The Descartes Systems Group Inc. (DSGX) Financial Ratios
30 years of historical data (1996–2025) · Technology · Software - Application
EV/EBITDA
↓
18.10
↓-43% vs avg
5yr avg: 31.96
30Y Low3.7·High38.6
P/FCF
↓
23.71
↓-34% vs avg
5yr avg: 36.03
30Y Low8.7·High47.6
P/B Ratio
↓
3.99
↓-32% vs avg
5yr avg: 5.91
30Y Low1.0·High15.2
ROE
↑
11.2%
↓+10% vs avg
5yr avg: 10.2%
30Y Low-86%·High26%
Debt/EBITDA
↓
0.03
↓-36% vs avg
5yr avg: 0.04
30Y Low0.0·High1.1
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
DSGX Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
The Descartes Systems Group Inc. trades at 38.4x earnings, 38% below its 5-year average of 62.0x, sitting at the 19th percentile of its historical range. Compared to the Technology sector median P/E of 27.7x, the stock trades at a premium of 39%. On a free-cash-flow basis, the stock trades at 23.7x P/FCF, 34% below the 5-year average of 36.0x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $6.3B | $6.5B | $10.1B | $7.6B | $6.3B | $6.3B | $5.2B | $3.7B | $2.4B | $2.2B | $1.7B |
| Enterprise Value | $6.0B | $6.2B | $9.9B | $7.3B | $6.0B | $6.1B | $5.1B | $3.7B | $2.4B | $2.2B | $1.6B |
| P/E Ratio → | 38.42 | 39.14 | 70.63 | 65.37 | 61.88 | 72.77 | 100.10 | 99.58 | 77.65 | 81.00 | 70.48 |
| P/S Ratio | 8.47 | 8.79 | 15.54 | 13.27 | 12.99 | 14.77 | 15.02 | 11.40 | 8.78 | 9.21 | 8.20 |
| P/B Ratio | 3.99 | 4.07 | 7.30 | 6.14 | 5.74 | 6.27 | 5.75 | 4.52 | 4.53 | 4.38 | 3.88 |
| P/FCF | 23.71 | 24.60 | 47.59 | 37.48 | 33.88 | 36.62 | 41.08 | 37.37 | 33.18 | 32.60 | 24.71 |
| P/OCF | 23.20 | 24.07 | 46.13 | 36.48 | 32.81 | 35.61 | 39.90 | 35.62 | 30.95 | 30.30 | 23.03 |
P/E links to full P/E history page with 30-year chart
DSGX EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
The Descartes Systems Group Inc.'s enterprise value stands at 18.1x EBITDA, 43% below its 5-year average of 32.0x. This is roughly in line with the Technology sector median of 17.5x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 8.32 | 15.19 | 12.72 | 12.44 | 14.29 | 14.67 | 11.30 | 8.77 | 9.21 | 8.02 |
| EV / EBITDA | 18.10 | 18.81 | 38.60 | 34.91 | 31.04 | 36.41 | 37.61 | 32.33 | 28.02 | 29.78 | 25.40 |
| EV / EBIT | 24.80 | 25.78 | 52.42 | 47.80 | 45.59 | 59.38 | 71.49 | 70.07 | 57.98 | 60.70 | 50.88 |
| EV / FCF | — | 23.30 | 46.52 | 35.93 | 32.44 | 35.44 | 40.13 | 37.06 | 33.15 | 32.63 | 24.14 |
DSGX Profitability
Margins and return-on-capital ratios measuring operating efficiency
The Descartes Systems Group Inc. earns an operating margin of 32.3%. Operating margins have expanded from 24.9% to 32.3% over the past 3 years, signaling improving operational efficiency. ROE of 11.2% is modest. ROIC of 14.9% represents solid returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 65.9% | 65.9% | 75.6% | 75.9% | 76.7% | 76.0% | 74.2% | 73.7% | 72.7% | 73.2% | 72.5% |
| Operating Margin | 32.3% | 32.3% | 27.8% | 24.9% | 26.8% | 24.4% | 20.5% | 16.0% | 15.1% | 15.1% | 15.1% |
| Net Profit Margin | 22.5% | 22.5% | 22.0% | 20.2% | 21.0% | 20.3% | 14.9% | 11.4% | 11.4% | 11.3% | 11.7% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 11.2% | 11.2% | 10.9% | 9.9% | 9.7% | 9.0% | 6.0% | 5.5% | 6.1% | 5.8% | 5.7% |
| ROA | 9.5% | 9.5% | 9.2% | 8.3% | 8.2% | 7.7% | 5.2% | 4.6% | 4.9% | 4.8% | 5.0% |
| ROIC | 14.9% | 14.9% | 13.1% | 12.2% | 12.0% | 9.8% | 6.8% | 5.9% | 6.0% | 6.0% | 6.1% |
| ROCE | 15.6% | 15.6% | 13.4% | 11.8% | 11.9% | 10.3% | 7.9% | 7.3% | 7.3% | 7.1% | 7.1% |
DSGX Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
The Descartes Systems Group Inc. carries a Debt/EBITDA ratio of 0.0x, which is very conservative (99% below the sector average of 2.9x). The company holds a net cash position — cash of $354M exceeds total debt of $8M, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns. Interest coverage of 243.4x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.02 | 0.05 | 0.07 | — |
| Debt / EBITDA | 0.03 | 0.03 | 0.03 | 0.03 | 0.04 | 0.07 | 0.10 | 0.12 | 0.30 | 0.50 | — |
| Net Debt / Equity | — | -0.22 | -0.16 | -0.25 | -0.24 | -0.20 | -0.13 | -0.04 | -0.00 | 0.00 | -0.09 |
| Net Debt / EBITDA | -1.05 | -1.05 | -0.89 | -1.50 | -1.38 | -1.21 | -0.89 | -0.27 | -0.02 | 0.03 | -0.59 |
