72.76 USD
-2 (-2.68%)
At close: Feb 2, 2026
72.76 USD
0 (0%)
After Hours: 2/2/2026, 8:00:07 PM
We assign a fundamental rating of 7 out of 10 to DSGX. DSGX was compared to 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 shows excellent growth, but is valued quite expensive already. This makes DSGX very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
- In the past year DSGX was profitable.
- In the past year DSGX had a positive cash flow from operations.
- DSGX had positive earnings in each of the past 5 years.
- In the past 5 years DSGX always reported a positive cash flow from operatings.
1.2 Ratios
- DSGX has a better Return On Assets (8.54%) than 81.30% of its industry peers.
- With a decent Return On Equity value of 10.02%, DSGX is doing good in the industry, outperforming 73.74% of the companies in the same industry.
- DSGX has a Return On Invested Capital of 9.58%. This is amongst the best in the industry. DSGX outperforms 83.81% 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 10.76%.
- 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
- The Profit Margin of DSGX (22.10%) is better than 85.97% of its industry peers.
- In the last couple of years the Profit Margin of DSGX has grown nicely.
- The Operating Margin of DSGX (28.79%) is better than 92.45% of its industry peers.
- DSGX's Operating Margin has improved in the last couple of years.
- DSGX's Gross Margin of 76.80% is fine compared to the rest of the industry. DSGX outperforms 71.22% 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 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
- 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.
2.2 Solvency
- DSGX has an Altman-Z score of 15.58. This indicates that DSGX is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 15.58, DSGX belongs to the top of the industry, outperforming 95.68% of the companies in the same industry.
- 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 | 15.58 |
ROIC/WACC0.93
WACC10.26%
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's Quick ratio of 1.83 is in line compared to the rest of the industry. DSGX outperforms 55.76% of 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
- 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.
- Measured over the past years, DSGX shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.86% on average per year.
- Looking at the last year, DSGX shows a quite strong growth in Revenue. The Revenue has grown by 11.39% in the last year.
- Measured over the past years, DSGX shows a quite strong growth in Revenue. The Revenue has been growing by 14.85% on average per year.
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.
- 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.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 41.11, which means the current valuation is very expensive for DSGX.
- 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 28.41, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 32.65, which means the current valuation is very expensive for DSGX.
- The rest of the industry has a similar Price/Forward Earnings ratio as DSGX.
- When comparing the Price/Forward Earnings ratio of DSGX to the average of the S&P500 Index (25.64), we can say DSGX is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.11 | ||
| Fwd PE | 32.65 |
4.2 Price Multiples
- 74.10% of the companies in the same industry are more expensive than DSGX, based on the Enterprise Value to EBITDA ratio.
- 69.06% 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 | 25.62 | ||
| EV/EBITDA | 21.33 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DSGX does not grow enough to justify the current Price/Earnings ratio.
- The excellent profitability rating of DSGX 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)3
PEG (5Y)1.33
EPS Next 2Y16.22%
EPS Next 3Y17.6%
5. Dividend
5.1 Amount
- DSGX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
72.76
-2 (-2.68%)
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 Cap6.26B
Revenue(TTM)703.71M
Net Income(TTM)155.53M
Analysts77.78
Price Target98.8 (35.79%)
Short Float %1%
Short Ratio1.65
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 | 41.11 | ||
| Fwd PE | 32.65 | ||
| P/S | 8.89 | ||
| P/FCF | 25.62 | ||
| P/OCF | 24.97 | ||
| P/B | 4.03 | ||
| P/tB | 33.93 | ||
| EV/EBITDA | 21.33 |
EPS(TTM)1.77
EY2.43%
EPS(NY)2.23
Fwd EY3.06%
FCF(TTM)2.84
FCFY3.9%
OCF(TTM)2.91
OCFY4%
SpS8.18
BVpS18.04
TBVpS2.14
PEG (NY)3
PEG (5Y)1.33
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 | 15.58 |
F-Score6
WACC10.26%
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 3 / 10 to DESCARTES SYSTEMS GRP/THE (DSGX). This can be considered as Overvalued.
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 41.11 and the Price/Book (PB) ratio is 4.03.