87.93 USD
-0.69 (-0.78%)
87.93 USD
0 (0%)
DSGX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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 growing strongly while it is still valued neutral. This is a good combination! With these ratings, DSGX could be worth investigating further 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.
Each year in the past 5 years DSGX has been profitable.
In the past 5 years DSGX always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.54%, DSGX belongs to the top of the industry, outperforming 81.16% of the companies in the same industry.
The Return On Equity of DSGX (10.02%) is better than 73.55% of its industry peers.
The Return On Invested Capital of DSGX (9.58%) is better than 83.33% 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 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
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.
Looking at the Gross Margin, with a value of 76.80%, DSGX is in the better half of the industry, outperforming 71.38% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DSGX is destroying value.
Compared to 1 year ago, DSGX has more shares outstanding
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 18.23 indicates that DSGX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 18.23, DSGX belongs to the top of the industry, outperforming 95.29% 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 | 18.23 |
ROIC/WACC0.96
WACC10.02%
2.3 Liquidity
A Current Ratio of 1.83 indicates that DSGX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.83, DSGX is in line with its industry, outperforming 55.43% of the companies in the same industry.
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.
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
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.
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
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.
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.
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
A Price/Earnings ratio of 49.68 indicates a quite expensive valuation of DSGX.
DSGX's Price/Earnings ratio is in line with the industry average.
DSGX is valuated expensively when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 33.91, which means the current valuation is very expensive for DSGX.
The rest of the industry has a similar Price/Forward Earnings ratio as DSGX.
The average S&P500 Price/Forward Earnings ratio is at 24.04. DSGX is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.68 | ||
| Fwd PE | 33.91 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DSGX indicates a somewhat cheap valuation: DSGX is cheaper than 73.19% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DSGX is valued a bit cheaper than the industry average as 69.20% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.97 | ||
| EV/EBITDA | 25.47 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
DSGX has an outstanding profitability rating, which 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)1.61
EPS Next 2Y25.36%
EPS Next 3Y22.6%
5. Dividend
5.1 Amount
No dividends for DSGX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
87.93
-0.69 (-0.78%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners86.36%
Inst Owner Change-0.01%
Ins Owners0.21%
Ins Owner ChangeN/A
Market Cap7.56B
Revenue(TTM)703.71M
Net Income(TTM)155.53M
Analysts77.78
Price Target98.8 (12.36%)
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 | 49.68 | ||
| Fwd PE | 33.91 | ||
| P/S | 10.74 | ||
| P/FCF | 30.97 | ||
| P/OCF | 30.18 | ||
| P/B | 4.87 | ||
| P/tB | 41.01 | ||
| EV/EBITDA | 25.47 |
EPS(TTM)1.77
EY2.01%
EPS(NY)2.59
Fwd EY2.95%
FCF(TTM)2.84
FCFY3.23%
OCF(TTM)2.91
OCFY3.31%
SpS8.18
BVpS18.04
TBVpS2.14
PEG (NY)1.1
PEG (5Y)1.61
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 | 18.23 |
F-Score6
WACC10.02%
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 49.68 and the Price/Book (PB) ratio is 4.87.