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The Descartes Systems Group Inc DSG

Morningstar Rating
CAD 137.19 −4.73 (3.33%)
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Company Report

Descartes’ Neutral Network Facilitates Global Shipping

Descartes operates the largest neutral shipping network in the world, connecting 200,000 shippers, manufacturers, suppliers, retailers, and government agencies and enabling the sharing of tens of billions of shipping-related transactions each year. The firm also offers a broad portfolio of solutions that solve a variety of challenges in the shipping industry.

Price vs Fair Value

DSG is trading at a 646% premium.
Price
CAD 137.19
Fair Value
CAD 863.00
Uncertainty
Medium
1-Star Price
CAD 153.50
5-Star Price
CAD 41.00
Economic Moat
Bnjd
Capital Allocation
Qgwcjdccp

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
CAD 141.92
Day Range
CAD 136.44141.09
52-Week Range
CAD 95.03143.33
Bid/Ask
CAD 137.19 / CAD 137.19
Market Cap
CAD 11.71 Bil
Volume/Avg
119,340 / 121,091

Key Statistics

Price/Earnings (Normalized)
63.51
Price/Sales
15.02
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

Descartes Systems Group provides a software solution that allows users in the shipping industry to communicate with one another. 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.
Sector
Technology
Industry
Software - Application
Stock Style Box
Mid Growth
Total Number of Employees
2,175

Competitors

Valuation

Metric
DSG
ORCL
MANH
Price/Earnings (Normalized)
63.5125.0056.02
Price/Book Value
6.7744.0857.53
Price/Sales
15.027.4214.55
Price/Cash Flow
44.7320.5257.22
Price/Earnings
DSG
ORCL
MANH

Financial Strength

Metric
DSG
ORCL
MANH
Quick Ratio
1.330.591.11
Current Ratio
1.490.721.20
Interest Coverage
123.824.21
Quick Ratio
DSG
ORCL
MANH

Profitability

Metric
DSG
ORCL
MANH
Return on Assets (Normalized)
10.32%11.49%41.68%
Return on Equity (Normalized)
12.45%363.05%115.01%
Return on Invested Capital (Normalized)
12.47%19.73%104.27%
Return on Assets
DSG
ORCL
MANH
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