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Earnings transcript
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DSGX
The Descartes Systems Group Inc.
$74.8
-0.44
(-0.58%)
| Exchange: | NASDAQ |
| Market Cap: | 6.427B |
| Shares Outstanding: | 11.381M |
Delayed data
About The Company
| Sector: | Technology | |||||
| Industry: | Software – Application | |||||
| CEO: | Edward J. Ryan | |||||
| Full Time Employees: | 1334 | |||||
| Address: |
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| Website: | https://www.descartes.com |
The Descartes Systems Group Inc. (DSGX) offers comprehensive, cloud-native solutions designed to optimize business processes within the logistics and supply chain sectors. The primary objective is to significantly elevate the efficiency, operational excellence, and security posture for enterprises worldwide that heavily rely on robust logistics. At its core, the company offers a proprietary “Logistics Technology” platform. This platform provides a versatile array of modular, interconnected web and mobile applications, all accessible via the cloud, which collectively foster a collaborative ecosystem where various logistics stakeholders can seamlessly conduct transactions and manage operations. Descartes’ extensive portfolio encompasses specialized solutions for route optimization, mobile workforce management, and telematics; comprehensive transportation management and e-commerce integration; customs and regulatory adherence; global trade data intelligence; logistics network facilitation; and specialized enterprise systems tailored for brokers and freight forwarders. Clients harness these adaptable Software-as-a-Service (SaaS) and data-driven offerings to meticulously plan and execute deliveries—including scheduling, tracking, and performance measurement. They can also streamline shipment planning, allocation, and execution; manage the financial aspects of transportation such as rating, auditing, and invoice payments; delve into global trade data for analysis; accurately calculate trade tariffs and duties; and efficiently complete customs and security documentation for international trade, among numerous other critical logistical functions. Additionally, Descartes provides cloud-based warehouse management solutions specifically tailored for e-commerce, complemented by expert consulting, seamless implementation, and thorough training, alongside ongoing maintenance and support. Its diverse client base includes transportation firms, third-party logistics providers, distribution-heavy corporations, manufacturers, retailers, distributors, and mobile service providers. Founded in 1981, The Descartes Systems Group Inc. maintains its head office in Waterloo, Canada.
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Revenue Segmentation
EPS
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Earnings Call
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Key takeaways
Short, structured highlights from the call so you can focus on what matters.
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Login — it's freeIncome Statement
| Year | 2024 | 2025 | 2026 |
|---|---|---|---|
| Revenue | 572,931 | 651,000 | 744,988.270 |
| Gross Profit | 434,636 | 492,426 | 491,292.965 |
| EBITDA | 219,367.931 | 263,578 | 329,615.450 |
| Operating Income | 142,849 | 181,124 | 240,572.535 |
| Net Income | 115,907 | 143,273 | 167,360.539 |
(* All numbers are in thousands)
Balance Sheet
| Year | 2024 | 2025 | 2026 |
|---|---|---|---|
| Total Assets | 1,647,384 | 1,883,932.132 | 1,883,932.132 |
| Total Liabilities | 262,381 | 275,040.088 | 275,040.088 |
| Total Stockholders Equity | 1,385,003 | 1,608,892.043 | 1,608,892.043 |
| Total Debt | 7,896 | 8,311.237 | 8,311.237 |
| Cash and Cash Equivalents | 236,138 | 354,319.348 | 354,319.348 |
(* All numbers are in thousands)
Cash Flow Statement
| Year | 2024 | 2025 | 2026 |
|---|---|---|---|
| Operating Cash Flow | 207,680 | 272,049.401 | 272,049.401 |
| Capital Expenditure | -5,563 | -5,855.733 | -5,855.733 |
| Free Cash Flow | 202,117 | 266,193.668 | 266,193.668 |
| Net Income | 115,907 | 167,360.539 | 167,360.539 |
| Net Change in Cash | 44,567 | 119,018.710 | 119,018.710 |
(* All numbers are in thousands)
Analyst Estimates
| Fiscal Year | 2030 | Full Access | Full Access | Full Access | Full Access |
|---|---|---|---|---|---|
| Estimated Revenue (Low) | 1,135,522.339 | Full Access | Full Access | Full Access | Full Access |
| Estimated Revenue (High) | 1,173,005.277 | Full Access | Full Access | Full Access | Full Access |
| Estimated Revenue (Avg) | 1,154,153.652 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (Low) | 556,981.519 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (High) | 575,367.158 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (Avg) | 566,120.306 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (Low) | 307,763.118 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (High) | 321,035.716 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (Avg) | 314,360.445 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (Low) | 244,002.365 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (High) | 252,056.742 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (Avg) | 248,005.883 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (Avg) | 3.590 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (High) | 3.670 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (Low) | 3.510 | Full Access | Full Access | Full Access | Full Access |
| Number of Analysts (Estimated Revenue) | 4 | Full Access | Full Access | Full Access | Full Access |
| Number of Analysts (Estimated EPS) | 2 | Full Access | Full Access | Full Access | Full Access |
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Current Key Metrics
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Login — it's freeForward P/E Ratios
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Login — it's freeSWOT Analysis
Strengths (preview)
- Strong Financial Performance: DSGX reported record quarterly results in Q1 2024, as highlighted in the earnings call transcript, with robust revenue and net income growth. Key metrics such as high gross profit margin (TTM) and net profit margin (TTM) indicate operational efficiency and profitability compared to industry benchmarks.
