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Descartes Systems Group Inc (DSGX) stock analysis

DSGXNasdaqServices-Prepackaged SoftwareFiscal year ends January 31
Financials through Q2 FY2027, quarter ended Jul 31, 2026Last filing: 40-F on Mar 11, 2026Score 14/30
$95.47−0.52 (-0.54%)

Close on Nov 12, 2026Market cap $8.21BP/E 51.1Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Value0Growth4Performance5Health5Dividend0

Mixed14 of 30 checks passed

Descartes Systems passes 14 of the 30 checks behind our score; 13 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
0/6
Growth
4/6
Past performance
5/6
Financial health
5/6
Dividend
0/6

What stands out

  • Return on capital over 10%

    Return on invested capital was 12.6%, above the 10% that usually covers the cost of capital.

  • No debt

    Descartes Systems has no borrowings on its latest balance sheet.

  • Earnings grew over 5 years

    Net income grew 25.7% a year on average over the last five fiscal years.

  • Revenue growing 10%+ a year

    Revenue grew 14.5% a year over the last three fiscal years.

What to watch

  • Return on equity under 15%

    Return on equity was 10.4% over the last twelve months and averaged 10.1% over five years; we look for 15% on both.

  • Earnings growth not accelerating

    Net income grew 14.3% over the last twelve months, against a 5-year average of 25.7% a year.

  • No dividend

    Descartes Systems has not paid a dividend in the last twelve months.

Valuation0/6

  • P/E against its history

    Not enough price and earnings history to compare.

  • P/E against the industry

    Needs positive earnings and enough profitable companies in the industry.

  • EV/EBITDA against its history

    Needs positive EBITDA and price history.

  • P/B against the industry

    Needs positive book value.

  • Price against fair value

    We could not estimate a fair value: it needs at least two valuation methods with positive inputs.

  • Margin of safety

    Depends on the fair value estimate.

Growth4/6

  • Revenue growing 10%+ a year

    Revenue grew 14.5% a year over the last three fiscal years.

  • EPS growing 10%+ a year

    Diluted EPS grew 16.6% a year over the last three fiscal years.

  • Earnings growth not accelerating

    Net income grew 14.3% over the last twelve months, against a 5-year average of 25.7% a year.

  • Growing faster than the industry

    Revenue grew 12.0% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.

  • Company guidance

    No outlook found in earnings releases from the last twelve months.

  • Gross margin improving

    Gross margin was 77.1% over the last twelve months, against 75.6% a year earlier.

Past performance5/6

  • Return on equity under 15%

    Return on equity was 10.4% over the last twelve months and averaged 10.1% over five years; we look for 15% on both.

  • Return on capital over 10%

    Return on invested capital was 12.6%, above the 10% that usually covers the cost of capital.

  • Return on equity above the industry

    Descartes Systems's return on equity of 10.4% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -1.2%.

  • Earnings grew over 5 years

    Net income grew 25.7% a year on average over the last five fiscal years.

  • Net margin above its 5-year average

    Net margin was 22.5% over the last twelve months, against a 5-year average of 21.2%.

  • Net margin above the industry

    Descartes Systems's net margin of 22.5% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.8%.

Financial health5/6

  • No debt

    Descartes Systems has no borrowings on its latest balance sheet.

  • Debt not rising

    With no debt today, leverage cannot have risen.

  • Debt covered by cash flow

    There is no debt to cover.

  • Interest well covered

    Operating income covers interest expense 217.1 times.

  • Short-term assets cover short-term debts

    Current assets are 2.02 times current liabilities.

  • Bankruptcy risk (Altman Z)

    Needs market value, working capital and retained earnings.

Dividend0/6

  • No dividend

    Descartes Systems has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

We don't publish a fair value for Descartes Systems. It needs a US-dollar share price, at least two valuation methods with positive inputs (earnings, EBITDA, book value or sales) and, for companies with several share classes, classes that trade at the same price.

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day
$42.92M
Value traded per 1% price move
$29.29M

Downside

Medium risk

Typical loss in a bad month
23.5%
Volatility (annualized)
41%
Sharpe ratio, 1 year
0.28
Beta to the S&P 500 (5Y)
0.86

Typical bad-month loss, week by week

25%: high

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

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