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Descartes Systems Group

TSX:DSG
Snowflake Description

Flawless balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DSG
TSX
CA$4B
Market Cap
  1. Home
  2. CA
  3. Software
Company description

The Descartes Systems Group Inc. provides federated network and logistics technology solutions worldwide. The last earnings update was 41 days ago. More info.


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  • Descartes Systems Group has significant price volatility in the past 3 months.
DSG Share Price and Events
7 Day Returns
-4.1%
TSX:DSG
-0.2%
CA Software
0.6%
CA Market
1 Year Returns
34.7%
TSX:DSG
17.7%
CA Software
4.4%
CA Market
DSG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Descartes Systems Group (DSG) -4.1% 7.7% 30.8% 34.7% 100.3% 222.9%
CA Software -0.2% 4.1% 24% 17.7% 85.7% 185.7%
CA Market 0.6% 2.2% 8.8% 4.4% 15.7% 7.1%
1 Year Return vs Industry and Market
  • DSG outperformed the Software industry which returned 17.7% over the past year.
  • DSG outperformed the Market in Canada which returned 4.4% over the past year.
Price Volatility
DSG
Industry
5yr Volatility vs Market

DSG Value

 Is Descartes Systems Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Descartes Systems Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Descartes Systems Group.

TSX:DSG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:DSG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 0.77
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.77 (1 + (1- 26.5%) (0.88%))
0.849
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.85
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (0.849 * 5.96%)
7.01%

Discounted Cash Flow Calculation for TSX:DSG using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Descartes Systems Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:DSG DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.01%)
2019 75.20 Analyst x6 70.28
2020 94.51 Analyst x6 82.54
2021 105.69 Analyst x6 86.25
2022 114.55 Est @ 8.39% 87.36
2023 121.94 Est @ 6.45% 86.91
2024 128.16 Est @ 5.1% 85.37
2025 133.49 Est @ 4.16% 83.09
2026 138.15 Est @ 3.49% 80.36
2027 142.34 Est @ 3.03% 77.37
2028 146.18 Est @ 2.7% 74.26
Present value of next 10 years cash flows $813.80
TSX:DSG DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $146.18 × (1 + 1.95%) ÷ (7.01% – 1.95%)
$2,945.08
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,945.08 ÷ (1 + 7.01%)10
$1,496.10
TSX:DSG Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $813.80 + $1,496.10
$2,309.90
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,309.90 / 77.16
$29.94
TSX:DSG Discount to Share Price
Calculation Result
Exchange Rate USD/CAD
(Reporting currency to currency of TSX:DSG)
1.336
Value per Share
(CAD)
= Value per Share in USD x Exchange Rate (USD/CAD)
= $29.94 x 1.336
CA$39.98
Value per share (CAD) From above. CA$39.98
Current discount Discount to share price of CA$50.12
= -1 x (CA$50.12 - CA$39.98) / CA$39.98
-25.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Descartes Systems Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Descartes Systems Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Descartes Systems Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:DSG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-01-31) in USD $0.41
TSX:DSG Share Price ** TSX (2019-04-16) in CAD CA$50.12
TSX:DSG Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.749 $37.53
Canada Software Industry PE Ratio Median Figure of 15 Publicly-Listed Software Companies 49.04x
Canada Market PE Ratio Median Figure of 556 Publicly-Listed Companies 15.47x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Descartes Systems Group.

TSX:DSG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:DSG Share Price ÷ EPS (both in USD)

= 37.53 ÷ 0.41

92.18x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Descartes Systems Group is overvalued based on earnings compared to the CA Software industry average.
  • Descartes Systems Group is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does Descartes Systems Group's expected growth come at a high price?
Raw Data
TSX:DSG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 92.18x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
27%per year
Canada Software Industry PEG Ratio Median Figure of 9 Publicly-Listed Software Companies 3.43x
Canada Market PEG Ratio Median Figure of 254 Publicly-Listed Companies 1.2x

*Line of best fit is calculated by linear regression .

