DESCARTES SYSTEMS GRP/THE (DSGX) Fundamental Analysis & Valuation
NASDAQ:DSGX • CA2499061083
70.01 USD
-2.25 (-3.11%)
At close: Mar 10, 2026
70.01 USD
0 (0%)
After Hours: 3/10/2026, 8:19:14 PM
This DSGX fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 7 out of 10 to DSGX. 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make DSGX a good candidate for growth and quality investing.
1. DSGX Profitability Analysis
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.
- Each year in the past 5 years DSGX had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 8.54%, DSGX belongs to the top of the industry, outperforming 83.03% 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 74.37% of its industry peers.
- DSGX has a better Return On Invested Capital (9.58%) than 84.48% of its industry peers.
- DSGX had an Average Return On Invested Capital over the past 3 years of 8.86%. This is below the industry average of 10.89%.
- 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 Profit Margin of 22.10%. This is amongst the best in the industry. DSGX outperforms 88.45% of its industry peers.
- DSGX's Profit Margin has improved in the last couple of years.
- DSGX's Operating Margin of 28.79% is amongst the best of the industry. DSGX outperforms 93.50% of its industry peers.
- DSGX's Operating Margin has improved in the last couple of years.
- DSGX has a better Gross Margin (76.80%) than 71.12% 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. DSGX Health Analysis
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
- 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 15.10 indicates that DSGX is not in any danger for bankruptcy at the moment.
- The Altman-Z score of DSGX (15.10) is better than 95.31% of its industry peers.
- 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 | 15.1 |
ROIC/WACC0.94
WACC10.17%
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 of 1.83. This is comparable to the rest of the industry: DSGX outperforms 54.15% of its industry peers.
- A Quick Ratio of 1.83 indicates that DSGX should not have too much problems paying its short term obligations.
- The Quick ratio of DSGX (1.83) is comparable to the rest of the 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. DSGX Growth Analysis
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
- 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.
- 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
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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. DSGX Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 39.55, DSGX can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Earnings ratio as DSGX.
- When comparing the Price/Earnings ratio of DSGX to the average of the S&P500 Index (26.25), we can say DSGX is valued expensively.
- Based on the Price/Forward Earnings ratio of 26.59, the valuation of DSGX can be described as expensive.
- The rest of the industry has a similar Price/Forward Earnings ratio as DSGX.
- DSGX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.55 | ||
| Fwd PE | 26.59 |
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 75.81% 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 66.79% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.66 | ||
| EV/EBITDA | 20.6 |
4.3 Compensation for Growth
- DSGX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- 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 22.60% in the coming years.
PEG (NY)0.99
PEG (5Y)1.28
EPS Next 2Y26.33%
EPS Next 3Y22.6%
5. DSGX Dividend Analysis
5.1 Amount
- DSGX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
DSGX Fundamentals: All Metrics, Ratios and Statistics
70.01
-2.25 (-3.11%)
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 Owners88.87%
Inst Owner Change9.91%
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap6.02B
Revenue(TTM)703.71M
Net Income(TTM)155.53M
Analysts77.78
Price Target98.8 (41.12%)
Short Float %1.52%
Short Ratio1.97
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)-0.75%
EPS NQ rev (3m)1.36%
EPS NY rev (1m)23.12%
EPS NY rev (3m)26.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.37%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.55 | ||
| Fwd PE | 26.59 | ||
| P/S | 8.56 | ||
| P/FCF | 24.66 | ||
| P/OCF | 24.03 | ||
| P/B | 3.88 | ||
| P/tB | 32.66 | ||
| EV/EBITDA | 20.6 |
EPS(TTM)1.77
EY2.53%
EPS(NY)2.63
Fwd EY3.76%
FCF(TTM)2.84
FCFY4.05%
OCF(TTM)2.91
OCFY4.16%
SpS8.18
BVpS18.04
TBVpS2.14
PEG (NY)0.99
PEG (5Y)1.28
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 | 15.1 |
F-Score6
WACC10.17%
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 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 39.55 and the Price/Book (PB) ratio is 3.88.