Descartes Sys currently holds 13.06
M in liabilities with Debt to Equity (D/E) ratio of 0.01, which may suggest Descartes Sys is not taking enough advantage from borrowing.
Our advice module provides unbiased investment recommendation that can be used to complement current
average analyst sentiment on Descartes Sys Group. Our advice engine provides an advice for the firm potential to grow from the perspective of an investor's risk tolerance and investing horizon.
We determine the current worth of Descartes Systems Group using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Descartes Systems based exclusively on its
fundamental and basic
technical indicators. By analyzing Descartes Systems's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Descartes Systems's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Descartes Systems. We calculate exposure to Descartes Systems's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Descartes Systems's related companies.
Descartes Systems Investment Alerts
Descartes investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Descartes Systems Group performance across your portfolios.Please check all
investment alerts for Descartes
Descartes Systems Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Descartes value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Descartes Systems competition to find
correlations between indicators driving the intrinsic value of Descartes.
What is driving Descartes Systems Investor Appetite?
The small slide in market price for the last few months could raise concerns from investors as the firm it trading at a share price of
58.15 on
82,500 in volume. The company executives did not add much value to Descartes Sys investors in
May. However, diversifying your holdings with Descartes Sys Group or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.57. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
| 2018 | 2019 | 2020 | 2021 (projected) |
Cost of Revenue | 74.99 M | 85.72 M | 89.91 M | 81.15 M | Consolidated Income | 31.28 M | 37 M | 52.1 M | 56.21 M |
Margins Breakdown
Descartes profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Descartes Sys itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Descartes Sys profit margins.
| EBITDA Margin | 0.37 |
| Gross Margin | 0.8 |
| Profit Margin | 0.14 |
Descartes Sys Earnings Before Interest Taxes and Depreciation Amortization EBITDA is fairly stable at the moment. Also, Descartes Sys Average Assets is fairly stable at the moment.
Descartes Sys is projected to stay a bit over $59 in July
Skewness just dropped to -7.38, may suggest upcoming price decrease. Descartes Sys Group is displaying above-average volatility over the selected time horizon. Investors should scrutinize Descartes Sys Group independently to ensure intended market timing strategies are aligned with expectations about Descartes Sys volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Descartes Sys' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Descartes Sys' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
While few other entities in the software—application industry are either recovering or due for a correction, Descartes Sys may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the current economy, it is better to hold off any trading of Descartes as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Descartes Sys.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Descartes Systems Group. Please refer to our
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