| Debt / FCF | — | -1.30 | -1.07 | -1.55 | -1.44 | -1.18 | -0.95 | -0.31 | -0.03 | 0.03 | -0.56 |
| Interest Coverage | 243.44 | 243.44 | 180.40 | 104.80 | 111.77 | 92.11 | 60.20 | 11.83 | 19.48 | 27.67 | 50.24 |
Net cash position: cash ($354M) exceeds total debt ($8M)
DSGX Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The Descartes Systems Group Inc.'s current ratio of 2.16x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The current ratio has improved from 2.05x to 2.16x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.16 | 2.16 | 1.62 | 2.05 | 2.11 | 2.19 | 1.95 | 1.13 | 1.03 | 1.11 | 1.35 |
| Quick Ratio | 2.16 | 2.16 | 1.62 | 2.05 | 2.11 | 2.18 | 1.94 | 1.12 | 1.03 | 1.10 | 1.35 |
| Cash Ratio | 1.60 | 1.60 | 1.09 | 1.58 | 1.63 | 1.60 | 1.28 | 0.50 | 0.39 | 0.52 | 0.71 |
| Asset Turnover | — | 0.40 | 0.40 | 0.39 | 0.37 | 0.36 | 0.33 | 0.35 | 0.42 | 0.38 | 0.41 |
| Inventory Turnover | 2527.50 | 2527.50 | 222.57 | — | 149.31 | 117.29 | 209.58 | 208.57 | 789.41 | 517.92 | 335.63 |
| Days Sales Outstanding | — | 44.42 | 39.74 | 40.62 | 33.93 | 35.84 | 54.47 | 47.52 | 47.52 | 49.13 | 52.14 |
DSGX Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
The Descartes Systems Group Inc. returns 0.0% to shareholders annually primarily through share buybacks. The earnings yield of 2.6% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.6% | 2.6% | 1.4% | 1.5% | 1.6% | 1.4% | 1.0% | 1.0% | 1.3% | 1.2% | 1.4% |
| FCF Yield | 4.2% | 4.1% | 2.1% | 2.7% | 3.0% | 2.7% | 2.4% | 2.7% | 3.0% | 3.1% | 4.0% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $88M | $87M | $87M | $86M | $86M | $86M | $83M | $78M | $77M | $77M |
Peer Comparison
Compare DSGX with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 DSGXYou | $6B | 38.4 | 18.1 | 23.7 | 65.9% | 32.3% | 11.2% | 14.9% | 0.0 |
 SAIA | $12B | 47.2 | 20.6 | 438.0 | 23.7% | 10.9% | 10.4% | 9.4% | 0.7 |
 GTLS | $10B | 628.5 | 14.3 | 48.9 | 29.2% | 15.2% | 1.3% | 7.4% | 4.0 |
 PCTY | $6B | 27.1 | 14.3 | 17.3 | 68.8% | 19.1% | 20.0% | 26.2% | 0.5 |
 PRGS | $1B | 17.7 | 12.5 | 5.4 | 80.8% | 15.7% | 15.9% | 7.4% | 5.3 |
 EVTC | $1B | 10.6 | 7.3 | 10.6 | 49.7% | 20.0% | 23.0% | 10.2% | 3.7 |
 NCNO | $2B | -53.9 | 122.0 | 39.4 | 60.1% | -3.4% | -3.5% | -1.2% | 13.0 |
 CEVA | $810M | -91.1 | — | 1569.5 | 88.1% | -7.1% | -3.3% | -2.3% | — |
 TRMK | $3B | 12.1 | 9.5 | 11.4 | 71.0% | 25.5% | 11.0% | 7.1% | 3.4 |
 TRMB | $15B | 35.3 | 20.1 | 110.0 | 68.3% | 16.9% | 7.3% | 6.8% | 1.8 |
 BRTX | $2M | -0.2 | — | — | 93.0% | -2881.6% | -96.9% | -100.4% | — |
| Technology Median | — | 27.7 | 17.5 | 19.2 | 48.5% | -0.6% | 2.4% | 2.9% | 2.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
See DSGX's True Return
Price is only half the story. See total return with reinvested dividends.
Launch CalculatorIs DSGX Undervalued?
DCF intrinsic value, peer multiples, and analyst estimates — see what the stock is really worth.
View ValuationCompare DSGX vs SAIA
Side-by-side business, growth, and profitability comparison vs Saia, Inc..
Start ComparisonDSGX — Frequently Asked Questions
Quick answers to the most common questions about buying DSGX stock.
What is The Descartes Systems Group Inc.'s P/E ratio?
The Descartes Systems Group Inc.'s current P/E ratio is 38.4x. The historical average is 58.3x. This places it at the 19th percentile of its historical range.
What is The Descartes Systems Group Inc.'s EV/EBITDA?
The Descartes Systems Group Inc.'s current EV/EBITDA is 18.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 23.1x.
What is The Descartes Systems Group Inc.'s ROE?
The Descartes Systems Group Inc.'s return on equity (ROE) is 11.2%. The historical average is -5.2%.
Is DSGX stock overvalued?
Based on historical data, The Descartes Systems Group Inc. is trading at a P/E of 38.4x. This is at the 19th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What are The Descartes Systems Group Inc.'s profit margins?
The Descartes Systems Group Inc. has 65.9% gross margin and 32.3% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does The Descartes Systems Group Inc. have?
The Descartes Systems Group Inc.'s Debt/EBITDA ratio is 0.0x, indicating low leverage. A ratio below 2x is generally considered financially healthy.