Recent News
On August 4, 2025 Descartes acquired Finale Inventory for $40.0 million upfront plus up to $15.0 million in performance-based consideration.
On August 6, 2025 Descartes released Descartes Visual Compliance™ AI Assist to reduce false positives in denied party screening and streamline trade-compliance workflows.
On July 31, 2025 Brazil’s Grupo Petrópolis implemented Descartes’ routing and fleet management solution across ~2,900 vehicles, reporting a 98% on-time delivery rate, a 9% reduction in overtime and a 5% decrease in fuel consumption.
On August 14, 2025 ARC Advisory Group recognized Descartes as a top provider for cloud-based TMS and fleet management in its Transportation Management Systems global report.
Technical Analysis
ADX at 24.66 indicates an emerging trend strength that gives weight to recent directional signals tied to product and M&A-driven headlines; the reading suggests the market now tracks a developing directional setup rather than a flat market.
DI+ shows a dip-and-reversal (bullish) while DI- shows increasing pressure (bearish); those opposing DI signals imply an active contest between buyers and sellers that could resolve as market digestion of the acquisitions and product releases unfolds.
MACD registers -2.15 with a dip-and-reversal trend while the signal line sits at -1.41; MACD remains negative and below its signal line, so bullish momentum exists but lacks confirmation until a cross above the signal line occurs.
MRO reads -29.08 (negative), indicating the current price lies below the modeled target and implying upward potential pressure given the magnitude of the oscillator.
RSI at 44.08 and decreasing signals recent selling momentum; the reading leaves room for upside if momentum indicators reverse after integration updates or positive adoption announcements.
Price at $94.69 trades below the 20-day ($97.09), 50-day ($100.92) and 200-day ($106.19) averages, sits near the lower Bollinger band ($92.75 lower 1x stddev), and remains below the Ichimoku lines (Tenkan $97.72, Kijun $100.00, Senkou A $101.97, Senkou B $102.91), so technical structure currently favors downside resistance levels until momentum shifts.
Volume at 413,963 trails the 10-day average (519,786) and the 50-day average (492,687), suggesting limited participation during the recent consolidation that followed the company’s product and acquisition announcements.
Fundamental Analysis
Revenue growth year-over-year fell by 17.74%, while revenue growth quarter-over-quarter increased by 767.11%, reflecting a strong sequential bounce versus an annual decline; those contrasts require close monitoring of recurring revenue mix and seasonality.
Gross margin stands at 76.87% and operating margin at 29.64%; EBIT margin registers 27.66%, all well above the industry peer mean (gross margin mean 76.26%, operating margin mean 9.26%, EBIT margin mean 11.78%), which signals superior margin conversion relative to peers.
EPS came in at $0.48 versus an estimate of $0.52, producing an EPS surprise of -7.69%.
Free cash flow totaled $62,096,000 with free cash flow yield of 0.70%, up 27.13% QoQ and 77.98% YoY, while operating cash flow reached $63,336,000 and cash on hand totaled $240,632,000; those cash metrics support financing inorganic investments and product development.
Total debt equals $7,974,000 and debt-to-assets measures 0.45%, well below the industry peer mean of 18.57% and the industry peer range, indicating a minimal leverage profile versus peers.
Return on equity sits at 2.54% and return on assets at 2.19%, both modest but above the industry peer mean for return on assets (1.10%) and roughly in line with industry peer mean for return on equity (2.06%).
