Descartes Systems Group Inc. (The) Common Stock (DSGX)

FairStock Score: 60/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a business I understand, durable competitive advantages, and a price that leaves room for error. Descartes provides logistics and trade-compliance software. Its tools are embedded in customers' shipping, customs, and fulfillment workflows, which suggests switching costs and a modest moat. The financials are clean: as of the close on 2026-10-13, FairStock shows a P/E of 39.48, P/B of 4.41, and EV/EBITDA of 17.10 on a $6.2B market cap. Debt/equity is 0.00, Piotroski is 8/9, Altman Z is 12.62, and trailing free cash flow is $298.5M, a 4.8% FCF yield. In fiscal Q3 2026, Descartes reported revenue of $201.1M and net income of $50.0M, a 24.88% margin. Revenue growth is 11.84%, while profit growth is 31.59%, a favorable spread. ROE is 11.95% and ROCE is 8.34%, respectable but not extraordinary for a premium multiple. The Graham Number is $30.52, implying a margin of safety of -178.11%; the stock trades far above that conservative anchor. PEG is 1.25, so growth partly justifies the multiple, but not enough to make it cheap. The balance sheet is fortress-like, and low beta of 0.20 adds stability. Still, paying nearly 40 times earnings for a business earning around 8% on capital requires sustained high growth. I would want a wider discount before calling it a value investment. Quality, yes; price, demanding.

In plain English: Descartes Systems Group makes software that helps companies move goods and manage trade rules around the world. The business looks financially strong: it carries no debt, earns a profit, and produces plenty of cash. At $84.88 a share, however, the price looks expensive compared with its profits and what its assets are worth.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer