The Descartes Systems Group Inc.DSGX
NasdaqGS•Technology•Software - Application
The Descartes Systems Group Inc. provides global logistics technology solutions in the United States, Europe, the Middle East, Africa, Canada, and the Asia Pacific. Its Logistics Technology platform offers a range of modular, interoperable web and wireless logistics management solutions. The company offers a suite of solutions that include routing, mobile, and telematics; transportation management; ecommerce, shipping, and fulfillment; customs and regulatory compliance; global trade intelligence; broker and forwarder enterprise systems; and B2B messaging and connectivity services. It also provides its customers to use its modular and technology solutions to route, track, and measure delivery resources; plan, allocate, and execute shipments; rate, audit, and pay transportation invoices; access and analyze global trade data; research and perform trade tariff and duty calculations; file customs and security documents for imports and exports; and various other logistics processes. In addition, the company offers consulting, implementation, and training services, as well as maintenance and support services. It serves transportation providers, such as air, ocean, and truck modes; logistics service providers, including third-party logistics providers, freight forwarders, and customs brokers; and distribution-intensive companies, such as retailers, manufacturers, distributors, and mobile business service providers through subscription, transactional or perpetual license basis. The Descartes Systems Group Inc. was incorporated in 1981 and is headquartered in Waterloo, Canada.
The Descartes Systems Group Inc (DSGX) reported trailing twelve months revenue of $757.13M as of April 2026, a 13.3% increase year-over-year. Quarterly revenue reached $195.25M, reflecting continued top-line momentum.
The Descartes Systems Group Inc generated $176.80M in TTM net income, with quarterly EBITDA of $83.96M. The operating margin expanded from 27.4% to 33.3%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (33.3%) and net margin (25.0%) indicates moderate non-operating costs. Net margin has improved from 21.5% a year ago, signaling stronger bottom-line efficiency.
DSGX trades at a P/E of 35.7x (a premium multiple) and a P/S of 8.3x. The price-to-book ratio of 3.9x reflects a moderate premium to book value.
The company generated $73.17M in free cash flow over the trailing twelve months, a 41.6% increase year-over-year, indicating cash generation ability. The balance sheet shows $1.92B in total assets with no in long-term debt against $1.63B in stockholders equity. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are expanding at ~29.7%, suggesting durable pricing power and cost discipline.
ROE is positive at ~10.1% on average, adequate but below the threshold typically associated with wide moats.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
TTM revenue has grown consistently (7 of 7 quarters up), with ~24.6% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~31.8% — no sign of cost or pricing stress.
FCF covers net income by 1.5x on average — earnings are well-supported by cash generation.
Limited debt-to-equity data available.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Share count is stable — no significant dilution or buyback activity.