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DSG

Descartes Systems GroupTSX:DSG Stock Report

Market Cap

CA$8.8b

7D

-3.0%

1Y

33.8%

Updated

02 Dec, 2021

Data

Company Financials +
DSG fundamental analysis
Snowflake Score
Valuation0/6
Future Growth3/6
Past Performance5/6
Financial Health6/6
Dividends0/6

DSG Stock Overview

The Descartes Systems Group Inc. provides cloud-based logistics and supply chain management business process solutions that focuses on enhancing the productivity, performance, and security of logistics-intensive businesses worldwide.

Descartes Systems Group Competitors

Kinaxis

TSX:KXS

CA$5.3b

Enghouse Systems

TSX:ENGH

CA$3.0b

Coveo Solutions

TSX:CVO

CA$1.6b

Oracle

NYSE:ORCL

US$245.3b

Price History & Performance

Summary of all time highs, changes and price drops for Descartes Systems Group
Historical stock prices
Current Share PriceCA$103.41
52 Week HighCA$115.29
52 Week LowCA$68.61
Beta1.04
1 Month Change0.16%
3 Month Change2.36%
1 Year Change33.83%
3 Year Change178.96%
5 Year Change271.04%
Change since IPO1,398.70%

Recent News & Updates

Nov 21
What Does The Descartes Systems Group Inc's (TSE:DSG) Share Price Indicate?

What Does The Descartes Systems Group Inc's (TSE:DSG) Share Price Indicate?

The Descartes Systems Group Inc ( TSE:DSG ), might not be a large cap stock, but it saw a significant share price rise...

Oct 19
Should You Be Adding Descartes Systems Group (TSE:DSG) To Your Watchlist Today?

Should You Be Adding Descartes Systems Group (TSE:DSG) To Your Watchlist Today?

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Sep 19
Estimating The Intrinsic Value Of The Descartes Systems Group Inc (TSE:DSG)

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

How far off is The Descartes Systems Group Inc ( TSE:DSG ) from its intrinsic value? Using the most recent financial...

Shareholder Returns

DSGCA SoftwareCA Market
7D-3.0%-6.0%-3.6%
1Y33.8%27.1%20.3%

Return vs Industry: DSG exceeded the Canadian Software industry which returned 26.9% over the past year.

Return vs Market: DSG exceeded the Canadian Market which returned 19% over the past year.

Price Volatility

Is DSG's price volatile compared to industry and market?
DSG volatility
DSG Average Weekly Movement3.7%
Software Industry Average Movement11.8%
Market Average Movement9.4%
10% most volatile stocks in CA Market17.0%
10% least volatile stocks in CA Market3.6%

Stable Share Price: DSG is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: DSG's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1981n/aEd Ryanhttps://www.descartes.com

The Descartes Systems Group Inc. provides cloud-based logistics and supply chain management business process solutions that focuses on enhancing the productivity, performance, and security of logistics-intensive businesses worldwide. Its Logistics Technology platform offers a range of modular, cloud-based, and interoperable web and wireless logistics management applications, which unites a community of logistics-focused parties, allowing them to transact business. The company provides a suite of solutions that include routing, mobile and telematics; transportation management and e-commerce enablement; customs and regulatory compliance; trade data; global logistics network services; and broker and forwarder enterprise systems.

Descartes Systems Group Fundamentals Summary

How do Descartes Systems Group's earnings and revenue compare to its market cap?
DSG fundamental statistics
Market CapUS$6.83b
Earnings (TTM)US$84.29m
Revenue (TTM)US$405.73m

81.1x

P/E Ratio

16.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DSG income statement (TTM)
RevenueUS$405.73m
Cost of RevenueUS$98.03m
Gross ProfitUS$307.70m
ExpensesUS$223.41m
EarningsUS$84.29m

Last Reported Earnings

Oct 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.00
Gross Margin75.84%
Net Profit Margin20.78%
Debt/Equity Ratio0%

How did DSG perform over the long term?

See historical performance and comparison

Valuation

Is Descartes Systems Group undervalued compared to its fair value and its price relative to the market?

81.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DSG (CA$103.41) is trading above our estimate of fair value (CA$100.91)

Significantly Below Fair Value: DSG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DSG is poor value based on its PE Ratio (81.1x) compared to the Canadian Software industry average (67.5x).

PE vs Market: DSG is poor value based on its PE Ratio (81.1x) compared to the Canadian market (12.1x).


Price to Earnings Growth Ratio

PEG Ratio: DSG is poor value based on its PEG Ratio (4.7x)


Price to Book Ratio

PB vs Industry: DSG is overvalued based on its PB Ratio (6.9x) compared to the CA Software industry average (4.7x).


Future Growth

How is Descartes Systems Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

17.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DSG's forecast earnings growth (17.1% per year) is above the savings rate (1.6%).

Earnings vs Market: DSG's earnings (17.1% per year) are forecast to grow faster than the Canadian market (10.8% per year).

High Growth Earnings: DSG's earnings are forecast to grow, but not significantly.

Revenue vs Market: DSG's revenue (13.7% per year) is forecast to grow faster than the Canadian market (5.7% per year).

High Growth Revenue: DSG's revenue (13.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DSG's Return on Equity is forecast to be low in 3 years time (10.7%).


Past Performance

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

24.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DSG has high quality earnings.

Growing Profit Margin: DSG's current net profit margins (20.8%) are higher than last year (13.6%).


Past Earnings Growth Analysis

Earnings Trend: DSG's earnings have grown significantly by 24.5% per year over the past 5 years.

Accelerating Growth: DSG's earnings growth over the past year (81.9%) exceeds its 5-year average (24.5% per year).

Earnings vs Industry: DSG earnings growth over the past year (81.9%) exceeded the Software industry 35.4%.


Return on Equity

High ROE: DSG's Return on Equity (8.5%) is considered low.


Financial Health

How is Descartes Systems Group's financial position?


Financial Position Analysis

Short Term Liabilities: DSG's short term assets ($246.9M) exceed its short term liabilities ($125.6M).

Long Term Liabilities: DSG's short term assets ($246.9M) exceed its long term liabilities ($50.5M).


Debt to Equity History and Analysis

Debt Level: DSG is debt free.

Reducing Debt: DSG has no debt compared to 5 years ago when its debt to equity ratio was 0.8%.

Debt Coverage: DSG has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: DSG has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate DSG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate DSG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DSG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DSG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DSG's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.1yrs

Average management tenure


CEO

Ed Ryan (52 yo)

8.08yrs

Tenure

US$4,687,068

Compensation

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 Syst...


CEO Compensation Analysis

Compensation vs Market: Ed's total compensation ($USD4.69M) is above average for companies of similar size in the Canadian market ($USD3.52M).

Compensation vs Earnings: Ed's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: DSG's management team is seasoned and experienced (8.1 years average tenure).


Board Members

Experienced Board: DSG's board of directors are considered experienced (7.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DSG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Descartes Systems Group Inc's employee growth, exchange listings and data sources


Key Information

  • Name: The Descartes Systems Group Inc
  • Ticker: DSG
  • Exchange: TSX
  • Founded: 1981
  • Industry: Application Software
  • Sector: Software
  • Market Cap: CA$8.754b
  • Shares outstanding: 84.66m
  • Website: https://www.descartes.com

Number of Employees


Location

  • The Descartes Systems Group Inc
  • 120 Randall Drive
  • Waterloo
  • Ontario
  • N2V 1C6
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/02 23:30
End of Day Share Price2021/12/02 00:00
Earnings2021/10/31
Annual Earnings2021/01/31


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.