87.46 USD
+1.85 (+2.16%)
87.46 USD
0 (0%)
Overall DSGX gets a fundamental rating of 7 out of 10. We evaluated DSGX against 276 industry peers in the Software industry. DSGX gets an excellent profitability rating and is at the same time showing great financial health properties. DSGX is valued quite expensively, but it does show have an excellent growth rating. These ratings could make DSGX a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year DSGX was profitable.
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
DSGX has a Return On Assets of 8.54%. This is amongst the best in the industry. DSGX outperforms 81.16% of its industry peers.
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.
The Average Return On Invested Capital over the past 3 years for DSGX is in line with the industry average of 10.78%.
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
With an excellent Profit Margin value of 22.10%, DSGX belongs to the best of the industry, outperforming 85.14% of the companies in the same industry.
DSGX's Profit Margin has improved in the last couple of years.
DSGX has a better Operating Margin (28.79%) than 92.39% of its industry peers.
DSGX's Operating Margin has improved in the last couple of years.
The Gross Margin of DSGX (76.80%) is better than 71.38% 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
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
Compared to 5 years ago, DSGX has more shares outstanding
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
DSGX has an Altman-Z score of 17.66. This indicates that DSGX is financially healthy and has little risk of bankruptcy at the moment.
DSGX's Altman-Z score of 17.66 is amongst the best of the industry. DSGX outperforms 95.29% 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 | 17.66 |
ROIC/WACC0.96
WACC9.96%
2.3 Liquidity
A Current Ratio of 1.83 indicates that DSGX should not have too much problems paying its short term obligations.
With a Current ratio value of 1.83, DSGX perfoms like the industry average, 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.
DSGX has a Quick ratio (1.83) which is comparable to the rest of the industry.
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.
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 21.92% on average per year.
DSGX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.60% yearly.
EPS Next Y13.72%
EPS Next 2Y16.22%
EPS Next 3Y17.6%
EPS Next 5Y21.92%
Revenue Next Year10.76%
Revenue Next 2Y10.85%
Revenue Next 3Y10.9%
Revenue Next 5Y10.6%
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. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 49.41, DSGX can be considered very expensive at the moment.
DSGX's Price/Earnings ratio is in line with the industry average.
DSGX is valuated expensively when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 39.24, the valuation of DSGX can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as DSGX.
DSGX is valuated expensively when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.41 | ||
| Fwd PE | 39.24 |
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 73.55% 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 | 30.8 | ||
| EV/EBITDA | 24.57 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of DSGX may justify a higher PE ratio.
DSGX's earnings are expected to grow with 17.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.6
PEG (5Y)1.6
EPS Next 2Y16.22%
EPS Next 3Y17.6%
5. Dividend
5.1 Amount
No dividends for DSGX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
87.46
+1.85 (+2.16%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners86.36%
Inst Owner Change0%
Ins Owners0.21%
Ins Owner ChangeN/A
Market Cap7.52B
Revenue(TTM)703.71M
Net Income(TTM)155.53M
Analysts77.5
Price Target98.8 (12.97%)
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)2.54%
EPS NY rev (3m)2.44%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)0.76%
Revenue NY rev (1m)0.48%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.41 | ||
| Fwd PE | 39.24 | ||
| P/S | 10.69 | ||
| P/FCF | 30.8 | ||
| P/OCF | 30.01 | ||
| P/B | 4.85 | ||
| P/tB | 40.79 | ||
| EV/EBITDA | 24.57 |
EPS(TTM)1.77
EY2.02%
EPS(NY)2.23
Fwd EY2.55%
FCF(TTM)2.84
FCFY3.25%
OCF(TTM)2.91
OCFY3.33%
SpS8.18
BVpS18.04
TBVpS2.14
PEG (NY)3.6
PEG (5Y)1.6
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 | 17.66 |
F-Score6
WACC9.96%
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 Y13.72%
EPS Next 2Y16.22%
EPS Next 3Y17.6%
EPS Next 5Y21.92%
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 5Y10.6%
EBIT growth 1Y21.35%
EBIT growth 3Y19.76%
EBIT growth 5Y27.58%
EBIT Next Year74.96%
EBIT Next 3Y31.1%
EBIT Next 5Y23.17%
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 49.41 and the Price/Book (PB) ratio is 4.85.