Descartes Systems Group Inc

Technology

DSGXStrong10 of 10 basics passed

$82.82

+1.81%

Market cap $7.09B

$82.82

+1.81%

Market cap $7.09B

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.

It is a $7.09B technology company. Revenue grew 12.0% over the last year, it keeps 22¢ of every dollar of sales as profit, and it holds more cash than debt. It trades at 36.9× earnings.

Website: descartes.com
Employees: 2 403
Sector: Technology

Share price · 3 years

$73.86 → $82.82+12.1%

price only — dividends excluded

Key facts · FY2026

Revenue: total sales; $729M
Profit: keeps 22¢ of every $1 sold; $164M
Free cash flow: cash left after running the business; $299M
Net cash: more cash than debt; $394M
P/E: years of profit in the price; 36.9
EPS: earnings per share, FY2026; $1.87
Shares: shares outstanding; 87.6M
Volatility: beta vs the market — under 1 swings less; 0.33

Revenue, last 5 years

52-week range

Low $62.82$82.82High $97.96

Today's price is 57% of the way from the year's low to its high.

Valuation vs own history

P/E

43.3×

86%

P/S

9.7×

86%

EV/EBITDA

30.4×

86%

P/B

4.3×

83%

FCF yield

4.2%

86%

Share of the last ~5 years that was pricier than today (unusually cheap vs its own history). Based on the daily valuation record.

Standing in Technology

Size$7.09Btop 93%
Revenue growth+14%top 38%
Net margin24%top 22%
Return on equity12%top 62%
P/E36.9×top 54%

Ranked against 220 Technology companies with a full CV — for P/E, lower ranks higher.

Skills

Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.

Strong growth, health, quality and moat.

Valuation61

P/E vs own history13th pct · 25/25
FCF yield4.2% · 12/25
P/S8.9x · 12/25
EV/EBITDA20.4x · 12/25

Growth80

Revenue CAGR14.5% · 20/25
Net income CAGR17.4% · 20/25
EPS CAGR ~5Y16.9% · 20/25
Fwd implied growth19.8% · 20/25

Profitability74

ROIC13.1% · 12/25
ROE11.7% · 12/25
Net margin22.5% · 25/25
Operating margin31.4% · 25/25

Health100

Altman Z15.24 · 25/25
Current ratio2.02 · 25/25
Interest coverage241.0x · 25/25
Net cash / debtNet cash · 25/25

Quality97

Piotroski F7/9 · 22/25
Beneish M-2.72 · 25/25
FCF conversion182% · 25/25
Margin stabilityσ 1.4% · 25/25

Moat75

ROIC >12% years1/5 yrs · 0/25
Median gross margin76.0% · 25/25
FCF-positive years5/5 yrs · 25/25
Worst-year net marginworst 20.2% · 25/25

How the scores work →

Experience

The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.

FY2026Financial
Best year on record
$164M net income
FY2022Financial
Profitable every year on record
5 consecutive profitable years in our data
FY2022Financial
Positive free cash flow every year since
5-year streak

Achievements

Verifiable track record, straight from the reported numbers.

$10 000 invested in 2021 would be worth ~$10 049 today — price return only

$729.0M revenue in FY2026

Revenue up 12.0% year over year

Profitable 5 years in a row

Positive free cash flow 5 years in a row

2 403 employees

Strengths & watch-outs

What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.

Strengths

High gross margin (77.6%)
Strongly profitable — 22.5% net margin
Revenue growing 12.0% year over year
Strong cash conversion — FCF is 40.9% of revenue
Net cash position after subtracting debt from cash

Watch-outs

Nothing stands out as a concern in the available data.

Qualifications

The basics a company should meet before you research it further. Each check uses the reported numbers.

