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DSGX

💻 Technology

The Descartes Systems Group Inc

Conservative #156Aggressive #291Moderate RiskHigh 89
$64.66+1.70%
Day High$64.88
Day Low$63.60
Volume1.3M
Mkt Cap$5.6B
52W Low $6352W High $117
Market Cap
$5.7B
P/E Ratio
36.9
Sector avg: 87.8
Rev Growth
13.6%
Sector avg: 14.8%
Earnings Growth
23.6%
Profit Margin
22.0%
Sector avg: -110.0%
Debt/Equity
0.01

Why This Score

DSGX scores 66.6 on the Conservative profile, blending a fundamental score (80% weight, emphasizing quality and stability (84% of fundamental weight)) with a machine-learning signal (20% weight) trained on 82 features across 30 years of data.

Strengths
  • High net margin of 22.0%, indicating pricing power and operational efficiency.
  • Minimal leverage (D/E 0.01) provides financial flexibility and downside protection.
  • High conviction (89/100) — fundamental and ML signals agree on this stock.

No material penalties applied. DSGX ranks #156 based on its factor profile and ML signal alignment.

Score Breakdown

Overall Score66.6
Fundamental Score59.3
ML Score80.0

Score by Horizon

3 Month
73.2
6 Month
81.8
Primary
1 Year
86.1

Quality Assessment

A
Earnings Grade
Strong fundamentals, high earnings quality

Position Sizing

Suggested Allocation
5%
Confidence
high

Score Composition Waterfall

How each component affects the final score
Backtested Scoring Levers (IC-calibrated from 30y ElasticNet)
Weinstein (12.1%)
0
Declining
Sentiment (2.5%)
59
Neutral
Analyst (6.4%)
71
Favorable
Tradability (post-hoc)
87
Grade A
Base
63.5
SHAP
+1.6
Factors
+1.0
Conviction
+1.5
Divergence
-0.9
Final
66.6
Positive adjustment
Negative adjustment
Base blend
Final score

Factor Breakdown

72AVG
Value55
Quality85
Growth75
Stability90
Investment55

Signal SegmentsComputed from ML features

Fundamental (Valuation, Quality, Growth)65.0
Technical (Momentum, Weinstein, Volatility)34.0
External (Sentiment, Analyst, Macro)82.0
Scores below 50 indicate weakness in that segment relative to the universe.

Data Quality

Score
Features
Confidence
Feature Coverage96%

Growth Estimates

Short-term
+1.7% to +6.3%
Medium-term
+3.2% to +10.2%
Long-term
+4.7% to +14.2%

ML Model Core Features100 trained inputs → ML Score: 80

These features are direct inputs to the machine learning model. The model was trained on these signals alongside 100 features (including 12 momentum/technical indicators) to produce the ML percentile score.

Analyst Intelligence
Consensus Score71.2/100
Target Upside+74.8%
Coverage13 analysts
Market Sentiment
Sentiment Score58.5/100
News Volume1 articles
Technical Stage
Weinstein Stage4 — Declining
12M Momentum-0.4%
6M Momentum-0.3%
Volatility+0.1%
Momentum & Technical
Momentum Acceleration-6.8%
Momentum ConsistencyStrong (0.83)
Relative Strength vs Sector-44.6%
Trend Strength (ADX Proxy)Strong (5.0)
Momentum Quality-0.233
Momentum BreadthNarrow
Macro Regime
Bull RegimeYes
High Vol RegimeNo
S&P 500 Return+25.0%
Yield Curve-0.1bp

Sector-Relative AnalysisIn-model features

Value Trap Signal
7%
Low risk
Sector RevGr Rank
P59
Revenue growth vs Technology peers
Sector PE Rank
P34
Valuation vs Technology peers
Sector FCF Rank
P49
Free cash flow vs Technology peers
Growth Deviation
+0.1σ
Z-score vs sector median
Stagnation Flag
NO
Not flagged

Analysis Signals

Scoring Factors
Fundamental score of 77 relative to sector peers77/100
Machine learning model ranks this stock at the 87th percentileP87
ML model weight reduced to 9% due to macro conditions: market in extended rally phase; yield curve inverted (recession indicator); late-cycle economic indicators detected9% ML weight
SHAP feature alignment: +2.4pt (features align with model priorities)
Blend: 91% fund (76.8) + 9% ML (87.1) + SHAP(+2.4) = 80.2
Factor quality: +1.5pt (multi-factor composite)
Risk assessment: moderate. Annualized volatility 7.8%. Max drawdown 43% (-12.0 pts). Price momentum -41% (-7.2 pts)Moderate
Market cap adjustment: +0.5 points ($5.7B market cap)+0.5 pts
Conviction bonus: +2.3pt (conviction=89)
Risk Factors

No risk factors identified.

