89.37 USD
-1.34 (-1.48%)
89.37 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to DSGX. DSGX was compared to 280 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. This makes DSGX very considerable 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.
In the past 5 years DSGX always reported a positive cash flow from operatings.
1.2 Ratios
DSGX has a Return On Assets of 8.54%. This is amongst the best in the industry. DSGX outperforms 81.79% of its industry peers.
Looking at the Return On Equity, with a value of 10.02%, DSGX is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
DSGX has a better Return On Invested Capital (9.58%) than 83.21% 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 10.81%.
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
Looking at the Profit Margin, with a value of 22.10%, DSGX belongs to the top of the industry, outperforming 86.79% of the companies in the same industry.
DSGX's Profit Margin has improved in the last couple of years.
DSGX has a better Operating Margin (28.79%) than 92.50% of its industry peers.
DSGX's Operating Margin has improved in the last couple of years.
The Gross Margin of DSGX (76.80%) is better than 71.79% 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 | 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
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.
The number of shares outstanding for DSGX has been increased compared to 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.
2.2 Solvency
DSGX has an Altman-Z score of 18.63. This indicates that DSGX is financially healthy and has little risk of bankruptcy at the moment.
DSGX has a better Altman-Z score (18.63) than 94.64% 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 | 18.63 |
ROIC/WACC0.97
WACC9.91%
2.3 Liquidity
A Current Ratio of 1.83 indicates that DSGX should not have too much problems paying its short term obligations.
DSGX has a Current ratio (1.83) which is comparable to the rest of the industry.
A Quick Ratio of 1.83 indicates that DSGX should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.83, DSGX is in line with its industry, outperforming 56.79% of the companies in the same industry.
The current and quick ratio evaluation for DSGX is rather negative, while it does have 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
DSGX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.39%.
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
The Earnings Per Share is expected to grow by 21.92% 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 10.60% 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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
With a Price/Earnings ratio of 50.49, DSGX can be considered very expensive at the moment.
DSGX's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of DSGX to the average of the S&P500 Index (26.55), we can say DSGX is valued expensively.
DSGX is valuated quite expensively with a Price/Forward Earnings ratio of 40.51.
DSGX's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.78. DSGX is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.49 | ||
| Fwd PE | 40.51 |
4.2 Price Multiples
DSGX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DSGX is cheaper than 74.29% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DSGX is valued a bit cheaper than the industry average as 69.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.47 | ||
| EV/EBITDA | 26.09 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DSGX has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as DSGX's earnings are expected to grow with 18.07% in the coming years.
PEG (NY)4.63
PEG (5Y)1.64
EPS Next 2Y15.63%
EPS Next 3Y18.07%
5. Dividend
5.1 Amount
DSGX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
89.37
-1.34 (-1.48%)
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 Cap7.68B
Revenue(TTM)703.71M
Net Income(TTM)155.53M
Analysts77.5
Price Target98.8 (10.55%)
Short Float %1.19%
Short Ratio1.8
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)1.71%
EPS NQ rev (3m)0.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.57%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.49 | ||
| Fwd PE | 40.51 | ||
| P/S | 10.92 | ||
| P/FCF | 31.47 | ||
| P/OCF | 30.67 | ||
| P/B | 4.95 | ||
| P/tB | 41.68 | ||
| EV/EBITDA | 26.09 |
EPS(TTM)1.77
EY1.98%
EPS(NY)2.21
Fwd EY2.47%
FCF(TTM)2.84
FCFY3.18%
OCF(TTM)2.91
OCFY3.26%
SpS8.18
BVpS18.04
TBVpS2.14
PEG (NY)4.63
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 | 18.63 |
F-Score6
WACC9.91%
ROIC/WACC0.97
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 Y10.91%
EPS Next 2Y15.63%
EPS Next 3Y18.07%
EPS Next 5Y21.92%
Revenue 1Y (TTM)11.39%
Revenue growth 3Y15.3%
Revenue growth 5Y14.85%
Sales Q2Q%11.23%
Revenue Next Year10.23%
Revenue Next 2Y10.74%
Revenue Next 3Y10.72%
Revenue Next 5Y10.6%
EBIT growth 1Y21.35%
EBIT growth 3Y19.76%
EBIT growth 5Y27.58%
EBIT Next Year73.22%
EBIT Next 3Y30.67%
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 10.91% in the next year.