The Descartes Systems Group Inc. (DSGX) on Decifer

Why it ranks here

• It earns solid returns on the money it puts to work, around 11% and those returns have been improving and it turns most of its profit into real cash.
• Revenue is growing about 14% a year, profits grew 16% over the past year, and growth is speeding up, not slowing down.
• It keeps a high share of every sale as profit, with profitability widening as it grows.
• It is riding an active market tailwind and has the balance sheet to fund its growth.
• We do not have a clean read on how it is run yet.
• Our durability check found pressure on this name, which costs it a few points.

The current read

The evidence on DSGX lines up on the supportive side: a live market force supports this name through its theme connection. One signal disagrees: the longer-term story is intact, but price is not rewarding it: semiconductor stocks are down 1.0% this week, worth watching but not the weight of the evidence.

Read the full DSGX research brief · See all quality rankings

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