NASDAQ
DSGX
Last Price
US $69.24
KEY FIGURES
MKT CAP
$6.0B
EPS
TTM
$2.06
PEG
TTM
1.51x
P/E
TTM
34.15x
P/S
TTM
8.11x
YIELD
0.00%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
10.92%
Return on equity
ROIC: 9.46%
Valuation History
70.6X
Price to Earnings
EV/EBITDA: 37.5X
Cash flow
Profit margin
16.40%
(FY vs FY)
EBITDA Y/Y
19.34%
(FY vs FY)
Cash flow Y/Y
15.87%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $69.24
-16.90%
Default assumptions
EBITDA Multiple
Fair Value
Market $69.24
-56.51%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
The Descartes Systems Group Inc. cash flow to debt ratio of 3.27K% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.
Financial stability - Healthy cash flow growth.
The Descartes Systems Group Inc.'s free cash flow has increased 25.25% from $212.53M last year to $266.19M, signaling increasing performance
Financial stability - Healthy debt to equity ratio.
The Descartes Systems Group Inc.'s debt to equity ratio is 0.01, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.
Financial risk - Healthy debt to equity ratio development.
The Descartes Systems Group Inc.'s debt has increased relative to shareholder equity from 0.01 last year to 0.01 today, signaling weakened financials
Financial stability - Net debt/EBITDA.
The Descartes Systems Group Inc. has a net debt to EBITDA ratio of 0.00x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
The Descartes Systems Group Inc.'s interest coverage ratio of 321.00 indicates that earnings with good margin can cover interest payments on company debt
Financial stability - Profit margin growth.
The Descartes Systems Group Inc.'s profit margin has increased (6.10%) in the last year from 22.01% to 23.35%, signaling increasing performance
Financial stability - Short term assets vs short term liabilities.
The Descartes Systems Group Inc.'s short-term assets of $479.08M exceed its short-term liabilities of $221.84M
Increasing performance - ROA.
The Descartes Systems Group Inc.'s return on assets of 9.21% is higher than the 5.00% threshold, indicating efficient asset utilization
Decreasing performance - Absolute return on equity.
The Descartes Systems Group Inc.'s return on equity of 11.26%, is lower than 15.00%, indicating bad performance
Increasing performance - Earnings quality.
The Descartes Systems Group Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
The Descartes Systems Group Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
The Descartes Systems Group Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
The Descartes Systems Group Inc. has a free cash flow yield of 4.40%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
The Descartes Systems Group Inc.'s yearly earnings has increased 16.81% since last year from $143.27M to $167.36M, signaling increasing performance
Increasing performance - Healthy revenue growth.
The Descartes Systems Group Inc.'s yearly revenue has increased 14.44% since last year from $651.00M to $744.99M, signaling increasing performance
Increasing performance - ROIC.
ROIC 10.53% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Increasing performance - 3-year revenue CAGR.
The Descartes Systems Group Inc.'s 3-year revenue CAGR of 15.30% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
The Descartes Systems Group Inc. had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
The Descartes Systems Group Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
The Descartes Systems Group Inc. is overvalued relative to its fair value price of 58.95 based on Discounted Cash Flow model
Overvalued - Earnings yield.
The Descartes Systems Group Inc. has an earnings yield of 2.92%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings
Overvalued - EBITDA valuation.
The Descartes Systems Group Inc. is overvalued relative to its fair value price of 30.85 based on EBITDA multiple model
Undervalued - EV/EBITDA.
The Descartes Systems Group Inc. has an EV/EBITDA ratio of 17.55x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
The Descartes Systems Group Inc. has a PEG-ratio over 1 which is considered overvalued
Undervalued - P/B ratio.
The Descartes Systems Group Inc. has a price-to-book ratio of 3.71x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
The Descartes Systems Group Inc. has a price-to-sales ratio of 7.95x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue