DSGX
DESCARTES SYSTEMS GROUP INC
Next earnings Sep 1, 2026 · consensus $0.55 EPS, $202M rev
$72.80
▲ +4.71%$72.80▼ -28.24%
over 1Y
L $62.82H $107.79
Earnings Dividend Split Congress buy Congress sellGrouped by date · hover a pin to expand
Today+4.7%
1W+9.6%
1M-6.2%
3M+1.9%
YTD-14.5%
1Y-28.2%
Hold
Conviction
Horizon
Long (>12mo)
12-mo target
$•••
Street · 9 analysts
Buy
Best-in-class logistics SaaS compounding earnings ~14% with 77% gross margins and no debt, but a 36x multiple already prices the quality.
Revenue (FY2026) $729M · FY2026
The read
Middling fundamentals and a rich price (~24% above fair value) leave little margin of safety — a wait-and-see.
Descartes Systems Group operates the Global Logistics Network, a leading supply-chain and logistics software platform (customs/trade compliance, routing, fleet and e-commerce solutions), and is one of the most consistent SaaS compounders in the market. FY2026 continued the pattern: revenue grew 12.0% to $729M, operating income rose 15.9% to $210M, net income increased 14.3% to $164M, and diluted EPS climbed 14.0% to $1.87. The margin profile is elite — 77.1% gross margin, 28.8% operating margin and 22.5% net margin — reflecting a sticky, mission-critical platform with strong pricing power. The multi-year record is remarkably steady, with revenue more than doubling from $349M (FY2021) to $729M (FY2026) and net income compounding from $52.1M to $164M.
The balance sheet and cash generation underpin the durable, acquisition-driven model. Descartes is essentially debt-free with $357M of cash (up 51.0%), equity of $1.62B and liabilities/equity of just 0.17x, and it generated $266M of operating cash flow (up 21.4%) on negligible capex of $5.73M. That cash funds the company's signature programmatic M&A strategy, layering acquired logistics-software assets onto the network and cross-selling them — a proven flywheel that supplements organic growth.
AI-generated analysis, produced by our proprietary engine from SEC filing data.
Investment recommendation produced by TENK/calls (tenkcalls.com), Luxembourg. Completed Jun 21, 2026, 4:59 PM ET. Ratings & methodology: definitions · All recommendations to date: track record · Conflicts: disclosures. Not investment advice.
Financials · annual, by fiscal year
| Line item | FY21 | FY22 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue | $349M | $425M | $573M | $651M | $729M |
| Gross profit | $259M | $323M | $435M | $492M | $562M |
| Operating income | $71.4M | $103M | $143M | $181M | $210M |
| Net income | $52.1M | $86.3M | $116M | $143M | $164M |
| Diluted EPS | $0.61 | $1.00 | $1.34 | $1.64 | $1.87 |
| Net margin | 14.9% | 20.3% | 20.2% | 22.0% | 22.5% |
Annual figures from SEC 10-K XBRL filings. Open the filing links below for full statement detail.
Key statistics
Valuation
Enterprise value$5.92B
EV / EBITDA—
EV / Sales8.1
EV / FCF22.7
P / FCF23.9
PEG (trailing)2.72
Earnings yield2.6%
FCF yield4.2%
Quality & risk
ROIC (est.)10.0%
Free cash flow$261M
Total debt$34.1M
Net cash$322M
Altman Z-Score14.83 safe
Piotroski F-Score6/9
Capital returns
Buyback yield0.0%
Dividend yield (est.)—
Shareholder yield0.0%
Shares Δ YoY+1.0%
Computed from SEC XBRL annual figures + the current quote. EV and ROIC use long-term + current debt where filed; estimates, not investment advice.
Recent filings
all on EDGAR ↗6-KPeriod ending 2026-06-112026-06-12open ↗6-KPeriod ending 2026-06-032026-06-04open ↗SDFiling2026-05-26open ↗6-KPeriod ending 2026-05-052026-05-05open ↗SCHEDULE 13GFiling2026-04-27open ↗6-KPeriod ending 2026-04-232026-04-23open ↗6-KPeriod ending 2026-03-112026-03-11open ↗40-FPeriod ending 2026-01-312026-03-11open ↗SCHEDULE 13G/AFiling2026-02-17open ↗6-KPeriod ending 2024-06-122025-12-09open ↗6-KPeriod ending 2024-06-122025-12-04open ↗6-KPeriod ending 2025-07-312025-09-04open ↗
Frequently asked
- Is DESCARTES SYSTEMS GROUP INC (DSGX) a buy?
- DSGX currently carries a Hold rating with 3/5 conviction, derived from its latest SEC filings. Best-in-class logistics SaaS compounding earnings ~14% with 77% gross margins and no debt, but a 36x multiple already prices the quality.
- What is DSGX's fair value?
- A Modified-Graham model based on DSGX's SEC fundamentals estimates a fair value of about $55.40. It is an estimate from reported earnings, not a price target.
- Is DSGX overvalued or undervalued?
- Against a Modified-Graham fair-value estimate, DSGX currently appears overvalued relative to its SEC-grounded earnings power.
- What is DESCARTES SYSTEMS GROUP INC's quality score?
- DSGX scores 67.11901722040496/100 (grade B-) on a SEC-grounded quality model spanning value, growth, profitability, financial health and momentum.
Sources: SEC EDGAR (CIK 0001050140, latest 6-K filed 2026-06-12) · EODHD · Proprietary analysis · as of 6/21/2026, 8:59:28 PM.
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