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

NASDAQ:DSGX • CA2499061083

Current stock price

72 USD
-0.3 (-0.41%)
At close:
72 USD
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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.
  • DSGX had a positive operating cash flow in each of the past 5 years.
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

  • With an excellent Return On Assets value of 8.64%, DSGX belongs to the best of the industry, outperforming 82.72% of the companies in the same industry.
  • With a decent Return On Equity value of 10.12%, DSGX is doing good in the industry, outperforming 74.26% of the companies in the same industry.
  • With an excellent Return On Invested Capital value of 8.73%, DSGX belongs to the best of the industry, outperforming 81.62% of the companies in the same industry.
  • DSGX had an Average Return On Invested Capital over the past 3 years of 8.98%. This is in line with the industry average of 10.92%.
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

  • DSGX has a better Profit Margin (22.46%) than 89.34% of its industry peers.
  • DSGX's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 26.68%, DSGX belongs to the top of the industry, outperforming 91.54% of the companies in the same industry.
  • DSGX's Operating Margin has improved in the last couple of years.
  • With a decent Gross Margin value of 77.08%, DSGX is doing good in the industry, outperforming 73.16% of the companies in the same industry.
  • 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

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DSGX is destroying value.
  • DSGX has more shares outstanding than it did 1 year ago.
  • 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.
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 14.70. 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 14.70, DSGX belongs to the top of the industry, outperforming 93.01% of the companies in the same industry.
  • 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 14.7
ROIC/WACC0.9
WACC9.75%
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.
  • Looking at the Current ratio, with a value of 2.16, DSGX is in the better half of the industry, outperforming 61.40% of the companies in the same industry.
  • DSGX has a Quick Ratio of 2.16. This indicates that DSGX is financially healthy and has no problem in meeting its short term obligations.
  • DSGX has a better Quick ratio (2.16) than 61.76% 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.
  • The Earnings Per Share has been growing by 25.39% 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 11.98% in the last year.
  • Measured over the past years, DSGX shows a quite strong growth in Revenue. The Revenue has been growing by 15.89% on average per year.
EPS 1Y (TTM)12.73%
EPS 3Y16.05%
EPS 5Y25.39%
EPS Q2Q%20.93%
Revenue 1Y (TTM)11.98%
Revenue growth 3Y14.47%
Revenue growth 5Y15.89%
Sales Q2Q%15.1%

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 21.87% on average per year.
  • DSGX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.58% yearly.
EPS Next Y48.24%
EPS Next 2Y32.58%
EPS Next 3Y25.99%
EPS Next 5Y21.87%
Revenue Next Year11.63%
Revenue Next 2Y11.33%
Revenue Next 3Y11.49%
Revenue Next 5Y10.58%

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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.
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

  • A Price/Earnings ratio of 38.71 indicates a quite expensive valuation of DSGX.
  • The rest of the industry has a similar Price/Earnings ratio as DSGX.
  • DSGX is valuated rather expensively when we compare the Price/Earnings ratio to 27.42, which is the current average of the S&P500 Index.
  • DSGX is valuated quite expensively with a Price/Forward Earnings ratio of 26.11.
  • DSGX's Price/Forward Earnings is on the same level as the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 22.24. DSGX is around the same levels.
Industry RankSector Rank
PE 38.71
Fwd PE 26.11
DSGX Price Earnings VS Forward Price EarningsDSGX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • DSGX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DSGX is cheaper than 71.69% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of DSGX indicates a somewhat cheap valuation: DSGX is cheaper than 65.81% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 23.77
EV/EBITDA 20.73
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.
  • DSGX's earnings are expected to grow with 25.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.8
PEG (5Y)1.52
EPS Next 2Y32.58%
EPS Next 3Y25.99%

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

0

5. DSGX Dividend Analysis

5.1 Amount

  • DSGX does not give a dividend.
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 (4/24/2026, 8:00:01 PM)

After market: 72 0 (0%)

72

-0.3 (-0.41%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)03-11
Earnings (Next)06-02
Inst Owners88.65%
Inst Owner Change0.1%
Ins Owners0.22%
Ins Owner ChangeN/A
Market Cap6.19B
Revenue(TTM)728.99M
Net Income(TTM)163.77M
Analysts77.78
Price Target98.8 (37.22%)
Short Float %1.82%
Short Ratio2.13
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)4.67%
EPS NY rev (1m)4.71%
EPS NY rev (3m)23.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.57%
Revenue NY rev (1m)0.61%
Revenue NY rev (3m)0.67%
Valuation
Industry RankSector Rank
PE 38.71
Fwd PE 26.11
P/S 8.5
P/FCF 23.77
P/OCF 23.26
P/B 3.83
P/tB 23.72
EV/EBITDA 20.73
EPS(TTM)1.86
EY2.58%
EPS(NY)2.76
Fwd EY3.83%
FCF(TTM)3.03
FCFY4.21%
OCF(TTM)3.1
OCFY4.3%
SpS8.47
BVpS18.82
TBVpS3.03
PEG (NY)0.8
PEG (5Y)1.52
Graham Number28.0646 (-61.02%)
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 14.7
F-Score6
WACC9.75%
ROIC/WACC0.9
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 3Y16.05%
EPS 5Y25.39%
EPS Q2Q%20.93%
EPS Next Y48.24%
EPS Next 2Y32.58%
EPS Next 3Y25.99%
EPS Next 5Y21.87%
Revenue 1Y (TTM)11.98%
Revenue growth 3Y14.47%
Revenue growth 5Y15.89%
Sales Q2Q%15.1%
Revenue Next Year11.63%
Revenue Next 2Y11.33%
Revenue Next 3Y11.49%
Revenue Next 5Y10.58%
EBIT growth 1Y10.22%
EBIT growth 3Y15.91%
EBIT growth 5Y23.2%
EBIT Next Year79.58%
EBIT Next 3Y31.85%
EBIT Next 5Y23.33%
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.


Can you provide the valuation status for DESCARTES SYSTEMS GRP/THE?

ChartMill assigns a valuation rating of 4 / 10 to DESCARTES SYSTEMS GRP/THE (DSGX). This can be considered as Fairly Valued.


How profitable is DESCARTES SYSTEMS GRP/THE (DSGX) stock?

DESCARTES SYSTEMS GRP/THE (DSGX) has a profitability rating of 8 / 10.


How financially healthy is DESCARTES SYSTEMS GRP/THE?

The financial health rating of DESCARTES SYSTEMS GRP/THE (DSGX) is 8 / 10.