Descartes Systems Group Stock Fundamentals
| DSGX Stock | USD 94.24 0.26 0.28% |
Descartes Systems Group fundamentals help investors to digest information that contributes to Descartes Systems' financial success or failures. It also enables traders to predict the movement of Descartes Stock. The fundamental analysis module provides a way to measure Descartes Systems' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Descartes Systems stock.
At this time, Descartes Systems' Income Before Tax is fairly stable compared to the past year. Net Income is likely to rise to about 121.7 M in 2024, whereas Total Operating Expenses is likely to drop slightly above 105.9 M in 2024. Descartes | Select Account or Indicator |
Descartes Systems Group Company Operating Margin Analysis
Descartes Systems' Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Current Descartes Systems Operating Margin | 0.30 % |
Most of Descartes Systems' fundamental indicators, such as Operating Margin, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Descartes Systems Group is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
| Competition |
Descartes Pretax Profit Margin
Pretax Profit Margin |
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Based on the recorded statements, Descartes Systems Group has an Operating Margin of 0.3012%. This is 103.41% lower than that of the Software sector and significantly higher than that of the Information Technology industry. The operating margin for all United States stocks is 105.47% lower than that of the firm.
Descartes Systems Fundamental Drivers Relationships
Comparative valuation techniques use various fundamental indicators to help in determining Descartes Systems's current stock value. Our valuation model uses many indicators to compare Descartes Systems value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Descartes Systems competition to find correlations between indicators driving Descartes Systems's intrinsic value. More Info.Descartes Systems Group is rated # 5 in return on equity category among related companies. It is rated # 2 in return on asset category among related companies reporting about 0.74 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Descartes Systems Group is roughly 1.35 . At this time, Descartes Systems' Return On Equity is fairly stable compared to the past year.Comparative valuation analysis is a catch-all model that can be used if you cannot value Descartes Systems by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Descartes Systems' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Descartes Systems' earnings, one of the primary drivers of an investment's value.Descartes Operating Margin Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Descartes Systems' direct or indirect competition against its Operating Margin to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Descartes Systems could also be used in its relative valuation, which is a method of valuing Descartes Systems by comparing valuation metrics of similar companies.Descartes Systems is currently under evaluation in operating margin category among related companies.
Descartes Fundamentals
| Return On Equity | 0.0992 | ||||
| Return On Asset | 0.0737 | ||||
| Profit Margin | 0.20 % | ||||
| Operating Margin | 0.30 % | ||||
| Current Valuation | 7.71 B | ||||
| Shares Outstanding | 85.39 M | ||||
| Shares Owned By Insiders | 0.02 % | ||||
| Shares Owned By Institutions | 86.11 % | ||||
| Number Of Shares Shorted | 460.57 K | ||||
| Price To Earning | 107.05 X | ||||
| Price To Book | 6.37 X | ||||
| Price To Sales | 13.27 X | ||||
| Revenue | 575.23 M | ||||
| Gross Profit | 372.69 M | ||||
| EBITDA | 236.02 M | ||||
| Net Income | 116.37 M | ||||
| Cash And Equivalents | 189.03 M | ||||
| Cash Per Share | 2.23 X | ||||
| Total Debt | 6.94 M | ||||
| Debt To Equity | 0.01 % | ||||
| Current Ratio | 1.74 X | ||||
| Book Value Per Share | 14.53 X | ||||
| Cash Flow From Operations | 208.47 M | ||||
| Short Ratio | 3.76 X | ||||
| Earnings Per Share | 1.34 X | ||||
| Price To Earnings To Growth | 2.45 X | ||||
| Target Price | 99.24 | ||||
| Beta | 0.75 | ||||
| Market Capitalization | 8.05 B | ||||
| Total Asset | 1.47 B | ||||
| Retained Earnings | 219.41 M | ||||
| Working Capital | 214.55 M | ||||
| Current Asset | 75.42 M | ||||
| Current Liabilities | 40.04 M | ||||
| Net Asset | 1.47 B |
About Descartes Systems Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Descartes Systems Group's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Descartes Systems using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Descartes Systems Group based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.| Last Reported | Projected for Next Year | ||
| Current Deferred Revenue | 84 M | 88.2 M | |
| Total Revenue | 575.2 M | 604 M | |
| Cost Of Revenue | 199.6 M | 209.6 M | |
| Stock Based Compensation To Revenue | 0.03 | 0.03 | |
| Sales General And Administrative To Revenue | 0.1 | 0.13 | |
| Research And Ddevelopement To Revenue | 0.15 | 0.21 | |
| Capex To Revenue | (0.01) | (0.01) | |
| Revenue Per Share | 6.76 | 7.10 | |
| Ebit Per Revenue | 0.30 | 0.31 |
Descartes Systems Investors Sentiment
The influence of Descartes Systems' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Descartes. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Descartes Systems' public news can be used to forecast risks associated with an investment in Descartes. The trend in average sentiment can be used to explain how an investor holding Descartes can time the market purely based on public headlines and social activities around Descartes Systems Group. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Descartes Systems' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Descartes Systems' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Descartes Systems' news discussions. The higher the estimated score, the more favorable is the investor's outlook on Descartes Systems.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Descartes Systems in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Descartes Systems' short interest history, or implied volatility extrapolated from Descartes Systems options trading.
Pair Trading with Descartes Systems
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Descartes Systems position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Descartes Systems will appreciate offsetting losses from the drop in the long position's value.Moving together with Descartes Stock
| 0.61 | DJCO | Daily Journal Corp | PairCorr |
Moving against Descartes Stock
| 0.66 | VCSA | Vacasa Inc Financial Report 14th of May 2024 | PairCorr |
| 0.62 | DOMO | Domo Inc Financial Report 23rd of May 2024 | PairCorr |
| 0.58 | DV | DoubleVerify Holdings Financial Report 8th of May 2024 | PairCorr |
| 0.57 | U | Unity Software Financial Report 8th of May 2024 | PairCorr |
| 0.56 | EB | Eventbrite Class A Financial Report 14th of May 2024 | PairCorr |
The ability to find closely correlated positions to Descartes Systems could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Descartes Systems when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Descartes Systems - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Descartes Systems Group to buy it.
The correlation of Descartes Systems is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Descartes Systems moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Descartes Systems moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Descartes Systems can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Descartes Systems Piotroski F Score and Descartes Systems Altman Z Score analysis. Note that the Descartes Systems information on this page should be used as a complementary analysis to other Descartes Systems' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Complementary Tools for Descartes Stock analysis
When running Descartes Systems' price analysis, check to measure Descartes Systems' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Descartes Systems is operating at the current time. Most of Descartes Systems' value examination focuses on studying past and present price action to predict the probability of Descartes Systems' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Descartes Systems' price. Additionally, you may evaluate how the addition of Descartes Systems to your portfolios can decrease your overall portfolio volatility.
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Is Descartes Systems' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Descartes Systems. If investors know Descartes will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Descartes Systems listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.088 | Earnings Share 1.34 | Revenue Per Share 6.735 | Quarterly Revenue Growth 0.184 | Return On Assets 0.0737 |
The market value of Descartes Systems is measured differently than its book value, which is the value of Descartes that is recorded on the company's balance sheet. Investors also form their own opinion of Descartes Systems' value that differs from its market value or its book value, called intrinsic value, which is Descartes Systems' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Descartes Systems' market value can be influenced by many factors that don't directly affect Descartes Systems' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Descartes Systems' value and its price as these two are different measures arrived at by different means. Investors typically determine if Descartes Systems is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Descartes Systems' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.