The Descartes Systems Group Inc. (DSGX) 10-Year Financial Performance & Capital Metrics

DSGX • • Industrial / General

TechnologyApplication SoftwareArtificial Intelligence & AnalyticsAI Analytics Platforms

AboutThe Descartes Systems Group Inc. provides cloud-based logistics and supply chain management business process solutions that focuses on enhancing the productivity, performance, and security of logistics-intensive businesses worldwide. Its Logistics Technology platform offers a range of modular, cloud-based, and interoperable web and wireless logistics management applications, which unites a community of logistics-focused parties, allowing them to transact business. The company provides a suite of solutions that include routing, mobile and telematics; transportation management and e-commerce enablement; customs and regulatory compliance; trade data; global logistics network services; and broker and forwarder enterprise systems. It offers its customers to use its modular, software-as-a-service, and data solutions to route, schedule, track, and measure delivery resources; plan, allocate, and execute shipments; rate, audit, and pay transportation invoices; access and analyze global trade data; research and perform trade tariff and duty calculations; file customs and security documents for imports and exports; and various other logistics processes. The company also provides cloud-based ecommerce warehouse management solutions; consulting, implementation, and training services; and maintenance and support services. It primarily focuses on serving transportation providers, logistics service providers, and distribution-intensive companies, as well as manufacturers, retailers, distributors, and mobile business service providers. The company was incorporated in 1981 and is headquartered in Waterloo, Canada.Show more

Revenue $651M +13.6%
EBITDA $256M +22.6%
Net Income $143M +23.6%
EPS (Diluted) 1.64 +22.4%
Gross Margin 75.64% -0.3%
EBITDA Margin 39.34% +7.9%
Operating Margin 27.82% +11.6%
Net Margin 22.01% +8.8%
ROE 10.92% +10.2%
ROIC 13.05% +6.9%
Debt/Equity 0.01 +5.9%
Interest Coverage 180.40 +72.1%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Company is almost debt free
✓Strong 5Y profit CAGR of 31.1%
✓FCF machine: 32.6% free cash flow margin
✓High quality earnings: Operating CF exceeds net income
✓Strong 5Y sales CAGR of 14.8%
✓Healthy 5Y average net margin of 19.7%

✗Weaknesses

No significant weaknesses identified

Price & Volume

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Growth Metrics

Revenue CAGR

10Y14.31%

5Y14.85%

3Y15.3%

TTM11.09%

Profit (Net Income) CAGR

10Y25.27%

5Y31.1%

3Y18.42%

TTM12.6%

EPS CAGR

10Y22.82%

5Y29.52%

3Y17.93%

TTM11.32%

ROCE

10Y Avg9.1%

5Y Avg11.05%

3Y Avg12.37%

Latest13.41%

Peer Comparison

AI Analytics Platforms

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
LYFTLyft, Inc.	7.69B	19.25	349.36	31.39%	2.4%	26.3%	9.97%	1.64
DDOGDatadog, Inc.	40.84B	125.50	246.08	26.12%	3.32%	3.1%	2.05%	0.68
MNDYmonday.com Ltd.	7.18B	139.22	224.55	33.21%	5.58%	5.13%	4.12%	0.10
PEGAPegasystems Inc.	9.77B	57.54	104.62	4.51%	16.05%	46.57%	3.46%	0.94
SAPSAP SE	287.77B	247.10	93.25	9.51%	19.41%	13.94%	1.54%	0.23
TYLTyler Technologies, Inc.	19.07B	443.14	73.25	9.53%	13.72%	8.75%	3.17%	0.19
FICOFair Isaac Corporation	38.48B	1623.18	61.16	15.91%	32.75%		2%
DSGXThe Descartes Systems Group Inc.	7.56B	87.93	53.62	13.63%	22.1%	10%	2.81%	0.01