- Solid Cash Flow Generation: The cash flow statements reflect consistent net cash provided by operating activities and positive free cash flow (TTM), demonstrating the company’s ability to fund operations and growth initiatives internally.
- Strategic Acquisitions: As noted in the Q1 2024 earnings call, DSGX continues to enhance its service offerings through targeted acquisitions, strengthening its competitive position in the logistics and supply chain software industry.
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At what price to buy it? -
Intrinsic Value Calculator
Based on current fundamentals and analyst forecasts, MARKETSnap estimates DSGX intrinsic value between $34.26 – $92.84 per share. This depends on revenue growth, margins, and discount rate.
This is an automatic estimate. The most reliable way to know fair value for your own assumptions is to run the calculator below.
[intrinsic_calculator]
Common questions about DSGX valuation
Is The Descartes Systems Group Inc. (DSGX) overvalued or undervalued right now?
MARKETSnap estimates intrinsic value for The Descartes Systems Group Inc. (DSGX) using its proprietary valuation methodology, which incorporates discounted cash flow (DCF) analysis together with long-term earnings and fundamentals assumptions. By comparing intrinsic value to the current market price, long-term investors can see whether the stock screens as potentially overvalued, fairly valued, or undervalued today.
Is DSGX a buy, hold, or sell for long-term investors?
MARKETSnap does not give one-word “buy” or “sell” calls. Instead, it shows whether DSGX trades at a premium or discount to its estimated intrinsic value, how sensitive that value is to growth and margin assumptions, and how the stock fits into a diversified, long-term portfolio so investors can make their own buy, hold, or sell decision.
What is DSGX’s P/E ratio?
You can see DSGX’s trailing P/E (TTM) and forward P/E estimates in the Current Key Metrics and Forward P/E Ratios sections above. The P/E ratio compares the current share price to earnings per share and helps investors gauge valuation relative to earnings.
How is intrinsic value calculated for DSGX?
MARKETSnap uses its own valuation framework—not a generic spreadsheet DCF alone. Future cash flows and earnings are projected, discounted, and combined with MARKETSnap’s methodology so intrinsic value reflects fundamentals and long-term assumptions. You can run your own inputs and see the result using the Intrinsic Value Calculator above.
Is DSGX a good long-term investment?
Whether DSGX fits a long-term portfolio depends on your assumptions about growth, margins, and risk. MARKETSnap provides the metrics, intrinsic value calculator, and SWOT context so you can form your own view rather than rely on a single buy/sell rating.
DSGX
1-day price chart preview. Log in for 1W through 5Y ranges and period tabs.
Daily snapshot
-0.58
Trading Metrics:
| Open: | 74.56 | Previous Close: | 75.24 | |
| Day Low: | 73.18 | Day High: | 76.05 | |
| Year Low: | 62.56 | Year High: | 109 | |
| Price Avg 50: | 71.69 | Price Avg 200: | 82.14 | |
| Volume: | 700421 | Average Volume: | 572714 |
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Login — it's freeDSGX full analysis
Welcome to MARKETSNAP’s SWOT analysis for The Descartes Systems Group, also known by its ticker DSGX. If you’re not familiar with this player, let me give you the quick rundown. The Descartes Systems Group is a tech company in the logistics and supply chain management space, operating within the software and technology services industry under the broader technology sector. Headquartered in Canada, they provide cloud-based solutions that help businesses optimize their logistics, transportation, and global trade operations. Think of them…
