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 7 consecutive quarters
- ROCE(HY) Highest at 10.79%
- INVENTORY TURNOVER RATIO(HY) Highest at 1,004.54%
- NET SALES(Q) Highest at CAD 239.78 MM
3
With ROE of 10.23%, it has a very expensive valuation with a 5.78 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 -2.73%, its profits have risen by 10.6% ; the PEG ratio of the company is 5.4
4
High Institutional Holdings at 80.9%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
5
Underperformed the market in the last 1 year
- Even though the market (S&P/TSX 60) has generated returns of 22.54% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -2.73% returns
Real-Time Research ReportHow much should you buy?
- 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?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
The Descartes Systems Group, Inc.
-29.74%
0.19
29.48%
S&P/TSX 60
23.72%
1.54
14.62%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
16.83%
EBIT Growth (5y)
27.94%
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
84.75%
ROCE (avg)
13.80%
ROE (avg)
9.15%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
34
Industry P/E
Price to Book Value
3.82
EV to EBIT
24.69
EV to EBITDA
17.90
EV to Capital Employed
4.61
EV to Sales
7.78
PEG Ratio
1.33
Dividend Yield
NA
ROCE (Latest)
18.66%
ROE (Latest)
11.35%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend17What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CAD 351.11 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 2,346.6 times
NET SALES(Q)
Highest at CAD 260.44 MM
INTEREST COVERAGE RATIO(Q)
Highest at 34,584.02
OPERATING PROFIT(Q)
Highest at CAD 117.1 MM
RAW MATERIAL COST(Y)
Fallen by -3.63% (YoY
CASH AND EQV(HY)
Highest at CAD 723.31 MM
OPERATING PROFIT MARGIN(Q)
Highest at 44.96 %
PRE-TAX PROFIT(Q)
Highest at CAD 88.76 MM
NET PROFIT(Q)
Highest at CAD 66.79 MM
EPS(Q)
Highest at CAD 0.7
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 351.11 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CAD MM)
Net Sales
Highest at CAD 260.44 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (CAD MM)
Interest Coverage Ratio
Highest at 34,584.02
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit
Highest at CAD 117.1 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (CAD MM)
Inventory Turnover Ratio
Highest at 2,346.6 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Operating Profit Margin
Highest at 44.96 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at CAD 88.76 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CAD MM)
Net Profit
Highest at CAD 66.79 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CAD MM)
EPS
Highest at CAD 0.7
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CAD)
Cash and Eqv
Highest at CAD 723.31 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -3.63% (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
Depreciation
Highest at CAD 30.77 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (CAD MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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