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

TSX:DSG • CA2499061083

Current stock price

96.76 CAD
-0.97 (-0.99%)
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

  • In the past year DSG was profitable.
  • In the past year DSG had a positive cash flow from operations.
  • In the past 5 years DSG has always been profitable.
  • In the past 5 years DSG always reported a positive cash flow from operatings.
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

  • Looking at the Return On Assets, with a value of 8.64%, DSG belongs to the top of the industry, outperforming 85.07% of the companies in the same industry.
  • DSG has a Return On Equity of 10.12%. This is in the better half of the industry: DSG outperforms 74.63% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 8.73%, DSG is in the better half of the industry, outperforming 71.64% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for DSG is below the industry average of 12.43%.
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 has a better Profit Margin (22.46%) than 91.04% of its industry peers.
  • In the last couple of years the Profit Margin of DSG has grown nicely.
  • DSG's Operating Margin of 26.68% is amongst the best of the industry. DSG outperforms 92.54% of its industry peers.
  • In the last couple of years the Operating Margin of DSG has grown nicely.
  • DSG has a Gross Margin of 77.08%. This is amongst the best in the industry. DSG outperforms 80.60% of its industry peers.
  • In the last couple of years the Gross Margin of DSG has remained more or less at the same level.
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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DSG is destroying value.
  • The number of shares outstanding for DSG has been increased compared to 1 year ago.
  • DSG has more shares outstanding than it did 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.
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 14.37. This indicates that DSG is financially healthy and has little risk of bankruptcy at the moment.
  • DSG has a Altman-Z score of 14.37. This is amongst the best in the industry. DSG outperforms 95.52% 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 14.37
ROIC/WACC0.88
WACC9.88%
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 has a better Current ratio (2.16) than 74.63% of its industry peers.
  • A Quick Ratio of 2.16 indicates that DSG has no problem at all paying its short term obligations.
  • The Quick ratio of DSG (2.16) is better than 74.63% 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

  • The Earnings Per Share has grown by an nice 12.73% over the past year.
  • 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 11.98% in the last year.
  • Measured over the past years, DSG shows a quite strong growth in Revenue. The Revenue has been growing by 14.85% on average per year.
EPS 1Y (TTM)12.73%
EPS 3Y18.17%
EPS 5Y30.86%
EPS Q2Q%20.93%
Revenue 1Y (TTM)11.98%
Revenue growth 3Y15.3%
Revenue growth 5Y14.85%
Sales Q2Q%15.1%

3.2 Future

  • Based on estimates for the next years, DSG will show a very strong growth in Earnings Per Share. The EPS will grow by 21.86% on average per year.
  • The Revenue is expected to grow by 10.56% on average over the next years. This is quite good.
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

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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.
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

  • DSG is valuated quite expensively with a Price/Earnings ratio of 37.80.
  • Compared to the rest of the industry, the Price/Earnings ratio of DSG indicates a somewhat cheap valuation: DSG is cheaper than 68.66% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.61. DSG is valued slightly more expensive when compared to this.
  • The Price/Forward Earnings ratio is 26.66, which means the current valuation is very expensive for DSG.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of DSG indicates a somewhat cheap valuation: DSG is cheaper than 64.18% of the companies listed in the same industry.
  • DSG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.79.
Industry RankSector Rank
PE 37.8
Fwd PE 26.66
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

  • DSG's Enterprise Value to EBITDA is on the same level as the industry average.
  • DSG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DSG is cheaper than 68.66% of the companies in the same industry.
Industry RankSector Rank
P/FCF 23.18
EV/EBITDA 20.18
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 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.
  • DSG's earnings are expected to grow with 22.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.94
PEG (5Y)1.22
EPS Next 2Y26.33%
EPS Next 3Y22.6%

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

0

5. DSG.CA Dividend Analysis

5.1 Amount

  • No dividends for DSG!.
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 (3/25/2026, 7:00:00 PM)

96.76

-0.97 (-0.99%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)03-11
Earnings (Next)06-02
Inst Owners88.87%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap8.32B
Revenue(TTM)728.99M
Net Income(TTM)163.77M
Analysts77.78
Price Target137.7 (42.31%)
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)18.15%
EPS NY rev (3m)19.37%
Revenue NQ rev (1m)2.57%
Revenue NQ rev (3m)2.57%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.25%
Valuation
Industry RankSector Rank
PE 37.8
Fwd PE 26.66
P/S 8.28
P/FCF 23.18
P/OCF 22.68
P/B 3.73
P/tB 23.13
EV/EBITDA 20.18
EPS(TTM)2.56
EY2.65%
EPS(NY)3.63
Fwd EY3.75%
FCF(TTM)4.17
FCFY4.31%
OCF(TTM)4.27
OCFY4.41%
SpS11.68
BVpS25.94
TBVpS4.18
PEG (NY)0.94
PEG (5Y)1.22
Graham Number38.65
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 14.37
F-Score6
WACC9.88%
ROIC/WACC0.88
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 3Y18.17%
EPS 5Y30.86%
EPS Q2Q%20.93%
EPS Next Y40.02%
EPS Next 2Y26.33%
EPS Next 3Y22.6%
EPS Next 5Y21.86%
Revenue 1Y (TTM)11.98%
Revenue growth 3Y15.3%
Revenue growth 5Y14.85%
Sales Q2Q%15.1%
Revenue Next Year10.8%
Revenue Next 2Y10.88%
Revenue Next 3Y10.9%
Revenue Next 5Y10.56%
EBIT growth 1Y10.22%
EBIT growth 3Y15.91%
EBIT growth 5Y23.2%
EBIT Next Year81.13%
EBIT Next 3Y31.4%
EBIT Next 5Y23.3%
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.


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 37.8 and the Price/Book (PB) ratio is 3.73.


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.