# The Descartes Systems Group Inc. (DSGX) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Technology / Software. Price $78.94, market value $6.8 billion.

## Valuation
- **P/E (trailing): 39.3×** (5-yr avg 69.8×, 3-yr avg 58.7×). The Descartes Systems Group Inc. trades at 39.3× trailing earnings, well below its own five-year average of 69.8×: 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: 1.76**. A PEG of 1.76 is in the range usually read as fairly priced for its growth.
- **Price / sales: 9.0×**. Each dollar of revenue is priced at 9.0×.
- **Price / book: 4.2×**. The shares trade at 4.2× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 20.1×**. Enterprise value is 20.1× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 4.2%** (5-yr avg 2.8%). Free cash flow equals 4.2% of the market value, above its five-year average of 2.8%, 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: 77.3%**. The Descartes Systems Group Inc. keeps 77.3% 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: 10.1%**. 10.1% on shareholders' equity is solid.
- **Return on invested capital: 13.7%**. Return on all capital, debt included, is 13.7%.
- **Return on assets: 9.3%**. Each dollar of assets produces 9.3% of profit.

## Growth
- **Revenue growth (1 yr): 12.0%** (3-yr 19.7%/yr, 5-yr 17.5%/yr). Revenue grew 12.0% over the last year, against 17.5% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 14.0%** (3-yr 23.2%/yr, 5-yr 33.0%/yr). Earnings per share rose 14.0%, roughly in step with revenue.
- **Free-cash-flow growth (3 yr): 15.0%/yr**. Free cash flow has compounded at 15.0% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 0.02**. Debt is 0.02 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. The Descartes Systems Group Inc. holds more cash than debt.
- **Interest coverage: 242.4×**. Operating profit covers interest 242.4× 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: 16.77**. A Z-score of 16.77 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. The Descartes Systems Group Inc. does not currently pay a dividend, but it returned -0.2% of its market value through buybacks over the last year.

## Analyst view
- **Analyst consensus: buy** (13 analysts). 13 analysts cover The Descartes Systems Group Inc.; the consensus is buy, with an average price target of $100.23 (+27% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -25.7%** (YTD -9.9%, 3-mo 4.6%). The shares are down 25.7% over twelve months including dividends.
- **From 52-week high: -27.0%** (26.2% 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): 53**. An RSI of 53 is neutral.
- **Beta (1 yr): 0.39** (volatility 40%). Beta of 0.39 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=DSGX · Page: https://foliofundamentals.com/stocks/dsgx

Not investment advice.