DESCARTES SYSTEMS GRP/THE (DSG.CA) Fundamental Analysis & Valuation

TSX:DSG • CA2499061083

Current stock price

91.69 CAD
+4.38 (+5.02%)
Last:

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

8

1. DSG.CA Profitability Analysis

1.1 Basic Checks

  • DSG had positive earnings in the past year.
  • In the past year DSG had a positive cash flow from operations.
  • In the past 5 years DSG has always been profitable.
  • DSG had a positive operating cash flow in each of the past 5 years.
DSG.CA Yearly Net Income VS EBIT VS OCF VS FCFDSG.CA 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

  • DSG has a Return On Assets of 8.64%. This is amongst the best in the industry. DSG outperforms 83.33% of its industry peers.
  • DSG's Return On Equity of 10.12% is fine compared to the rest of the industry. DSG outperforms 74.24% of its industry peers.
  • DSG's Return On Invested Capital of 8.73% is fine compared to the rest of the industry. DSG outperforms 71.21% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for DSG is below the industry average of 12.99%.
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%
DSG.CA Yearly ROA, ROE, ROICDSG.CA 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

  • DSG's Profit Margin of 22.46% is amongst the best of the industry. DSG outperforms 90.91% of its industry peers.
  • In the last couple of years the Profit Margin of DSG has grown nicely.
  • DSG has a better Operating Margin (26.68%) than 92.42% of its industry peers.
  • DSG's Operating Margin has improved in the last couple of years.
  • DSG has a better Gross Margin (77.08%) than 80.30% of its industry peers.
  • DSG'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%
DSG.CA Yearly Profit, Operating, Gross MarginsDSG.CA 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. DSG.CA Health Analysis

2.1 Basic Checks

  • DSG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • DSG has more shares outstanding than it did 1 year ago.
  • The number of shares outstanding for DSG has been increased compared to 5 years ago.
  • There is no outstanding debt for DSG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
DSG.CA Yearly Shares OutstandingDSG.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20M 40M 60M 80M
DSG.CA Yearly Total Debt VS Total AssetsDSG.CA 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

  • DSG has an Altman-Z score of 13.63. This indicates that DSG is financially healthy and has little risk of bankruptcy at the moment.
  • DSG has a Altman-Z score of 13.63. This is amongst the best in the industry. DSG outperforms 95.45% of its industry peers.
  • There is no outstanding debt for DSG. 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 13.63
ROIC/WACC0.92
WACC9.46%
DSG.CA Yearly LT Debt VS Equity VS FCFDSG.CA 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

  • DSG has a Current Ratio of 2.16. This indicates that DSG is financially healthy and has no problem in meeting its short term obligations.
  • DSG's Current ratio of 2.16 is fine compared to the rest of the industry. DSG outperforms 74.24% of its industry peers.
  • DSG has a Quick Ratio of 2.16. This indicates that DSG is financially healthy and has no problem in meeting its short term obligations.
  • DSG has a better Quick ratio (2.16) than 74.24% of its industry peers.
Industry RankSector Rank
Current Ratio 2.16
Quick Ratio 2.16
DSG.CA Yearly Current Assets VS Current LiabilitesDSG.CA 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. DSG.CA Growth Analysis

3.1 Past

  • DSG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.73%, which is quite good.
  • Measured over the past years, DSG shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.39% on average per year.
  • Looking at the last year, DSG shows a quite strong growth in Revenue. The Revenue has grown by 11.98% in the last year.
  • The Revenue has been growing by 15.89% on average over the past years. This is quite good.
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

  • DSG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.72% yearly.
  • The Revenue is expected to grow by 10.40% on average over the next years. This is quite good.
EPS Next Y28.97%
EPS Next 2Y21.78%
EPS Next 3Y28.86%
EPS Next 5Y21.72%
Revenue Next Year11.44%
Revenue Next 2Y11.12%
Revenue Next 3Y10.97%
Revenue Next 5Y10.4%