TSX:DSG PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 92.18x ÷ 27%

3.42x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Descartes Systems Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Descartes Systems Group's assets?
Raw Data
TSX:DSG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-01-31) in USD $6.94
TSX:DSG Share Price * TSX (2019-04-16) in CAD CA$50.12
TSX:DSG Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.749 $37.53
Canada Software Industry PB Ratio Median Figure of 71 Publicly-Listed Software Companies 3.21x
Canada Market PB Ratio Median Figure of 2,369 Publicly-Listed Companies 1.52x
TSX:DSG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:DSG Share Price ÷ Book Value per Share (both in USD)

= 37.53 ÷ 6.94

5.41x

* Primary Listing of Descartes Systems Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Descartes Systems Group is overvalued based on assets compared to the CA Software industry average.
X
Value checks
We assess Descartes Systems Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Descartes Systems Group has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

DSG Future Performance

 How is Descartes Systems Group expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
27%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Descartes Systems Group expected to grow at an attractive rate?
  • Descartes Systems Group's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Descartes Systems Group's earnings growth is expected to exceed the Canada market average.
  • Descartes Systems Group's revenue growth is expected to exceed the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:DSG Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:DSG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 27%
TSX:DSG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 11.9%
Canada Software Industry Earnings Growth Rate Market Cap Weighted Average -1.3%
Canada Software Industry Revenue Growth Rate Market Cap Weighted Average 13.5%
Canada Market Earnings Growth Rate Market Cap Weighted Average 18.2%
Canada Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:DSG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:DSG Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-01-31 460 1
2022-01-31 411 1
2021-01-31 361 112 55 12
2020-01-31 328 101 45 12
TSX:DSG Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-01-31 275 78 31
2018-10-31 268 76 30
2018-07-31 260 76 28
2018-04-30 250 75 27
2018-01-31 237 72 27
2017-10-31 227 72 26
2017-07-31 216 74 26
2017-04-30 209 73 25
2017-01-31 204 73 24
2016-10-31 199 69 23
2016-07-31 195 62 22
2016-04-30 189 58 22

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Descartes Systems Group's earnings are expected to grow significantly at over 20% yearly.
  • Descartes Systems Group's revenue is expected to grow by 11.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:DSG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from Descartes Systems Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:DSG Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-01-31 1.26 1.26 1.26 1.00
2022-01-31 1.03 1.03 1.03 1.00
2021-01-31 0.71 0.81 0.64 10.00
2020-01-31 0.57 0.65 0.43 9.00
TSX:DSG Past Financials Data
Date (Data in USD Millions) EPS *
2019-01-31 0.41
2018-10-31 0.39
2018-07-31 0.37
2018-04-30 0.35
2018-01-31 0.35
2017-10-31 0.35
2017-07-31 0.34
2017-04-30 0.33
2017-01-31 0.31
2016-10-31 0.30
2016-07-31 0.30
2016-04-30 0.29

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Descartes Systems Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Descartes Systems Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Descartes Systems Group has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

DSG Past Performance

  How has Descartes Systems Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Descartes Systems Group's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Descartes Systems Group's year on year earnings growth rate has been positive over the past 5 years.
  • Descartes Systems Group's 1-year earnings growth is less than its 5-year average (16.4% vs 19.3%)
  • Descartes Systems Group's earnings growth has not exceeded the CA Software industry average in the past year (16.4% vs 16.4%).
Earnings and Revenue History
Descartes Systems Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Descartes Systems Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:DSG Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-01-31 275.17 31.28 66.89 47.87
2018-10-31 267.77 30.05 65.85 47.13
2018-07-31 259.77 28.32 64.17 46.12
2018-04-30 249.94 26.98 61.47 44.41
2018-01-31 237.44 26.88 58.58 41.80
2017-10-31 226.62 26.30 54.86 39.32
2017-07-31 216.16 26.07 51.67 37.36
2017-04-30 209.38 24.69 50.17 36.10
2017-01-31 203.78 23.84 48.02 35.56
2016-10-31 199.00 23.11 47.02 34.89
2016-07-31 194.82 22.41 46.10 34.04
2016-04-30 189.48 21.70 44.63 32.61
2016-01-31 184.99 20.56 44.03 31.29
2015-10-31 181.24 18.80 43.30 30.29
2015-07-31 176.94 17.73 42.10 29.19
2015-04-30 174.45 16.27 41.45 28.83
2015-01-31 170.86 15.06 40.74 28.08
2014-10-31 166.88 14.35 40.37 27.50
2014-07-31 162.58 12.37 39.31 27.35
2014-04-30 158.10 10.50 38.33 26.85
2014-01-31 151.29 9.61 37.19 25.88
2013-10-31 144.79 14.52 35.25 25.11
2013-07-31 138.71 15.45 34.42 23.50
2013-04-30 131.05 16.20 31.67 22.01
2013-01-31 126.88 16.00 29.46 21.27
2012-10-31 122.66 12.72 28.09 20.49
2012-07-31 118.47 12.33 26.43 19.96
2012-04-30 116.78 12.48 26.90 19.54

