The Descartes Systems Group Inc. provides cloud, device, and data content-based solutions that focus on enhancing the productivity, performance, and security of logistics-intensive businesses worldwide.
Excellent balance sheet with reasonable growth potential.
Share Price & News
How has Descartes Systems Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: DSG's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: DSG exceeded the Canadian Software industry which returned 27% over the past year.
Return vs Market: DSG exceeded the Canadian Market which returned -10.1% over the past year.
Price Volatility Vs. Market
How volatile is Descartes Systems Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StDescartes Systems Group (TSE:DSG) Has A Rock Solid Balance Sheet
3 weeks ago | Simply Wall StWhy We’re Not Impressed By The Descartes Systems Group Inc’s (TSE:DSG) 6.6% ROCE
1 month ago | Simply Wall StIs The Descartes Systems Group Inc's (TSE:DSG) CEO Paid At A Competitive Rate?
Is Descartes Systems Group undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: DSG (CA$66.3) is trading above our estimate of fair value (CA$31.36)
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 (100.4x) compared to the Software industry average (17.2x).
PE vs Market: DSG is poor value based on its PE Ratio (100.4x) compared to the Canadian market (13.2x).
Price to Earnings Growth Ratio
PEG Ratio: DSG is poor value based on its PEG Ratio (4.2x)
Price to Book Ratio
PB vs Industry: DSG is overvalued based on its PB Ratio (5x) compared to the CA Software industry average (2.5x).
How is Descartes Systems Group forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DSG's forecast earnings growth (24.1% per year) is above the savings rate (1.7%).
Earnings vs Market: DSG's earnings (24.1% per year) are forecast to grow faster than the Canadian market (24% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: DSG's revenue (11.8% per year) is forecast to grow faster than the Canadian market (5.5% per year).
High Growth Revenue: DSG's revenue (11.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if DSG's Return on Equity is forecast to be high in 3 years time
How has Descartes Systems Group performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DSG has high quality earnings.
Growing Profit Margin: DSG's current net profit margins (12.3%) are higher than last year (11%).
Past Earnings Growth Analysis
Earnings Trend: DSG's earnings have grown by 14.9% per year over the past 5 years.
Accelerating Growth: DSG's earnings growth over the past year (28.8%) exceeds its 5-year average (14.9% per year).
Earnings vs Industry: DSG earnings growth over the past year (28.8%) underperformed the Software industry 29.1%.
Return on Equity
High ROE: DSG's Return on Equity (5%) is considered low.
How is Descartes Systems Group's financial position?
Financial Position Analysis
Short Term Liabilities: DSG's short term assets ($112.4M) exceed its short term liabilities ($89.0M).
Long Term Liabilities: DSG's short term assets ($112.4M) exceed its long term liabilities ($40.6M).
Debt to Equity History and Analysis
Debt Level: DSG's debt to equity ratio (1.2%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if DSG's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: DSG's debt is well covered by operating cash flow (1116.9%).
Interest Coverage: DSG's interest payments on its debt are well covered by EBIT (24.3x coverage).
What is Descartes Systems Group's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate DSG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate DSG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if DSG's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if DSG's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of DSG's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Ed Ryan (50yo)
Mr. Edward J. Ryan, also known as Ed, BA, has been the Chief Executive Officer of The Descartes Systems Group, Inc since November 26, 2013. Mr. Ryan served as the Chief Commercial Officer of Descartes Syst ...
CEO Compensation Analysis
Compensation vs Market: Ed's total compensation ($USD3.31M) is about average for companies of similar size in the Canadian market ($USD3.08M).
Compensation vs Earnings: Ed's compensation has increased by more than 20% in the past year.
|CEO & Director||6.58yrs||US$3.31m||0.045% $2.5m|
|President & COO||6.58yrs||US$2.00m||0.20% $11.0m|
|Chief Financial Officer||6.08yrs||US$1.58m||no data|
|Executive Vice President of Global Sales||1.33yrs||US$1.50m||0.038% $2.1m|
|Executive Vice President of Product Management||no data||US$459.89k||0.0066% $371.9k|
|Executive Vice President of Information Services||10.75yrs||US$218.25k||0.012% $665.5k|
|Executive VP of Legal||6.08yrs||US$443.89k||0.0047% $266.1k|
|Executive Vice President of Marketing & Services||9yrs||US$414.13k||0.055% $3.1m|
|Executive Vice President of Corporate Development||no data||no data||no data|
|Executive Vice President of Customer Support & Client Services||no data||no data||no data|
Experienced Management: DSG's management team is seasoned and experienced (6.6 years average tenure).
|CEO & Director||6.58yrs||US$3.31m||0.045% $2.5m|
|Independent Director||8.75yrs||US$196.02k||0.0053% $299.7k|
|Independent Chairman of the Board||6.08yrs||US$240.15k||0.012% $665.5k|
|Independent Director||6.08yrs||US$188.50k||no data|
|Independent Director||0.083yr||no data||no data|
|Independent Director||5.08yrs||US$191.00k||no data|
|Independent Director||3yrs||US$178.41k||no data|
|Independent Director||0.083yr||no data||no data|
Experienced Board: DSG's board of directors are considered experienced (5.6 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 been diluted in the past year, with total shares outstanding growing by 9%.
The Descartes Systems Group Inc's company bio, employee growth, exchange listings and data sources
- Name: The Descartes Systems Group Inc
- Ticker: DSG
- Exchange: TSX
- Founded: 1981
- Industry: Application Software
- Sector: Software
- Market Cap: CA$5.602b
- Shares outstanding: 84.16m
- Website: https://www.descartes.com
Number of Employees
- The Descartes Systems Group Inc
- 120 Randall Drive
- N2V 1C6
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|DSGX||NasdaqGS (Nasdaq Global Select)||Yes||Common Shares||US||USD||Jan 1998|
|DSG||TSX (The Toronto Stock Exchange)||Yes||Common Shares||CA||CAD||Jan 1998|
|DC2||DB (Deutsche Boerse AG)||Yes||Common Shares||DE||EUR||Jan 1998|
The Descartes Systems Group Inc. provides cloud, device, and data content-based solutions that focus on enhancing the productivity, performance, and security of logistics-intensive businesses worldwide. Its Logistics Technology platform combines a network, applications, content, and a community. The company provides a suite of solutions that include routing, mobile and telematics; transportation management and e-commerce fulfillment; customs and regulatory compliance; global trade data and services; global logistics network services; and broker and forwarder enterprise systems. The company offers its customers to use its modular, cloud-based and data content solutions to route, schedule, track, and measure delivery resources; plan, allocate, and execute shipments; rate, audit, and pay transportation invoices; access and analyze global trade data; research and perform trade tariff and duty calculations; file customs and security documents for imports and exports; comply with trade regulations, and various other logistics processes. It also act as a reseller of hardware devices in connection with transportation and logistics operations. The company primarily focuses on serving transportation providers, logistics service providers, manufacturers, retailers, distributors, and business service providers. The company was founded in 1981 and is headquartered in Waterloo, Canada.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/06/06 01:55|
|End of Day Share Price||2020/06/05 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.