DESCARTES SYSTEMS GRP/THE (DSGX) Fundamental Analysis & Valuation

NASDAQ:DSGX • CA2499061083

Current stock price

72.56 USD
-0.01 (-0.01%)
At close:
72.56 USD
0 (0%)
After Hours:

This DSGX fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. DSGX Profitability Analysis

1.1 Basic Checks

  • DSGX had positive earnings in the past year.
  • In the past year DSGX had a positive cash flow from operations.
  • 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.
DSGX Yearly Net Income VS EBIT VS OCF VS FCFDSGX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 50M 100M 150M 200M 250M

1.2 Ratios

  • DSGX's Return On Assets of 8.64% is amongst the best of the industry. DSGX outperforms 83.75% of its industry peers.
  • DSGX's Return On Equity of 10.12% is fine compared to the rest of the industry. DSGX outperforms 75.09% of its industry peers.
  • The Return On Invested Capital of DSGX (8.73%) is better than 81.95% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for DSGX is in line with the industry average of 10.78%.
Industry RankSector Rank
ROA 8.64%
ROE 10.12%
ROIC 8.73%
ROA(3y)8.4%
ROA(5y)8.05%
ROE(3y)9.94%
ROE(5y)9.55%
ROIC(3y)8.98%
ROIC(5y)8.58%
DSGX Yearly ROA, ROE, ROICDSGX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6 8 10

1.3 Margins

  • Looking at the Profit Margin, with a value of 22.46%, DSGX belongs to the top of the industry, outperforming 88.81% of the companies in the same industry.
  • In the last couple of years the Profit Margin of DSGX has grown nicely.
  • Looking at the Operating Margin, with a value of 26.68%, DSGX belongs to the top of the industry, outperforming 91.70% of the companies in the same industry.
  • In the last couple of years the Operating Margin of DSGX has grown nicely.
  • The Gross Margin of DSGX (77.08%) is better than 71.84% of its industry peers.
  • DSGX's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 26.68%
PM (TTM) 22.46%
GM 77.08%
OM growth 3Y1.26%
OM growth 5Y6.3%
PM growth 3Y2.22%
PM growth 5Y8.5%
GM growth 3Y0.17%
GM growth 5Y0.76%
DSGX Yearly Profit, Operating, Gross MarginsDSGX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20 40 60

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8

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.
  • DSGX has more shares outstanding than it did 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.
DSGX Yearly Shares OutstandingDSGX Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20M 40M 60M 80M
DSGX Yearly Total Debt VS Total AssetsDSGX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B

2.2 Solvency

  • DSGX has an Altman-Z score of 14.81. This indicates that DSGX is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of DSGX (14.81) is better than 94.95% of its industry peers.
  • DSGX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 14.81
ROIC/WACC0.88
WACC9.93%
DSGX Yearly LT Debt VS Equity VS FCFDSGX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B

2.3 Liquidity

  • A Current Ratio of 2.16 indicates that DSGX has no problem at all paying its short term obligations.
  • DSGX has a Current ratio of 2.16. This is in the better half of the industry: DSGX outperforms 61.01% of its industry peers.
  • A Quick Ratio of 2.16 indicates that DSGX has no problem at all paying its short term obligations.
  • DSGX has a Quick ratio of 2.16. This is in the better half of the industry: DSGX outperforms 61.37% of its industry peers.
Industry RankSector Rank
Current Ratio 2.16
Quick Ratio 2.16
DSGX Yearly Current Assets VS Current LiabilitesDSGX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 100M 200M 300M 400M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

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 12.73%, which is quite good.
  • DSGX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.86% yearly.
  • The Revenue has grown by 11.98% in the past year. This is quite good.
  • 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)12.73%
EPS 3Y18.17%
EPS 5Y30.86%
EPS Q2Q%20.93%
Revenue 1Y (TTM)11.98%
Revenue growth 3Y15.3%
Revenue growth 5Y14.85%
Sales Q2Q%15.1%

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 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

  • 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.
DSGX Yearly Revenue VS EstimatesDSGX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 500M 1B 1.5B
DSGX Yearly EPS VS EstimatesDSGX Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6

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5

4. DSGX Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 39.01, which means the current valuation is very expensive for DSGX.
  • DSGX's Price/Earnings is on the same level as the industry average.
  • The average S&P500 Price/Earnings ratio is at 25.23. DSGX is valued rather expensively when compared to this.
  • With a Price/Forward Earnings ratio of 27.56, DSGX can be considered very expensive at the moment.
  • DSGX's Price/Forward Earnings is on the same level as the industry average.
  • When comparing the Price/Forward Earnings ratio of DSGX to the average of the S&P500 Index (23.28), we can say DSGX is valued inline with the index average.
Industry RankSector Rank
PE 39.01
Fwd PE 27.56
DSGX Price Earnings VS Forward Price EarningsDSGX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • 72.92% of the companies in the same industry are more expensive than DSGX, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of DSGX indicates a somewhat cheap valuation: DSGX is cheaper than 67.51% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 23.96
EV/EBITDA 20.9
DSGX Per share dataDSGX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

