QualityDipStocks / Technology · Software
Descartes Systems Group DSGX
Outside our quality screen, so we don’t track its dips. It’s 4% below its 52-week high.
Outside our quality screen, trading above our fair value estimate.
- Fair value est.
- $81.39−11%
- Market Value
- —
- Off 52-wk high
- −4%
- Risk vs market
- Lowbeta 0.33
4 bullish · 4 bearish See why
Valuation
What we estimate it's worth, and how it ranks on value vs every stock we cover.
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 12.8% ±2 points. Bear = 10.5% and 10.8%; bull = 8.5% and 14.8% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price sits inside the range.
What the price implies To be worth today’s price, DSGX’s free cash flow would need to grow about 15% a year for five years; our estimate uses 13%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 31 to Nov 2, 252 sessions). Beta = how much DSGX moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Moves much less than the market, but its own price swings are 3.2× the S&P 500’s (it moves on its own news).
- Beta vs S&P 500
- 0.33
- Volatility
- 41% vs 13% SPY
- Correlation SPY
- 0.10
- Correlation QQQ
- 0.01
How it ranks
Where DSGX stands vs every one of the 1,996 stocks we cover that has the number. Longer bar = better.
Top quarter on 1 of 5 measures
- Discount to fair value estimate11% · price above our base caseLowest 45%of 1,314
- Free cash flow yield3.3% · free cash flow vs market capLowest 41%of 1,391
- Dividends + buybacks yield0% · cash paid out or used to retire shares, vs market capLowest 19%of 1,836
- Revenue growth, last 12 months+12% · vs the 12 months beforeTop 42%of 1,814
- Operating margin29% · of sales kept as operating profitTop 13%of 1,288
From SEC filings and our fair value estimate model. A ranking, not advice.
Valuation details
DCF $81.39 · FCF value $87.88
Assumes 12.8% growth for 5 years (revenue grew 12.8% a year FY24–FY26), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $2.97 a share (fiscal year to Jan 31, 2026), from the 40-F filed Mar 11, 2026.
Fundamentals
The business itself: sales, profits, cash and debt, from SEC filings.
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 4 of 5
ProfitabilityOperating margin widened to 28.8% in FY2026 from 24.9% in FY2024 (SEC filings).
GrowthSales grew 12% to $729M over the last 12 months vs the 12 months before (SEC filings).
Cash returnsFree cash flow grew 23% over the last 12 months vs the 12 months before.
Balance sheetOperating income covers interest 217× over.
Top bearish points 4 of 5
ValuationOur DCF fair value estimate is $81.39, 11% below the price.
ValuationP/E of 48.9× vs a 33.0× median for the 220 Technology companies we cover.
ProfitabilityReturn on equity of 11%, below the 12% median for the 255 Technology companies we cover.
GrowthDiluted EPS grew 14% in the last fiscal year, below the 16% median for the 168 Technology companies we cover.
All fundamentals
P/E 48.9 · FCF yield 3.3% · ROE 11%
Valuation
- P/E
- 48.9×Technology median 33.0×
- Price / FCF
- 30.7×
- FCF yield
- 3.3%
- EV / EBITDA
- n/aD&A or debt not tagged in SEC data
- Price / sales
- 10.98×
- Price / book
- 4.94×
- Market cap
- $8.0Bprice × diluted shares
- Enterprise value
- n/anot reported in its SEC filings
Growth
- Revenue, 12 months
- $729M
- Sales growth, 12 months
- +12.0%vs the 12 months before
- Sales growth, 3 yrs
- +12.8%/yrfrom FY2024
- Diluted EPS, 12 months
- $1.87
- EPS growth, last FY
- +14.0%
- Net income, 12 months
- $164M
- Net income growth
- +14%12 months vs before
Profitability
- Gross margin
- 77.1%
- Operating margin
- 28.8%
- Net margin
- 22.5%
- FCF margin
- 35.7%
- Return on equity
- 11%
- Return on invested capital
- n/aoperating income, debt, equity or cash not tagged
Balance sheet
- Cash & short-term inv.
- $357M
- Total debt
- n/anot reported in its SEC filings
- Net cash
- n/acash or debt not tagged in SEC data
- Debt / equity
- n/adebt or equity not tagged in SEC data
- Interest coverage
- 217.1×operating income / interest
Cash flow & returns
- Free cash flow, 12 months
- $261M
- FCF growth, 12 months
- +23%
- Dividend yield
- 0%
- Payout ratio
- n/anot reported in its SEC filings
- Buybacks, 12 months
- $892,0000.0% of market cap
- Share count, 1 year
- n/ano quarterly diluted share count
- Stock-based comp
- $21M
Trailing 12 months to Jan 31, 2026; balance sheet at Jan 31, 2026. From Descartes Systems Group’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
The business
FCF $0.3B · Sales +12%
- Free cash flow, 12 months$0.3B
- Free-cash-flow yield3.3%
- Free-cash-flow margin39%
- Gross margin78%
- Operating margin33%
- Return on invested capital16%
- Return on equity12%
- Sales growth (latest quarter vs year-ago quarter)+12%
- Net debt / EBITDA−1.2×
Chart & levels
Where the price is vs its key levels and trends.
Key levels
Every level vs today’s $91.40
- 52-wk lowlowest close, 1 year$62.82−31.3%
- Fair value est.base case$81.39−10.9%
- PriceMon Nov 2 close$91.40you are here
- 52-wk highhighest close, 1 year$94.87+3.8%
Momentum & 52-week range
RSI 62 · 5 days −3.6%
Signals
Reversal signal setups, the public ledger and the next earnings date.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only run on companies that pass our quality screen.
DSGX is outside our quality screen
One text when a published rule fires on one of the 332 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.
Voices & buzz
Who is talking about it, and how it compares with peers.
Who’s talking about it
Notable investors, executives, analysts and public figures on Descartes Systems Group in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 3, 1:01 PM ET.
Compare with peers
Closest in size in Software
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.