Added to YB: 2026-08-11
Pitch date: 2026-08-07
DSGX [neutral]
The Descartes Systems Group Inc.
+0.78%
current return
Author Info
No bio for this author
Company Info
The Descartes Systems Group Inc. provides global logistics technology solutions in the United States, Europe, the Middle East, Africa, Canada, and the Asia Pacific.
Market Cap
CAD 6.8B
Pitch Price
CAD 79.38
Price Target
N/A
Dividend
N/A
EV/EBITDA
19.92
P/E
39.65
EV/Sales
8.56
Sector
Software
Category
growth
The Descartes Systems Group Inc. (NASDAQ: DSGX; TSX: DSG)
DSGX (deep dive): Logistics network utility via Global Logistics Network (24B+ msgs/yr, 30K customers, 300K+ parties). 93% recurring rev, 77-78% GM, 45-46% adj EBITDA margin, debt-free. FY26: $260.5M FCF (18.6% CAGR), 28.1% record op margin. ROIC ~12% vs 6.6% WACC. Programmatic M&A at mid-teens EBITDA vs own ~30-38x EV/EBITDA. Moat via network effects/switching costs. Risks: trade volume volatility, premium valuation, LatAm/integration exposure. New 10% NCIB buyback.
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