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

TSX:DSG • CA2499061083

Current stock price

99.45 CAD
+1.44 (+1.47%)
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.
  • 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

  • With an excellent Return On Assets value of 8.64%, DSG belongs to the best of the industry, outperforming 84.06% of the companies in the same industry.
  • The Return On Equity of DSG (10.12%) is better than 75.36% of its industry peers.
  • With a decent Return On Invested Capital value of 8.73%, DSG is doing good in the industry, outperforming 72.46% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for DSG is below the industry average of 12.70%.
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 91.30% 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 92.75% of its industry peers.
  • In the last couple of years the Operating Margin of DSG has grown nicely.
  • Looking at the Gross Margin, with a value of 77.08%, DSG belongs to the top of the industry, outperforming 81.16% 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 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 14.85. This indicates that DSG is financially healthy and has little risk of bankruptcy at the moment.
  • DSG has a better Altman-Z score (14.85) than 95.65% 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 14.85
ROIC/WACC0.88
WACC9.89%
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

  • A Current Ratio of 2.16 indicates that DSG has no problem at all paying its short term obligations.
  • DSG has a Current ratio of 2.16. This is in the better half of the industry: DSG outperforms 72.46% 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 73.91% 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.
  • 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.
  • DSG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.98%.
  • 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

  • Based on estimates for the next years, DSG will show a very strong growth in Earnings Per Share. The EPS will grow by 21.87% on average per year.
  • DSG 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

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
  • 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

  • With a Price/Earnings ratio of 39.15, DSG can be considered very expensive at the moment.
  • Based on the Price/Earnings ratio, DSG is valued a bit cheaper than the industry average as 69.57% of the companies are valued more expensively.
  • DSG's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.51.
  • The Price/Forward Earnings ratio is 26.39, 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 66.67% of the companies listed in the same industry.
  • DSG is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.41, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 39.15
Fwd PE 26.39
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

  • 62.32% of the companies in the same industry are more expensive than DSG, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of DSG indicates a somewhat cheap valuation: DSG is cheaper than 72.46% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 24.03
EV/EBITDA 20.96
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 low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • DSG has an outstanding profitability rating, which may justify a higher PE ratio.
  • DSG's earnings are expected to grow with 25.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.81
PEG (5Y)1.54
EPS Next 2Y32.58%
EPS Next 3Y25.99%

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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 (5/1/2026, 7:00:00 PM)

99.45

+1.44 (+1.47%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Industry Strength10.94
Industry Growth41.79
Earnings (Last)03-11
Earnings (Next)06-02
Inst Owners88.65%
Inst Owner ChangeN/A
Ins Owners0.22%
Ins Owner ChangeN/A
Market Cap8.55B
Revenue(TTM)728.99M
Net Income(TTM)163.77M
Analysts77.78
Price Target137.7 (38.46%)
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)-0.64%
EPS NQ rev (3m)4%
EPS NY rev (1m)4.71%
EPS NY rev (3m)23.72%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)2.53%
Revenue NY rev (1m)0.61%
Revenue NY rev (3m)0.67%
Valuation
Industry RankSector Rank
PE 39.15
Fwd PE 26.39
P/S 8.59
P/FCF 24.03
P/OCF 23.51
P/B 3.87
P/tB 23.98
EV/EBITDA 20.96
EPS(TTM)2.54
EY2.55%
EPS(NY)3.77
Fwd EY3.79%
FCF(TTM)4.14
FCFY4.16%
OCF(TTM)4.23
OCFY4.25%
SpS11.58
BVpS25.72
TBVpS4.15
PEG (NY)0.81
PEG (5Y)1.54
Graham Number38.3414 (-61.45%)
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 14.85
F-Score6
WACC9.89%
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 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 / 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 39.15 and the Price/Book (PB) ratio is 3.87.


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.