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The Descartes Systems Group Inc DSGX

Morningstar Rating
$93.95 −0.52 (0.55%)
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Company Report

Price vs Fair Value

DSGX is trading at a 13% premium.
Price
$91.64
Fair Value
$58.00
Uncertainty
Medium
1-Star Price
$652.38
5-Star Price
$45.90
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Descartes operates the largest neutral shipping network, connecting parties across air, land, and sea transportation modes.

Bears

Descartes’ acquisition model makes organic performance impossible to parse out and makes ROICs look worse. Acquisitions may also increase costs, distract management with integration issues, and increase the risk of overpayment.

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News

Trading Information

Previous Close Price
$94.47
Day Range
$92.8994.27
52-Week Range
$69.6095.95
Bid/Ask
$94.00 / $94.20
Market Cap
$8.02 Bil
Volume/Avg
87,678 / 165,272

Key Statistics

Price/Earnings (Normalized)
60.18
Price/Sales
13.89
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

The Descartes Systems Group provides a software solution that allows users in the shipping industry to communicate with one another. The 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 (the transactions). Customers typically contract for a monthly minimum over a multiyear period. The GLN platform allows for Descartes to upsell additional software modules as well, typically provided via a software-as-a-service model.
Sector
Technology
Industry
Software - Application
Stock Style Box
Mid Growth
Total Number of Employees
2,083

Competitors

Valuation

Metric
DSGX
MANH
SAP
Price/Earnings (Normalized)
60.1854.6332.59
Price/Book Value
6.3153.024.72
Price/Sales
13.8913.416.44
Price/Cash Flow
41.3352.7344.35
Price/Earnings
DSGX
MANH
SAP

Financial Strength

Metric
DSGX
MANH
SAP
Quick Ratio
1.891.241.12
Current Ratio
2.051.311.25
Interest Coverage
111.904.75
Quick Ratio
DSGX
MANH
SAP

Profitability

Metric
DSGX
MANH
SAP
Return on Assets (Normalized)
10.36%40.72%11.27%
Return on Equity (Normalized)
12.46%109.72%18.79%
Return on Invested Capital (Normalized)
12.48%100.73%15.28%
Return on Assets
DSGX
MANH
SAP
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