Profit & Loss

	Jan 2016	Jan 2017	Jan 2018	Jan 2019	Jan 2020	Jan 2021	Jan 2022	Jan 2023	Jan 2024	Jan 2025
Sales/Revenue+	184.99M	203.78M	237.44M	275.17M	325.79M	348.66M	424.69M	486.01M	572.93M	651M
Revenue Growth %	0.08%	0.1%	0.17%	0.16%	0.18%	0.07%	0.22%	0.14%	0.18%	0.14%
Cost of Goods Sold+	53.86M	56.05M	63.7M	74.99M	85.72M	89.91M	101.81M	113.33M	138.29M	158.57M
COGS % of Revenue	0.29%	0.28%	0.27%	0.27%	0.26%	0.26%	0.24%	0.23%	0.24%	0.24%
Gross Profit+	131.13M	147.73M	173.74M	200.18M	240.07M	258.75M	322.88M	372.69M	434.64M	492.43M
Gross Margin %	0.71%	0.72%	0.73%	0.73%	0.74%	0.74%	0.76%	0.77%	0.76%	0.76%
Gross Profit Growth %	0.13%	0.13%	0.18%	0.15%	0.2%	0.08%	0.25%	0.15%	0.17%	0.13%
Operating Expenses+	103.04M	117.03M	137.85M	158.73M	187.81M	187.36M	219.45M	242.25M	291.79M	311.3M
OpEx % of Revenue	0.56%	0.57%	0.58%	0.58%	0.58%	0.54%	0.52%	0.5%	0.51%	0.48%
Selling, General & Admin	44.03M	48.02M	58.58M	66.89M	75.02M	75.05M	91.35M	106.28M	125.53M	138.94M
SG&A % of Revenue	0.24%	0.24%	0.25%	0.24%	0.23%	0.22%	0.22%	0.22%	0.22%	0.21%
Research & Development	31.29M	35.56M	41.8M	47.87M	53.51M	54.07M	62.57M	70.35M	84.44M	95.5M
R&D % of Revenue	0.17%	0.17%	0.18%	0.17%	0.16%	0.16%	0.15%	0.14%	0.15%	0.15%
Other Operating Expenses	27.71M	33.46M	37.47M	43.98M	59.28M	58.24M	65.53M	65.62M	81.81M	76.86M
Operating Income+	28.1M	30.7M	35.88M	41.44M	52.26M	71.4M	103.43M	130.43M	142.85M	181.12M
Operating Margin %	0.15%	0.15%	0.15%	0.15%	0.16%	0.2%	0.24%	0.27%	0.25%	0.28%
Operating Income Growth %	0.24%	0.09%	0.17%	0.15%	0.26%	0.37%	0.45%	0.26%	0.1%	0.27%
EBITDA+	57.7M	64.33M	73.46M	86.17M	113.9M	136.02M	166.74M	194.71M	208.82M	256.11M
EBITDA Margin %	0.31%	0.32%	0.31%	0.31%	0.35%	0.39%	0.39%	0.4%	0.36%	0.39%
EBITDA Growth %	0.21%	0.11%	0.14%	0.17%	0.32%	0.19%	0.23%	0.17%	0.07%	0.23%
D&A (Non-Cash Add-back)	29.6M	33.63M	37.58M	44.72M	61.64M	64.62M	63.3M	64.27M	65.97M	74.99M
EBIT	28.29M	32.11M	36.05M	41.64M	52.55M	71.56M	102.24M	132.56M	152.51M	188.59M
Net Interest Income+	-522K	-611K	-1.3M	-2.13M	-4.42M	-1.19M	-1.12M	-1.17M	-1.36M	-1M
Interest Income	0	0	0	0	0	0	0	0	0	0
Interest Expense	522K	611K	1.3M	2.13M	4.42M	1.19M	1.12M	1.17M	1.36M	1M
Other Income/Expense	-327K	804K	-1.14M	-1.93M	-4.22M	-1.03M	-824K	3.29M	8.3M	10.51M
Pretax Income+	27.77M	31.5M	34.75M	39.51M	48.03M	70.37M	102.61M	133.73M	151.15M	191.63M
Pretax Margin %	0.15%	0.15%	0.15%	0.14%	0.15%	0.2%	0.24%	0.28%	0.26%	0.29%
Income Tax+	7.21M	7.66M	7.87M	8.23M	11.04M	18.27M	16.33M	31.49M	35.24M	48.36M
Effective Tax Rate %	0.74%	0.76%	0.77%	0.79%	0.77%	0.74%	0.84%	0.76%	0.77%	0.75%
Net Income+	20.56M	23.84M	26.88M	31.28M	37M	52.1M	86.28M	102.24M	115.91M	143.27M
Net Margin %	0.11%	0.12%	0.11%	0.11%	0.11%	0.15%	0.2%	0.21%	0.2%	0.22%
Net Income Growth %	0.37%	0.16%	0.13%	0.16%	0.18%	0.41%	0.66%	0.18%	0.13%	0.24%
Net Income (Continuing)	20.56M	23.84M	26.88M	31.28M	37M	52.1M	86.28M	102.24M	115.91M	143.27M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	0.27	0.31	0.35	0.40	0.45	0.61	1.00	1.18	1.34	1.64
EPS Growth %	0.29%	0.15%	0.13%	0.14%	0.13%	0.36%	0.64%	0.18%	0.14%	0.22%
EPS (Basic)	0.27	0.31	0.35	0.41	0.45	0.62	1.02	1.21	1.36	1.68
Diluted Shares Outstanding	76.41M	76.52M	77.11M	77.79M	82.87M	85.76M	86.2M	86.45M	86.82M	87.32M
Basic Shares Outstanding	75.59M	75.8M	76.32M	76.83M	81.66M	84.36M	84.59M	84.79M	85.07M	85.44M
Dividend Payout Ratio	-	-	-	-	-	-	-	-	-	-

