(DSGX) Descartes Systems - Overview
Stock: Routing, Mobile, Telematics, TMS, Compliance
EPS (Earnings per Share)
Revenue
| Risk 5d forecast | |
|---|---|
| Volatility | 31.0% |
| Relative Tail Risk | -4.33% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -1.54 |
| Alpha | -57.64 |
| Character TTM | |
|---|---|
| Beta | 0.901 |
| Beta Downside | 0.715 |
| Drawdowns 3y | |
|---|---|
| Max DD | 45.83% |
| CAGR/Max DD | -0.07 |
Description: DSGX Descartes Systems January 07, 2026
Descartes Systems Group Inc. (NASDAQ:DSGX) delivers a cloud-based logistics technology platform that enables customers to route, schedule, track, and measure delivery resources, manage transportation execution, and handle customs compliance and global trade intelligence. Its modular SaaS suite spans routing & telematics, transportation management, e-commerce fulfillment, broker/forwarder ERP, and B2B messaging, supported by consulting, implementation, and ongoing maintenance services.
The company primarily serves transportation providers (air, ocean, truck), third-party logistics firms, freight forwarders, customs brokers, and high-volume shippers such as retailers and manufacturers, monetizing these relationships through subscription, transaction-based, or perpetual licensing models.
Key recent metrics (FY 2023): revenue of $1.12 billion, up ~7% YoY; subscription revenue now accounts for roughly 85% of total sales, driving a 14% annual increase in recurring ARR; and operating margin improved to 19% as the firm leverages scale in its SaaS infrastructure. The logistics-software sector is being propelled by sustained e-commerce growth (global online sales projected to exceed $5 trillion in 2025) and tighter supply-chain regulations that increase demand for real-time visibility and trade-compliance automation.
Given DSGX’s strong cash flow conversion (free cash flow margin ~22%) and a market-wide shift toward digitizing freight operations, the stock’s valuation appears sensitive to macro-level freight rate cycles and the pace of SaaS adoption among traditional logistics players.
For a deeper quantitative comparison of DSGX’s valuation metrics, you might find ValueRay’s analyst toolkit useful.
Piotroski VR‑10 (Strict, 0-10) 7.0
| Net Income: 155.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.13 > 0.02 and ΔFCF/TA 0.85 > 1.0 |
| NWC/Revenue: 25.98% < 20% (prev 11.83%; Δ 14.15% < -1%) |
| CFO/TA 0.14 > 3% & CFO 250.3m > Net Income 155.1m |
| Net Debt (-266.7m) to EBITDA (287.5m): -0.93 < 3 |
| Current Ratio: 1.83 > 1.5 & < 3 |
| Outstanding Shares: last quarter (87.6m) vs 12m ago 0.31% < -2% |
| Gross Margin: 73.88% > 18% (prev 0.71%; Δ 7317 % > 0.5%) |
| Asset Turnover: 40.81% > 50% (prev 39.02%; Δ 1.80% > 0%) |
| Interest Coverage Ratio: 208.9 > 6 (EBITDA TTM 287.5m / Interest Expense TTM 964.6k) |
Altman Z'' 6.40
| A: 0.10 (Total Current Assets 400.9m - Total Current Liabilities 218.6m) / Total Assets 1.82b |
| B: 0.26 (Retained Earnings 482.0m / Total Assets 1.82b) |
| C: 0.12 (EBIT TTM 201.5m / Avg Total Assets 1.72b) |
| D: 3.89 (Book Value of Equity 1.05b / Total Liabilities 269.0m) |
| Altman-Z'' Score: 6.40 = AAA |
Beneish M -2.98
| DSRI: 1.10 (Receivables 87.5m/71.6m, Revenue 701.8m/631.8m) |
| GMI: 0.96 (GM 73.88% / 70.73%) |
| AQI: 0.95 (AQ_t 0.77 / AQ_t-1 0.81) |
| SGI: 1.11 (Revenue 701.8m / 631.8m) |
| TATA: -0.05 (NI 155.1m - CFO 250.3m) / TA 1.82b) |
| Beneish M-Score: -2.98 (Cap -4..+1) = A |
What is the price of DSGX shares?
