DSGX
The Descartes Systems Group Inc.
DSGX's fundamentals are strong and it looks cheap: trading at 43x earnings, below its usual 68x. Analysts expect earnings growth.
DSGX Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Strong | |
| Strong | |
| Strong |
DSGX's revenue, profitability, cash flow and balance sheet are all currently healthy.
DSGX PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Forward | 37x | $95.47 | — |
| Current | 43x | $95.47 | — |
| Cheap | 56x | $123 | +29% |
| Fair | 68x | $150 | +57% |
| Expensive | 110x | $242 | +154% |
Historical ranges are pointers, not guarantees.
DSGX's PE is in its cheap range at 43x. If earnings grow as analysts expect, today's price would be 37x next year's earnings.
DSGX Forward outlook
| Metric | Outlook |
|---|---|
| Improving | |
| Growth | |
| Growth | |
| Improving | |
| Limited | |
| High |
Analysts expect earnings and revenue growth for DSGX, with profitability improving.
DSGX Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $2.58 | +17% |
| Q3 2026 | $2.20 | +30% |
| Q2 2026 | $2.06 | +24% |
| Q1 2026 | $1.91 | +16% |
| Q4 2025 | $1.77 | +11% |
| Q3 2025 | $1.69 | +15% |
| Q2 2025 | $1.66 | +19% |
| Q1 2025 | $1.65 | +24% |
| Q4 2024 | $1.59 | +21% |
DSGX's earnings per share have climbed steadily: $2.20 over the past year, up 30% from the year before, and higher year over year every quarter since late 2020.
DSGX Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $201.1M | +12% |
| Q2 2026 | $193.6M | +15% |
| Q1 2026 | $194.6M | +16% |
| Q4 2025 | $185.8M | +10% |
| Q3 2025 | $179.8M | +10% |
| Q2 2025 | $168.7M | +11% |
| Q1 2025 | $167.5M | +13% |
| Q4 2024 | $168.8M | +17% |
DSGX's revenue has grown year over year every quarter since late 2020: $201M last quarter, up 12% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 33% | +6.4 points |
| Q2 2026 | 33% | +5.5 points |
| Q1 2026 | 33% | +5 points |
| Q4 2025 | 33% | +6 points |
| Q3 2025 | 27% | -1.3 points |
| Q2 2025 | 27% | -0.6 points |
| Q1 2025 | 28% | +3.1 points |
| Q4 2024 | 27% | +4.7 points |
DSGX's operating margin was 33% last quarter, up 6.4 points from the same quarter a year ago, near the top of its range since 2019.
DSGX Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $78.9M | +27% |
| Q2 2026 | $73.2M | +41% |
| Q1 2026 | $75.9M | +30% |
| Q4 2025 | $71.5M | +22% |
| Q3 2025 | $62.1M | +88% |
| Q2 2025 | $51.7M | -15% |
| Q1 2025 | $58.6M | +16% |
| Q4 2024 | $58.8M | +7.8% |
DSGX's free cash flow has been positive every quarter for seven years: $300M over the past year, up 29% from the year before.
DSGX Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | -0.4% | -334K shares |
| 1 year | -0.6% | -530K shares |
| 3 years | +0.3% | +277K shares |
| 5 years | +1.1% | +932K shares |
| Available history | +2% | +1.7M shares |
DSGX has 87M diluted shares, down 0.6% from a year ago.
| Quarter | Spent |
|---|---|
| Q3 2026 | $24.2M |
| Q2 2026 | $21M |
| Q1 2026 | $911,573 |
| Q4 2025 | — |
| Q3 2025 | — |
| Q2 2025 | — |
| Q1 2025 | — |
| Q4 2024 | — |
DSGX spent $46M buying back its own shares over the past year, after none the year before.
DSGX Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | -1.2x | Net Cash |
| Q2 2026 | -1.2x | Net Cash |
| Q1 2026 | -1.1x | Net Cash |
| Q4 2025 | -0.9x | Net Cash |
| Q3 2025 | -0.9x | Net Cash |
| Q2 2025 | -0.6x | Net Cash |
| Q1 2025 | -0.9x | Net Cash |
| Q4 2024 | -0.7x | Net Cash |
DSGX has more cash than debt.
DSGX Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 66.7 | Neutral |
| Stochastic | 89.2 | Overbought |
DSGX's weekly RSI is 67 (neutral) and its Stochastic is 89 (overbought).
DSGX PE vs Technology Sector
| Metric | DSGX | Sector median | Relative |
|---|---|---|---|
| PE | 43x | 28x | 56% above |
| PE % | 11 | 35 | 24 pts below |
DSGX is trading at 43x earnings, a 56% premium to the Technology sector's median of 28x.
DSGX Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $87.8 | 8.7% above |
| 20 week MA | $80.7 | 18% above |
| 50 week MA | $77.5 | 23% above |
| 100 week MA | $90.4 | 5.6% above |
| 200 week MA | $88.9 | 7.5% above |
DSGX is in an uptrend: it's above all five of its weekly moving averages, and 7.5% above its 200-week average.
DSGX Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $42.7 | $59.7 | +40% |
| 2021 | $59.7 | $80.9 | +36% |
| 2022 | $80.9 | $68.5 | -15% |
| 2023 | $68.5 | $84.1 | +23% |
| 2024 | $84.1 | $114.0 | +36% |
| 2025 | $114.0 | $89.4 | -22% |
| 2026 YTD | $89.4 | $95.5 | +6.7% |
DSGX has finished higher in four of the last six years. It's up 6.7% so far in 2026.