Balance Sheet

	Jan 2016	Jan 2017	Jan 2018	Jan 2019	Jan 2020	Jan 2021	Jan 2022	Jan 2023	Jan 2024	Jan 2025
Total Current Assets+	75.42M	72.56M	74.85M	72.24M	100.21M	203.06M	292.06M	358.65M	418.18M	352.57M
Cash & Short-Term Investments	41.85M	38.13M	35.15M	27.3M	44.4M	133.66M	213.44M	276.38M	320.95M	236.14M
Cash Only	37.21M	38.13M	35.15M	27.3M	44.4M	133.66M	213.44M	276.38M	320.95M	236.14M
Short-Term Investments	4.64M	0	0	0	0	0	0	0	0	0
Accounts Receivable	28.75M	29.11M	31.96M	35.82M	42.41M	52.04M	41.7M	45.17M	63.76M	70.88M
Days Sales Outstanding	56.72	52.14	49.13	47.52	47.52	54.47	35.84	33.93	40.62	39.74
Inventory	155K	167K	123K	95K	411K	429K	868K	759K	0	712.46K
Days Inventory Outstanding	1.05	1.09	0.7	0.46	1.75	1.74	3.11	2.44	-	1.64
Other Current Assets	468K	0	0	0	0	0	14.07M	11.66M	33.47M	26.44M
Total Non-Current Assets+	377.36M	427.98M	550.03M	581.09M	842.38M	860.19M	893.37M	957.39M	1.06B	1.29B
Property, Plant & Equipment	8.6M	10.45M	12.8M	12.61M	26.61M	24.25M	21.39M	18.21M	17.81M	20.1M
Fixed Asset Turnover	21.50x	19.51x	18.55x	21.82x	12.24x	14.38x	19.86x	26.69x	32.17x	32.38x
Goodwill	217.49M	263.11M	350.15M	378.18M	523.69M	565.18M	608.76M	675.65M	760.41M	924.75M
Intangible Assets	133.56M	145.44M	178M	176.19M	256.96M	239.99M	229.61M	229.81M	251.05M	321.27M
Long-Term Investments	0	0	0	0	0	0	0	0	249.51M	0
Other Non-Current Assets	0	1.52M	3.97M	10.51M	13.52M	15.55M	18.65M	22.25M	-222.68M	24.9M
Total Assets+	452.79M	500.54M	624.88M	653.33M	942.59M	1.06B	1.19B	1.32B	1.47B	1.65B
Asset Turnover	0.41x	0.41x	0.38x	0.42x	0.35x	0.33x	0.36x	0.37x	0.39x	0.40x
Asset Growth %	0.02%	0.11%	0.25%	0.05%	0.44%	0.13%	0.11%	0.11%	0.12%	0.12%
Total Current Liabilities+	40.04M	53.82M	67.69M	70.37M	88.94M	104.26M	133.43M	169.59M	203.63M	217.03M
Accounts Payable	4.47M	4.68M	7.9M	5.15M	7.67M	7.96M	10.57M	10.57M	17.48M	20.65M
Days Payables Outstanding	30.31	30.47	45.25	25.05	32.65	32.29	37.88	34.04	46.15	47.53
Short-Term Debt	0	0	0	0	0	0	0	0	0	369.61K
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Liabilities	12.79M	10.63M	17.5M	13.08M	13.25M	13.05M	5.62M	7.54M	43.59M	55.11M
Current Ratio	1.88x	1.35x	1.11x	1.03x	1.13x	1.95x	2.19x	2.11x	2.05x	1.62x
Quick Ratio	1.88x	1.35x	1.10x	1.03x	1.12x	1.94x	2.18x	2.11x	2.05x	1.62x
Cash Conversion Cycle	27.45	22.76	4.59	22.93	16.62	23.92	1.07	2.33	-	-6.15
Total Non-Current Liabilities+	10.71M	16.12M	58.38M	49.46M	31.93M	47.92M	52.18M	47.06M	32.62M	45.35M
Long-Term Debt	0	0	37M	25.46M	0	0	0	0	0	0
Capital Lease Obligations	0	0	0	0	9.48M	8.89M	7.38M	3.92M	3.9M	4.72M
Deferred Tax Liabilities	6.1M	9.97M	11.59M	15.51M	15.07M	29.39M	35.52M	35.4M	21.1M	34.13M
Other Non-Current Liabilities	3.67M	5.72M	8.66M	7.63M	6.47M	8.23M	7.35M	6.12M	6.15M	5.53M
