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The Descartes Systems GroupSTU:DC2 +5.86%88 Debt-to-EBITDA is 0.02 as of Apr. 2026, which is 71% below its 10-year median of 0.07. GuruFocus rates STU:DC2 with a GF Score™ of 88/100 and a GF Value™ of €102.09 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 1,722 Software companies, The Descartes Systems Group ranks better than 95.7% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for The Descartes Systems Group's Debt-to-EBITDA or its related term are showing as below:
STU:DC2'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.03 Med: 0.07 Max: 0.5
Current: 0.03
During the past 13 years, the highest Debt-to-EBITDA Ratio of The Descartes Systems Group was 0.50. The lowest was 0.03. And the median was 0.07.
STU:DC2's Debt-to-EBITDA is ranked better than 95.7% of 1722
companies
in the Software industry
Industry Median: 1.08
vs STU:DC2: 0.03
The Descartes Systems Group (STU:DC2) Debt-to-EBITDA Explanation
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The Descartes Systems Group Debt-to-EBITDA Related Terms
The Descartes Systems Group Debt-to-EBITDA Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:DC2 vs QH, SHOP, UBER: Debt-to-EBITDA Comparison
For the Software - Application subindustry, The Descartes Systems Group's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Descartes Systems Group Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, The Descartes Systems Group's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where The Descartes Systems Group's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Apr. 2026) EBITDA data.
The Descartes Systems Group (STU:DC2) has a Debt-to-EBITDA of 0.02 as of Apr. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on The Descartes Systems Group. This is 71% below median its historical median of 0.07. Over the past decade, The Descartes Systems Group's Debt-to-EBITDA has ranged from 0.03 to 0.50. According to the industry distribution chart, The Descartes Systems Group ranks #74 out of 1722 companies in the Software industry, placing it in the top 4.3%.
Is The Descartes Systems Group's Debt-to-EBITDA too high?
The Descartes Systems Group's current Debt-to-EBITDA of 0.02 is 71% below median its 10-year median of 0.07. Over the past 10 years, this metric has ranged from a low of 0.03 to a high of 0.50. The Software industry median Debt-to-EBITDA is 1.08. The Descartes Systems Group's value of 0.02 is 98.1% below this industry median. Based on the distribution chart, The Descartes Systems Group ranks #74 out of 1722 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, The Descartes Systems Group has a GF Score™ of 88/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Descartes Systems Group's Debt-to-EBITDA compare to QH and SHOP?
According to the Software industry distribution chart, The Descartes Systems Group ranks #74 out of 1722 companies for Debt-to-EBITDA. This places The Descartes Systems Group in the top 4% of its industry — outperforming the majority of peers. The industry median Debt-to-EBITDA is 1.08. The Descartes Systems Group's value of 0.02 is 98.1% below this benchmark. Historically, The Descartes Systems Group's own Debt-to-EBITDA has ranged from 0.03 to 0.50 over the past decade. While the company's 10-year median is 0.07 vs. the industry median of 1.08, The Descartes Systems Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Software company?
The median Debt-to-EBITDA among Software companies is 1.08, based on 1,722 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Descartes Systems Group's current Debt-to-EBITDA of 0.02 is 98.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on The Descartes Systems Group. For the Software industry, the median Debt-to-EBITDA is 1.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Descartes Systems Group's current Debt-to-EBITDA is 0.02, which is 71% below median its own 10-year median of 0.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Descartes Systems Group stock overvalued right now?
Based on GuruFocus' analysis, The Descartes Systems Group (STU:DC2) is currently considered Significantly Undervalued. The stock's GF Value™ is €102.09, compared to a current price of €65.95 — trading 35.4% below its estimated fair value. The current Debt-to-EBITDA is 0.02, which is 71% below median its 10-year median of 0.07 and 98.1% below the Software industry median of 1.08. The Descartes Systems Group's overall GF Score™ is 88/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For The Descartes Systems Group (STU:DC2), the current Debt-to-EBITDA is 0.02 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The Descartes Systems Group (STU:DC2) Overvalued in 2026?
Based on GuruFocus' analysis, The Descartes Systems Group stock appears to be undervalued.
The current stock price of €65.95 is trading 35.4% below its estimated GF Value™ of €102.09.
GuruFocus considers The Descartes Systems Group to be Significantly Undervalued.
Key valuation signals for STU:DC2:
Debt-to-EBITDA: 0.02 (71% below median its 10-year median of 0.07)
GF Value™: €102.09 vs. price of €65.95 (35.4% below fair value)
Industry Position: 98.1% below the Software median (#74 of 1722)
No single metric tells the full story. See the STU:DC2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Descartes Systems Group provides a software solution that allows users in the shipping industry to communicate with one another. Its core product is the Global Logistics Network, which is best understood as transaction-driven. Descartes charges clients to send/receive messages, data, and documents on the GLN. Customers typically contract for a monthly minimum over a multiyear period. The GLN platform allows Descartes to upsell additional software modules as well, typically provided via a software-as-a-service model.
88GF Score
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