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.
DSG passed our risk checks.
Descartes Systems Group Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||CA$84.62|
|52 Week High||CA$115.29|
|52 Week Low||CA$72.94|
|1 Month Change||11.72%|
|3 Month Change||-8.22%|
|1 Year Change||1.48%|
|3 Year Change||74.65%|
|5 Year Change||168.21%|
|Change since IPO||1,126.38%|
Recent News & Updates
Is There Now An Opportunity In The Descartes Systems Group Inc. (TSE:DSG)?
The Descartes Systems Group Inc. ( TSE:DSG ), is not the largest company out there, but it saw significant share price...
|DSG||CA Software||CA Market|
Return vs Industry: DSG exceeded the Canadian Software industry which returned -27.6% over the past year.
Return vs Market: DSG exceeded the Canadian Market which returned -5.7% over the past year.
|DSG Average Weekly Movement||4.8%|
|Software Industry Average Movement||12.9%|
|Market Average Movement||9.9%|
|10% most volatile stocks in CA Market||17.2%|
|10% least volatile stocks in CA Market||4.3%|
Stable Share Price: DSG is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: DSG's weekly volatility (5%) has been stable over the past year.
About the Company
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
|DSG fundamental statistics|
Is DSG overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|DSG income statement (TTM)|
|Cost of Revenue||US$105.78m|
Last Reported Earnings
Apr 30, 2022
Next Earnings Date
|Earnings per share (EPS)||1.07|
|Net Profit Margin||20.57%|
How did DSG perform over the long term?See historical performance and comparison
Is DSG undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 3/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for DSG?
Other financial metrics that can be useful for relative valuation.
|What is DSG's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does DSG's PE Ratio compare to its peers?
|DSG PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
Price-To-Earnings vs Peers: DSG is good value based on its Price-To-Earnings Ratio (61.1x) compared to the peer average (89.7x).
Price to Earnings Ratio vs Industry
How does DSG's PE Ratio compare vs other companies in the Canadian Software Industry?
Price-To-Earnings vs Industry: DSG is expensive based on its Price-To-Earnings Ratio (61.1x) compared to the Canadian Software industry average (58.4x)
Price to Earnings Ratio vs Fair Ratio
What is DSG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||61.1x|
|Fair PE Ratio||29.4x|
Price-To-Earnings vs Fair Ratio: DSG is expensive based on its Price-To-Earnings Ratio (61.1x) compared to the estimated Fair Price-To-Earnings Ratio (29.4x).
Share Price vs Fair Value
What is the Fair Price of DSG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: DSG (CA$84.62) is trading below our estimate of fair value (CA$113)
Significantly Below Fair Value: DSG is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: DSG is poor value based on its PEG Ratio (3.3x)
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How is Descartes Systems Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
Future Growth Score3/6
Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DSG's forecast earnings growth (18.6% per year) is above the savings rate (1.6%).
Earnings vs Market: DSG's earnings (18.6% per year) are forecast to grow faster than the Canadian market (7.4% per year).
High Growth Earnings: DSG's earnings are forecast to grow, but not significantly.
Revenue vs Market: DSG's revenue (10.7% per year) is forecast to grow faster than the Canadian market (6.6% per year).
High Growth Revenue: DSG's revenue (10.7% 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 (11.2%).
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How has Descartes Systems Group performed over the past 5 years?
Past Performance Score5/6
Past Performance Score 5/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DSG has high quality earnings.
Growing Profit Margin: DSG's current net profit margins (20.6%) are higher than last year (16.3%).
Past Earnings Growth Analysis
Earnings Trend: DSG's earnings have grown significantly by 28.4% per year over the past 5 years.
Accelerating Growth: DSG's earnings growth over the past year (53%) exceeds its 5-year average (28.4% per year).
Earnings vs Industry: DSG earnings growth over the past year (53%) exceeded the Software industry 7.6%.
Return on Equity
High ROE: DSG's Return on Equity (9%) is considered low.
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How is Descartes Systems Group's financial position?
Financial Health Score6/6
Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: DSG's short term assets ($292.3M) exceed its short term liabilities ($148.6M).
Long Term Liabilities: DSG's short term assets ($292.3M) exceed its long term liabilities ($52.5M).
Debt to Equity History and Analysis
Debt Level: DSG is debt free.
Reducing Debt: DSG has no debt compared to 5 years ago when its debt to equity ratio was 0.1%.
Debt Coverage: DSG has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: DSG has no debt, therefore coverage of interest payments is not a concern.
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What is Descartes Systems Group current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Future Dividend Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate DSG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate DSG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if DSG's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if DSG's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as DSG has not reported any payouts.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Ed Ryan (52 yo)
Mr. Edward J. Ryan, also known as Ed, BA, has been the Chief Executive Officer of The Descartes Systems Group, Inc since November 26, 2013. Mr. Ryan served as the Chief Commercial Officer of Descartes Syst...
CEO Compensation Analysis
Compensation vs Market: Ed's total compensation ($USD5.93M) is about average for companies of similar size in the Canadian market ($USD4.77M).
Compensation vs Earnings: Ed's compensation has increased by more than 20% in the past year.
Experienced Management: DSG's management team is seasoned and experienced (8.6 years average tenure).
Experienced Board: DSG's board of directors are considered experienced (7.6 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: DSG insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
The Descartes Systems Group Inc.'s employee growth, exchange listings and data sources
- Name: The Descartes Systems Group Inc.
- Ticker: DSG
- Exchange: TSX
- Founded: 1981
- Industry: Application Software
- Sector: Software
- Implied Market Cap: CA$7.040b
- Shares outstanding: 84.78m
- Website: https://www.descartes.com
Number of Employees
- The Descartes Systems Group Inc.
- 120 Randall Drive
- N2V 1C6
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/06/24 00:00|
|End of Day Share Price||2022/06/24 00:00|
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.