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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)
Advisory Performance History (Simulated)
Upturn Advisory & Investor View for DSGX
10/23/2026: DSGX (2-star) has a low Upturn Star Rating. Not recommended to BUY.
The Descartes Systems Group Inc. is a specialized software company providing cloud-based solutions that enable logistics-intensive businesses to optimize their supply chains. The company is known for its high-quality recurring subscription model, deep global trade connectivity, and a long-standing history of successful M&A integration. Its primary opportunity lies in the ongoing digitisation of global supply chains and the increasing need for real-time compliance tools. However, investors must monitor risks related to its premium valuation, dependency on continuous acquisition growth, and potential competition from larger enterprise software providers. Descartes may best suit growth-focused investors who favor consistent business models over dividend income.
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 maintains a consistent track record of organic and M&A-driven revenue growth. |
| Momentum investor | Strong fit while signal remains positive | The stock often trends upward with consistent operational performance and market leadership. |
| Value investor | Weak fit | The stock typically trades at a high P/E multiple reflecting its growth-oriented software model. |
| Dividend investor | Weak fit | Descartes does not pay a dividend, prioritizing capital allocation for growth. |
| Low-risk investor | Mixed fit | While the business model is stable, the stock's valuation and market volatility may exceed conservative thresholds. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium / high | Technology stocks often experience significant price swings based on market sentiment. |
| Valuation risk | High | High P/E multiples require sustained growth to prevent potential multiple compression. |
| Competition risk (Software/Cloud) | Medium | Intense competition from both niche players and large ERP providers exists. |
| Business quality | Strong | The company's recurring revenue and sticky customer base demonstrate strong franchise quality. |
| Dividend income | Low / none | Income-focused investors will not find yield here. |
| Execution risk | Medium | Constant integration of new acquisitions requires high management competency. |
Price Behavior

Strong Uptrend
The stock has maintained a strong upward price trend across the last three quarters.

Moderately Choppy
The stock has experienced noticeable price swings while retaining some directional structure.
Analysis of Past Performance
Type Stock | Historic Profit -20.52% | Avg. Invested days 34 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Advisory Rating ![]() | Upturn Advisory Performance | Stock Returns Performance |
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 8.04B USD | Price to earnings Ratio 43.7 | 1Y Target Price 102.62 |
Price to earnings Ratio 43.7 | 1Y Target Price 102.62 | ||
Volume (30-day avg) 593.7K shares | Beta 0.2 | 52 Weeks Range 62.55 - 97.36 | Updated Date 10/25/2026 |
52 Weeks Range 62.55 - 97.36 | Updated Date 10/25/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) 2.15 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Software as a Service (SaaS) | Subscription fees for cloud-based logistics platforms and routing software. | Most revenue comes from recurring subscription fees, providing predictable income. |
| Professional Services | Implementation, training, and consulting for software setup. | This is a smaller, supporting revenue stream for main software products. |
| Geography: North America | Primary market for sales and operations. | The company relies heavily on the North American market but has global reach. |
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 43.7 | Forward PE 29.15 | Enterprise Value 6.42B | Price to Sales(TTM) 10.37 |
Enterprise Value 6.42B | Price to Sales(TTM) 10.37 | ||
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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