(DSG) Descartes Systems - Ratings and Ratios

Descartes Systems Group Inc. (TO:DSG) is a global leader in logistics technology solutions, offering a comprehensive suite of modular, interoperable web and wireless applications. The companys Logistics Technology platform enables businesses to optimize routing, transportation management, ecommerce, customs compliance, and global trade operations. Its solutions include advanced tools for shipment planning, execution, and analysis, as well as connectivity services for seamless B2B messaging. Descartes serves a diverse client base, including transportation providers, logistics service providers, and distribution-intensive industries like retail and manufacturing. The company provides its services through subscription, transactional, or perpetual license models, supported by consulting, implementation, and maintenance services. Headquartered in Waterloo, Canada, Descartes has been a key player in the logistics technology space since its incorporation in 1981.

From a technical perspective, DSGs stock is currently trading at 138.81 CAD, below its 20-day SMA of 142.50 and 50-day SMA of 149.41. The 200-day SMA of 149.80 further indicates a downward trend in the stock price. The Average True Range (ATR) of 4.52 suggests moderate volatility. On the fundamental side, Descartes boasts a market cap of 12,124.37M CAD, with a trailing P/E of 60.88 and a forward P/E of 44.44, reflecting high valuation multiples. The P/B ratio of 6.19 and P/S ratio of 18.62 highlight the markets confidence in the companys growth prospects. Return on equity (RoE) stands at 10.16%, indicating efficient profitability.

3-Month Forecast: Based on and , DSG is expected to face short-term headwinds due to its declining SMA trendline and elevated valuation multiples. However, its strong market position and recurring revenue model could support stability. The stock may trade sideways in the near term, with potential upside driven by positive earnings surprises or improved macroeconomic conditions. Downside risks include continued profit-taking and broader market volatility.