Over the past week, the price has changed by -10.67%, over one month by -21.91%, over three months by -20.38% and over the past year by -43.85%.
Is DSGX a buy, sell or hold?
- StrongBuy: 5
- Buy: 4
- Hold: 4
- Sell: 1
- StrongSell: 0
What are the forecasts/targets for the DSGX price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 111.1 | 66.3% |
| Analysts Target Price | 111.1 | 66.3% |
| ValueRay Target Price | 60.7 | -9.1% |
DSGX Fundamental Data Overview February 04, 2026
P/E Forward = 24.3309
P/S = 8.8906
P/B = 4.1417
P/EG = 1.5709
Revenue TTM = 701.8m USD
EBIT TTM = 201.5m USD
EBITDA TTM = 287.5m USD
Long Term Debt = 7.60m USD (from capitalLeaseObligations, last quarter)
Short Term Debt = 3.24m USD (from shortTermDebt, last quarter)
Debt = 12.0m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -266.7m USD (from netDebt column, last quarter)
Enterprise Value = 5.99b USD (6.26b + Debt 12.0m - CCE 278.7m)
Interest Coverage Ratio = 208.9 (Ebit TTM 201.5m / Interest Expense TTM 964.6k)
EV/FCF = 24.55x (Enterprise Value 5.99b / FCF TTM 244.0m)
FCF Yield = 4.07% (FCF TTM 244.0m / Enterprise Value 5.99b)
FCF Margin = 34.76% (FCF TTM 244.0m / Revenue TTM 701.8m)
Net Margin = 22.10% (Net Income TTM 155.1m / Revenue TTM 701.8m)
Gross Margin = 73.88% ((Revenue TTM 701.8m - Cost of Revenue TTM 183.3m) / Revenue TTM)
Gross Margin QoQ = 66.34% (prev 76.87%)
Tobins Q-Ratio = 3.29 (Enterprise Value 5.99b / Total Assets 1.82b)
Interest Expense / Debt = 2.02% (Interest Expense 241.6k / Debt 12.0m)
Taxrate = 24.75% (14.3m / 57.8m)
NOPAT = 151.6m (EBIT 201.5m * (1 - 24.75%))
Current Ratio = 1.83 (Total Current Assets 400.9m / Total Current Liabilities 218.6m)
Debt / Equity = 0.01 (Debt 12.0m / totalStockholderEquity, last quarter 1.55b)
Debt / EBITDA = -0.93 (Net Debt -266.7m / EBITDA 287.5m)
Debt / FCF = -1.09 (Net Debt -266.7m / FCF TTM 244.0m)
Total Stockholder Equity = 1.47b (last 4 quarters mean from totalStockholderEquity)
RoA = 9.02% (Net Income 155.1m / Total Assets 1.82b)
RoE = 10.54% (Net Income TTM 155.1m / Total Stockholder Equity 1.47b)
RoCE = 13.62% (EBIT 201.5m / Capital Employed (Equity 1.47b + L.T.Debt 7.60m))
RoIC = 10.30% (NOPAT 151.6m / Invested Capital 1.47b)
WACC = 9.23% (E(6.26b)/V(6.27b) * Re(9.24%) + D(12.0m)/V(6.27b) * Rd(2.02%) * (1-Tc(0.25)))
Discount Rate = 9.24% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 0.47%
[DCF Debug] Terminal Value 74.99% ; FCFF base≈227.7m ; Y1≈245.9m ; Y5≈303.7m
Fair Price DCF = 52.40 (EV 4.24b - Net Debt -266.7m = Equity 4.51b / Shares 86.0m; r=9.23% [WACC]; 5y FCF grow 9.05% → 2.90% )
EPS Correlation: 66.45 | EPS CAGR: 0.53% | SUE: -1.55 | # QB: 0
Revenue Correlation: 98.92 | Revenue CAGR: 14.35% | SUE: 0.41 | # QB: 0
EPS next Quarter (2026-04-30): EPS=0.60 | Chg30d=-0.010 | Revisions Net=-1 | Analysts=2
EPS next Year (2027-01-31): EPS=2.57 | Chg30d=+0.000 | Revisions Net=+1 | Growth EPS=+12.2% | Growth Revenue=+11.0%