Total Liabilities	50.75M	69.94M	126.07M	119.83M	120.88M	152.19M	185.61M	216.65M	236.25M	262.38M
Total Debt+	0	0	37M	25.46M	13.4M	13.06M	11.41M	7.32M	6.98M	8.27M
Net Debt	-37.21M	-38.13M	1.85M	-1.83M	-31M	-120.6M	-202.03M	-269.06M	-313.97M	-227.87M
Debt / Equity	-	-	0.07x	0.05x	0.02x	0.01x	0.01x	0.01x	0.01x	0.01x
Debt / EBITDA	-	-	0.50x	0.30x	0.12x	0.10x	0.07x	0.04x	0.03x	0.03x
Net Debt / EBITDA	-0.64x	-0.59x	0.03x	-0.02x	-0.27x	-0.89x	-1.21x	-1.38x	-1.50x	-0.89x
Interest Coverage	53.83x	50.24x	27.67x	19.48x	11.83x	60.20x	92.11x	111.77x	104.80x	180.40x
Total Equity+	402.04M	430.6M	498.81M	533.51M	821.71M	911.07M	999.82M	1.1B	1.24B	1.39B
Equity Growth %	0.03%	0.07%	0.16%	0.07%	0.54%	0.11%	0.1%	0.1%	0.13%	0.12%
Book Value per Share	5.26	5.63	6.47	6.86	9.92	10.62	11.60	12.72	14.26	15.86
Total Shareholders' Equity	402.04M	430.6M	498.81M	533.51M	821.71M	911.07M	999.82M	1.1B	1.24B	1.39B
Common Stock	252.47M	253.24M	274.54M	276.75M	524.15M	531.83M	536.3M	538.45M	551.16M	568.34M
Retained Earnings	-262.3M	-238.47M	-211.62M	-172.77M	-135.77M	-83.67M	2.61M	104.85M	220.75M	364.03M
Treasury Stock	0	0	0	0	0	0	0	0	0	0
Accumulated OCI	-34.88M	-32.78M	-15.25M	-25.2M	-25.94M	-1.19M	-12.39M	-30.46M	-28.59M	-50.5M
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Jan 2016	Jan 2017	Jan 2018	Jan 2019	Jan 2020	Jan 2021	Jan 2022	Jan 2023	Jan 2024	Jan 2025
Cash from Operations+	54.24M	72.58M	72.14M	78.07M	104.25M	131.23M	176.14M	192.4M	208.47M	219.27M
Operating CF Margin %	0.29%	0.36%	0.3%	0.28%	0.32%	0.38%	0.41%	0.4%	0.36%	0.34%
Operating CF Growth %	0.1%	0.34%	-0.01%	0.08%	0.34%	0.26%	0.34%	0.09%	0.08%	0.05%
Net Income	20.56M	23.84M	26.88M	31.28M	37M	52.1M	86.28M	102.24M	115.91M	143.27M
Depreciation & Amortization	29.6M	33.63M	37.58M	44.72M	61.52M	61.66M	64.23M	65.4M	65.97M	74.99M
Stock-Based Compensation	1.58M	2.02M	2.81M	3.71M	4.91M	6.31M	11.02M	13.67M	16.48M	19.96M
Deferred Taxes	5.79M	4M	1.27M	2.14M	5.74M	14.52M	1.51M	3.24M	-6M	0
Other Non-Cash Items	-392K	-1.03M	-784K	71K	337K	207K	308K	53K	868.34K	3.63M
Working Capital Changes	-2.89M	10.12M	4.4M	-3.85M	-5.26M	-3.58M	12.79M	7.79M	15.24M	-22.58M
Change in Receivables	764K	2.73M	-1.96M	-135K	3.73M	143K	-2.88M	151K	-7.28M	1.42M
Change in Inventory	314K	2K	52K	74K	-345K	99K	-498K	103K	0	0
Change in Payables	-412K	-317K	1.43M	-1.06M	1.77M	-686K	2.34M	-620K	6.2M	1.77M
Cash from Investing+	-129.83M	-70.36M	-116.95M	-73.18M	-296.95M	-52.16M	-95.11M	-121.63M	-148.26M	-296.95M
Capital Expenditures	-4.31M	-4.91M	-5.09M	-5.24M	-4.9M	-3.76M	-4.83M	-6.07M	-5.56M	-6.74M
CapEx % of Revenue	0.02%	0.02%	0.02%	0.02%	0.02%	0.01%	0.01%	0.01%	0.01%	0.01%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	0	0	0	0	0	0	0	0	0	0
