DESCARTES SYSTEMS GRP/THE (DSGX) Stock Fundamental Analysis

NASDAQ:DSGX • CA2499061083

67.08 USD
+1 (+1.51%)
At close: Feb 20, 2026
66.18 USD
-0.9 (-1.34%)
After Hours: 2/20/2026, 8:00:01 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to DSGX. DSGX was compared to 276 industry peers in the Software industry. DSGX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. DSGX is not priced too expensively while it is growing strongly. Keep and eye on this one! This makes DSGX very considerable for growth and quality investing!


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year DSGX was profitable.
  • In the past year DSGX had a positive cash flow from operations.
  • Each year in the past 5 years DSGX has been profitable.
  • In the past 5 years DSGX always reported a positive cash flow from operatings.
DSGX Yearly Net Income VS EBIT VS OCF VS FCFDSGX 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 50M 100M 150M 200M

1.2 Ratios

  • With an excellent Return On Assets value of 8.54%, DSGX belongs to the best of the industry, outperforming 81.52% of the companies in the same industry.
  • DSGX has a Return On Equity of 10.02%. This is in the better half of the industry: DSGX outperforms 73.55% of its industry peers.
  • DSGX's Return On Invested Capital of 9.58% is amongst the best of the industry. DSGX outperforms 83.33% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for DSGX is in line with the industry average of 10.64%.
  • The 3 year average ROIC (8.86%) for DSGX is below the current ROIC(9.58%), indicating increased profibility in the last year.
Industry RankSector 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%
DSGX Yearly ROA, ROE, ROICDSGX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • DSGX has a Profit Margin of 22.10%. This is amongst the best in the industry. DSGX outperforms 86.23% of its industry peers.
  • DSGX's Profit Margin has improved in the last couple of years.
  • DSGX has a better Operating Margin (28.79%) than 92.03% of its industry peers.
  • DSGX's Operating Margin has improved in the last couple of years.
  • With a decent Gross Margin value of 76.80%, DSGX is doing good in the industry, outperforming 71.01% of the companies in the same industry.
  • In the last couple of years the Gross Margin of DSGX has remained more or less at the same level.
Industry RankSector 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%
DSGX Yearly Profit, Operating, Gross MarginsDSGX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DSGX is destroying value.
  • The number of shares outstanding for DSGX has been increased compared to 1 year ago.
  • DSGX has more shares outstanding than it did 5 years ago.
  • There is no outstanding debt for DSGX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
DSGX Yearly Shares OutstandingDSGX Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M
DSGX Yearly Total Debt VS Total AssetsDSGX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

2.2 Solvency

  • An Altman-Z score of 13.92 indicates that DSGX is not in any danger for bankruptcy at the moment.
  • DSGX has a Altman-Z score of 13.92. This is amongst the best in the industry. DSGX outperforms 95.29% of its industry peers.
  • DSGX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 13.92
ROIC/WACC0.93
WACC10.31%
DSGX Yearly LT Debt VS Equity VS FCFDSGX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

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 (1.83) which is in line with 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 RankSector Rank
Current Ratio 1.83
Quick Ratio 1.83
DSGX Yearly Current Assets VS Current LiabilitesDSGX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 11.32% over the past year.
  • DSGX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.86% yearly.
  • The Revenue has grown by 11.39% in the past year. This is quite good.
  • The Revenue has been growing by 14.85% on average over the past years. This is quite good.
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

  • The Earnings Per Share is expected to grow by 21.86% on average over the next years. This is a very strong growth
  • Based on estimates for the next years, DSGX 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.
DSGX Yearly Revenue VS EstimatesDSGX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 500M 1B 1.5B
DSGX Yearly EPS VS EstimatesDSGX Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6

More info and screens

Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 37.90, the valuation of DSGX can be described as expensive.
  • DSGX's Price/Earnings is on the same level as the industry average.
  • DSGX is valuated rather expensively when we compare the Price/Earnings ratio to 26.99, which is the current average of the S&P500 Index.
  • DSGX is valuated quite expensively with a Price/Forward Earnings ratio of 25.47.
  • The rest of the industry has a similar Price/Forward Earnings ratio as DSGX.
  • DSGX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.06.
Industry RankSector Rank
PE 37.9
Fwd PE 25.47
DSGX Price Earnings VS Forward Price EarningsDSGX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, DSGX is valued a bit cheaper than 73.19% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, DSGX is valued a bit cheaper than 68.48% of the companies in the same industry.
Industry RankSector Rank
P/FCF 23.63
EV/EBITDA 18.75
DSGX Per share dataDSGX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • DSGX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • DSGX has an outstanding profitability rating, which may justify a higher PE ratio.
  • DSGX's earnings are expected to grow with 22.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.95
PEG (5Y)1.23
EPS Next 2Y26.33%
EPS Next 3Y22.6%

More info and screens

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

0

5. Dividend

5.1 Amount

  • No dividends for DSGX!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

DESCARTES SYSTEMS GRP/THE

NASDAQ:DSGX (2/20/2026, 8:00:01 PM)

After market: 66.18 -0.9 (-1.34%)

67.08

+1 (+1.51%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-03
Earnings (Next)03-11
Inst Owners86.36%
Inst Owner Change2.66%
Ins Owners0.21%
Ins Owner ChangeN/A
Market Cap5.77B
Revenue(TTM)703.71M
Net Income(TTM)155.53M
Analysts77.78
Price Target98.8 (47.29%)
Short Float %1.08%
Short Ratio1.44
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)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 RankSector Rank
PE 37.9
Fwd PE 25.47
P/S 8.2
P/FCF 23.63
P/OCF 23.03
P/B 3.72
P/tB 31.29
EV/EBITDA 18.75
EPS(TTM)1.77
EY2.64%
EPS(NY)2.63
Fwd EY3.93%
FCF(TTM)2.84
FCFY4.23%
OCF(TTM)2.91
OCFY4.34%
SpS8.18
BVpS18.04
TBVpS2.14
PEG (NY)0.95
PEG (5Y)1.23
Graham Number26.8
Profitability
Industry RankSector 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 RankSector 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 13.92
F-Score6
WACC10.31%
ROIC/WACC0.93
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 / 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 for DSGX stock?

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


What is the profitability of DSGX stock?

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


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

The Price/Earnings (PE) ratio for DESCARTES SYSTEMS GRP/THE (DSGX) is 37.9 and the Price/Book (PB) ratio is 3.72.