Descartes Stock Story

DSGX
 Stock
  

USD 71.31  0.65  0.92%   

Descartes Sys Free Cash Flow per Share is fairly stable at the moment as compared to the past year. Descartes Sys reported Free Cash Flow per Share of 2.02 in 2021. Gross Margin is likely to rise to 0.81 in 2022, whereas Average Assets are likely to drop slightly above 945.9 M in 2022. While many traders today are more concerned about the preservation of capital over market returns, Descartes Sys Group could be one exception. We will analyze why Descartes Sys investors may still consider a stake in the business. In this post, I will also go over some essential variables affecting Descartes Sys' products, and show how it may impact Descartes Sys outlook for active traders this year.
Published over two months ago
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Is Descartes Sys (NASDAQ:DSGX) undervalued?

The firm shows a Beta (market volatility) of 0.9366, which means possible diversification benefits within a given portfolio. Let's try to break down what Descartes's beta means in this case. Descartes Sys returns are very sensitive to returns on the market. As the market goes up or down, Descartes Sys is expected to follow. Even though it is essential to pay attention to Descartes Sys Group historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy towards predicting any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Descartes Sys Group exposes twenty-one different technical indicators, which can help you to evaluate its performance. Descartes Sys Group has an expected return of -0.24%. Please be advised to confirm Descartes Sys Group variance and potential upside to decide if Descartes Sys Group performance from the past will be repeated at some point in the near future.

How important is Descartes Sys's Liquidity

Descartes Sys financial leverage refers to using borrowed capital as a funding source to finance Descartes Sys Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Descartes Sys financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Descartes Sys's total debt and its cash.

How does Descartes utilize its cash?

To perform a cash flow analysis of Descartes Sys, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Descartes Sys is receiving and how much cash it distributes out in a given period. The Descartes Sys cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Descartes Sys Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Descartes Sys reported Net Cash Flow from Operations of 176.14 Million in 2021

What did Descartes Sys file with SEC?

The SEC filings are financial statements or other formal documents of Descartes Sys Group that are regularly submitted to the U.S. Securities and Exchange Commission (SEC). Public companies, certain insiders, and broker-dealers are required to make SEC filings and fintech professionals rely on these filings for information about companies they are evaluating for investment purposes. Please note, most SEC filings are available online through the SEC's EDGAR database.
Please check here for more information.
Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Descartes shareholders may or may not be submitted as SEC does not always require it.
30th of June 2022
Other Events
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15th of February 2022
Unclassified Corporate Event
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Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Descartes shareholders may or may not be submitted as SEC does not always require it.

What is driving Descartes Sys Investor Appetite?

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Descartes Sys has an asset utilization ratio of 93.79 percent. This suggests that the company is making $0.94 for each dollar of assets. An increasing asset utilization means that Descartes Sys Group is more efficient with each dollar of assets it utilizes for everyday operations.
 2019 2021 (projected)
Book Value per Share10.0611.82
Asset Turnover0.350.37

Possible July relapse of Descartes?

Mean deviation is down to 1.88. It may suggest a possible volatility slide. Descartes Sys Group exhibits very low volatility with skewness of -0.11 and kurtosis of 1.16. However, we advise investors to further study Descartes Sys Group technical indicators to make sure all market info is available and is reliable. 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.

Descartes Sys Implied Volatility

Descartes Sys' implied volatility exposes the market's sentiment of Descartes Sys Group stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Descartes Sys' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Descartes Sys stock will not fluctuate a lot when Descartes Sys' options are near their expiration.

Our Takeaway on Descartes Sys Investment

While few other entities under the software—application industry are still a bit expensive, Descartes Sys may offer a potential longer-term growth to investors. To conclude, as of the 31st of May 2022, our research shows that Descartes Sys is a rather very steady investment opportunity with a close to average chance of distress in the next two years. From a slightly different view, the entity currently appears to be undervalued. Our present 90 days Buy-Hold-Sell recommendation on the company is Hold.

Editorial Staff

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 Gabriel Shpitalnik do not own shares of Descartes Sys Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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