Is the business good?
How good a business is DSGX?
The Descartes Systems Group Inc. earns 11% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
11%
Return on invested capital · cost of capital 9.0% · 2.5 points above what the capital costs: growth creates value
- Operating margin
- 28%
Operating margin · Software - Application median 8.2% · 12 months to Q2 2026
- Cash conversion
- 1.46×
Cash conversion · 1.79× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- +0.93%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2021 | 20% |
| FY2022 | 24% |
| FY2023 | 27% |
| FY2024 | 25% |
| FY2025 | 28% |
| FY2026 | 29% |
Details›
- Gross margin12 months to Q2 2026
- 76%
- Operating margin12 months to Q2 2026
- 28%
- Net margin12 months to Q2 2026
- 22%
- Free cash flow margin
- 31%
- R&D as % of revenue
- 15%
- Revenue, trailing twelve months
- $663M
- Free cash flow, trailing twelve months
- $209M
- Net income, trailing twelve months
- $144M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 11%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Software - Application
Ranks #28 of 90 by Smart Score