ScoreWhy is The Descartes Systems Group, Inc. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
The company has declared Positive results for the last 11 consecutive quarters
- INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
- OPERATING CASH FLOW(Y) Highest at CAD 397.53 MM
- ROCE(HY) Highest at 11.5%
3
With ROE of 12.07%, it has a fair valuation with a 3.95 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -27.94%, its profits have risen by 38.2% ; the PEG ratio of the company is 0.9
4
High Institutional Holdings at 94.54%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 9.79% over the previous quarter.
5
Below par performance in long term as well as near term
- Along with generating -27.94% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to The Descartes Systems Group, Inc. should be less than 10%
- Overall Portfolio exposure to Software Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is The Descartes Systems Group, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
The Descartes Systems Group, Inc.
-27.94%
-0.58
38.24%
S&P/TSX 60
29.6%
2.31
12.81%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
16.95%
EBIT Growth (5y)
28.00%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.12
Sales to Capital Employed (avg)
0.46
Tax Ratio
25.08%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
94.54%
ROCE (avg)
13.80%
ROE (avg)
9.15%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
33
Industry P/E
Price to Book Value
3.95
EV to EBIT
23.92
EV to EBITDA
17.84
EV to Capital Employed
4.83
EV to Sales
7.94
PEG Ratio
0.88
Dividend Yield
NA
ROCE (Latest)
20.19%
ROE (Latest)
12.07%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend11What is working for the Company
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
OPERATING CASH FLOW(Y)
Highest at CAD 397.53 MM
ROCE(HY)
Highest at 11.5%
RAW MATERIAL COST(Y)
Fallen by -5.49% (YoY
CASH AND EQV(HY)
Highest at CAD 995.89 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -22.63 %
EPS(Q)
Highest at CAD 0.76
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for The Descartes Systems Group, Inc.
Operating Cash Flow
Highest at CAD 397.53 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CAD MM)
EPS
Highest at CAD 0.76
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CAD)
Cash and Eqv
Highest at CAD 995.89 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -22.63 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -5.49% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for The Descartes Systems Group, Inc.
Non Operating Income
Highest at CAD 0.04 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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