Stock analysis · Bull Rankings model

DSGX analysis

The Descartes Systems Group Inc.Software - Application. Scored on the same transparent model behind the daily rankings.

DSGX
The Descartes Systems Group Inc. · Software - Application
FCF$261mC
Rev+12.0%B
D/E0.00A
P/E39.4xB
PEG1.56C+
72.3Score
$79.21$6.8B
1Y Target$99.79Analyst consensus · 14 analysts
5Y Target$146.10Compound horizon
10Y Target$216.72Long-dated conviction
FCF$261mTTM
C
FCF $261m — modest; watch for margin expansion
Rev+12.0%TTM YoY
B
Revenue +12.0% — at or above S&P median
D/E0.00
A
D/E 0.00 — least levered decile in Technology (≈10th pctile)
P/E39.4x
B
P/E 39.4 — near the Technology median (≈60th pctile)
PEG1.56
C+
PEG 1.56 — modest premium; above fair value

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 · 72.3
Quality72.6
Growth87.1
Value59.6
Entry · Margin of safety
52-week rangeMid-range
27% off the 12-month high
vs DCF fair value48% aboveest. fair value ~$53
What the price assumes: free cash flow compounding at ~17% a year for the next decade — vs the ~11% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability30% · Bgross profit ÷ total assets (Novy-Marx)
ROIC10.0% · Breturn on invested capital — not score-weighted

Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.

Why now
Our Bull Rankings model awards DSGX a Growth pillar of 89, and that premium is anchored in its Transportation Management and e‑commerce fulfillment suite, which is fueling a 12% YoY revenue growth while delivering a 22.5% profit margin and generating $261 m of free cash flow. The platform’s modular, interoperable design locks in high‑margin logistics customers, compounding earnings at a rate that far exceeds the broader software market. The thesis hinges on this relentless expansion of the logistics‑tech stack.
Moat
Descartes’ modular logistics technology platform creates deep switching costs: carriers, shippers and customs brokers rely on its integrated routing, telematics and B2B messaging to run daily operations, making migration costly and time‑consuming. Coupled with a debt‑free balance sheet (Debt/Equity 0) and a stable ROE of 10.1% derived from pricing power in the niche of global trade compliance, the moat is both operational and financial.
Risk
The stock trades at a lofty PE of 38.7 and a PEG of 1.49, implying the market expects ~17% annual free‑cash‑flow growth—well above the actual 12% revenue growth, signaling over‑optimism. Our model’s weakest pillar, Value (61), flags that the price may be stretched, and any slowdown in the logistics spend cycle would force the multiple down. A sustained drop in margin or a rise in competitive pressure would confirm the bear case.
Horizon
1-3 yr $99.79 (14-analyst consensus) — fundamentals + valuation re-rating. 5 yr $146.10 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $216.72 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.

DSGX vs the Top Picks average

PillarDSGXBook avgDiff
Quality0.730.84-0.11
Growth0.870.84+0.03
Value0.600.78-0.19

Averaged across the 30 names in today's Top Picks (mean score 81.5). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
-3.0 over 47 daily scores
From 75.3 (Jun 22) → 72.3 (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.

Analyst estimate revisions

30-day change+0.1%
90-day change+0.6%
Forward EPS estimate$3.26

Over the last 90 days, what analysts expect DSGX to earn is essentially unchanged. The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.

A rising estimate means expectations are improving, not that the price has failed to keep up — and estimates get cut as readily as they get raised. It is not part of the Bull Rankings score. Biggest movers across the market →

Shares to buy
25
Position size
$1,980
4.0% of portfolio
Stop price
$59.41
25% below $79.21
$ at risk if stopped
$495.06
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.

Latest DSGX developments

Recent headlines from across the financial press · updated daily. Links open the source.

The Descartes Systems Group Inc. (DSGX): score, valuation & FAQ

The Descartes Systems Group Inc. (DSGX) is a Software - Application company that scores 72.3 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 48% above our discounted-cash-flow fair value — the current price implies roughly 17% annual free-cash-flow growth over the next decade.

Is DSGX a good stock to buy?

Bull Rankings scores DSGX 72.3 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 72.3 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 $79.21, DSGX sits about 48% above our discounted-cash-flow fair value — the current price implies roughly 17% annual free-cash-flow growth over the next decade. It trades at a 39.4x 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?

The stock trades at a lofty PE of 38.7 and a PEG of 1.49, implying the market expects ~17% annual free‑cash‑flow growth—well above the actual 12% revenue growth, signaling over‑optimism. Our model’s weakest pillar, Value (61), flags that the price may be stretched, and any slowdown in the logistics spend cycle would force the multiple down. A sustained drop in margin or a rise in competitive pressure would confirm the bear case.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

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 advisor.

More Software stocks by score

All Technology rankings →

Analyze another ticker →