Descartes Systems Price To Book vs. Return On Equity
| DSGX Stock | USD 116.27 0.83 0.71% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.55 | 0.7586 |
|
|
For Descartes Systems profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Descartes Systems to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Descartes Systems Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Descartes Systems's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Descartes Systems Group over time as well as its relative position and ranking within its peers.
Descartes |
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Descartes Systems. If investors know Descartes will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Descartes Systems listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.25 | Earnings Share 1.48 | Revenue Per Share 7.13 | Quarterly Revenue Growth 0.14 | Return On Assets 0.0751 |
The market value of Descartes Systems is measured differently than its book value, which is the value of Descartes that is recorded on the company's balance sheet. Investors also form their own opinion of Descartes Systems' value that differs from its market value or its book value, called intrinsic value, which is Descartes Systems' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Descartes Systems' market value can be influenced by many factors that don't directly affect Descartes Systems' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Descartes Systems' value and its price as these two are different measures arrived at by different means. Investors typically determine if Descartes Systems is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Descartes Systems' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Descartes Systems Return On Equity vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Descartes Systems's current stock value. Our valuation model uses many indicators to compare Descartes Systems value to that of its competitors to determine the firm's financial worth. Descartes Systems Group is rated # 4 in price to book category among its peers. It is rated # 2 in return on equity category among its peers reporting about 0.01 of Return On Equity per Price To Book. The ratio of Price To Book to Return On Equity for Descartes Systems Group is roughly 73.70 . At this time, Descartes Systems' Return On Equity is fairly stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Descartes Systems' earnings, one of the primary drivers of an investment's value.Descartes Return On Equity vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Descartes Systems |
| = | 7.58 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
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.
Descartes Systems |
| = | 0.1 |
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.
Descartes Return On Equity Comparison
Descartes Systems is currently under evaluation in return on equity category among its peers.
Descartes Systems Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Descartes Systems, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Descartes Systems will eventually generate negative long term returns. The profitability progress is the general direction of Descartes Systems' change in net profit over the period of time. It can combine multiple indicators of Descartes Systems, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -28.6 M | -27.2 M | |
| Operating Income | 142.8 M | 150 M | |
| Income Before Tax | 151.2 M | 158.7 M | |
| Total Other Income Expense Net | 8.3 M | 8.7 M | |
| Net Income | 115.9 M | 121.7 M | |
| Income Tax Expense | 35.2 M | 37 M | |
| Net Income Applicable To Common Shares | 117.6 M | 123.4 M | |
| Net Income From Continuing Ops | 115.9 M | 121.7 M | |
| Interest Income | 4.9 M | 5.1 M | |
| Net Interest Income | -1.4 M | -1.4 M | |
| Change To Netincome | 19.5 M | 20.5 M | |
| Net Income Per Share | 1.34 | 1.41 | |
| Income Quality | 1.79 | 1.34 | |
| Net Income Per E B T | 0.77 | 1.20 |
Descartes Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Descartes Systems. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Descartes Systems position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Descartes Systems' important profitability drivers and their relationship over time.
Use Descartes Systems in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Descartes Systems position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Descartes Systems will appreciate offsetting losses from the drop in the long position's value.Descartes Systems Pair Trading
Descartes Systems Group Pair Trading Analysis
The ability to find closely correlated positions to Descartes Systems could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Descartes Systems when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Descartes Systems - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Descartes Systems Group to buy it.
The correlation of Descartes Systems is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Descartes Systems moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Descartes Systems moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Descartes Systems can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Descartes Systems position
In addition to having Descartes Systems in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run USD Crypto Fund Thematic Idea Now
USD Crypto Fund
Fund from digital currency traded on multiple global exchanges in US dollors. The USD Crypto Fund theme has 24 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize USD Crypto Fund Theme or any other thematic opportunities.
| View All Next | Launch |
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.