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.
  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
DSG.CA Yearly Revenue VS EstimatesDSG.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 500M 1B 1.5B
DSG.CA Yearly EPS VS EstimatesDSG.CA 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. DSG.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 35.54, which means the current valuation is very expensive for DSG.
  • Based on the Price/Earnings ratio, DSG is valued a bit cheaper than 68.18% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of DSG to the average of the S&P500 Index (27.18), we can say DSG is valued slightly more expensively.
  • DSG is valuated quite expensively with a Price/Forward Earnings ratio of 27.61.
  • 63.64% of the companies in the same industry are more expensive than DSG, based on the Price/Forward Earnings ratio.
  • DSG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 37.96.
Industry RankSector Rank
PE 35.54
Fwd PE 27.61
DSG.CA Price Earnings VS Forward Price EarningsDSG.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 60.61% of the companies in the same industry are more expensive than DSG, based on the Enterprise Value to EBITDA ratio.
  • 71.21% of the companies in the same industry are more expensive than DSG, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 21.87
EV/EBITDA 18.96
DSG.CA Per share dataDSG.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • DSG has an outstanding profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as DSG's earnings are expected to grow with 28.86% in the coming years.
PEG (NY)1.23
PEG (5Y)1.4
EPS Next 2Y21.78%
EPS Next 3Y28.86%

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

0

5. DSG.CA Dividend Analysis

5.1 Amount

  • DSG does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

DSG.CA Fundamentals: All Metrics, Ratios and Statistics

DESCARTES SYSTEMS GRP/THE

TSX:DSG (4/13/2026, 7:00:00 PM)

91.69

+4.38 (+5.02%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)03-11
Earnings (Next)06-02
Inst Owners88.65%
Inst Owner ChangeN/A
Ins Owners0.22%
Ins Owner ChangeN/A
Market Cap7.89B
Revenue(TTM)728.99M
Net Income(TTM)163.77M
Analysts77.78
Price Target137.7 (50.18%)
Short Float %N/A
Short RatioN/A
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)4.67%
EPS NQ rev (3m)4.67%
EPS NY rev (1m)-8.91%
EPS NY rev (3m)-7.5%
Revenue NQ rev (1m)2.57%
Revenue NQ rev (3m)2.57%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)0.65%
Valuation
Industry RankSector Rank
PE 35.54
Fwd PE 27.61
P/S 7.81
P/FCF 21.87
P/OCF 21.4
P/B 3.52
P/tB 21.82
EV/EBITDA 18.96
EPS(TTM)2.58
EY2.81%
EPS(NY)3.32
Fwd EY3.62%
FCF(TTM)4.19
FCFY4.57%
OCF(TTM)4.29
OCFY4.67%
SpS11.73
BVpS26.06
TBVpS4.2
PEG (NY)1.23
PEG (5Y)1.4
Graham Number38.89
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 13.63
F-Score6
WACC9.46%
ROIC/WACC0.92
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 Y28.97%
EPS Next 2Y21.78%
EPS Next 3Y28.86%
EPS Next 5Y21.72%
Revenue 1Y (TTM)11.98%
Revenue growth 3Y14.47%
Revenue growth 5Y15.89%
Sales Q2Q%15.1%
Revenue Next Year11.44%
Revenue Next 2Y11.12%
Revenue Next 3Y10.97%
Revenue Next 5Y10.4%
EBIT growth 1Y10.22%
EBIT growth 3Y15.91%
EBIT growth 5Y23.2%
EBIT Next Year71.14%
EBIT Next 3Y29.4%
EBIT Next 5Y22.08%
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 / DSG.CA Fundamental Analysis FAQ

What is the fundamental rating for DSG stock?

ChartMill assigns a fundamental rating of 7 / 10 to DSG.CA.


What is the valuation status for DSG stock?

ChartMill assigns a valuation rating of 5 / 10 to DESCARTES SYSTEMS GRP/THE (DSG.CA). This can be considered as Fairly Valued.


What is the profitability of DSG stock?

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


Can you provide the PE and PB ratios for DSG stock?

The Price/Earnings (PE) ratio for DESCARTES SYSTEMS GRP/THE (DSG.CA) is 35.54 and the Price/Book (PB) ratio is 3.52.


What is the financial health of DESCARTES SYSTEMS GRP/THE (DSG.CA) stock?

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