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Descartes Systems Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Descartes Systems Group used its assets less efficiently than the CA Software industry average last year based on Return on Assets.
  • Descartes Systems Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Descartes Systems Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Descartes Systems Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

DSG Health

 How is Descartes Systems Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Descartes Systems Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Descartes Systems Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Descartes Systems Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Descartes Systems Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Descartes Systems Group Company Filings, last reported 2 months ago.

TSX:DSG Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-01-31 533.51 25.46 27.30
2018-10-31 522.69 50.59 32.76
2018-07-31 515.36 58.84 34.07
2018-04-30 509.74 51.24 36.21
2018-01-31 498.81 37.00 35.15
2017-10-31 481.48 55.00 33.29
2017-07-31 456.66 40.00 87.53
2017-04-30 438.19 0.00 54.37
2017-01-31 430.60 0.00 38.14
2016-10-31 421.67 3.29 77.93
2016-07-31 419.52 8.06 69.64
2016-04-30 421.16 10.88 58.53
2016-01-31 402.04 0.00 41.85
2015-10-31 404.92 0.00 56.51
2015-07-31 400.80 0.00 47.17
2015-04-30 398.86 0.00 128.51
2015-01-31 390.39 0.00 118.05
2014-10-31 398.65 0.00 150.28
2014-07-31 402.65 0.00 141.42
2014-04-30 257.98 38.99 62.35
2014-01-31 250.16 40.41 62.71
2013-10-31 245.01 17.23 49.27
2013-07-31 239.06 18.52 40.92
2013-04-30 236.66 19.84 64.55
2013-01-31 238.24 0.00 37.64
2012-10-31 226.28 0.00 40.39
2012-07-31 219.17 0.00 35.52
2012-04-30 223.25 0.00 69.53
  • Descartes Systems Group's level of debt (4.8%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (16.1% vs 4.8% today).
  • Debt is well covered by operating cash flow (306.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 23.4x coverage).
X
Financial health checks
We assess Descartes Systems Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Descartes Systems Group has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

DSG Dividends

 What is Descartes Systems Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Descartes Systems Group dividends.
If you bought CA$2,000 of Descartes Systems Group shares you are expected to receive CA$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Descartes Systems Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Descartes Systems Group's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:DSG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
North America Software Industry Average Dividend Yield Market Cap Weighted Average of 27 Stocks 1.5%
Canada Market Average Dividend Yield Market Cap Weighted Average of 330 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
Canada Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:DSG Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-01-31
2022-01-31
2021-01-31
2020-01-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Descartes Systems Group has not reported any payouts.
  • Unable to verify if Descartes Systems Group's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Descartes Systems Group's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Descartes Systems Group has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Descartes Systems Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Descartes Systems Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Descartes Systems Group has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

DSG Management

 What is the CEO of Descartes Systems Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ed Ryan
COMPENSATION $2,331,340
AGE 49
TENURE AS CEO 5.4 years
CEO Bio

Mr. Edward J. Ryan, also known as Ed, BA, has been the Chief Executive Officer of The Descartes Systems Group, Inc since November 26, 2013. Mr. Ryan served as the Chief Commercial Officer of Descartes Systems Group from June 2, 2011 to November 27, 2013 and served as its Executive Vice President of Global Field Operations from July 2007 to 2011. He served as General Manager of Global Logistics Network at Descartes Systems Group Inc. from June 2004 to 2007 and Vice President, Sales (2000-2004). He joined Descartes in February 2000 in connection with Descartes Systems Group Inc.'s acquisition of E-Transport Incorporated. Since then, He has occupied various senior sales positions within Descartes, with particular focus on Descartes Systems Group Inc.'s network and recurring business. He has been a Director at The Descartes Systems Group Inc since May 29, 2014. Mr. Ryan has a Bachelor of Arts from Franklin and Marshall College in Lancaster, Pennsylvania, U.S.A.

