DSGXNasdaqServices-Prepackaged SoftwareFiscal year ends January 31
DESCARTES SYSTEMS GROUP INC
Financials through Q2 FY2027, quarter ended Jul 31, 2026Last filing: 40-F on Mar 11, 2026
$86.66−0.39 (-0.45%)
Close on Oct 19, 2026
- Market cap
- $7.54B
- P/E (TTM)
- 46.3
- Dividend yield
- –
Margins
Share of revenue, fiscal years 2012 to 2026
Gross margin
77.1%+2.9 pts over 5 years
Operating margin
28.8%+8.3 pts over 5 years
Net margin
22.5%+7.5 pts over 5 years
Growth rates
Compound annual growth to fiscal 2026
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +12.0% | +14.5% | +15.9% | +14.7% | |
| Gross profit | +14.1% | +14.7% | +16.8% | +15.7% | |
| Operating income | +15.9% | +17.2% | +24.1% | +22.3% | |
| Net income | +14.3% | +17.0% | +25.7% | +23.1% | |
| EPS, diluted | +14.0% | +16.6% | +25.1% | +21.4% | |
| Free cash flow | +22.6% | +11.8% | +15.4% | +18.0% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2017 | FY2021 | FY2026 | Trend |
|---|---|---|---|---|
| Return on equity | 5.7% | 6.0% | 10.9% | |
| Return on assets | 5.0% | 5.2% | 9.2% | |
| Current ratio | 1.35 | 1.95 | 2.16 | |
| Debt to equity | – | – | – | |
| Interest coverage | 50.2× | 60.2× | 217.1× | |
| Inventory turnover | 348.1× | 214.1× | 409.5× | |
| Capex to revenue | 2.4% | 1.1% | 0.8% | |
| Diluted shares | 77M | 86M | 88M |
Where the cash went
Fiscal 2022 to 2026, five years combined
Descartes Systems generated $1.06B from operations and spent $29.83M on capital expenditure, dividends and share buybacks. 97% of that went back into the business.
Generated
$1.06B
Used
$29.83M
Capital expenditure$28.94M97%Dividends$00%Share buybacks$892.00K3%
DuPont analysis
Return on equity split into margin, efficiency and leverage
Net margin22.5%
×Asset turnover0.41×
×Equity multiplier1.18×
=Return on equity, FY202610.9%
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2026 | 22.5% | 0.41× | 1.18× | 10.9% |
| FY2025 | 22.0% | 0.42× | 1.19× | 10.9% |
| FY2024 | 20.2% | 0.41× | 1.19× | 9.9% |
| FY2023 | 21.0% | 0.39× | 1.19× | 9.7% |
| FY2022 | 20.3% | 0.38× | 1.18× | 9.0% |
| FY2021 | 14.9% | 0.35× | 1.16× | 6.0% |
| FY2020 | 11.4% | 0.41× | 1.18× | 5.5% |
| FY2019 | 11.4% | 0.43× | 1.24× | 6.1% |
| FY2018 | 11.3% | 0.42× | 1.21× | 5.8% |
| FY2017 | 11.7% | 0.43× | 1.14× | 5.7% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2026 against fiscal 2025
7of 8 tests passed in fiscal 2026. Some tests lack the figures they need.
- ProfitableNet income above zero$163.77M
- Cash generatingOperating cash flow above zero$266.25M
- Return on assets improvedROA up on the prior year9.7% → 9.9%
- Earnings backed by cashOperating cash flow above net income$266.25M vs $163.77M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose1.62 → 2.16
- No dilutionShare count did not rise87M → 88M
- Gross margin improvedGross margin up on the prior year75.64% → 77.08%
- More efficientAsset turnover rose0.44 → 0.44