10 of 10 checks passed

Revenue growing — the company sells more than a year ago+12.0% YoY
Profitable — makes more than it spends$164M FY2026
Profit growing — earnings are higher than last year+16.5% YoY
Generates cash — cash left after running and investing$299M FY2026
Debt under control — could handle its obligationsmore cash than debt
Established company — not a micro-cap — lower blow-up risk$7.09B market cap
Not printing shares — share count not ballooning — you keep your slice+1.5% shares over ~5y
Proven track record — years of profitability behind it5/5 profitable years
Financially stable — balance sheet not near distressAltman Z 15.2 — safe
Pays a dividend — returns cash to shareholdersno data
Valuation not extreme — price not wildly above earningsP/E 36.9

Peer comparisonDescartes Systems Group Inc vs 6 largest technology peers — cap, P/E, growth and margin side by sideOpen ▾

Company	Market cap	P/E	Revenue growth	Net margin	Profile
DSGX this company	$7.1B	36.9	+12.0%	22.5%	Strong
NVDA Nvidia Corp	$5.5T	28.6	+83.4%	63.7%	Mixed
AAPL Apple Inc.	$4.9T	38.1	+14.2%	27.6%	Strong
GOOGL Alphabet Inc.	$4.3T	17.6	+20.1%	54.8%	Mixed
MSFT Microsoft Corp	$4.0T	29.7	+17.8%	40.3%	Strong
SPCX Space Exploration Technologies Corp.	$2.1T	—	+33.2%	-34.0%	Strained
META Meta Platforms, Inc.	$1.8T	26.9	+27.7%	29.8%	Mixed

Head-to-head: DSGX vs NVDA · DSGX vs AAPL · DSGX vs GOOGL

References

What covering analysts publish about the company — information only, not a recommendation.

Strong buy 1Buy 7Hold 2

Appendix · Financial records

The full statements behind this CV, FY2022–FY2026. For readers who want to check the numbers.

Profit & lossRevenue $729M · net income $164M (FY2026)Open ▾

Profit & loss

Revenue and profit over the company's career — the income statement, visualised.

How FY2026 revenue flows to profit

RevenueNet income

Revenue (FY2026)

$729M

YoY 12.0%

Net income (FY2026)

$164M

Margin 22.5%

Gross margin

77.6%

Operating margin

31.4%

P/E ratio

36.9

Income statement — full detail

Figures in USD billions · EPS in USD

	2022	2023	2024	2025	2026
Revenue	0.4	0.5	0.6	0.7	0.7
Gross profit	0.3	0.4	0.4	0.5	0.6
Operating income (EBIT)	0.1	0.1	0.2	0.2	0.2
Net income	0.1	0.1	0.1	0.1	0.2
EPS (diluted)	1.00	1.18	1.34	1.64	1.87

Cash flowFree cash flow $299M · operating cash flow $306M (FY2026)Open ▾

Cash flow statement

Cash generated by the business and what is left after investment — year by year.

Operating cash flowFree cash flow

Free cash flow (FY2026)

$299M

Margin 40.9%

Operating cash flow (FY2026)

$306M

FY basis

FCF margin

40.9%

Cash flow statement — full detail

Figures in USD billions

	2022	2023	2024	2025	2026
Operating cash flow	0.2	0.2	0.2	0.3	0.3
Capital expenditure	-0.0	-0.0	-0.0	-0.0	-0.0
Free cash flow	0.2	0.2	0.2	0.3	0.3
FCF margin	43.9%	41.6%	37.1%	40.0%	40.9%

Balance sheetAssets $1.96B · net cash $394M (FY2026)Open ▾

Balance sheet

How the balance sheet is built — what it owns versus how it is financed.

How $1.96B of assets is financed

16%

84%

Liabilities $312M — borrowed moneyEquity $1.65B — owners' stake

Cash vs debt

Total debt $7.54M − cash $401M = net cash $394M

Cash on hand covers all debt.

Altman Z-Score

15.24

Safe zone

Debt repayment

Not needed

Cash already covers all debt

Interest coverage

241.0x

EBIT ÷ interest expense

ROE

11.7%

Profit per $1 of equity

Balance sheet — full detail

Figures in USD billions

	2022	2023	2024	2025	2026
Cash & equivalents	0.3	0.3	0.2	0.4	0.4
Total assets	1.3	1.5	1.6	1.9	2.0
Total liabilities	0.2	0.2	0.3	0.3	0.3
Total debt	0.0	0.0	0.0	0.0	0.0
Equity	1.1	1.2	1.4	1.6	1.6
Net debt	-0.3	-0.3	-0.2	-0.3	-0.4

Want the live picture — intraday moves, valuation history and full analysis?

Deeper analysis of DSGX on PreMarketPrice

Figures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $82.82 · market cap $7.09B.