CEO Compensation
  • Ed's compensation has been consistent with company performance over the past year.
  • Ed's remuneration is about average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the Descartes Systems Group management team in years:

5.4
Average Tenure
  • The average tenure for the Descartes Systems Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Ed Ryan

TITLE
CEO & Director
COMPENSATION
$2M
AGE
49
TENURE
5.4 yrs

J. Pagan

TITLE
President & COO
COMPENSATION
$1M
TENURE
5.4 yrs

Allan Brett

TITLE
Chief Financial Officer
COMPENSATION
$1M
TENURE
4.9 yrs

Mike Verhoeve

TITLE
Executive VP of Legal
COMPENSATION
$404K
TENURE
4.9 yrs

Chris Jones

TITLE
Executive Vice President of Marketing & Services
COMPENSATION
$413K
AGE
59
TENURE
7.8 yrs

Raimond Diederik

TITLE
Executive Vice President of Information Services
COMPENSATION
$218K
TENURE
9.6 yrs

Ed Gardner

TITLE
Executive Vice President of Corporate Development

Ken Wood

TITLE
Executive Vice President of Product Management
COMPENSATION
$347K

Bob Parker

TITLE
Executive Vice President of Customer Support & Client Services
Board of Directors Tenure

Average tenure and age of the Descartes Systems Group board of directors in years:

4.9
Average Tenure
58.5
Average Age
  • The tenure for the Descartes Systems Group board of directors is about average.
Board of Directors

Eric Demirian

TITLE
Chairman of the Board
COMPENSATION
$215K
AGE
59
TENURE
4.9 yrs

Ed Ryan

TITLE
CEO & Director
COMPENSATION
$2M
AGE
49
TENURE
4.9 yrs

Dave Beatson

TITLE
Independent Director
COMPENSATION
$174K
AGE
70
TENURE
13.1 yrs

John Walker

TITLE
Director
COMPENSATION
$182K
AGE
65
TENURE
7.6 yrs

Jane O’Hagan

TITLE
Director
COMPENSATION
$182K
AGE
54
TENURE
4.9 yrs

Deborah Close

TITLE
Director
COMPENSATION
$184K
AGE
64
TENURE
3.9 yrs

Chris Hewat

TITLE
Director
COMPENSATION
$164K
AGE
57
TENURE
18.8 yrs

Dennis Maple

TITLE
Director
COMPENSATION
$148K
AGE
58
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
16. Oct 18 Buy Christopher Hewat Individual 12. Oct 18 12. Oct 18 1,800 CA$40.76 CA$73,368
X
Management checks
We assess Descartes Systems Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Descartes Systems Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

DSG News

Simply Wall St News

Should You Care About The Descartes Systems Group Inc’s (TSE:DSG) Cash Levels?

If you are currently a shareholder in The Descartes Systems Group Inc (TSE:DSG), or considering investing in the stock, you need to examine how the business generates cash, and how it is reinvested. … I’ve analysed below, the health and outlook of Descartes Systems Group’s cash flow, which will help you understand the stock from a cash standpoint. … Descartes Systems Group’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure.

Simply Wall St -

Who Has Been Buying The Descartes Systems Group Inc (TSE:DSG) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in The Descartes Systems Group Inc (TSE:DSG). … The Last 12 Months Of Insider Transactions At Descartes Systems Group. … In any event it's generally a positive if insiders are buying shares at around the current price

Simply Wall St -

Did Business Growth Power Descartes Systems Group's Share Price Gain of 197%?

By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … Over half a decade, Descartes Systems Group managed to grow its earnings per share at 11% a year. … This EPS growth is lower than the 24% average annual increase in the share price.