Valuation context: price multiples remain elevated—P/E about 213.81 and P/S about 49.11—while P/B at 5.89 sits below the industry peer mean P/B of 9.54. WMDST values the stock as under-valued based on the current blend of cash generation, margin profile and capital-light balance sheet.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-07-31 |
| REPORT DATE: | 2025-09-03 |
| NEXT REPORT DATE: | 2025-12-02 |
| CASH FLOW | Begin Period Cash Flow | $ 176.4 M |
| Operating Cash Flow | $ 63.3 M | |
| Capital Expenditures | $ -1.24 M | |
| Change In Working Capital | $ -7.10 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 64.2 M | |
| End Period Cash Flow | $ 240.6 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 179.8 M | |
| Forward Revenue | $ 49.8 M | |
| COSTS | ||
| Cost Of Revenue | $ 41.6 M | |
| Depreciation | $ 1.5 M | |
| Depreciation and Amortization | $ 22.0 M | |
| Research and Development | $ 26.8 M | |
| Total Operating Expenses | $ 126.5 M | |
| PROFITABILITY | ||
| Gross Profit | $ 138.2 M | |
| EBITDA | $ 71.7 M | |
| EBIT | $ 49.7 M | |
| Operating Income | $ 53.3 M | |
| Interest Income | — | |
| Interest Expense | $ 243.0 K | |
| Net Interest Income | $ -243.00 K | |
| Income Before Tax | $ 49.5 M | |
| Tax Provision | $ 11.5 M | |
| Tax Rate | 23.2 % | |
| Net Income | $ 38.0 M | |
| Net Income From Continuing Operations | $ 38.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.52 | |
| EPS Actual | $ 0.48 | |
| EPS Difference | $ -0.04 | |
| EPS Surprise | -7.692 % | |
| Forward EPS | $ 0.49 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.8 B | |
| Intangible Assets | $ 1.3 B | |
| Net Tangible Assets | $ 157.4 M | |
| Total Current Assets | $ 360.7 M | |
| Cash and Short-Term Investments | $ 240.6 M | |
| Cash | $ 240.6 M | |
| Net Receivables | $ 61.3 M | |
| Inventory | — | |
| Long-Term Investments | $ 26.5 M | |
| LIABILITIES | ||
| Accounts Payable | $ 16.1 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 211.9 M | |
| Net Debt | — | |
| Total Debt | $ 8.0 M | |
| Total Liabilities | $ 256.1 M | |
| EQUITY | ||
| Total Equity | $ 1.5 B | |
| Retained Earnings | $ 438.3 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 17.45 | |
| Shares Outstanding | 85.934 M | |
| Revenue Per-Share | $ 2.09 | |
| VALUATION | Market Capitalization | $ 8.8 B |
| Enterprise Value | $ 8.6 B | |
| Enterprise Multiple | 119.858 | |
| Enterprise Multiple QoQ | -10.353 % | |
| Enterprise Multiple YoY | -0.507 % | |
| Enterprise Multiple IPRWA | high: 327.816 median: 327.816 mean: 282.528 DSGX: 119.858 low: 83.531 |
|
| EV/R | 47.818 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.171 | |
| Asset To Liability | 6.856 | |
| Debt To Capital | 0.005 | |
| Debt To Assets | 0.005 | |
| Debt To Assets QoQ | -2.155 % | |
| Debt To Assets YoY | 141.489 % | |
| Debt To Assets IPRWA | high: 0.21 mean: 0.186 median: 0.18 low: 0.044 DSGX: 0.005 |
|
| Debt To Equity | 0.005 | |
| Debt To Equity QoQ | -2.742 % | |
| Debt To Equity YoY | 136.444 % | |
| Debt To Equity IPRWA | high: 0.412 mean: 0.352 median: 0.337 low: 0.089 DSGX: 0.005 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 5.888 | |
| Price To Book QoQ | -8.637 % | |
| Price To Book YoY | -7.672 % | |
| Price To Book IPRWA | high: 10.422 median: 10.422 mean: 9.539 DSGX: 5.888 low: 3.851 |
|
| Price To Earnings (P/E) | 213.809 | |
| Price To Earnings QoQ | -19.633 % | |
| Price To Earnings YoY | -12.607 % | |
| Price To Earnings IPRWA | high: 267.193 median: 267.193 mean: 228.29 DSGX: 213.809 low: 65.681 |
|
| PE/G Ratio | 23.519 | |
| Price To Sales (P/S) | 49.112 | |
| Price To Sales QoQ | -11.433 % | |
| Price To Sales YoY | -4.054 % | |
| Price To Sales IPRWA | high: 53.621 median: 53.621 DSGX: 49.112 mean: 47.036 low: 9.87 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 214.471 | |
| Forward PE/G | 23.592 | |
| Forward P/S | 177.378 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 0.498 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.104 | |
| Asset Turnover Ratio QoQ | 3.223 % | |
| Asset Turnover Ratio YoY | -1.313 % | |
