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TSE:DSG

Descartes (DSG.TO)

101.80
-0.22 (0.22%)
as of Jun 15, 2026, 5:00:18 pm Market Open.
175 watching
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Investor Insights
star iconJun 14, 2026, 12:00 am

This summary was created by AI, based on 11 opinions in the last 12 months.

The reviews for Descartes (DSG-T) reflect a mixed but generally positive outlook on the company's performance despite challenges posed by AI advancements and trade uncertainties. Several experts apologize for the recent stock decline, attributing it to broader market themes affecting software companies, including perceptions of AI disruption. Descartes is recognized for its dominant position in logistics, boasting a deep moat that is difficult to replicate due to its extensive network built over two decades. Many analysts view the current price as a potential buying opportunity for long-term gains, citing its healthy free cash flow, recurring revenue model, and substantial growth prospects despite being down in the short term. Concerns about valuations are noted, with opinions split on whether it is currently overvalued or fairly valued, especially given its projected earnings growth and market conditions.

consensus icon
Consensus
Positive
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Valuation
Overvalued
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UNP
PAST TOP PICK
(A Top Pick Oct 09/18, Up 14%) It hit his valuation target so he sold it. Still likes it, but now global growth is slowing so some of their services will make less money. Trading at 22x EBITDA, so not cheap, but he would buy if it dipped 10%.
BUY
He has not seen any news of diversification into electronic health, which the caller asked about. They do software logistics. They are doing a really good job. It is pretty solid. They do acquisitions at good prices. They provide a steady flow of growth.
PAST TOP PICK
(A Top Pick Apr 24/18, Up 30%) They hit the right trends at the right time with trade, tariffs and logistics. They've made more acquisitions to augment growth, raised equity and are smart managers. This sector has secular tailwinds.
BUY
Another secular growth stock. It has been one of the great Canadian growth stocks. Revenue growth has accelerated. It has been disrupting the way people do business. There is always the risk of disappointment. He thinks this company will continue to do well, however. (Analysts’ price target is $48.00)
BUY ON WEAKNESS
Common share offering? He likes this well run company. They are always very good with their guidance. They are getting into bigger acquisitions. You should see some efficiencies coming in the next few years. A great technical chart. The time to own this is on pullbacks. The share issue will definitely cause a bit of a pullback, but the company has been astute as to how to employ new capital.
BUY
It has been a stellar performer. He exited it and then it went higher. People give them the benefit of the doubt in terms of acquisitions they may make.
HOLD
He wished he owned this. He could never understand the valuation. They continue to make good acquisitions and he likes the logistics software space. An outstanding performer. He should have bought on the weakness in 2018.
PAST TOP PICK
(A Top Pick Oct 09/18, Up 35%) They've hit on e-commerce, transportation, tariffs, all these catalysts. It's run further than he thought, so there's momentum now. He's waiting for a better entry point for this. It's solid and well-run. Probably a long runway ahead.
BUY
It's done great for him for the past 5 years. This is a consolidator--when they buy something, it makes the company stronger, adding a deeper dynamic and profit. DSG is buying more shipping to add to their cross-border processing business. Also, they're expanding geographically, now in Australia. They do 2-3 acqusitions a year. It's become quietly a strong company worth holding for the long haul.
STRONG BUY
A big, long-term holding of his. Really likes this company and management with 15% EPS growth continually. They have a wide moat around their business and have global clients in a huge network.
PAST TOP PICK
(A Top Pick Apr 24/18, Up 20%) A core holding though he's trimmed his position. They do trucking and logistics with systems in place to ensure that clients don't get fined on, say, missing tariffs. They grow by acquisition. They have a high multiple but have generated great cash flow and have been buying great businesses. Mainly tailwinds in trucking and e-commerce.
HOLD
They are a potential take over target as they are one of the largest in the logistics sector. They could privatize the company as well. He thinks they will stay focused and would suggest management keep doing what they are doing.
HOLD
He does not do small caps. It trades on very expensive metrics and he would look to US companies for new capital. If you already own it, continue to hold it.
PAST TOP PICK
(A Top Pick Jan 02/18, Up 7%) Logistics software company. Sticky revenues. Good job at making small acquisitions. Still really like it. Premium valuations but it held up pretty well in this last downturn.
WAIT
Another great company. It is an outstanding operator. Return on capital keeps climbing. He thinks there will be an opportunity still to get it at a lower price. It is part of the tech pullback.
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