Descartes Systems Group Stock Buy Hold or Sell Recommendation
| DSG Stock | CAD 159.21 1.46 0.91% |
Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding Descartes Systems Group is 'Strong Hold'. The recommendation algorithm takes into account all of Descartes Systems' available fundamental, technical, and predictive indicators you will find on this site.
Check out Descartes Systems Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. In addition, we conduct extensive research on individual companies such as Descartes and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Descartes Systems Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
Descartes |
Execute Descartes Systems Buy or Sell Advice
The Descartes recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Descartes Systems Group. Macroaxis does not own or have any residual interests in Descartes Systems Group or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Descartes Systems' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Descartes Systems Trading Alerts and Improvement Suggestions
| Descartes Systems generated a negative expected return over the last 90 days | |
| Descartes Systems is unlikely to experience financial distress in the next 2 years | |
| Descartes Systems Group has accumulated 6.98 M in total debt with debt to equity ratio (D/E) of 46.1, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Descartes Systems has a current ratio of 0.92, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Descartes Systems until it has trouble settling it off, either with new capital or with free cash flow. So, Descartes Systems' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Descartes Systems sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Descartes to invest in growth at high rates of return. When we think about Descartes Systems' use of debt, we should always consider it together with cash and equity. | |
| Over 89.0% of Descartes Systems shares are held by institutions such as insurance companies | |
| Latest headline from news.google.com: Pivots Trading Plans and Risk Controls - Stock Traders Daily |
Descartes Systems Returns Distribution Density
The distribution of Descartes Systems' historical returns is an attempt to chart the uncertainty of Descartes Systems' future price movements. The chart of the probability distribution of Descartes Systems daily returns describes the distribution of returns around its average expected value. We use Descartes Systems Group price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Descartes Systems returns is essential to provide solid investment advice for Descartes Systems.
| Mean Return | 0.02 | Value At Risk | -2.36 | Potential Upside | 2.05 | Standard Deviation | 1.44 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Descartes Systems historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Descartes Systems Cash Flow Accounts
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 (projected) | ||
| Change In Cash | 89.3M | 79.8M | 62.9M | 44.6M | 51.3M | 53.8M | |
| Free Cash Flow | 127.5M | 171.3M | 186.3M | 202.1M | 232.4M | 244.1M | |
| Depreciation | 61.7M | 64.2M | 65.4M | 66.0M | 75.9M | 79.7M | |
| Capital Expenditures | 3.8M | 4.8M | 6.1M | 5.6M | 5.0M | 3.3M | |
| Net Income | 52.1M | 86.3M | 102.2M | 115.9M | 133.3M | 140.0M | |
| End Period Cash Flow | 133.7M | 213.4M | 276.4M | 321.0M | 369.1M | 387.5M | |
| Other Non Cash Items | 207K | 308K | 53K | 114K | 102.6K | 97.5K | |
| Change To Inventory | (345K) | 99K | (498K) | 103K | 118.5K | 124.4K | |
| Investments | (52.2M) | (95.1M) | (121.6M) | (148.3M) | (133.4M) | (126.8M) | |
| Net Borrowings | (10.2M) | (25.6M) | (597K) | (1.1M) | (961.2K) | (913.1K) | |
| Change To Netincome | 11.0M | 21.0M | 12.8M | 17.0M | 19.5M | 20.5M |
Descartes Systems Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Descartes Systems or Software sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Descartes Systems' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Descartes stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.01 | |
β | Beta against Dow Jones | 0.70 | |
σ | Overall volatility | 1.48 | |
Ir | Information ratio | 0.01 |
Descartes Systems Volatility Alert
Descartes Systems Group has relatively low volatility with skewness of -0.19 and kurtosis of 0.36. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Descartes Systems' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Descartes Systems' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Descartes Systems Fundamentals Vs Peers
Comparing Descartes Systems' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Descartes Systems' direct or indirect competition across all of the common fundamentals between Descartes Systems and the related equities. This way, we can detect undervalued stocks with similar characteristics as Descartes Systems or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Descartes Systems' fundamental indicators could also be used in its relative valuation, which is a method of valuing Descartes Systems by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Descartes Systems to competition |
| Fundamentals | Descartes Systems | Peer Average |
| Return On Equity | 0.11 | -0.31 |
| Return On Asset | 0.0756 | -0.14 |
| Profit Margin | 0.22 % | (1.27) % |
| Operating Margin | 0.28 % | (5.51) % |
| Current Valuation | 13.49 B | 16.62 B |
| Shares Outstanding | 85.54 M | 571.82 M |
| Shares Owned By Insiders | 0.21 % | 10.09 % |
| Shares Owned By Institutions | 88.50 % | 39.21 % |
| Number Of Shares Shorted | 479.81 K | 4.71 M |
| Price To Earning | 118.05 X | 28.72 X |
| Price To Book | 7.03 X | 9.51 X |
| Price To Sales | 21.75 X | 11.42 X |
| Revenue | 572.93 M | 9.43 B |
| Gross Profit | 476.53 M | 27.38 B |
| EBITDA | 218.49 M | 3.9 B |
| Net Income | 115.91 M | 570.98 M |
| Cash And Equivalents | 29.55 M | 2.7 B |
| Cash Per Share | 0.38 X | 5.01 X |
| Total Debt | 6.98 M | 5.32 B |
| Debt To Equity | 46.10 % | 48.70 % |
| Current Ratio | 0.94 X | 2.16 X |
| Book Value Per Share | 15.86 X | 1.93 K |
| Cash Flow From Operations | 207.68 M | 971.22 M |
| Short Ratio | 3.79 X | 4.00 X |
| Earnings Per Share | 2.26 X | 3.12 X |
| Price To Earnings To Growth | 2.51 X | 4.89 X |
| Target Price | 127.33 | |
| Beta | 0.75 | -0.15 |
| Market Capitalization | 13.74 B | 19.03 B |
| Total Asset | 1.47 B | 29.47 B |
| Retained Earnings | 220.75 M | 9.33 B |
| Working Capital | 214.55 M | 1.48 B |
| Net Asset | 1.47 B |
Descartes Systems Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Descartes . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Accumulation Distribution | 2671.75 | |||
| Daily Balance Of Power | (0.37) | |||
| Rate Of Daily Change | 0.99 | |||
| Day Median Price | 161.13 | |||
| Day Typical Price | 160.49 | |||
| Price Action Indicator | (2.65) | |||
| Period Momentum Indicator | (1.46) | |||
| Relative Strength Index | 41.94 |
About Descartes Systems Buy or Sell Advice
When is the right time to buy or sell Descartes Systems Group? Buying financial instruments such as Descartes Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Check out Descartes Systems Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.