| Asset Turnover Ratio IPRWA | high: 0.186 mean: 0.112 low: 0.104 median: 0.104 DSGX: 0.104 |
|
| Receivables Turnover | 2.953 | |
| Receivables Turnover Ratio QoQ | 0.1 % | |
| Receivables Turnover Ratio YoY | 0.605 % | |
| Receivables Turnover Ratio IPRWA | high: 6.11 median: 6.11 mean: 5.02 DSGX: 2.953 low: 1.046 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 30.904 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -14.186 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | -32.082 % | |
| Cash Conversion Cycle Days IPRWA | high: 90.931 median: 44.35 mean: 19.878 DSGX: -14.186 low: -53.618 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.208 | |
| CapEx To Revenue | -0.007 | |
| CapEx To Depreciation | -0.826 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.5 B | |
| Net Invested Capital | $ 1.5 B | |
| Invested Capital | $ 1.5 B | |
| Net Tangible Assets | $ 157.4 M | |
| Net Working Capital | $ 148.8 M | |
| LIQUIDITY | ||
| Cash Ratio | 1.136 | |
| Current Ratio | 1.702 | |
| Current Ratio QoQ | 26.019 % | |
| Current Ratio YoY | -5.028 % | |
| Current Ratio IPRWA | high: 2.105 DSGX: 1.702 mean: 1.535 low: 1.36 median: 1.36 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 0.111 | |
| Cost Of Debt | 2.346 % | |
| Interest Coverage Ratio | 204.663 | |
| Interest Coverage Ratio QoQ | 0.291 % | |
| Interest Coverage Ratio YoY | 2.413 % | |
| Interest Coverage Ratio IPRWA | DSGX: 204.663 high: 11.483 mean: 8.165 median: 7.203 low: 3.212 |
|
| Operating Cash Flow Ratio | 0.246 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 45.09 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 2.698 % | |
| Revenue Growth | 6.564 % | |
| Revenue Growth QoQ | 767.107 % | |
| Revenue Growth YoY | -17.744 % | |
| Revenue Growth IPRWA | DSGX: 6.564 % high: 4.821 % mean: -37.32 % low: -50.593 % median: -50.593 % |
|
| Earnings Growth | 9.091 % | |
| Earnings Growth QoQ | -295.463 % | |
| Earnings Growth YoY | -230.3 % | |
| Earnings Growth IPRWA | DSGX: 9.091 % high: 8.333 % mean: -58.222 % low: -76.395 % median: -76.395 % |
|
| MARGINS | ||
| Gross Margin | 76.872 % | |
| Gross Margin QoQ | 0.559 % | |
| Gross Margin YoY | 2.238 % | |
| Gross Margin IPRWA | DSGX: 76.872 % high: 76.664 % median: 76.664 % mean: 76.262 % low: 68.196 % |
|
| EBIT Margin | 27.658 % | |
| EBIT Margin QoQ | -3.094 % | |
| EBIT Margin YoY | -6.922 % | |
| EBIT Margin IPRWA | DSGX: 27.658 % high: 14.182 % mean: 11.78 % median: 11.094 % low: 7.21 % |
|
| Return On Sales (ROS) | 29.643 % | |
| Return On Sales QoQ | 3.861 % | |
| Return On Sales YoY | -0.242 % | |
| Return On Sales IPRWA | DSGX: 29.643 % high: 10.605 % mean: 9.263 % median: 8.875 % low: 7.21 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 62.1 M | |
| Free Cash Flow Yield | 0.703 % | |
| Free Cash Flow Yield QoQ | 27.125 % | |
| Free Cash Flow Yield YoY | 77.975 % | |
| Free Cash Flow Yield IPRWA | high: 1.422 % DSGX: 0.703 % mean: 0.36 % low: 0.173 % median: 0.173 % |
|
| Free Cash Growth | 20.013 % | |
| Free Cash Growth QoQ | -270.222 % | |
| Free Cash Growth YoY | -142.929 % | |
| Free Cash Growth IPRWA | high: 39.667 % DSGX: 20.013 % mean: -61.101 % low: -91.835 % median: -91.835 % |
|
| Free Cash To Net Income | 1.633 | |
| Cash Flow Margin | 28.981 % | |
| Cash Flow To Earnings | 1.371 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 2.194 % | |
| Return On Assets QoQ | 1.621 % | |
| Return On Assets YoY | -1.658 % | |
| Return On Assets IPRWA | DSGX: 2.194 % high: 1.296 % mean: 1.097 % low: 1.036 % median: 1.036 % |
|
| Return On Capital Employed (ROCE) | 3.221 % | |
| Return On Equity (ROE) | 0.025 | |
| Return On Equity QoQ | 1.563 % | |
| Return On Equity YoY | -4.123 % | |
| Return On Equity IPRWA | DSGX: 0.025 high: 0.025 mean: 0.021 low: 0.019 median: 0.019 |
|
| DuPont ROE | 2.576 % | |
| Return On Invested Capital (ROIC) | 2.547 % | |
| Return On Invested Capital QoQ | 1.555 % | |
| Return On Invested Capital YoY | -118.241 % | |
| Return On Invested Capital IPRWA | DSGX: 2.547 % high: 2.222 % mean: 1.487 % low: 1.307 % median: 1.307 % |
|