(DSGX) Descartes Systems - Overview
Sector: Technology | Industry: Software - Application | Exchange: NASDAQ (USA) | Market Cap: 5.997m USD | Total Return: -25.7% in 12m
Avg Turnover: 29.0M
EPS Trend: 70.5%
Qual. Beats: -1
Rev. Trend: 99.8%
Qual. Beats: 0
Warnings
Below Avwap Earnings
Tailwinds
No distinct edge detected
The Descartes Systems Group Inc. (DSGX) provides a cloud-based Logistics Technology platform designed to manage global supply chains. The company offers modular solutions covering transportation management, routing and telematics, e-commerce fulfillment, customs compliance, and global trade intelligence. Its platform facilitates B2B messaging and connectivity, enabling users to track shipments, audit invoices, and analyze international trade data.
The company operates primarily on a recurring revenue model, utilizing subscription and transaction-based fees to provide stable cash flows. This software-as-a-service (SaaS) approach is critical in the logistics sector, where interoperability between air, ocean, and truck carriers is required to manage complex regulatory environments across multiple jurisdictions. Headquartered in Canada, Descartes serves a diverse client base ranging from freight forwarders to large-scale manufacturers and retailers.
Investors may find it useful to examine ValueRay for deeper insights into the companys valuation metrics.
- Global trade volume fluctuations impact transactional revenue across logistics network
- Regulatory changes in customs compliance drive demand for automated filing software
- Strategic acquisitions of logistics technology firms accelerate top-line revenue growth
- Expansion of e-commerce fulfillment solutions increases recurring subscription service income
- Geopolitical tensions and trade tariffs shift global supply chain data requirements
| Net Income: 174.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.15 > 0.02 and ΔFCF/TA 3.32 > 1.0 |
| NWC/Revenue: 33.93% < 20% (prev 11.48%; Δ 22.45% < -1%) |
| CFO/TA 0.15 > 3% & CFO 290.8m > Net Income 174.3m |
| Net Debt (-346.0m) to EBITDA (329.7m): -1.05 < 3 |
| Current Ratio: 2.16 > 1.5 & < 3 |
| Outstanding Shares: last quarter (87.6m) vs 12m ago -0.00% < -2% |
| Gross Margin: 69.04% > 18% (prev 75.63%; Δ -6.59% > 0.5%) |
| Asset Turnover: 42.19% > 50% (prev 39.09%; Δ 3.10% > 0%) |
| Interest Coverage Ratio: 244.7 > 6 (EBIT TTM 240.2m / Interest Expense TTM 981k) |
| A: 0.14 (Total Current Assets 479.1m - Total Current Liabilities 221.8m) / Total Assets 1.88b |
| B: 0.28 (Retained Earnings 523.7m / Total Assets 1.88b) |
| C: 0.13 (EBIT TTM 240.2m / Avg Total Assets 1.80b) |
| D: 5.85 (Book Value of Equity 1.61b / Total Liabilities 275.0m) |
| Altman-Z'' = 8.84 = AAA |
| DSRI: 1.05 (Receivables 90.7m/76.1m, Revenue 758.1m/668.4m) |
| GMI: 1.10 (GM 75.63% / 69.04%) |
| AQI: 0.90 (AQ_t 0.73 / AQ_t-1 0.81) |
| SGI: 1.13 (Revenue 758.1m / 668.4m) |
| TATA: -0.06 (NI 174.3m - CFO 290.8m) / TA 1.88b) |
| Beneish M = -2.87 (Cap -4..+1) = A |
As of June 07, 2026, the stock is trading at USD 75.46 with a total of 646,426 shares traded.
Over the past week, the price has changed by +2.29%,
over one month by +3.91%,
over three months by +5.48% and
over the past year by -25.73%.
Descartes Systems has received a consensus analysts rating of 3.93. Therefore, it is recommended to buy DSGX.
