DESCARTES SYSTEMS GRP/THE (DSGX) Stock Fundamental Analysis
USA - NASDAQ:DSGX - CA2499061083 - Common Stock
95.52 USD
-0.89 (-0.92%)
95.52 USD
0 (0%)
Overall DSGX gets a fundamental rating of 7 out of 10. We evaluated DSGX against 285 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. These ratings would make DSGX suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
DSGX had positive earnings in the past year.
In the past year DSGX had a positive cash flow from operations.
In the past 5 years DSGX has always been profitable.
DSGX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of DSGX (8.44%) is better than 83.51% of its industry peers.
With a decent Return On Equity value of 9.88%, DSGX is doing good in the industry, outperforming 77.19% of the companies in the same industry.
DSGX has a better Return On Invested Capital (9.18%) than 82.46% of its industry peers.
DSGX had an Average Return On Invested Capital over the past 3 years of 8.86%. This is below the industry average of 11.88%.
The last Return On Invested Capital (9.18%) for DSGX is above the 3 year average (8.86%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.44% | ||
| ROE | 9.88% | ||
| ROIC | 9.18% |
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 Profit Margin of 21.64%. This is amongst the best in the industry. DSGX outperforms 87.02% of its industry peers.
DSGX's Profit Margin has improved in the last couple of years.
DSGX has a Operating Margin of 27.33%. This is amongst the best in the industry. DSGX outperforms 90.53% of its industry peers.
In the last couple of years the Operating Margin of DSGX has grown nicely.
DSGX has a Gross Margin of 76.06%. This is in the better half of the industry: DSGX outperforms 70.53% of its industry peers.
In the last couple of years the Gross Margin of DSGX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.33% | ||
| PM (TTM) | 21.64% | ||
| GM | 76.06% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DSGX is destroying value.
Compared to 1 year ago, DSGX has more shares outstanding
Compared to 5 years ago, DSGX has more shares outstanding
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.
2.2 Solvency
An Altman-Z score of 20.60 indicates that DSGX is not in any danger for bankruptcy at the moment.
DSGX's Altman-Z score of 20.60 is amongst the best of the industry. DSGX outperforms 94.04% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 20.6 |
ROIC/WACC0.9
WACC10.2%
2.3 Liquidity
DSGX has a Current Ratio of 1.70. This is a normal value and indicates that DSGX is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of DSGX (1.70) is comparable to the rest of the industry.
DSGX has a Quick Ratio of 1.70. 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 Quick ratio (1.70) which is comparable to the rest of the industry.
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 | 1.7 | ||
| Quick Ratio | 1.7 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.19% over the past year.
Measured over the past years, DSGX shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.86% on average per year.
The Revenue has grown by 12.68% 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)14.19%
EPS 3Y18.17%
EPS 5Y30.86%
EPS Q2Q%7.5%
Revenue 1Y (TTM)12.68%
Revenue growth 3Y15.3%
Revenue growth 5Y14.85%
Sales Q2Q%10.05%
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.
Based on estimates for the next years, DSGX will show a quite strong growth in Revenue. The Revenue will grow by 10.60% on average per year.
EPS Next Y10.91%
EPS Next 2Y15.63%
EPS Next 3Y18.07%
EPS Next 5Y21.92%
Revenue Next Year10.23%
Revenue Next 2Y10.74%
Revenue Next 3Y10.72%
Revenue Next 5Y10.6%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 56.52, which means the current valuation is very expensive for DSGX.
DSGX's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.08, DSGX is valued quite expensively.
Based on the Price/Forward Earnings ratio of 43.30, the valuation of DSGX can be described as expensive.
DSGX's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of DSGX to the average of the S&P500 Index (23.09), we can say DSGX is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.52 | ||
| Fwd PE | 43.3 |
4.2 Price Multiples
DSGX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DSGX is cheaper than 74.39% 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 68.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.49 | ||
| EV/EBITDA | 29.85 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DSGX does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of DSGX may justify a higher PE ratio.
