The Descartes Systems Group (DSGX) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

The Descartes Systems Group

NasdaqGS•Technology•Software - Application

$75.56-3.38(-0.04%)Pre-market

Market Cap

$6.58B

P/E

35.0x

P/S

8.5x

P/B

4.0x

The Descartes Systems Group Inc. provides global logistics technology solutions in the United States, Europe, the Middle East, Africa, Canada, and the Asia Pacific. Its Logistics Technology platform offers a range of modular, interoperable web and wireless logistics management solutions. The company offers a suite of solutions that include routing, mobile, and telematics; transportation management; ecommerce, shipping, and fulfillment; customs and regulatory compliance; global trade intelligence; broker and forwarder enterprise systems; and B2B messaging and connectivity services. It also provides its customers to use its modular and technology solutions to route, track, and measure delivery resources; plan, allocate, and execute shipments; rate, audit, and pay transportation invoices; access and analyze global trade data; research and perform trade tariff and duty calculations; file customs and security documents for imports and exports; and various other logistics processes. In addition, the company offers consulting, implementation, and training services, as well as maintenance and support services. It serves transportation providers, such as air, ocean, and truck modes; logistics service providers, including third-party logistics providers, freight forwarders, and customs brokers; and distribution-intensive companies, such as retailers, manufacturers, distributors, and mobile business service providers through subscription, transactional or perpetual license basis. Further, the company develops Tai TMS, a transportation management software for freight brokers to manage quoting, booking, and shipment tracking. The Descartes Systems Group Inc. was incorporated in 1981 and is headquartered in Waterloo, Canada.

How this company scores

ExcellentMetricSide Score: 83/100

Strongest: Cash & Earnings Quality (25/25); weakest: Balance Sheet & Red Flags (15/25).

Profitability20/25

Growth23/25

Balance Sheet & Red Flags15/25

Cash & Earnings Quality25/25

Strengths

Rising free cash flowStrong marginsRising earningsInterest easily covered

No red flags in the last 8 quarters.

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 34.6x5y range 34.6x – 83.7x

Currently below its 20-quarter median.

P/S · 8.4x5y range 8.4x – 17.4x

Currently below its 20-quarter median.

P/B · 3.9x5y range 3.9x – 7.4x

Price & Volume

Market Cap $6.58B

Metrics at a Glance

as of July 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $774.01M
Q. Revenue: $200.20M
TTM EBITDA: $333.87M
TTM Op. Income: $253.21M
Q. Op. Income: $66.43M
TTM Net Income: $187.75M
Q. Net Income: $49.80M
EPS: N/A
Shares Out.: $87.06M

$774.01M in TTM revenue grew 13.0% YoY, reaching $200.20M last quarter. TTM EBITDA of $333.87M and TTM operating income of $253.21M show growth is flowing through to the bottom line. TTM net income of $187.75M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin: 43.0%
Op. Margin: 33.2%
Net Margin: 24.9%

Op. margin of 33.2% is up 6.4% YoY — cost efficiency is improving. Net margin at 24.9% Over the past year, operating margin is up 24% — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 34.6x
P/S Ratio: 8.4x
P/B Ratio: 3.9x

At 34.6x P/E, the stock trades above typical market levels — the market expects above-average growth. P/S of 8.4x and P/B of 3.9x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has fallen for 6 consecutive quarters — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $1.96B
Cash: $401.09M
Long-Term Debt: N/A
Book Value: $1.65B
D/E Ratio: N/A
Debt/EBITDA: 0.0

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

TTM Free Cash Flow: $299.51M
FCF Margin: 38.7%
FCF / Net Income: 1.6

TTM FCF of $299.51M. The FCF / Net Income ratio of 1.6x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 5 consecutive quarters — an improving trend.