DSGX
The Descartes Systems Group Inc.

The Descartes Systems Group Inc.DSGX

Technology · Software - Application
80.07USD
+1.84%
Oct 08, 2026
DSGX overview ready
Descartes operates a cloud-based logistics network and execution-software portfolio spanning customs and regulatory compliance, global trade intelligence, transport management, freight forwarding and brokerage systems, shipment messaging, routing, and last-mile operations.
Narrative is still early
Exposed to the Trade Fragmentation and Compliance Digitization narrative through Global Trade Compliance and Customs Automation — enabling supplier.
An early price trend
Longer-term context reads early recovery, with a near-term setup of daily advance.
Fair valuation
The price broadly reflects the level and quality of its cash generation, with upside and risk reasonably balanced.
Solid fundamentals
Free cash flow yield is strong.
Primary risk
Dependence on global trade volumes and economic cycles.
Market Oct 7Price action Oct 7Research Oct 3

Conviction Level

Business Quality has no canonical measurement for this company — a research-profile dimension, not an input to this score.

NarrativeHeat6.9ThemeHeat7.1PriceAction9.7Valuation6.4CompanyPosition7.3BusinessQuality—
Price
Loading price history…

Price Action

An early price trend
Longer-term context reads early recovery, with a near-term setup of daily advance.
EntryReset + recovery

The stock is still rebuilding below its long-term weekly base, and the recent reset toward the daily SMA200 aligned with support at the weekly EMA21. Daily structure is recovering above the fast averages, improving the current entry location.

Key Financials

Market Cap
$6.9B
Avg Volume (60D)
636.1K
60 sessions
Revenue Growth YoY
+13.2%
Trailing twelve months
Gross Margin
+77.6%
Operating Margin
+33.2%
Trailing twelve months
Free Cash Flow Yield
+4.4%
Distance from 200DMA
+7.3%
Next Earnings
2026-12-02
P/E
37.2x
EV / EBITDA
19.5x
EV / Sales
8.3x
Market metrics as of Oct 7, 2026

Fundamentals & Valuation

Both valuation perspectives agree this company is fair.
The Descartes Systems Group Inc. has a Fair valuation stance because the price broadly reflects the level and quality of its cash generation, with upside and risk reasonably balanced.

Company Research

Thesis
Descartes operates a cloud-based logistics network and execution-software portfolio spanning customs and regulatory compliance, global trade intelligence, transport management, freight forwarding and brokerage systems, shipment messaging, routing, and last-mile operations.
Opportunity
Moderate opportunity
Enterprise software, regulatory-content, and customs-connectivity demand driven by proliferating tariffs, trade controls, origin rules, sanctions, and filing requirements that make manual cross-border compliance operationally inadequate.
Key risk
Dependence on global trade volumes and economic cycles.

Narrative & Theme

Trade Fragmentation and Compliance Digitization
Part of Global Trade Compliance and Customs Automation, with strong fit.
DSGX has genuine direct exposure to the emerging trade-complexity software cycle rather than only broad logistics-software adjacency.
Narrative HeatNeutral6.9 / 10
Theme HeatHeating up7.1 / 10
This is the company’s own research reading. The canonical heat measurement for this story has not run.

Business & Markets

Technology · Software - Application
What they do

The Descartes Systems Group Inc. provides modular, interoperable logistics technology solutions globally, enabling customers to manage transportation, compliance, and supply chain operations through web and wireless platforms.

How it earns

The company primarily generates revenue through subscription-based software services and related logistics technology solutions.

Products & services
Routing, mobile, and telematics solutions
Transportation management systems
Ecommerce, shipping, and fulfillment software
Customs and regulatory compliance tools
Global trade intelligence
Broker and forwarder enterprise systems
B2B messaging and connectivity services
Customers & end markets
Logistics service providers
Shippers and freight forwarders
Ecommerce businesses
Customs brokers
Enterprises requiring global trade compliance
Market position

Leader in global logistics technology solutions with a broad suite of interoperable products.

Demand drivers
Medium cyclicality

Demand for logistics technology is influenced by global trade volumes and economic activity but benefits from structural growth in ecommerce and supply chain digitization.