DESCARTES SYSTEMS GRP/THE (DSG.CA) Stock Fundamental Analysis
TSX:DSG • CA2499061083
89.57 CAD
+1.43 (+1.62%)
Last: Feb 13, 2026, 07:00 PM
DSG gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 69 industry peers in the Software industry. DSG scores excellent points on both the profitability and health parts. This is a solid base for a good stock. DSG is not overvalued while it is showing excellent growth. This is an interesting combination. This makes DSG very considerable for growth and quality investing!
1. Profitability
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.
- Each year in the past 5 years DSG had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 8.54%, DSG belongs to the best of the industry, outperforming 83.58% of the companies in the same industry.
- DSG has a better Return On Equity (10.02%) than 76.12% of its industry peers.
- DSG has a Return On Invested Capital of 9.58%. This is amongst the best in the industry. DSG outperforms 80.60% of its industry peers.
- DSG had an Average Return On Invested Capital over the past 3 years of 8.86%. This is below the industry average of 12.35%.
- The last Return On Invested Capital (9.58%) for DSG is above the 3 year average (8.86%), which is a sign of increasing profitability.
| 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
- The Profit Margin of DSG (22.10%) is better than 91.04% of its industry peers.
- DSG's Profit Margin has improved in the last couple of years.
- DSG has a better Operating Margin (28.79%) than 94.03% of its industry peers.
- DSG's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 76.80%, DSG belongs to the top of the industry, outperforming 83.58% of the companies in the same industry.
- In the last couple of years the Gross Margin of DSG 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
- DSG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for DSG has been increased compared to 1 year ago.
- The number of shares outstanding for DSG has been increased compared to 5 years ago.
- DSG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- DSG has an Altman-Z score of 13.65. This indicates that DSG is financially healthy and has little risk of bankruptcy at the moment.
- DSG's Altman-Z score of 13.65 is amongst the best of the industry. DSG outperforms 92.54% of its industry peers.
- DSG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 13.65 |
ROIC/WACC0.92
WACC10.37%
2.3 Liquidity
- A Current Ratio of 1.83 indicates that DSG should not have too much problems paying its short term obligations.
- DSG has a Current ratio of 1.83. This is in the better half of the industry: DSG outperforms 65.67% of its industry peers.
- DSG has a Quick Ratio of 1.83. This is a normal value and indicates that DSG is financially healthy and should not expect problems in meeting its short term obligations.
- DSG has a Quick ratio of 1.83. This is in the better half of the industry: DSG outperforms 65.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
- DSG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.32%, which is quite good.
- The Earnings Per Share has been growing by 30.86% on average over the past years. This is a very strong growth
- Looking at the last year, DSG shows a quite strong growth in Revenue. The Revenue has grown by 11.39% in the last year.
- DSG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.85% yearly.
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
- DSG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.86% yearly.
- Based on estimates for the next years, DSG 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
- 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
- DSG is valuated quite expensively with a Price/Earnings ratio of 37.17.
- Based on the Price/Earnings ratio, DSG is valued a bit cheaper than the industry average as 70.15% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 26.68. DSG is valued slightly more expensive when compared to this.
- Based on the Price/Forward Earnings ratio of 24.97, the valuation of DSG can be described as rather expensive.
- DSG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DSG is cheaper than 65.67% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.06, DSG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.17 | ||
| Fwd PE | 24.97 |
4.2 Price Multiples
- 61.19% of the companies in the same industry are more expensive than DSG, based on the Enterprise Value to EBITDA ratio.
- 74.63% of the companies in the same industry are more expensive than DSG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.16 | ||
| EV/EBITDA | 18.34 |
4.3 Compensation for Growth
- DSG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of DSG may justify a higher PE ratio.
- A more expensive valuation may be justified as DSG's earnings are expected to grow with 22.60% in the coming years.
PEG (NY)0.93
PEG (5Y)1.2
EPS Next 2Y26.33%
EPS Next 3Y22.6%
5. Dividend
5.1 Amount
- DSG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TSX:DSG (2/13/2026, 7:00:00 PM)
89.57
+1.43 (+1.62%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-03 2025-12-03/amc
Earnings (Next)03-11 2026-03-11/amc
Inst Owners86.36%
Inst Owner ChangeN/A
Ins Owners0.21%
Ins Owner ChangeN/A
Market Cap7.70B
Revenue(TTM)703.71M
Net Income(TTM)155.53M
Analysts77.78
Price Target137.7 (53.73%)
Short Float %N/A
Short RatioN/A
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)1.67%
EPS NQ rev (3m)3.1%
EPS NY rev (1m)-3.64%
EPS NY rev (3m)26.25%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)0.61%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.17 | ||
| Fwd PE | 24.97 | ||
| P/S | 8.04 | ||
| P/FCF | 23.16 | ||
| P/OCF | 22.57 | ||
| P/B | 3.64 | ||
| P/tB | 30.67 | ||
| EV/EBITDA | 18.34 |
EPS(TTM)2.41
EY2.69%
EPS(NY)3.59
Fwd EY4.01%
FCF(TTM)3.87
FCFY4.32%
OCF(TTM)3.97
OCFY4.43%
SpS11.15
BVpS24.58
TBVpS2.92
PEG (NY)0.93
PEG (5Y)1.2
Graham Number36.51
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 | 13.65 |
F-Score6
WACC10.37%
ROIC/WACC0.92
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 Y40.02%
EPS Next 2Y26.33%
EPS Next 3Y22.6%
EPS Next 5Y21.86%
Revenue 1Y (TTM)11.39%
Revenue growth 3Y15.3%
Revenue growth 5Y14.85%
Sales Q2Q%11.23%
Revenue Next Year10.8%
Revenue Next 2Y10.88%
Revenue Next 3Y10.9%
Revenue Next 5Y10.56%
EBIT growth 1Y21.35%
EBIT growth 3Y19.76%
EBIT growth 5Y27.58%
EBIT Next Year75.09%
EBIT Next 3Y30.66%
EBIT Next 5Y23.12%
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 / DSG.CA 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.
How profitable is DESCARTES SYSTEMS GRP/THE (DSG.CA) stock?
DESCARTES SYSTEMS GRP/THE (DSG.CA) has a profitability rating of 8 / 10.
What are the PE and PB ratios of DESCARTES SYSTEMS GRP/THE (DSG.CA) stock?
The Price/Earnings (PE) ratio for DESCARTES SYSTEMS GRP/THE (DSG.CA) is 37.17 and the Price/Book (PB) ratio is 3.64.
Can you provide the expected EPS growth for DSG stock?
The Earnings per Share (EPS) of DESCARTES SYSTEMS GRP/THE (DSG.CA) is expected to grow by 40.02% in the next year.