Simply Wall St -

Examining The Descartes Systems Group Inc’s (TSE:DSG) Weak Return On Capital Employed

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Here's What The Descartes Systems Group Inc's (TSE:DSG) P/E Is Telling Us

To keep it practical, we'll show how The Descartes Systems Group Inc's (TSE:DSG) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Price per Share (in the reporting currency) ÷ Earnings per Share (EPS) … P/E of 81.85 = $32.02 (Note: this is the share price in the reporting currency, namely, USD ) ÷ $0.39

Simply Wall St -

The Descartes Systems Group Inc (TSE:DSG) Delivered A Weaker ROE Than Its Industry

We'll use ROE to examine The Descartes Systems Group Inc (TSE:DSG), by way of a worked example. … That means that for every CA$1 worth of shareholders' equity, it generated CA$0.057 in profit. … Check out our latest analysis for Descartes Systems Group?

Simply Wall St -

Do You Know The Descartes Systems Group Inc’s (TSE:DSG) Cash Situation?

Today we will examine Descartes Systems Group’s ability to generate cash flows, as well as the level of capital expenditure it is expected to incur over the next couple of years, which will result in how much money goes to you. … Descartes Systems Group’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure. … The two ways to assess whether Descartes Systems Group’s FCF is sufficient, is to compare the FCF yield to the market index yield, as well as determine whether the top-line operating cash flows will continue to grow

Simply Wall St -

Estimating The Fair Value Of The Descartes Systems Group Inc (TSE:DSG)

by taking the foreast future cash flows of the company and discounting them back to today's value. … discounted cash flows (DCF). … If you are reading this and its not December 2018 then I highly recommend you check out the latest calculation for Descartes Systems Group by following the link below

Simply Wall St -

Did The Descartes Systems Group Inc (TSE:DSG) Insiders Sell Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in The Descartes Systems Group Inc (TSE:DSG). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … The Last 12 Months Of Insider Transactions At Descartes Systems Group.

Simply Wall St -

Want To Invest In The Descartes Systems Group Inc (TSE:DSG)? Here's How It Performed Lately

Assessing The Descartes Systems Group Inc's (TSE:DSG) past track record of performance is a useful exercise for investors. … Below, I assess DSG's latest performance announced on 31 July 2018 and evaluate these figures to its historical trend and industry movements. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 18%, indicating the rate at which DSG is growing has slowed down

Simply Wall St -

DSG Company Info

Description

The Descartes Systems Group Inc. provides federated network and logistics technology solutions worldwide. Its Logistics Application Suite offers a range of modular, cloud-based, and interoperable Web and wireless logistics management applications. The company’s Logistics Application Suite offers solutions, such as route planning and execution, mobile applications, and telematics and compliance; transportation management solutions comprising carrier compliance and rate management, freight audit and settlement, dock scheduling and yard management, pool distribution, transportation planning and execution, and logistics flow control, as well as visibility, tracking, and performance management; and global logistics network services, such as document management, community, and connectivity services. Its Logistics Application Suite solutions also include customs and regulatory compliance solutions, such as cargo security compliance, declaration and fiscal compliance, customs warehouse management, ocean regulatory services, industry program support services, global trade content, and government solutions; and broker and forwarder enterprise system solutions, such as forwarder back office, and brokerage and declaration services. In addition, the company offers consulting, implementation, and training services; and maintenance and support services. It serves transportation providers, logistics service providers, and distribution-intensive companies through distributors, alliance partners, and value added resellers. The company was founded in 1981 and is headquartered in Waterloo, Canada.

Details
Name: The Descartes Systems Group Inc
DSG
Exchange: TSX
Founded: 1981
CA$3,867,326,661
77,161,346
Website: http://www.descartes.com
Address: The Descartes Systems Group Inc
120 Randall Drive,
Waterloo,
Ontario, N2V 1C6,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX DSG Common Shares The Toronto Stock Exchange CA CAD 21. Jan 1998
NasdaqGS DSGX Common Shares Nasdaq Global Select US USD 21. Jan 1998
DB DC2 Common Shares Deutsche Boerse AG DE EUR 21. Jan 1998
Number of employees
Current staff
Staff numbers
1,253
Descartes Systems Group employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/16 23:36
End of day share price update: 2019/04/16 00:00
Last estimates confirmation: 2019/04/15
Last earnings filing: 2019/03/06
Last earnings reported: 2019/01/31
Last annual earnings reported: 2019/01/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.