TSE:DSG

Descartes (DSG.TO)

100.43
+4.19 (4.35%)
as of Jul 27, 2026, 8:00:00 pm Market Open.
175 watching
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Investor Insights
star iconJul 27, 2026, 12:00 am

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

Descartes (DSG-T) has faced significant challenges recently, primarily due to fears surrounding AI disruptions within the software industry. However, several experts maintain a positive outlook, emphasizing the company's strong foundational performance and its unique logistically integrated network built over two decades, which creates a deep moat against competition. Despite the decline in stock performance, experts believe the current valuation presents a buying opportunity for long-term growth. The market challenges, such as the tariff wars and competition from AI, have contributed to a perceived undervaluation; nonetheless, many analysts assert that Descartes remains an essential player in logistics and supply chain management with potential benefits from AI innovations. The stock continues to show resilience and growth prospects, even amidst the market turmoil.

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Consensus
Positive
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Valuation
Undervalued
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Similar
GTY,GTY
TOP PICK
(A Top Pick May 31/11. Up 25.34%.) Just acquired Brinks as a new customer which may bring $10 million-$13 million in revenues over the next 2 to 3 years. Of about $70 million in cash so expected to add more tuck in acquisitions.
PAST TOP PICK
(A Top Pick May 31/05. Up 31.71%.)
TOP PICK
85% of their income is recurring revenue. Focused on the electronic transportation space. Continue to have very strong free cash flow. Good cash on the balance sheet so are continuing to do acquisitions. Recently acquired Telargo.
TOP PICK
Software to help customers make/receive deliveries. High free cash flow generator at 7% on a four quarter generating basis. Analysts expect a 56% increase in earnings when they report June 2nd. Jan/12 year end earnings are expected to grow 32% to $0.44. 13X PE.
BUY
Recently reported earnings that were quite good. Do software that help transportation companies stitch together the movement of different types of transportation across different countries and continents. Strong recurring revenue portion of business model. Rates them 72 out of 600 stocks they track. Earnings expected to grow from 38 to 50 cents. Optimistic that they continue to build up cash for acquisitions.
TOP PICK
It has really recovered with the new management. They are an Internet network for managing logistics. The great opportunity is to make acquisitions in order to grow.
DON'T BUY
Ranks middle of the pack at 336 in his model. Recent estimates have been shaved by about 8% by analysts. Earnings are expected to grow from $0.20 to $0.23 A P/E to growth of about 1.3. He looks for growth of less than 1 so thinks there is a good opportunity for continued growth. A bit expensive for purchase.
DON'T BUY
Model price of $8.82 that s a 77% positive differnential Don't own too small.
BUY
Their business they are in is attractive. Made an acquisition about a year ago that has done reasonably well. Growing their revenues. Not expensive at 20 X earnings.
HOLD
Numbers show they are making decent progress. Not quite cheap enough for him to buy, but if the owned he would Hold.
WEAK BUY
There is starting to be a bit of a recovery in supply-management software. Last couple of quarterly results have been pretty good. Not a bad name to own in the technology space. Fairly valued right now.
HOLD
Numbers are starting to look a little bit better. Reorganizing.
HOLD
Broke out in January. Feels that most of the move is over as he thinks the broader tech sector is tired. If you hold it, be patient as it may be forming a symmetrical triangle.
BUY
Seem to be getting some real traction. Their product adds to a company’s internal controls. Not expensive at 15 X this year's earnings.
COMMENT
He doesn't do a lot in technology stocks, but he does like this one. The lifecycle of software programs is very short. This company is growing and management is very committed to do great things. Too expensive for him.
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