DSGXThe Descartes Systems Group Inc.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.6×).
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Margins have held roughly steady, a stable cost structure.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
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.
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 6.4% · 12 months to Q2 2026
- Cash conversion
- 1.58×
Cash conversion · 1.89× a year ago · operating cash flow covers the operating profit after tax
- 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 is operating cash flow over operating profit after tax.
Software, Application
Ranks #16 of 96 by RyuScore