Descartes Systems Group Stock Return On Equity

DSGX Stock

USD 115.85 0.81 0.70%

Descartes Systems Group fundamentals help investors to digest information that contributes to Descartes Systems' financial success or failures. It also enables traders to predict the movement of Descartes Stock. The fundamental analysis module provides a way to measure Descartes Systems' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Descartes Systems stock.

		Last Reported	Projected for Next Year
	Return On Equity	0.08	0.09

Return On Equity is likely to rise to 0.09 in 2025.

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Descartes Systems Group Company Return On Equity Analysis

Descartes Systems' Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Return On Equity

Net Income

Total Equity

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Current Descartes Systems Return On Equity

0.1

Most of Descartes Systems' fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Descartes Systems Group is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Descartes Return On Equity Driver Correlations

Understanding the fundamental principles of building solid financial models for Descartes Systems is extremely important. It helps to project a fair market value of Descartes Stock properly, considering its historical fundamentals such as Return On Equity. Since Descartes Systems' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Descartes Systems' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Descartes Systems' interrelated accounts and indicators.

	Total Assets	Total Stockholder Equity	Net Debt	Retained Earnings	Accounts Payable	Net Receivables	Total Liab	Total Current Assets	Short Term Debt	Intangible Assets	Good Will	Short Term Investments	Common Stock	Property Plant Equipment	Long Term Debt	Current Deferred Revenue	Net Tangible Assets	Short Long Term Debt	Capital Surpluse	Deferred Long Term Liab	Long Term Debt Total	Net Invested Capital	Net Working Capital	Capital Stock
Total Assets		1.0	-0.86	0.88	0.87	0.96	0.98	0.93	-0.16	0.94	0.99	-0.63	0.96	0.67	-0.34	0.99	0.82	-0.83	0.79	0.97	-0.87	0.91	0.94	0.92
Total Stockholder Equity	1.0		-0.86	0.87	0.86	0.96	0.97	0.92	-0.18	0.95	0.99	-0.63	0.96	0.68	-0.34	0.99	0.83	-0.83	0.78	0.97	-0.87	0.92	0.93	0.93
Net Debt	-0.86	-0.86		-0.86	-0.84	-0.79	-0.84	-0.96	0.3	-0.67	-0.81	0.36	-0.78	-0.43	0.28	-0.87	-0.97	0.6	-0.65	-0.88	0.67	-0.9	-0.96	-0.82
Retained Earnings	0.88	0.87	-0.86		0.93	0.81	0.87	0.89	-0.24	0.75	0.87	-0.21	0.85	0.45	-0.03	0.92	0.81	-0.68	0.75	0.91	-0.77	0.88	0.93	0.84
Accounts Payable	0.87	0.86	-0.84	0.93		0.88	0.89	0.93	-0.28	0.72	0.84	-0.28	0.77	0.37	-0.15	0.91	0.81	-0.71	0.84	0.85	-0.66	0.84	0.92	0.78
Net Receivables	0.96	0.96	-0.79	0.81	0.88		0.95	0.9	-0.12	0.91	0.95	-0.64	0.89	0.61	-0.38	0.96	0.77	-0.83	0.82	0.9	-0.82	0.86	0.89	0.86
Total Liab	0.98	0.97	-0.84	0.87	0.89	0.95		0.93	-0.1	0.91	0.97	-0.62	0.9	0.61	-0.33	0.98	0.79	-0.79	0.78	0.95	-0.84	0.89	0.93	0.87
Total Current Assets	0.93	0.92	-0.96	0.89	0.93	0.9	0.93		-0.25	0.76	0.89	-0.43	0.83	0.44	-0.31	0.94	0.95	-0.73	0.79	0.92	-0.72	0.9	0.99	0.84
Short Term Debt	-0.16	-0.18	0.3	-0.24	-0.28	-0.12	-0.1	-0.25		-0.11	-0.13	-0.18	-0.22	-0.09	-0.36	-0.15	-0.38	0.11	-0.13	-0.11	-0.15	-0.25	-0.26	-0.28
Intangible Assets	0.94	0.95	-0.67	0.75	0.72	0.91	0.91	0.76	-0.11		0.97	-0.72	0.96	0.78	-0.28	0.92	0.64	-0.84	0.7	0.88	-0.88	0.81	0.78	0.88
Good Will	0.99	0.99	-0.81	0.87	0.84	0.95	0.97	0.89	-0.13	0.97		-0.65	0.97	0.71	-0.32	0.99	0.76	-0.83	0.77	0.96	-0.89	0.9	0.9	0.91
Short Term Investments	-0.63	-0.63	0.36	-0.21	-0.28	-0.64	-0.62	-0.43	-0.18	-0.72	-0.65		-0.57	-0.64	0.64	-0.56	-0.3	0.54	-0.34	-0.51	0.57	-0.46	-0.41	-0.49
Common Stock	0.96	0.96	-0.78	0.85	0.77	0.89	0.9	0.83	-0.22	0.96	0.97	-0.57		0.77	-0.22	0.94	0.76	-0.81	0.71	0.93	-0.89	0.88	0.85	0.94
Property Plant Equipment	0.67	0.68	-0.43	0.45	0.37	0.61	0.61	0.44	-0.09	0.78	0.71	-0.64	0.77		-0.41	0.6	0.39	-0.37	0.41	0.68	-0.8	0.71	0.48	0.83
Long Term Debt	-0.34	-0.34	0.28	-0.03	-0.15	-0.38	-0.33	-0.31	-0.36	-0.28	-0.32	0.64	-0.22	-0.41		-0.28	-0.24	0.13	-0.23	-0.33	0.37	-0.31	-0.27	-0.33
Current Deferred Revenue	0.99	0.99	-0.87	0.92	0.91	0.96	0.98	0.94	-0.15	0.92	0.99	-0.56	0.94	0.6	-0.28		0.82	-0.83	0.81	0.96	-0.85	0.91	0.95	0.89
Net Tangible Assets	0.82	0.83	-0.97	0.81	0.81	0.77	0.79	0.95	-0.38	0.64	0.76	-0.3	0.76	0.39	-0.24	0.82		-0.62	0.67	0.85	-0.62	0.84	0.92	0.81
Short Long Term Debt	-0.83	-0.83	0.6	-0.68	-0.71	-0.83	-0.79	-0.73	0.11	-0.84	-0.83	0.54	-0.81	-0.37	0.13	-0.83	-0.62		-0.79	-0.71	0.63	-0.6	-0.71	-0.63
Capital Surpluse	0.79	0.78	-0.65	0.75	0.84	0.82	0.78	0.79	-0.13	0.7	0.77	-0.34	0.71	0.41	-0.23	0.81	0.67	-0.79		0.74	-0.65	0.76	0.77	0.71
Deferred Long Term Liab	0.97	0.97	-0.88	0.91	0.85	0.9	0.95	0.92	-0.11	0.88	0.96	-0.51	0.93	0.68	-0.33	0.96	0.85	-0.71	0.74		-0.92	0.93	0.95	0.94
Long Term Debt Total	-0.87	-0.87	0.67	-0.77	-0.66	-0.82	-0.84	-0.72	-0.15	-0.88	-0.89	0.57	-0.89	-0.8	0.37	-0.85	-0.62	0.63	-0.65	-0.92		-0.84	-0.76	-0.89
Net Invested Capital	0.91	0.92	-0.9	0.88	0.84	0.86	0.89	0.9	-0.25	0.81	0.9	-0.46	0.88	0.71	-0.31	0.91	0.84	-0.6	0.76	0.93	-0.84		0.92	0.95
Net Working Capital	0.94	0.93	-0.96	0.93	0.92	0.89	0.93	0.99	-0.26	0.78	0.9	-0.41	0.85	0.48	-0.27	0.95	0.92	-0.71	0.77	0.95	-0.76	0.92		0.87
Capital Stock	0.92	0.93	-0.82	0.84	0.78	0.86	0.87	0.84	-0.28	0.88	0.91	-0.49	0.94	0.83	-0.33	0.89	0.81	-0.63	0.71	0.94	-0.89	0.95	0.87

