Loading…
Canadian logistics software company providing a cloud network for freight execution, customs and trade-compliance management.
Canadian logistics software company providing a cloud network for freight execution, customs and trade-compliance management.
Charges recurring fees for access to its network and software, often tied to the number of transactions or shipments customers run through it, so world trade volumes matter along with the number of contracts. It has long grown by buying many small logistics-software companies and folding them into the same network, funded largely from its own cash flow.
In one line: Canada's smaller peer to WiseTech's CargoWise.
Moat: narrow (network effects, switching costs, scale). Large logistics community network effect and embedded compliance software create switching costs.
Headquarters: Waterloo, Canada · Founded: 1981 · Employees: 2,403
Size Descartes Systems (DSG.TO) is a Canada Information Technology company (Packaged Software) with a market value of $8.10B, the 86th largest of 420 Canada companies the cockpit tracks. Shares closed at C$132.67 on 6 Nov 2026.
Performance Over six months the shares gained 32.2%, against +7.7% for the median peer and +5.2% for the Canada market (cap-weighted) — 6th highest of 21 in its peer set.
Growth Revenue grew 12.4% over the last twelve months (peer median +21.1%); the operating margin is 33.2% (peer median 6.7%).
Valuation It trades at 37.9× forward earnings against a peer median of 53.6× (7th cheapest of 19).
Price implies For today's price to make sense, revenue must grow about 4% a year for seven years (Req g). Recent delivered growth is +17%, so the hurdle is -12 pp: the price already allows for a slowdown.
Capital Return on invested capital runs 9.8 points above its cost of capital (5.2% WACC).
Backlog Backlog (remaining performance obligations) was $647M at 31 Jan 2026, up 23% on a year earlier — 0.9 years of trailing revenue. Backlog detail →
Next results Next results expected around 2 Dec 2026 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | C$1.07B | C$1.02B | C$897M | C$773M | C$636M |
| Revenue growth | — | +13% | +16% | +22% | — |
| Gross profit | C$727M | C$669M | C$583M | C$505M | C$409M |
| EBITDA | C$472M | C$449M | C$347M | C$305M | C$262M |
| Net income | C$260M | C$228M | C$197M | C$156M | C$134M |
| Free cash flow | C$414M | C$363M | C$293M | C$273M | C$242M |
| Capital expenditure | C$9.97M | C$7.98M | C$9.29M | C$7.51M | C$7.94M |
| Total debt | C$10.6M | C$11.3M | C$11.4M | C$9.32M | C$9.77M |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| Descartes Systems DSG.TO | $8.10B | +32% | +12% | 33% | 37.9× | 4.4% |
| Wisetech Global WTC.AX | $10.3B | +15% | +71% | 31% | 32.6× | 30.1% |
| Manhattan Associates MANH | $14.7B | +77% | +8% | 25% | 42.0× | 29.4% |
| Kinaxis KXS.TO | $4.01B | +35% | +16% | 18% | 30.9× | 12.9% |
| Trimble TRMB | $12.6B | -11% | +7% | 18% | 13.6× | 15.3% |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | DSG.TO | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | +16.3% | -4.0% | 3rd highest of 21 |
| 6-month return | +32.2% | +7.7% | 6th highest of 21 |
| Distance from 52-week high | -1.9% | -29.2% | highest of 21 |
| Revenue growth (TTM) | +12.4% | +21.1% | 5th lowest of 21 |
| Operating margin | 33.2% | 6.7% | 2nd highest of 21 |
| Forward P/E | 37.9× | 53.6× | 7th cheapest of 19 |
| Growth the price implies (Req g, 7 yrs) | 4.4% | 19.8% | 4th least demanding of 18 |
| Growth delivered (Del g) | +16.8% | +18.8% | 8th lowest of 18 |
| Hurdle (Req g minus delivered) | -12.4 pp | -4.9 pp | 6th least demanding of 18 |
| ROIC minus cost of capital | +9.8 pp | -6.4 pp | 7th highest of 18 |
| EV / EBITDA | 22.9× | 20.8× | 5th most expensive of 11 |
| Net debt / EBITDA | -1.2× | -0.5× | 4th least indebted of 11 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Descartes Systems DSG.TO | Canada | $8.10B | +32% | +12% | 33% | 37.9× | 4.4% | +16.8% |
| Gitlab GTLB | United States | $8.01B | +85% | +23% | -8% | 55.0× | 18.8% | +44.4% |
| ServiceTitan TTAN | United States | $7.89B | +36% | +23% | -13% | 55.6× | 20.7% | +27.1% |
| Xero XRO.AX | Australia | $8.36B | -13% | +27% | 13% | 66.7× | 25.9% | +25.3% |
| Sangfor Technologies 300454.SZ | China | $7.84B | +5% | +21% | 2% | 71.4× | 46.1% | +6.9% |
| Snap SNAP | United States | $8.39B | -18% | +13% | -5% | 32.3× | 2.7% | +18.8% |
| Nemetschek NEM.DE | Germany | $8.39B | +10% | +13% | 26% | 29.9× | 11.1% | +14.8% |
| Zeta Global ZETA | United States | $7.79B | +81% | +36% | 3% | 28.2× | 49.7% | +28.8% |
| Oracle Corporation Japan 4716.T | Japan | $7.73B | +10% | +10% | 32% | 17.0× | -6.9% | +6.5% |
| CSG Digital Power Grid Research Institute 301638.SZ | China | $8.52B | -37% | +18% | 10% | n/a | 18.0% | +8.2% |
| Empyrean Technology 301269.SZ | China | $7.70B | +5% | +15% | -10% | 357.4× | n/a | n/a |
| DigitalOcean DOCN | United States | $8.55B | -56% | +28% | 12% | 44.7× | 41.6% | +23.1% |
| Horizon Robotics 9660.HK | Hong Kong | $7.61B | -48% | +46% | -101% | 159.5× | n/a | n/a |
| 360 Security Technology 601360.SS | China | $8.63B | -26% | +7% | -4% | 172.6× | 55.2% | -5.7% |
| SentinelOne S | United States | $7.58B | +31% | +21% | -26% | 54.7× | 53.7% | +60.8% |
| Clear Secure YOU | United States | $7.55B | -2% | +23% | 26% | 24.2× | 15.8% | +31.3% |
| Netskope NTSK | United States | $8.70B | +83% | +30% | -94% | n/a | n/a | n/a |
| Dropbox DBX | United States | $7.54B | +20% | 0% | 26% | 11.1× | -5.0% | +5.7% |
| Duolingo DUOL | United States | $7.51B | +49% | +23% | 12% | 52.6× | 19.8% | +45.0% |
| Technology One TNE.AX | Australia | $7.40B | +15% | +14% | 29% | 56.7× | 33.3% | +14.9% |
| InterDigital IDCC | United States | $7.35B | +2% | -12% | 45% | 41.4× | 13.4% | +18.4% |
Descartes Systems reported $647M of remaining performance obligations at 31 Jan 2026, up 23% from a year earlier. That is 0.9 years of trailing revenue already under contract.