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 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?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
The Descartes Systems Group, Inc.
-18.78%
0.19
29.48%
S&P/TSX 60
19.1%
1.54
14.62%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
16.20%
EBIT Growth (5y)
28.78%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.12
Sales to Capital Employed (avg)
0.45
Tax Ratio
25.08%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
80.90%
ROCE (avg)
13.80%
ROE (avg)
9.15%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
55
Industry P/E
Price to Book Value
5.60
EV to EBIT
42.09
EV to EBITDA
29.46
EV to Capital Employed
6.47
EV to Sales
11.82
PEG Ratio
5.26
Dividend Yield
NA
ROCE (Latest)
15.37%
ROE (Latest)
10.23%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
ROCE(HY)
Highest at 10.79%
INVENTORY TURNOVER RATIO(HY)
Highest at 1,004.54%
NET SALES(Q)
Highest at CAD 239.78 MM
INTEREST COVERAGE RATIO(Q)
Highest at 27,504.66
DEBTORS TURNOVER RATIO(HY)
Highest at 9.54%
OPERATING PROFIT(Q)
Highest at CAD 92.24 MM
-1What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at -11.6 %
Here's what is working for The Descartes Systems Group, Inc.
Net Sales
Highest at CAD 239.78 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 27,504.66
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Inventory Turnover Ratio
Highest at 1,004.54% 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
Highest at CAD 92.24 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (CAD MM)
Debtors Turnover Ratio
Highest at 9.54%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for The Descartes Systems Group, Inc.
Debt-Equity Ratio
Highest at -11.6 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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