74.96%
EBIT Next 3Y31.1%
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 37.73 and the Price/Book (PB) ratio is 3.7.