Cash from Financing+	-2.43M	-211K	38M	-11.38M	210.17M	5.56M	1.52M	-4.6M	-14.74M	-3.63M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	0	0	0	0	0	0	0	0	0	0
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	-2.59M	-957K	0	-1.53M	-2.19M	-40K	-72K	-6.33M	-24.01M	-15.38M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	49.93M	67.67M	67.06M	72.83M	99.35M	127.47M	171.31M	186.32M	202.12M	212.53M
FCF Margin %	0.27%	0.33%	0.28%	0.26%	0.3%	0.37%	0.4%	0.38%	0.35%	0.33%
FCF Growth %	0.07%	0.36%	-0.01%	0.09%	0.36%	0.28%	0.34%	0.09%	0.08%	0.05%
FCF per Share	0.65	0.88	0.87	0.94	1.20	1.49	1.99	2.16	2.33	2.43
FCF Conversion (FCF/Net Income)	2.64x	3.04x	2.68x	2.50x	2.82x	2.52x	2.04x	1.88x	1.80x	1.53x
Interest Paid	31K	64K	680K	1.71M	3.52M	89K	0	0	0	0
Taxes Paid	3.53M	3.86M	3.89M	7.86M	8.95M	8.21M	12.57M	23.79M	44.94M	53.41M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	5.19%	5.73%	5.78%	6.06%	5.46%	6.01%	9.03%	9.74%	9.92%	10.92%
Return on Invested Capital (ROIC)	6.61%	6.08%	6.03%	6.02%	5.93%	6.77%	9.77%	12.02%	12.21%	13.05%
Gross Margin	70.89%	72.49%	73.17%	72.75%	73.69%	74.21%	76.03%	76.68%	75.86%	75.64%
Net Margin	11.12%	11.7%	11.32%	11.37%	11.36%	14.94%	20.32%	21.04%	20.23%	22.01%
Debt / Equity	-	-	0.07x	0.05x	0.02x	0.01x	0.01x	0.01x	0.01x	0.01x
Interest Coverage	53.83x	50.24x	27.67x	19.48x	11.83x	60.20x	92.11x	111.77x	104.80x	180.40x
FCF Conversion	2.64x	3.04x	2.68x	2.50x	2.82x	2.52x	2.04x	1.88x	1.80x	1.53x
Revenue Growth	8.27%	10.15%	16.52%	15.89%	18.4%	7.02%	21.8%	14.44%	17.88%	13.63%

Revenue by Segment

	2015
Services	176.29M
Services Growth	-
Licenses	8.71M
Licenses Growth	-

Revenue by Geography

	2015
UNITED STATES	96.3M
UNITED STATES Growth	-
EMEA	68.45M
EMEA Growth	-
CANADA	12.57M
CANADA Growth	-
Asia Pacific	7.67M
Asia Pacific Growth	-

Frequently Asked Questions

Valuation & Price

The Descartes Systems Group Inc. (DSGX) has a price-to-earnings (P/E) ratio of 53.6x. This suggests investors expect higher future growth.

Growth & Financials

The Descartes Systems Group Inc. (DSGX) reported $701.8M in revenue for fiscal year 2024. This represents a 516% increase from $114.0M in 2011.

The Descartes Systems Group Inc. (DSGX) grew revenue by 13.6% over the past year. This is steady growth.

Yes, The Descartes Systems Group Inc. (DSGX) is profitable, generating $155.1M in net income for fiscal year 2024 (22.0% net margin).

Dividend & Returns

The Descartes Systems Group Inc. (DSGX) has a return on equity (ROE) of 10.9%. This is reasonable for most industries.

The Descartes Systems Group Inc. (DSGX) generated $244.0M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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