Stock AnalizDescartes Systems Group Inc. DSGX
Computer Software: Prepackaged Software · data as of November 13, 2026
Descartes Systems Group Inc. (DSGX) is a technology company listed in the US with a market value of about $8.1B. In the twelve months to July 31, 2026 it had revenue of $775M and net income of $188M, a net margin of 24.3%.
Its overall Stock Analiz score is 3.0 out of 5 (average). The strongest part is future growth (5/5); the weakest is value (1/5).
Key numbers: a P/E of 43.9, a price to free cash flow of 27.1, 5-year revenue growth of 17% a year, a 5-year average ROIC of 9%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 31% below the current price.
Score: 3.0 / 5
Checks passed
- PEG below 1.5
- Revenue growth above 10% last year
- 3-year revenue growth above 10% a year
- Profit margin improving
- 3-year free cash flow growth above 10% a year
- Strong R&D investment or growth above 20%
- 5-year EPS growth above 10% a year
- 5-year revenue growth above 8% a year
Checks not passed
- P/E below 25
- P/E below the industry median
- P/FCF below 20
- Price below intrinsic value (DCF, moderate assumptions)
- 5-year average ROIC above 12%
- ROE above 15%
- Pays a dividend
- Share count down over 3 years (buybacks)
Valuation
Growth and quality
Financials, last 10 years
| Fiscal year | TTM | 2026 | 2025 | 2024 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $775M | $729M | $651M | $573M | $425M | $349M | $326M | $275M | $237M | $204M | $185M |
| Net income | $188M | $164M | $143M | $116M | $86M | $52M | $37M | $31M | $27M | $24M | $21M |
| Free cash flow | $299M | $261M | $213M | $202M | $171M | $127M | $99M | $73M | $67M | $68M | $50M |
| EPS (diluted) | $2.15 | $1.91 | $1.67 | $1.35 | $1.01 | $0.61 | $0.43 | $0.37 | $0.31 | $0.28 | $0.24 |
| Net margin | 24.3% | 22.5% | 22.0% | 20.2% | 20.3% | 14.9% | 11.4% | 11.4% | 11.3% | 11.7% | 11.1% |
| ROIC | — | 9.7% | 9.7% | 8.8% | 8.6% | 5.7% | 4.8% | 5.9% | 5.2% | 5.4% | 5.2% |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
What analysts expect
The average 12-month price target from 13 analysts is $102.62, 9% above the current price; targets range from $90.00 to $126.00; the consensus rating is “none”; expected EPS is $2.82 for the fiscal year ending January 31, 2027.
Frequently asked questions
What is Descartes Systems Group’s P/E ratio?
About 43.9, based on the last twelve months of diluted earnings per share (forward P/E about 30.1).
Is Descartes Systems Group stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 31% below the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does Descartes Systems Group pay a dividend?
Not currently.
Is Descartes Systems Group a good stock to buy?
We do not give buy or sell advice. Descartes Systems Group scores 3.0 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
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Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.