The Descartes Systems Group Inc.
The Descartes Systems Group Inc. is a global logistics technology company that provides cloud-based software and network solutions for supply chain management. Its platform supports routing, scheduling, shipment execution, transportation management, customs compliance, global trade data, and freight payment processes. The company also offers tools for mobile and telematics operations, e-commerce shipping, warehouse management, and broker and forwarder workflows. Descartes serves transportation providers, logistics service companies, manufacturers, retailers, distributors, and other organizations that depend on efficient movement of goods and information. By connecting trading partners through its logistics network, the company helps businesses coordinate operations across domestic and international supply chains.
$94.05
+$1.66 (+1.80%)
EOD Oct 22, 2026
30.23% operating margin is above average. ROIC at 11.01%.
Revenue grew 12.0%, still solid.
At 44x earnings, the current multiple leaves limited room for execution misses or growth deceleration.
43.9x earnings, 27.4x FCF. The market is pricing in years of above-average growth. If that thesis breaks, downside from multiple compression alone could be 30%+. This is a stock where you're paying for the future, not the present.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$775M
▲ +12.0% YoY
Net Income (TTM)
$188M
▲ +14.3% YoY
Op. Margin
31.97%
▲ +1.3pp YoY
ROIC
11.01%
▲ +0.3pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$299M
▲ +22.6% YoY
Op. Cash Flow (TTM)
$306M
▲ +10.0% YoY
Net Debt
-$348M
Net Cash Position
Cash & Equiv.
$357M
3Y CAGR: +14.5%
3Y CAGR: +11.8%
Continue Research
Is Descartes Systems Group (DSGX) overvalued?
At a P/E of 43.9 and a price-to-free-cash-flow of 27.4, Descartes Systems Group (DSGX) trades around a two-stage DCF intrinsic value of about $110.49 per share, so at $94.05 the stock looks around fair value (17.5% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Descartes Systems Group scores 77/100 on Intrinsiqq's quality scorecard (a solid business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from company filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is Descartes Systems Group's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $110.49 per share for DSGX, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $82.87. At today's $94.05, that puts the stock about 17.5% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is Descartes Systems Group a high-quality business?+
Descartes Systems Group scores 77 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a solid business on these measures. Recent fundamentals include a 32.0% operating margin and a 11.0% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from company filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Is Descartes Systems Group a good stock to buy right now?+
That depends on valuation and quality together, not either alone. DSGX currently trades around its estimated intrinsic value and scores 77/100 on quality (solid). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from company filings, not investment advice.
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Data sourced from company filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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