DSGX's earnings are expected to grow with 18.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.18
PEG (5Y)1.83
EPS Next 2Y15.63%
EPS Next 3Y18.07%
5. Dividend
5.1 Amount
No dividends for DSGX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
95.52
-0.89 (-0.92%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners92.55%
Inst Owner Change-1.35%
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap8.21B
Revenue(TTM)684.78M
Net Income(TTM)148.19M
Analysts77.78
Price Target98.8 (3.43%)
Short Float %1.01%
Short Ratio1.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)0
Avg EPS beat(2)-4.34%
Min EPS beat(2)-6.83%
Max EPS beat(2)-1.85%
EPS beat(4)2
Avg EPS beat(4)-1.34%
Min EPS beat(4)-6.83%
Max EPS beat(4)2.86%
EPS beat(8)4
Avg EPS beat(8)-1.75%
EPS beat(12)7
Avg EPS beat(12)0.74%
EPS beat(16)9
Avg EPS beat(16)0.6%
Revenue beat(2)1
Avg Revenue beat(2)-0.24%
Min Revenue beat(2)-1.77%
Max Revenue beat(2)1.29%
Revenue beat(4)2
Avg Revenue beat(4)-0.27%
Min Revenue beat(4)-2.69%
Max Revenue beat(4)2.1%
Revenue beat(8)4
Avg Revenue beat(8)-0.16%
Revenue beat(12)7
Avg Revenue beat(12)-0.19%
Revenue beat(16)11
Avg Revenue beat(16)0.38%
PT rev (1m)-0.79%
PT rev (3m)-1.6%
EPS NQ rev (1m)-0.5%
EPS NQ rev (3m)-5%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-5.58%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)2.14%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.52 | ||
| Fwd PE | 43.3 | ||
| P/S | 11.99 | ||
| P/FCF | 35.49 | ||
| P/OCF | 34.52 | ||
| P/B | 5.47 | ||
| P/tB | 52.17 | ||
| EV/EBITDA | 29.85 |
EPS(TTM)1.69
EY1.77%
EPS(NY)2.21
Fwd EY2.31%
FCF(TTM)2.69
FCFY2.82%
OCF(TTM)2.77
OCFY2.9%
SpS7.97
BVpS17.45
TBVpS1.83
PEG (NY)5.18
PEG (5Y)1.83
Graham Number25.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.44% | ||
| ROE | 9.88% | ||
| ROCE | 12.12% | ||
| ROIC | 9.18% | ||
| ROICexc | 10.87% | ||
| ROICexgc | N/A | ||
| OM | 27.33% | ||
| PM (TTM) | 21.64% | ||
| GM | 76.06% | ||
| FCFM | 33.78% |
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-Score7
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 7.9% | ||
| Cap/Sales | 0.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.24% | ||
| Profit Quality | 156.09% | ||
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.7 | ||
| Altman-Z | 20.6 |
F-Score7
WACC10.2%
ROIC/WACC0.9
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)14.19%
EPS 3Y18.17%
EPS 5Y30.86%
EPS Q2Q%7.5%
EPS Next Y10.91%
EPS Next 2Y15.63%
EPS Next 3Y18.07%
EPS Next 5Y21.92%
Revenue 1Y (TTM)12.68%
Revenue growth 3Y15.3%
Revenue growth 5Y14.85%
Sales Q2Q%10.05%
Revenue Next Year10.23%
Revenue Next 2Y10.74%
Revenue Next 3Y10.72%
Revenue Next 5Y10.6%
EBIT growth 1Y21.74%
EBIT growth 3Y19.76%
EBIT growth 5Y27.58%
EBIT Next Year72.41%
EBIT Next 3Y30.03%
EBIT Next 5Y23.17%
FCF growth 1Y17.77%
FCF growth 3Y7.45%
FCF growth 5Y16.41%
OCF growth 1Y17.48%
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 10.91% in the next year.