The Descartes Systems Group DSGX
CanadaTechnology · Software - ApplicationUSD
101.23 USD (+26.4%)
13 analysts
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The Descartes Systems Group is a provider of cloud-based software and services for optimizing global logistics, transportation, and supply chain management, with a recurring subscription revenue model.
Key points
from its scores- ✓Favourable backdrop9.4
- ✓Very solid balance sheet8.5
- ✓Strong growth7.7
- ✕Little or no dividend1.5
- ✕Poor share-price trend3.4
AI analysis
bottom line, main risk, context and newsQuality and growth justify the premium, but the demanding valuation and negative momentum limit upside potential in the short term.
The Descartes Systems Group shows excellent financial health (net debt of -1.19x EBITDA, liquidity of 2.02) and solid growth (revenue +11.8%, earnings +32.6%), with an operating margin of 33.18% reflecting a high-quality business model. However, its valuation is demanding (P/E 37.24, EV/EBITDA 19.52) and momentum is negative (-20.36% over 12 months), suggesting the market has already priced in much of the growth expectations.
The main risk is the demanding valuation (P/E 37.24) in a rising rate environment, which could compress the multiple if earnings growth fails to meet market expectations.
Context and risks
The Descartes Systems Group has no material exposure to current macro factors: its logistics software business does not depend on commodities, interest rates, or physical shipping routes. Its balance sheet is solid and growth is organic, so the rise in rates and geopolitical volatility do not directly affect its business model.
Is The Descartes Systems Group stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades in line with the Technology median (within 15%).
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 37.2 | 31.3 | +19% |
| EV / EBITDA | 19.5 | 20.4 | −4% |
| Price / book | 4.2 | 6.3 | −34% |
| Price / sales | 8.8 | 5.3 | +67% |
Sector: median of the 283 Technology companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.4 out of 10 (median for Technology: 5.3).
Average analyst target: 101.23 USD, +26.4% versus the price.
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Technology medianValuation
- P/E
- 37.2
- Forward P/E
- 24.3
- EV / EBITDA
- 19.5
- Price / book
- 4.2
- Price / sales
- 8.8
- PEG
- 1.56
- Market cap
- 6.8B USD
- Enterprise value
- 6.5B USD
Profitability
- ROE
- 11.9%
- ROA
- 8.3%
- ROIC (approx.)
- 15.6%
- Gross margin
- 77.6%
- Operating margin
- 33.2%
- Net margin
- 24.3%
- Free cash flow
- 301.9M USD
- FCF yield
- 4.4%
- Cash conversion
- 91%
Solvency
- Total debt
- 7.5M USD
- Net debt
- −393.5M USD
- Cash
- 401.1M USD
- EBITDA
- 330.8M USD
- Net debt / EBITDA
- −1.19
- Debt / equity
- 0.46
- Current ratio
- 2.02
- Quick ratio
- 1.89
Growth
- Revenue growth
- +11.8%
- Earnings growth
- +32.6%
- EPS (TTM)
- 2.15 USD
- EPS (forward)
- 3.30 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 0.20
- Analyst consensus
- Buy (13)
- Target price
- 101.23 USD
- 52-week range
- 62.56 – 98.35
Recent news
All DSGX news →Compare it with its sector
All 283 in Technology →Frequently asked questions about The Descartes Systems Group
Is The Descartes Systems Group stock cheap or expensive?
On P/E and EV / EBITDA, it trades in line with the Technology median (within 15%). Valuation score: 5.4 out of 10 (median for Technology: 5.3). Average analyst target: 101.23 USD, +26.4% versus the price. This is not investment advice.
What score does The Descartes Systems Group get on MeridIAn Screener?
It scores 7.0 out of 10, rank 210 of 2,130 (better than 89% of the companies analysed). Its strongest category is Risk & Context (9.4) and its weakest, Dividend (1.5). Analysis of 08/10/2026.
What is The Descartes Systems Group's P/E ratio?
Its P/E is 37.2: the share price equals 37.2 times earnings per share over the last 12 months. The Technology median is 31.3. Based on the earnings analysts expect, the forward P/E is 24.3.
How much is The Descartes Systems Group worth on the stock market?
Its market capitalisation is 6.8B USD and its enterprise value, debt included, is 6.5B USD.
How much debt does The Descartes Systems Group have?
It has more cash than debt: net cash of 393.5M USD.
Does The Descartes Systems Group pay a dividend?
It pays no dividend, or almost none.
How has The Descartes Systems Group stock performed over the last year?
It has fallen 16.1% over the last year, excluding dividends. Over the last 52 weeks it has traded between 62.56 and 98.35 USD. Past performance does not guarantee future results.
What do analysts think of The Descartes Systems Group?
13 analysts cover it; their average recommendation is “Buy” and their average target is 101.23 USD (+26.4% versus the price). It is an estimate, not market data.