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.
  • 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 22.60% in the coming years.
PEG (NY)0.97
PEG (5Y)1.26
EPS Next 2Y26.33%
EPS Next 3Y22.6%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. DSGX Dividend Analysis

5.1 Amount

  • No dividends for DSGX!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

DSGX Fundamentals: All Metrics, Ratios and Statistics

DESCARTES SYSTEMS GRP/THE

NASDAQ:DSGX (3/20/2026, 8:00:01 PM)

After market: 72.56 0 (0%)

72.56

-0.01 (-0.01%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)03-11
Earnings (Next)06-02
Inst Owners88.87%
Inst Owner Change9.91%
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap6.24B
Revenue(TTM)728.99M
Net Income(TTM)163.77M
Analysts77.78
Price Target98.8 (36.16%)
Short Float %1.57%
Short Ratio1.77
Dividend
Industry RankSector 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)2
Avg EPS beat(2)6.39%
Min EPS beat(2)5.5%
Max EPS beat(2)7.29%
EPS beat(4)2
Avg EPS beat(4)1.03%
Min EPS beat(4)-6.83%
Max EPS beat(4)7.29%
EPS beat(8)5
Avg EPS beat(8)1.06%
EPS beat(12)7
Avg EPS beat(12)-0.45%
EPS beat(16)10
Avg EPS beat(16)1.55%
Revenue beat(2)2
Avg Revenue beat(2)0.96%
Min Revenue beat(2)0.67%
Max Revenue beat(2)1.26%
Revenue beat(4)3
Avg Revenue beat(4)0.36%
Min Revenue beat(4)-1.77%
Max Revenue beat(4)1.29%
Revenue beat(8)5
Avg Revenue beat(8)0.09%
Revenue beat(12)8
Avg Revenue beat(12)0.09%
Revenue beat(16)11
Avg Revenue beat(16)0.36%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.36%
EPS NY rev (1m)0%
EPS NY rev (3m)26.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.51%
Valuation
Industry RankSector Rank
PE 39.01
Fwd PE 27.56
P/S 8.56
P/FCF 23.96
P/OCF 23.44
P/B 3.86
P/tB 23.91
EV/EBITDA 20.9
EPS(TTM)1.86
EY2.56%
EPS(NY)2.63
Fwd EY3.63%
FCF(TTM)3.03
FCFY4.17%
OCF(TTM)3.1
OCFY4.27%
SpS8.47
BVpS18.82
TBVpS3.03
PEG (NY)0.97
PEG (5Y)1.26
Graham Number28.06
Profitability
Industry RankSector Rank
ROA 8.64%
ROE 10.12%
ROCE 11.63%
ROIC 8.73%
ROICexc 11.1%
ROICexgc N/A
OM 26.68%
PM (TTM) 22.46%
GM 77.08%
FCFM 35.74%
ROA(3y)8.4%
ROA(5y)8.05%
ROE(3y)9.94%
ROE(5y)9.55%
ROIC(3y)8.98%
ROIC(5y)8.58%
ROICexc(3y)11.38%
ROICexc(5y)10.94%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)11.96%
ROCE(5y)11.42%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y0.98%
ROICexc growth 5Y12.22%
OM growth 3Y1.26%
OM growth 5Y6.3%
PM growth 3Y2.22%
PM growth 5Y8.5%
GM growth 3Y0.17%
GM growth 5Y0.76%
F-Score6
Asset Turnover0.38
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 6.58%
Cap/Sales 0.79%
Interest Coverage 250
Cash Conversion 94.54%
Profit Quality 159.08%
Current Ratio 2.16
Quick Ratio 2.16
Altman-Z 14.81
F-Score6
WACC9.93%
ROIC/WACC0.88
Cap/Depr(3y)8%
Cap/Depr(5y)8.16%
Cap/Sales(3y)0.93%
Cap/Sales(5y)1.04%
Profit Quality(3y)160.6%
Profit Quality(5y)172.52%
High Growth Momentum
Growth
EPS 1Y (TTM)12.73%
EPS 3Y18.17%
EPS 5Y30.86%
EPS Q2Q%20.93%
EPS Next Y40.02%
EPS Next 2Y26.33%
EPS Next 3Y22.6%
EPS Next 5Y21.86%
Revenue 1Y (TTM)11.98%
Revenue growth 3Y15.3%
Revenue growth 5Y14.85%
Sales Q2Q%15.1%
Revenue Next Year10.8%
Revenue Next 2Y10.88%
Revenue Next 3Y10.9%
Revenue Next 5Y10.56%
EBIT growth 1Y10.22%
EBIT growth 3Y15.91%
EBIT growth 5Y23.2%
EBIT Next Year81.13%
EBIT Next 3Y31.4%
EBIT Next 5Y23.3%
FCF growth 1Y22.58%
FCF growth 3Y11.82%
FCF growth 5Y15.38%
OCF growth 1Y21.42%
OCF growth 3Y11.44%
OCF growth 5Y15.2%

DESCARTES SYSTEMS GRP/THE / DSGX Fundamental Analysis 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 39.01 and the Price/Book (PB) ratio is 3.86.