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The Descartes Systems Group Inc DSG

Morningstar Rating
CAD 136.84 +0.94 (0.69%)
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Company Report

Price vs Fair Value

DSG is trading at a 227% premium.
Price
CAD 136.84
Fair Value
CAD 862.00
Uncertainty
Medium
1-Star Price
CAD 982.10
5-Star Price
CAD 36.00
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
CAD 135.90
Day Range
CAD 134.85137.06
52-Week Range
CAD 95.03137.24
Bid/Ask
CAD 136.38 / CAD 137.41
Market Cap
CAD 11.68 Bil
Volume/Avg
99,330 / 96,863

Key Statistics

Price/Earnings (Normalized)
66.55
Price/Sales
15.36
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
MANH
SAP
Price/Earnings (Normalized)
66.5557.0833.79
Price/Book Value
7.0258.624.89
Price/Sales
15.3614.836.67
Price/Cash Flow
45.7058.3145.99
Price/Earnings
DSG
MANH
SAP

Financial Strength

Metric
DSG
MANH
SAP
Quick Ratio
1.891.111.12
Current Ratio
2.051.201.25
Interest Coverage
111.904.75
Quick Ratio
DSG
MANH
SAP

Profitability

Metric
DSG
MANH
SAP
Return on Assets (Normalized)
10.36%41.68%11.27%
Return on Equity (Normalized)
12.46%115.01%18.79%
Return on Invested Capital (Normalized)
12.48%104.27%15.28%
Return on Assets
DSG
MANH
SAP
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