Stock Analysis
Descartes Systems Group IncDSGX
P/E 45.47×· 5Y range 33.59–90.57×· bottom 14% of history
Sector: Technology
AnalystsStrong Buy10 analystsP/E 45.5× sits at the 14th percentile of its 5.086926762491444-year history.
Cash covers 5318% of debt · FY 2026.
PMP Verdict
Strong business, attractive price
Strengths
- Financial Health100
- Quality97
High-quality business at an attractive price.
Market context
-1.8% today· Z 1.5σ· Despite a price target hike to $90 by BMO Capital, DSGX fell 3.25% in a move driven by technical selling.
Bull Case
- ✓Piotroski F-Score 7/9 — high earnings quality
- ✓Altman Z 16.0 — safe-zone balance sheet
- ✓Revenue CAGR 14.5% — durable top-line growth
- ✓Interest coverage 241.0× — debt well covered
- ✓P/E 45.5× at bottom 14% of 5-year history
What's happening with DSGX
Profile
Strong financial health, earnings quality, growth and moat; valuation lags behind.
How is each axis scored?
- Valuation47/100 · Weak
- P/E vs own history (14th pct)25/25
- FCF yield (4.0%)12/25
- P/S (10.2x)5/25
- EV/EBIT (32.1x)5/25
- Growth85/100 · Strong
- Revenue CAGR (14.5%)20/25
- Net income CAGR (17.4%)20/25
- EPS CAGR 5Y (16.9%)20/25
- Fwd implied growth (48.3%)25/25
- Profitability74/100 · Moderate
- ROIC (13.9%)12/25
- ROE (9.9%)12/25
- Net margin (22.5%)25/25
- Operating margin (30.2%)25/25
- Financial Health100/100 · Strong
- Altman Z (15.99)25/25
- Current ratio (2.02)25/25
- Interest coverage (241.0x)25/25
- Net cash / debt (Net cash)25/25
- Quality97/100 · Strong
- Piotroski F (7/9)22/25
- Beneish M (-2.72)25/25
- FCF conversion (182%)25/25
- Margin stability (σ 1.4%)25/25
- Moat75/100 · Strong
- ROIC >12% years (1/5 yrs)0/25
- Median gross margin (76.0%)25/25
- FCF-positive years (5/5 yrs)25/25
- Worst-year net margin (worst 20.2%)25/25
About Descartes Systems Group Inc
Descartes Systems Group provides a software solution that allows users in the shipping industry to communicate with one another. Show more
Its core product is the Global Logistics Network, which is best understood as transaction-driven. Descartes charges clients to send/receive messages, data, and documents on the GLN. Customers typically contract for a monthly minimum over a multiyear period. The GLN platform allows Descartes to upsell additional software modules as well, typically provided via a software-as-a-service model.
Employees: 2,403 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
47D+P/E (TTM)45.6xD
Grade D: ExpensivePrice / TTM EPS (own statements) — vs own 5Y history: 33.6x–90.6x · 14th pct
P/FCF24.5xB
Grade B: FairPrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield4.0%C
Grade C: LowTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 2.0%–5.4% · 86th pct
P/S (TTM)10.25xD
Grade D: ExpensivePrice / TTM Revenue (own statements) — vs own 5Y history: 7.5x–18.4x · 14th pct
EV/EBIT32.1xD
Grade D: ExpensiveEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 23.2x–68.6x · 14th pct
EV/Sales8.9xC
Grade C: ExpensiveEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E30.8xC
Grade C: ExpensivePrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio4.54xC
Grade C: ExpensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio1.61B
Grade B: FairFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield—
TTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio—
Dividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
74B+ROIC13.9%C
Grade C: AverageNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE9.9%D
Grade D: WeakReturn on Equity. Neg. equity = heavy buybacks
ROA9.9%C
Grade C: AverageReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin22.5%A
Grade A: HighNet Income / Revenue
Operating Margin30.2%A
Grade A: HighTTM EBIT / TTM Revenue
Gross Margin77.1%A
Grade A: PremiumGross Profit / Revenue
FCF Margin40.9%A
Grade A: HighFCF / Revenue
True FCF Margin37.3%A
Grade A: HighTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
85ARevenue CAGR14.5%C
Grade C: OkCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR17.4%A
Grade A: HighCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)16.9%A
Grade A: HighCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth48.3%A
Grade A: HighAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)—
Share count change over 5Y
SBC / Net Income16.4%C
Grade C: MedStock-based comp/Net income. >30% = dilution risk
SBC / Revenue3.7%C
Grade C: MedTTM stock-based comp / TTM Revenue
Financial Health
100A+Altman Z-Score15.99A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio2.02xA
Grade A: HighCurrent Assets/Liabilities
Quick Ratio1.93xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage241.0xA
Grade A: StrongEBIT/Interest. >10 Strong
Debt RepaymentNet CashA
Grade A: FastYears to repay net debt via FCF
Net Debt/EBITNet CashA
Grade A: LowLeverage. <2x Low, >4x High
Debt/Equity0.00xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt53.18xA
