What is The Descartes Systems Group Inc.'s (DSGX) StockRank?

MoatMap's StockRank for The Descartes Systems Group Inc. (DSGX) is 68/100, with a Buy signal. This is a composite score combining Quality (76), Value (42), and Momentum (38) factor ranks across MoatMap's 19,000+ stock universe.

Does The Descartes Systems Group Inc. have an economic moat?

The Descartes Systems Group Inc. (DSGX) has a Quality factor score of 76/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage — the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the financial characteristics of a moated business.

Is The Descartes Systems Group Inc. a buy, hold, or sell?

MoatMap's current signal for The Descartes Systems Group Inc. (DSGX) is Buy, based on a StockRank of 68/100. Signals are derived mechanically from the StockRank composite and should be one input among many — combine with your own thesis on management, competitive position, and valuation.

What sector is The Descartes Systems Group Inc. in?

The Descartes Systems Group Inc. (DSGX) operates in the Technology sector, specifically the Software - Application industry (Canada).

Company Deep Dive

Business segments breakdown, earnings transcript analysis, management credibility scoring, competitive landscape, and scenario modelling.

Request Deep Dive(50 Feathers)

DSGX

BUYAPPROVE

The Descartes Systems Group Inc. · Technology · Canada · $6.2B · Avg Vol: $37M/d

StockRank

P/E (TTM)

36.3x

ROE

11.4%

D/E

0.0x

Dividend %

—

Director Trades · 180d

None in 180d →

Buybacks · 180d

None in 180d →

AI CONVICTION THESIS

Descartes Systems Group operates the Global Logistics Network, a classic Nick Sleep 'destination business' with powerful network effects and high switching costs. As global supply chains undergo structural localization and face persistent geopolitical friction, the complexity of routing, customs compliance, and multi-modal logistics skyrockets. Descartes' asset-light, high-margin software model is a direct beneficiary of this complexity, allowing them to compound earnings with minimal capital reinvestment.

COMPANY DESCRIPTION

The Descartes Systems Group Inc. offers cloud-based, on-demand software-as-a-service (SaaS) solutions designed to improve the productivity, performance, and security of logistics-intensive businesses. The company's platform provides a comprehensive suite of modules covering routing, scheduling, customs, and freight management, leveraging its extensive global logistics network. It stands as a market leader in logistics technology, enabling companies worldwide to optimize their supply chain operations and enhance efficiency.

FINANCIAL SUMMARY

Year	2023	2024	2025	2026	CAGR
Revenue	486M	573M	651M	729M	14.5%
EPS	1.21	1.36	1.68	1.91	16.4%
Shares	85M	85M	86M	86M	+1.4%
Debt	7M	7M	8M	8M	4.5%
Equity	1.1B	1.2B	1.4B	1.6B	13.8%
Op CF	192M	208M	219M	266M	11.4%
Inv CF	-122M	-148M	-297M	-157M	—
Fin CF	-5M	-15M	-4M	5M	—

PRICE (1M)-0.2%

SMA 50SMA 200

$72.97

RSI (14)

53.2

52W High

$109.00

From 52W High

0.7%

SCORE BREAKDOWN

Quality

ROIC

13.0%72.2

ROE

11.4%64.3

GP/Assets

30.8%70.2

Op. Margin

32.9%93.9

FCF/Assets

14.2%88.8

Piotroski

—79.6

Int. Cover

50.0x87.6

D/E Ratio

0.00x93.7

Current Ratio

2.05x51.9

Value

P/E (TTM)

36.3x48.5

EV/EBITDA

18.5x43.4

P/FCF

23.0x56.3

P/B

3.8x42.0

P/S

8.3x23.5

Div Yield

—N/A

Momentum

52W High %

67%37.3

RS 6M

-30%36.8

SMA 50/200

0.88x20.9

EPS Rev 4W

—N/A

EPS Rev 12W

—N/A

EPS Improve

+62%40.2

Q Growth

34%59.8

FUNDAMENTALS

Market Cap

$6.2B

P/E (Forward)

22.4x

Gross Margin

77.3%

SECTOR PEERS

Closest peers in Technology, ranked by industry match, size, and score similarity. Cross-listings of DSGX are excluded.

Ticker	Company	Mkt Cap	StockRank	Signal
DSGX	The Descartes Systems Group Inc.(you)	$6.2B	68	BUY
OTEX	Open Text Corporation	$5.7B	83	STRONG BUY
KXS.TO	Kinaxis Inc.	$2.9B	78	BUY
LMN.V	Lumine Group Inc.	$3.9B	47	HOLD
LSPD.TO	Lightspeed Commerce Inc.	$1.3B	58	HOLD
CSU.TO	Constellation Software Inc.	$42.2B	52	HOLD
DCBO	Docebo Inc.	$457M	74	BUY
TCS.TO	Tecsys Inc.	$395M	73	BUY
ENGH.TO	Enghouse Systems Limited	$695M	96	STRONG BUY
CMG.TO	Computer Modelling Group Ltd.	$214M	76	BUY

Peer medians: ROE 7.3% · P/E 37.0x · Gross margin 48.0%

The Descartes Systems Group Inc. (DSGX) — Stock Score Summary

The Descartes Systems Group Inc. (DSGX) has a MoatMap StockRank of 68/100 based on Quality (76/100), Value (42/100), and Momentum (38/100) factor scores. The current signal is BUY. Descartes Systems Group operates the Global Logistics Network, a classic Nick Sleep 'destination business' with powerful network effects and high switching costs. As global supply chains undergo structural localization and face persistent geopolitical friction, the complexity of routing, customs compliance, and multi-modal logistics skyrockets. Descartes' asset-light, high-margin software model is a direct beneficiary of this complexity, allowing them to compound earnings with minimal capital reinvestment.

Key Financial Metrics

Price	$72.97
Market Cap	$6.2B
P/E (TTM)	36.30
P/E (Forward)	22.44
Price/Book	3.85
Return on Equity	11.4%
Return on Invested Capital	13.0%
Debt/Equity	0.50
Gross Margin	77.3%
Operating Margin	32.9%
Revenue Growth	14.7%
Free Cash Flow	$268M

The Descartes Systems Group Inc. operates in the Software - Application industry, part of the Technology sector (Canada).

Frequently Asked Questions

What is The Descartes Systems Group Inc.’s (DSGX) StockRank?: MoatMap’s StockRank for The Descartes Systems Group Inc. (DSGX) is 68/100, with a Buy signal. It is a composite of Quality (76), Value (42), and Momentum (38) factor ranks across MoatMap’s 19,000+ stock universe.
Does The Descartes Systems Group Inc. have an economic moat?: The Descartes Systems Group Inc. (DSGX) has a Quality factor score of 76/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage — the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is The Descartes Systems Group Inc. a buy, hold, or sell?: MoatMap’s current signal for The Descartes Systems Group Inc. (DSGX) is Buy, based on a StockRank of 68/100. Signals are derived mechanically from the StockRank composite and should be one input among many — combine with your own thesis on management, competitive position, and valuation.
What sector is The Descartes Systems Group Inc. in?: The Descartes Systems Group Inc. (DSGX) operates in the Technology sector, specifically the Software - Application industry (Canada).