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DSG

Descartes Systems Group TSX:DSG Stock Report

Last Price

CA$84.62

Market Cap

CA$7.2b

7D

8.4%

1Y

1.5%

Updated

26 Jun, 2022

Data

Company Financials +
DSG fundamental analysis
Snowflake Score
Valuation3/6
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

Price History & Performance

Summary of all time highs, changes and price drops for Descartes Systems Group
Historical stock prices
Current Share PriceCA$84.62
52 Week HighCA$115.29
52 Week LowCA$72.94
Beta1.11
1 Month Change9.97%
3 Month Change-10.27%
1 Year Change1.48%
3 Year Change74.65%
5 Year Change168.21%
Change since IPO1,126.38%

Recent News & Updates

Jun 09
Is There Now An Opportunity In The Descartes Systems Group Inc. (TSE:DSG)?

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...

Shareholder Returns

DSGCA SoftwareCA Market
7D8.4%7.5%0.3%
1Y1.5%-24.6%-4.0%

Return vs Industry: DSG exceeded the Canadian Software industry which returned -24.6% over the past year.

Return vs Market: DSG exceeded the Canadian Market which returned -4% over the past year.

Price Volatility

Is DSG's price volatile compared to industry and market?
DSG volatility
DSG Average Weekly Movement4.8%
Software Industry Average Movement12.8%
Market Average Movement10.0%
10% most volatile stocks in CA Market17.3%
10% least volatile stocks in CA Market4.4%

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

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$5.55b
Earnings (TTM)US$90.98m
Revenue (TTM)US$442.25m

61.1x

P/E Ratio

12.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DSG income statement (TTM)
RevenueUS$442.25m
Cost of RevenueUS$105.78m
Gross ProfitUS$336.46m
Other ExpensesUS$245.49m
EarningsUS$90.98m

Last Reported Earnings

Apr 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.07
Gross Margin76.08%
Net Profit Margin20.57%
Debt/Equity Ratio0%

How did DSG perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is DSG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

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

  • PEG Ratio

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.

DSG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue12.1x
Enterprise Value/EBITDA29.2x
PEG Ratio3.3x

Price to Earnings Ratio vs Peers

How does DSG's PE Ratio compare to its peers?

DSG PE Ratio vs Peers
The above table shows the PE ratio for DSG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average89.7x
TOI Topicus.com
24.2xn/aCA$5.5b
KXS Kinaxis
240.2x43.3%CA$4.0b
ENGH Enghouse Systems
17.8x-3.3%CA$1.6b
CSU Constellation Software
76.7x27.5%CA$41.3b
DSG Descartes Systems Group
61.1x18.6%CA$7.2b

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 CA 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 (52.7x)


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.

DSG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio61.1x
Fair PE Ratio29.4x

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$112.71)

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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Future Growth

How is Descartes Systems Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


18.6%

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 (8.2% 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 (7% 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%).


Discover growth companies

Past Performance

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

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


28.4%

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.


Discover strong past performing companies

Financial Health

How is Descartes Systems Group's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

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.


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • 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.


Discover strong dividend paying companies

Management

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

8.6yrs

Average management tenure


CEO

Ed Ryan (52 yo)

8.58yrs

Tenure

US$5,926,482

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 ($USD5.93M) is about average for companies of similar size in the Canadian market ($USD4.69M).

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 (8.6 years average tenure).


Board Members

Experienced Board: DSG's board of directors are considered experienced (7.6 years average tenure).


Ownership

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

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
  • Implied Market Cap: CA$7.174b
  • Shares outstanding: 84.78m
  • 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 Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/04/30
Annual Earnings2022/01/31


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.