Sector Peer Comparison(Technology — Rank #38 of 289 stocks)

StockScoreP/ERev GrowthMarginMkt Cap
DSGX66.636.913.6%22.0%$5.7B
MPWR84.891.721.2%81.0%$57.1B
ZM84.218.03.1%21.7%$27.7B
NVDA80.645.2114.2%55.8%$4.5T
CRUS79.719.16.0%17.5%$7.4B
ASML77.848.115.6%29.4%$546.0B
IDCC77.431.8-4.0%48.8%$9.7B
CSCO77.127.65.3%18.0%$303.6B
RMBS75.548.320.7%32.3%$11.0B
DBX75.313.91.9%17.7%$6.4B
FSLR75.017.326.7%30.7%$24.2B
SIMO74.79.210.2%13.8%$4.5B
ADI74.374.116.9%20.6%$165.1B
AAPL72.533.16.4%27.0%$3.9T
OLED72.527.012.4%34.3%$5.9B
AMAT72.336.44.4%24.7%$281.7B
Sector Average47.487.814.8%-110.0%

Company Overviewvia FMP

The Descartes Systems Group Inc. provides cloud-based logistics and supply chain management business process solutions that focuses on enhancing the productivity, performance, and security of logistics-intensive businesses worldwide. Its Logistics Technology platform offers a range of modular, cloud-based, and interoperable web and wireless logistics management applications, which unites a community of logistics-focused parties, allowing them to transact business. The company provides a suite of solutions that include routing, mobile and telematics; transportation management and e-commerce enablement; customs and regulatory compliance; trade data; global logistics network services; and broker and forwarder enterprise systems. It offers its customers to use its modular, software-as-a-service, and data solutions to route, schedule, track, and measure delivery resources; plan, allocate, and execute shipments; rate, audit, and pay transportation invoices; access and analyze global trade data; research and perform trade tariff and duty calculations; file customs and security documents for imports and exports; and various other logistics processes. The company also provides cloud-based ecommerce warehouse management solutions; consulting, implementation, and training services; and maintenance and support services. It primarily focuses on serving transportation providers, logistics service providers, and distribution-intensive companies, as well as manufacturers, retailers, distributors, and mobile business service providers. The company was incorporated in 1981 and is headquartered in Waterloo, Canada.

CEO
Edward J. Ryan
Employees
1,334
Beta
0.41
Industry
Software - Application
FMP-Identified Peers

Technical Picturecomputed from daily prices

RSI (14)
43.9
Neutral
Trend
Bearish
10-day vs 50-day MA
From 52W High
-44.9%
High: $117.35
From 52W Low
+3.4%
Low: $62.56
Moving Averages
10-Day
$65.20
Below
20-Day
$68.00
Below
50-Day
$79.30
Below
200-Day
$94.10
Below
60-Day Support
$62.56
60-Day Resistance
$95.41
Weinstein Stage Analysisbased on 200-day SMA framework
Stage 4 — DecliningScore: 12/100

Stock is in a downtrend below the 200-day moving average. Price is below both the 50-day and 200-day SMAs, indicating sustained selling pressure.

Unfavorable technical position; wait for Stage 1 basing
Price vs 200 SMA
-31.3%
200 SMA Slope (60d)
-7.04%
Falling
Volume Ratio
1.23x
10d avg vs 50d avg
Days in Stage
100
Confidence: 90%

Financial Statementslast 4 quarters via FMP

MetricQ3 2025Q2 2025Q1 2025Q4 2025
Revenue$186M$180M$169M$167M
Gross Profit$123M$138M$129M$128M
Operating Income$62M$48M$46M$47M
Net Income$43M$38M$36M$37M
EPS (Diluted)$0.50$0.43$0.41$0.43
Gross Margin66.3%76.9%76.4%76.4%
Operating Margin33.1%26.8%27.4%28.1%
Net Margin23.4%21.1%21.5%22.3%

Why This Stock

TechnologyRevenue growth 13.6%Profit margin 22.0%Earnings quality grade A

Tradability FilterGrade A — 87/100Score impact: -3.6pt

Volume
84
610K avg/day
Dollar Vol
92
$38M/day
Float
94
86M shares
Mkt Cap
69
$5.7B
Range
100
88% spread
Composite Liquidity Score87/100
FDCBA

Multi-Year Range Analysis

Sideways: 8/100
YearLowHighRangeStatus
2021$56.78$91.3946.7%Wide
2022$56.19$82.8738.4%Wide
2023$66.46$86.1825.8%Moderate
2024$79.21$122.8843.2%Wide
2025$78.88$124.3144.7%Wide
3-Year Range
60.6%
Narrow Years
1 / 5
Sideways Penalty
None

Growth Projection Adjustment

0.7x dampening
weinstein basing

Growth estimates have been dampened based on technical and fundamental signals. This is a post-hoc adjustment to prevent overly optimistic projections for stocks showing declining momentum or deteriorating fundamentals.

Free Float
99.6%
Outstanding Shares
86M
Bid-Ask Spread
88.0%
Institutional Tradable
Yes

Scores are generated by a multi-stage ML pipeline combining fundamental analysis, ensemble predictions, and structural risk signals. All data is for research purposes only and does not constitute financial advice. Past performance does not guarantee future results.