- StrongBuy: 5
- Buy: 4
- Hold: 4
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 100.9 | 33.6% |
P/E Trailing = 37.3209
P/E Forward = 25.7732
P/S = 8.2262
P/B = 3.7042
P/EG = 1.318
Revenue TTM = 758.1m USD
EBIT TTM = 240.2m USD
EBITDA TTM = 329.7m USD
Long Term Debt = 4.86m USD (estimated: total debt 8.31m - short term 3.45m)
Short Term Debt = 3.45m USD (from shortTermDebt, last quarter)
Debt = 8.31m USD (from shortLongTermDebtTotal, last quarter) (leases 8.36m already included)
Net Debt = -346.0m USD (calculated: Debt 8.31m - CCE 354.3m)
Enterprise Value = 5.65b USD (6.00b + Debt 8.31m - CCE 354.3m)
Interest Coverage Ratio = 244.7 (Ebit TTM 240.2m / Interest Expense TTM 981k)
EV/FCF = 19.79x (Enterprise Value 5.65b / FCF TTM 285.5m)
FCF Yield = 5.05% (FCF TTM 285.5m / Enterprise Value 5.65b)
FCF Margin = 37.65% (FCF TTM 285.5m / Revenue TTM 758.1m)
Net Margin = 23.00% (Net Income TTM 174.3m / Revenue TTM 758.1m)
Gross Margin = 69.04% ((Revenue TTM 758.1m - Cost of Revenue TTM 234.7m) / Revenue TTM)
Gross Margin QoQ = 66.73% (prev 66.73%)
Tobins Q-Ratio = 3.00 (Enterprise Value 5.65b / Total Assets 1.88b)
Interest Expense / Debt = 11.81% (Interest Expense 981k / Debt 8.31m)
Taxrate = 24.90% (57.8m / 232.1m)
NOPAT = 180.4m (EBIT 240.2m * (1 - 24.90%))
Current Ratio = 2.16 (Total Current Assets 479.1m / Total Current Liabilities 221.8m)
Debt / Equity = 0.01 (Debt 8.31m / totalStockholderEquity, last quarter 1.61b)
Debt / EBITDA = -1.05 (Net Debt -346.0m / EBITDA 329.7m)
Debt / FCF = -1.21 (Net Debt -346.0m / FCF TTM 285.5m)
Total Stockholder Equity = 1.57b (last 4 quarters mean from totalStockholderEquity)
RoA = 9.70% (Net Income 174.3m / Total Assets 1.88b)
RoE = 11.12% (Net Income TTM 174.3m / Total Stockholder Equity 1.57b)
RoCE = 15.28% (EBIT 240.2m / Capital Employed (Equity 1.57b + L.T.Debt 4.86m))
RoIC = 11.08% (NOPAT 180.4m / Invested Capital 1.63b)
WACC = 8.69% (E(6.00b)/V(6.01b) * Re(8.69%) + D(8.31m)/V(6.01b) * Rd(11.81%) * (1-Tc(0.25)))
Discount Rate = 8.69% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 53.94 | Cagr: 0.32%
[DCF] Terminal Value 76.87% ; FCFF base≈252.2m ; Y1≈289.1m ; Y5≈425.5m
[DCF] Fair Price = 74.34 (EV 6.04b - Net Debt -346.0m = Equity 6.39b / Shares 85.9m; r=8.69% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 70.47 | EPS CAGR: 8.29% | SUE: -4.0 | # QB: -1
Revenue Correlation: 99.79 | Revenue CAGR: 13.52% | SUE: 0.67 | # QB: 0
EPS current Quarter (2026-07-31): EPS=0.67 | Chg30d=+0.00% | Revisions=+33% | Analysts=4
EPS current Year (2027-01-31): EPS=2.73 | Chg30d=-2.70% | Revisions=+20% | GrowthEPS=+39.3% | GrowthRev=+10.9%
EPS next Year (2028-01-31): EPS=3.24 | Chg30d=+0.52% | Revisions=+20% | GrowthEPS=+18.6% | GrowthRev=+11.0%
[Analyst] Revisions Ratio: +33%