The Descartes Systems Group Inc. — Software - Application. Scored on the same transparent 7-signal model behind the daily rankings.
★
DSGX
The Descartes Systems Group Inc. · Software - Application
FCF$261mC
Rev+12.0%B
D/E0.00A
P/E36.0xB
PEG1.49B
74.1Score
$72.44$6.2B
1Y Target$100.62Analyst consensus · 13 analysts
5Y Target$147.31Compound horizon
10Y Target$218.53Long-dated conviction
FCF$261mTTMC
FCF $261m — modest; watch for margin expansion
Rev+12.0%TTM YoYB
Revenue +12.0% — at or above S&P median
D/E0.00A
D/E 0.00 — least levered decile in Technology (≈10th pctile)
P/E36.0xB
P/E 36.0 — near the Technology median (≈60th pctile)
PEG1.49B
PEG 1.49 — acceptable premium for growth
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 74.1
Quality0.73
Growth0.89
Value0.63
Entry · Margin of safety
52-week rangeNear 52-week low
34% off the 12-month high
vs DCF fair value36% aboveest. fair value ~$53
Quality signals · context only
Gross profitability30% · Bgross profit ÷ total assets (Novy-Marx)
ROIC10.0% · Breturn on invested capital — not score-weighted
Why now
Software - Application · market cap $6.2b. Down 34% from 52-week high of $109.00 — deep drawdown territory. Revenue growing +12%, comfortably above the S&P median. 13 sell-side analysts rate this a Buy with a mean 1-yr target of $100.62 (implying +39% upside).
Moat
Net margin 22% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 10% meets the long-run market sustainable threshold — solid but not differentiated; the durability comes from elsewhere. FCF converts 159% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk
Down 34% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Trailing P/E 36x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates. Software — competitive moat is durable until it isn't; watch net revenue retention, gross margin trends, and any new market entrant with a fundamentally lower price point.
Horizon
1-3 yr $100.62 (13-analyst consensus) — fundamentals + valuation re-rating. 5 yr $147.31 at ~15% CAGR — compounding case rests on the competitive position widening. 10 yr $218.53 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Score history · DSGX
Trend
-1.2 over 14 daily scores
From 75.3 (Jun 22) → 74.1 (now)
One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.
Position sizing · DSGX
$
%
%
Shares to buy
27
Position size
$1,956
3.9% of portfolio
Stop price
$54.33
25% below $72.44
$ at risk if stopped
$489.00
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
The Descartes Systems Group Inc. (DSGX): score, valuation & FAQ
The Descartes Systems Group Inc. (DSGX) is a Software - Application company that scores 74.1 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are D/E (A). On valuation, DSGX sits about 36% above our discounted-cash-flow fair value (i.e. the DCF flags it as rich).
Is DSGX a good stock to buy?
Bull Rankings scores DSGX 74.1 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by D/E (A). A score is a quantitative screen of The Descartes Systems Group Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does DSGX score 74.1 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). DSGX earns its highest marks on D/E (A). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is DSGX overvalued or undervalued?
Based on $72.44, DSGX sits about 36% above our discounted-cash-flow fair value (i.e. the DCF flags it as rich). It trades at a 36.0x× P/E (graded B). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in DSGX?
Down 34% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Trailing P/E 36x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates. Software — competitive moat is durable until it isn't; watch net revenue retention, gross margin trends, and any new market entrant with a fundamentally lower price point.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.