Grade A: CoveredCash covers how much of total debt. >1 = could repay all debt from cash
Quality
97A+Piotroski F-Score7/9A
Grade A: StrongFinancial strength 0–9. >7 Strong
Beneish M-Score-2.72A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion182.3%A
Grade A: StrongFCF / Net Income
Margin Stability1.4%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue1.0%A
Grade A: Asset-lightTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.41xD
Grade D: LowRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
75B+ROIC >12% Years1/5 yrsD
Grade D: WeakShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)76.0%A
Grade A: DurableMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years5/5 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor20.2%A
Grade A: DurableWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$1.91
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$4.69
Cash & short-term investments per share (Finnhub)
Book Value / Share$19.25
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$7.54M
Total debt obligations (short + long term)
Cash & Equiv.$401.06M
Cash and short-term investments
Net Debt$-393.51MA
Grade A: Net CashTotal Debt minus Cash. Negative = Net Cash position
Total Equity$1.65B
Shareholders' equity (book value)
Asset / Liability6.27xA
Grade A: SolidTotal Assets / Total Liabilities
Market
Market Cap$7.47B
Current Market Capitalization
Beta0.38B
Grade B: DefensivePrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jan 2026 · Ratio snapshot Oct 17, 2026
Key Insights: Descartes Systems Group Inc (DSGX)
DSGX is down 1.79% at the last close — Despite a price target hike to $90 by BMO Capital, DSGX fell 3.25% in a move driven by technical selling.. Descartes Systems Group Inc meets 7 of 9 Piotroski F-Score criteria, placing its fundamental strength in the top tier of US-listed stocks. Altman Z-Score of 15.99 sits comfortably in the safe zone (≥ 2.99), indicating low bankruptcy risk.
- Beneish M-Score of -2.72 suggests a low likelihood of earnings manipulation.
- Descartes Systems Group Inc converts about 41% of revenue into free cash flow — strong cash generation.
- Company is effectively debt-free after netting cash.
See how DSGX ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all DSGX moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 15 | Regular | 88.64 | +3.87% | 2.20 |
Frequently Asked Questions about DSGX
What is the current Descartes Systems Group Inc (DSGX) stock price?
DSGX is trading at $87.05 at the last market close, down 1.79% on the session. PreMarketPrice tracks DSGX pre-market, intraday and after-hours prices.
Is DSGX stock a buy right now?
PreMarketPrice's quantitative model rates Descartes Systems Group Inc's financial health at 100/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is DSGX stock overvalued?
Descartes Systems Group Inc trades at a trailing P/E of 45.6 and our valuation score rates it 47/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Descartes Systems Group Inc report earnings?
No confirmed earnings date is currently scheduled for DSGX. The Earnings section lists recent reports and updates as dates are announced.
What sector does Descartes Systems Group Inc operate in?
Descartes Systems Group Inc operates in the Technology sector. The Related Stocks section lists sector peers for comparison.
What does Descartes Systems Group Inc do?
Descartes Systems Group provides a software solution that allows users in the shipping industry to communicate with one another.
About Descartes Systems Group Inc (DSGX) Stock
Descartes Systems Group Inc (DSGX) is a US-listed stock operating in the Technology sector. As of the latest update, Descartes Systems Group Inc is trading at $87.05, down 1.79% on the day with a market capitalization of $7.5 billion. The financial health score for DSGX is 100/100, which indicates excellent financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for DSGX stock.
DSGX Stock Analysis & Key Metrics
On PreMarketPrice, you can track Descartes Systems Group Inc (DSGX) across multiple dimensions:
- Pre-market price & movement: Real-time DSGX stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for DSGX with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Descartes Systems Group Inc across multiple reporting periods.
- Financial health score: A composite score of 100/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for DSGX.
- Sector peers: Compare DSGX against 4 other technology stocks on key financial metrics.
Is DSGX a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Descartes Systems Group Inc (DSGX) as an investment. The financial health score of 100/100 suggests excellent financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Descartes Systems Group Inc (DSGX) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.