# Descartes Systems Group Inc. (DSG.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Technology / Software. Price C$109.13, market value C$9.4 billion.

## Valuation
- **P/E (trailing): 39.3×** (5-yr avg 83.7×, 3-yr avg 81.3×). Descartes Systems Group Inc. trades at 39.3× trailing earnings, well below its own five-year average of 83.7×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×. Forward P/E is 24.6×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 1.55**. A PEG of 1.55 is in the range usually read as fairly priced for its growth.
- **Price / sales: 8.9×**. Each dollar of revenue is priced at 8.9×.
- **Price / book: 4.2×**. The shares trade at 4.2× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 19.9×**. Enterprise value is 19.9× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 4.2%** (5-yr avg 2.2%). Free cash flow equals 4.2% of the market value, above its five-year average of 2.2%, so the shares are cheaper on cash than they have usually been.
- **Earnings yield: 2.5%**. The inverse of the P/E: 2.5% of the price is earned each year.

## Profitability
- **Gross margin: 72.3%**. Descartes Systems Group Inc. keeps 72.3% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 31.1%**. 31.1% of revenue is left after running the business, an exceptional level.
- **Net margin: 22.5%**. 22.5% of each dollar of sales reaches the bottom line.
- **Return on equity: 10.4%**. 10.4% on shareholders' equity is solid.
- **Return on invested capital: 14.1%**. Return on all capital, debt included, is 14.1%.
- **Return on assets: 9.4%**. Each dollar of assets produces 9.4% of profit.

## Growth
- **Revenue growth (1 yr): 14.2%** (3-yr 15.2%/yr, 5-yr 16.3%/yr). Revenue grew 14.2% over the last year, against 16.3% a year compounded over five years.
- **EPS growth (1 yr): 15.9%** (3-yr 17.2%/yr, 5-yr 25.5%/yr). Earnings per share rose 15.9%, roughly in step with revenue.
- **Free-cash-flow growth (3 yr): 12.5%/yr**. Free cash flow has compounded at 12.5% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.01**. Debt is 0.01 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Descartes Systems Group Inc. holds more cash than debt.
- **Interest coverage: 321.0×**. Operating profit covers interest 321.0× over, a safe margin.
- **Current ratio: 2.16** (quick 2.16). Current assets cover the next year's liabilities 2.16 times.
- **Altman Z-score: 22.62**. A Z-score of 22.62 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. Descartes Systems Group Inc. does not currently pay a dividend, but it returned 0.1% of its market value through buybacks over the last year.

## Price and momentum
- **Total return (1 yr): -25.7%** (YTD -9.4%, 3-mo 3.6%). The shares are down 25.7% over twelve months including dividends.
- **From 52-week high: -27.1%** (28.0% above the low). Trading 27% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 52**. An RSI of 52 is neutral.
- **Beta (1 yr): 0.37** (volatility 41%). Beta of 0.37 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=DSG.TO · Page: https://foliofundamentals.com/stocks/dsg.to

Not investment advice.