65.77 USD
-3.56 (-5.13%)
At close: Feb 11, 2026
65.77 USD
0 (0%)
After Hours: 2/11/2026, 8:18:01 PM
Taking everything into account, DSGX scores 7 out of 10 in our fundamental rating. DSGX was compared to 277 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 growing strongly while it is still valued neutral. This is a good combination! 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.
- In the past 5 years DSGX always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 8.54%, DSGX belongs to the best of the industry, outperforming 81.23% of the companies in the same industry.
- DSGX's Return On Equity of 10.02% is fine compared to the rest of the industry. DSGX outperforms 73.65% of its industry peers.
- With an excellent Return On Invested Capital value of 9.58%, DSGX belongs to the best of the industry, outperforming 83.75% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for DSGX is in line with the industry average of 10.80%.
- 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
- The Profit Margin of DSGX (22.10%) is better than 85.92% of its industry peers.
- In the last couple of years the Profit Margin of DSGX has grown nicely.
- With an excellent Operating Margin value of 28.79%, DSGX belongs to the best of the industry, outperforming 92.06% 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 71.12% 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.
- The number of shares outstanding for DSGX has been increased compared to 1 year ago.
- DSGX has more shares outstanding than it did 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.
2.2 Solvency
- An Altman-Z score of 14.54 indicates that DSGX is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 14.54, DSGX belongs to the best of the industry, outperforming 96.03% 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 | 14.54 |
ROIC/WACC0.93
WACC10.33%
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 (1.83) which is comparable to the rest of the industry.
- A Quick Ratio of 1.83 indicates that DSGX should not have too much problems paying its short term obligations.
- DSGX has a Quick ratio (1.83) which is in line with its industry peers.
- 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.
- The Earnings Per Share has been growing by 30.86% on average over the past years. This is a very strong growth
- The Revenue has grown by 11.39% in the past year. This is quite good.
- 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
- The Earnings Per Share is expected to grow by 21.86% on average over the next years. This is a very strong growth
- 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 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
- The Price/Earnings ratio is 37.16, which means the current valuation is very expensive for DSGX.
- The rest of the industry has a similar Price/Earnings ratio as DSGX.
- The average S&P500 Price/Earnings ratio is at 28.23. DSGX is valued slightly more expensive when compared to this.
- DSGX is valuated quite expensively with a Price/Forward Earnings ratio of 29.51.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of DSGX is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of DSGX to the average of the S&P500 Index (28.01), we can say DSGX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.16 | ||
| Fwd PE | 29.51 |
4.2 Price Multiples
- 74.01% of the companies in the same industry are more expensive than DSGX, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, DSGX is valued a bit cheaper than the industry average as 69.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.16 | ||
| EV/EBITDA | 19.72 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 17.60% in the coming years.
PEG (NY)2.71
PEG (5Y)1.2
EPS Next 2Y16.22%
EPS Next 3Y17.6%
5. Dividend
5.1 Amount
- No dividends for DSGX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
65.77
-3.56 (-5.13%)
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-2.81%
Ins Owners0.21%
Ins Owner ChangeN/A
Market Cap5.66B
Revenue(TTM)703.71M
Net Income(TTM)155.53M
Analysts77.78
Price Target98.8 (50.22%)
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)2.43%
EPS NQ rev (3m)3.87%
EPS NY rev (1m)-21.73%
EPS NY rev (3m)-21.14%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)0.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.16 | ||
| Fwd PE | 29.51 | ||
| P/S | 8.04 | ||
| P/FCF | 23.16 | ||
| P/OCF | 22.57 | ||
| P/B | 3.64 | ||
| P/tB | 30.67 | ||
| EV/EBITDA | 19.72 |
EPS(TTM)1.77
EY2.69%
EPS(NY)2.23
Fwd EY3.39%
FCF(TTM)2.84
FCFY4.32%
OCF(TTM)2.91
OCFY4.43%
SpS8.18
BVpS18.04
TBVpS2.14
PEG (NY)2.71
PEG (5Y)1.2
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 | 14.54 |
F-Score6
WACC10.33%
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 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 37.16 and the Price/Book (PB) ratio is 3.64.