The Descartes Systems Group (DSGX) Fundamental Analysis: Revenue, Earnings & Valuation

7.28 / 10

Outperform

DSGX demonstrates good fundamental strength (7.3/10). Key positives include strong revenue-multiple and cash-multiple scores, healthy asset turnover, and a solid 12.3% return on total assets. However, a high PB-ROE difference of 3.0835 places it in a less favorable quartile, tempering the overall outlook. These factors collectively support an 'Outperform' fundamental rating with a quality score of 1/3 for PB-ROE and 3 for asset-multiple, indicating room for improvement in valuation metrics.

Analysis Checks(9/10)

Revenue-MV

Value0.16

Score2/3

Weight8.74%

1M Return7.23%

Days sales outstanding

Value37.23

Score2/3

Weight2.11%

1M Return1.73%

Profit-MV

Value-0.22

Score3/3

Weight9.33%

1M Return7.59%

Net income-Revenue

Value0.53

Score2/3

Weight3.60%

1M Return3.05%

PB-ROE

Value3.08

Score1/3

Weight0.05%

1M Return0.04%

Rate of return on total assets (%)

Value12.34

Score3/3

Weight5.10%

1M Return3.53%

Annualized return on total assets (%)

Value12.34

Score3/3

Weight5.10%

1M Return3.53%

Asset-MV

Value-0.50

Score3/3

Weight55.49%

1M Return27.51%

Inventory turnover days

Value300.47

Score3/3

Weight1.78%

1M Return1.44%

Cash-MV

Value0.07

Score3/3

Weight8.70%

1M Return6.31%

Is DSGX fundamentally strong?

DSGX scores 7.28/10 on fundamentals and holds a Discounted valuation at present. Backed by its 8.05% ROE, 22.10% net margin, 36.92 P/E ratio, 3.70 P/B ratio, and 13.04% earnings growth, these metrics solidify its Outperform investment rating.