89.435 USD
+0.39 (+0.43%)
89.435 USD
0 (0%)
Overall DSGX gets a fundamental rating of 7 out of 10. We evaluated DSGX against 278 industry peers in the Software industry. DSGX has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. DSGX is valued quite expensively, but it does show have an excellent growth rating. With these ratings, DSGX could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
DSGX had positive earnings in the past year.
DSGX had a positive operating cash flow in the past year.
DSGX had positive earnings in each of the past 5 years.
Each year in the past 5 years DSGX had a positive operating cash flow.
1.2 Ratios
DSGX has a better Return On Assets (8.54%) than 81.65% of its industry peers.
DSGX has a better Return On Equity (10.02%) than 74.46% of its industry peers.
DSGX has a Return On Invested Capital of 9.58%. This is amongst the best in the industry. DSGX outperforms 83.09% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DSGX is in line with the industry average of 10.78%.
The 3 year average ROIC (8.86%) for DSGX is below the current ROIC(9.58%), indicating increased profibility in the last year.
| 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
DSGX has a better Profit Margin (22.10%) than 86.33% of its industry peers.
DSGX's Profit Margin has improved in the last couple of years.
The Operating Margin of DSGX (28.79%) is better than 92.45% of its industry peers.
DSGX's Operating Margin has improved in the last couple of years.
DSGX has a Gross Margin of 76.80%. This is in the better half of the industry: DSGX outperforms 71.22% of its industry peers.
DSGX's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DSGX is destroying value.
DSGX has more shares outstanding than it did 1 year ago.
DSGX has more shares outstanding than it did 5 years ago.
DSGX 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
An Altman-Z score of 18.39 indicates that DSGX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 18.39, DSGX belongs to the top of the industry, outperforming 93.88% of the companies in the same industry.
DSGX 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 | 18.39 |
ROIC/WACC0.95
WACC10.03%
2.3 Liquidity
DSGX has a Current Ratio of 1.83. This is a normal value and indicates that DSGX is financially healthy and should not expect problems in meeting its short term obligations.
DSGX has a Current ratio (1.83) which is in line with its industry peers.
A Quick Ratio of 1.83 indicates that DSGX should not have too much problems paying its short term obligations.
DSGX has a Quick ratio of 1.83. This is comparable to the rest of the industry: DSGX outperforms 56.47% of its industry peers.
DSGX does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.32% 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, DSGX shows a quite strong growth in Revenue. The Revenue has grown by 11.39% in the last year.
Measured over the past years, DSGX shows a quite strong growth in Revenue. The Revenue has been growing by 14.85% on average per year.
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
Based on estimates for the next years, DSGX will show a very strong growth in Earnings Per Share. The EPS will grow by 21.92% on average per year.
The Revenue is expected to grow by 10.60% on average over the next years. This is quite good.
EPS Next Y13.72%
EPS Next 2Y16.22%
EPS Next 3Y17.6%
EPS Next 5Y21.92%
Revenue Next Year10.76%
Revenue Next 2Y10.85%
Revenue Next 3Y10.9%
Revenue Next 5Y10.6%
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
With a Price/Earnings ratio of 50.53, DSGX can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as DSGX.
DSGX is valuated expensively when we compare the Price/Earnings ratio to 26.57, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 40.13, DSGX can be considered very expensive at the moment.
DSGX's Price/Forward Earnings is on the same level as the industry average.
DSGX is valuated expensively when we compare the Price/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.53 | ||
| Fwd PE | 40.13 |
4.2 Price Multiples
DSGX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DSGX is cheaper than 73.02% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DSGX indicates a somewhat cheap valuation: DSGX is cheaper than 69.06% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.5 | ||
| EV/EBITDA | 25.71 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of DSGX may justify a higher PE ratio.
A more expensive valuation may be justified as DSGX's earnings are expected to grow with 17.60% in the coming years.
PEG (NY)3.68
PEG (5Y)1.64
EPS Next 2Y16.22%
EPS Next 3Y17.6%
5. Dividend
5.1 Amount
DSGX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
89.435
+0.39 (+0.43%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners86.24%
Inst Owner Change5.83%
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap7.69B
Revenue(TTM)703.71M
Net Income(TTM)155.53M
Analysts77.5
Price Target98.8 (10.47%)
Short Float %0.94%
Short Ratio1.36
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)-0.79%
EPS NQ rev (1m)1.41%
EPS NQ rev (3m)0.6%
EPS NY rev (1m)-21.14%
EPS NY rev (3m)2.44%
Revenue NQ rev (1m)0.66%
Revenue NQ rev (3m)0.76%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.53 | ||
| Fwd PE | 40.13 | ||
| P/S | 10.93 | ||
| P/FCF | 31.5 | ||
| P/OCF | 30.69 | ||
| P/B | 4.96 | ||
| P/tB | 41.71 | ||
| EV/EBITDA | 25.71 |
EPS(TTM)1.77
EY1.98%
EPS(NY)2.23
Fwd EY2.49%
FCF(TTM)2.84
FCFY3.18%
OCF(TTM)2.91
OCFY3.26%
SpS8.18
BVpS18.04
TBVpS2.14
PEG (NY)3.68
PEG (5Y)1.64
Graham Number26.81
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 | 18.39 |
F-Score6
WACC10.03%
ROIC/WACC0.95
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 Y13.72%
EPS Next 2Y16.22%
EPS Next 3Y17.6%
EPS Next 5Y21.92%
Revenue 1Y (TTM)11.39%
Revenue growth 3Y15.3%
Revenue growth 5Y14.85%
Sales Q2Q%11.23%
Revenue Next Year10.76%
Revenue Next 2Y10.85%
Revenue Next 3Y10.9%
Revenue Next 5Y10.6%
EBIT growth 1Y21.35%
EBIT growth 3Y19.76%
EBIT growth 5Y27.58%
EBIT Next Year74.96%
EBIT Next 3Y31.1%
EBIT Next 5Y23.17%
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 / DSGX FAQ
What is the ChartMill fundamental rating of DESCARTES SYSTEMS GRP/THE (DSGX) stock?
ChartMill assigns a fundamental rating of 7 / 10 to DSGX.
What is the valuation status of DESCARTES SYSTEMS GRP/THE (DSGX) stock?
ChartMill assigns a valuation rating of 3 / 10 to DESCARTES SYSTEMS GRP/THE (DSGX). This can be considered as Overvalued.
What is the profitability of DSGX stock?
DESCARTES SYSTEMS GRP/THE (DSGX) has a profitability rating of 8 / 10.
How financially healthy is DESCARTES SYSTEMS GRP/THE?
The financial health rating of DESCARTES SYSTEMS GRP/THE (DSGX) is 8 / 10.
What is the earnings growth outlook for DESCARTES SYSTEMS GRP/THE?
The Earnings per Share (EPS) of DESCARTES SYSTEMS GRP/THE (DSGX) is expected to grow by 13.72% in the next year.