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Upturn AI Summary - About
Descartes Systems Group Inc(DSGX)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for DSGX
10/09/2026: DSGX (1-star) has a low Upturn Star Rating. Not recommended to BUY.
The Descartes Systems Group is a Canadian-based provider of cloud-based logistics and supply chain software. Its core strength lies in its extensive Global Logistics Network, which provides essential connectivity and visibility for transportation-intensive firms. The company has historically grown through a disciplined and consistent strategy of acquiring niche technology companies, resulting in a robust, subscription-based business model. Key risks include a high valuation multiple, heavy reliance on acquisitions to sustain growth, and potential competition from large ERP providers. The stock generally suits growth-oriented investors looking for stable, scalable software solutions in the logistics space, though it may not appeal to those seeking dividends.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Strong fit | The company delivers consistent, scalable growth through a proven M&A and subscription business model. |
| Momentum investor | Strong fit while signal remains positive | The stock often exhibits steady price appreciation trending with sector growth and expansion. |
| Value investor | Weak fit | The company's premium valuation multiple often reflects high growth expectations, which may deter value seekers. |
| Dividend investor | Weak fit | Descartes does not pay a dividend, focusing entirely on reinvestment for capital growth. |
| Low-risk investor | Mixed fit | While the business quality is high, the stock price can be volatile and sensitive to market multiples. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium / high | Growth-oriented tech stocks like DSGX can experience significant price swings based on market sentiment. |
| Valuation risk | Medium / high | High P/E ratios require consistent execution to avoid valuation compression. |
| Competition risk (Enterprise software) | Medium | Large incumbents like SAP and Oracle constantly innovate, posing a threat to specialized niches. |
| Business quality | Strong | The company features high margins and recurring revenue, reflecting a robust business franchise. |
| Dividend income | Low / none | Income-focused investors will not find dividend yield here. |
| Execution risk | Medium | Continued success depends on the ability to integrate acquisitions efficiently. |
Price Behavior
Steady Uptrend
The stock demonstrates consistent and steady upward price momentum.
Moderately Choppy
The stock has experienced noticeable price swings while retaining some directional structure.
Analysis of Past Performance
Type Stock | Historic Profit -29.27% | Avg. Invested days 33 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Advisory Rating  | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 10/09/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 7.09B USD | Price to earnings Ratio 38.52 | 1Y Target Price 102 |
Price to earnings Ratio 38.52 | 1Y Target Price 102 | ||
Volume (30-day avg) 715.3K shares | Beta 0.2 | 52 Weeks Range 62.55 - 98.35 | Updated Date 10/11/2026 |
52 Weeks Range 62.55 - 98.35 | Updated Date 10/11/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) 2.15 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Subscription Revenues | Recurring fees from cloud-based logistics and trade compliance software. | This is the primary, predictable engine of the company's income. |
| Professional Services | Consulting and implementation support for customers. | Service revenue helps onboard customers but is less scalable than software subscriptions. |
| Geography: North America | Operations and clients primarily in the US and Canada. | The company has a significant reliance on the North American logistics market. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Valuation
Trailing PE 38.52 | Forward PE 29.59 | Enterprise Value 6.49B | Price to Sales(TTM) 9.14 |
Enterprise Value 6.49B | Price to Sales(TTM) 9.14 | ||
Enterprise Value to Revenue 8.28 | Enterprise Value to EBITDA 19.02 | Shares Outstanding 85.55M | Shares Floating 85.24M |
Shares Outstanding 85.55M | Shares Floating 85.24M | ||
Percent Insiders 0.06 | Percent Institutions 92.52 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
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