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For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

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Predict Descartes Systems

Return On Equity Over Time

Descartes Total Stockholder Equity

Total Stockholder Equity

1.49 Billion

At this time, Descartes Systems' Total Stockholder Equity is fairly stable compared to the past year.

Based on the latest financial disclosure, Descartes Systems Group has a Return On Equity of 0.1028. This is 100.85% lower than that of the Software sector and significantly higher than that of the Information Technology industry. The return on equity for all United States stocks is 133.16% lower than that of the firm.

Descartes Return On Equity Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Descartes Systems' direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Descartes Systems could also be used in its relative valuation, which is a method of valuing Descartes Systems by comparing valuation metrics of similar companies.

Descartes Systems is currently under evaluation in return on equity category among its peers.

Descartes Systems Current Valuation Drivers

We derive many important indicators used in calculating different scores of Descartes Systems from analyzing Descartes Systems' financial statements. These drivers represent accounts that assess Descartes Systems' ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Descartes Systems' important valuation drivers and their relationship over time.

	2020	2021	2022	2023	2024	2025 (projected)
Market Cap	5.3B	6.2B	6.2B	7.6B	6.8B	7.2B
Enterprise Value	5.2B	6.0B	5.9B	7.3B	6.5B	6.9B

Descartes Systems ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Descartes Systems' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Descartes Systems' managers, analysts, and investors.

Environmental

Governance

Social

Descartes Fundamentals

	Return On Equity	0.1
	Return On Asset	0.0751
	Profit Margin	0.21 %
	Operating Margin	0.28 %
	Current Valuation	9.78 B
	Shares Outstanding	85.54 M
	Shares Owned By Institutions	87.62 %
	Number Of Shares Shorted	442.19 K
	Price To Earning	107.05 X
	Price To Book	7.31 X
	Price To Sales	16.31 X
	Revenue	572.93 M
	Gross Profit	461.3 M
	EBITDA	219.37 M
	Net Income	115.91 M
	Cash And Equivalents	189.03 M
	Cash Per Share	2.23 X
	Total Debt	6.98 M
	Debt To Equity	0.01 %
	Current Ratio	1.74 X
	Book Value Per Share	14.53 X
	Cash Flow From Operations	208.47 M
	Short Ratio	4.71 X
	Earnings Per Share	1.59 X
	Price To Earnings To Growth	2.57 X
	Target Price	124.61
	Beta	0.74
	Market Capitalization	9.91 B
	Total Asset	1.47 B
	Retained Earnings	220.75 M
	Working Capital	214.55 M
	Current Asset	75.42 M
	Current Liabilities	40.04 M
	Net Asset	1.47 B

About Descartes Systems Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Descartes Systems Group's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Descartes Systems using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Descartes Systems Group based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.

Please read more on our fundamental analysis page.

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Additional Tools for Descartes Stock Analysis

When running Descartes Systems' price analysis, check to measure Descartes Systems' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Descartes Systems is operating at the current time. Most of Descartes Systems' value examination focuses on studying past and present price action to predict the probability of Descartes Systems' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Descartes Systems' price. Additionally, you may evaluate how the addition of Descartes Systems to your portfolios can decrease your overall portfolio volatility.

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