DSGX (The Descartes Systems Group) EBIT: $235.4 Mil (TTM As of Apr. 2026)


DSGX The Descartes Systems Group Inc DSGX
87 GF Score
Price $66.17
GF Value $114.14
Valuation Significantly Undervalued
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What is The Descartes Systems Group EBIT?

The Descartes Systems Group DSGX -2.40% 87 EBIT is $235.4 Mil as of Apr. 2026. GuruFocus rates DSGX with a GF Score™ of 87/100 and a GF Value™ of $114.14 (Significantly Undervalued).

The Descartes Systems Group's earnings before interest and taxes (EBIT) for the three months ended in Apr. 2026 was $65.5 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2026 was $235.4 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. The Descartes Systems Group's annualized ROC % for the quarter that ended in Apr. 2026 was 11.94%. The Descartes Systems Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 1,191.89%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. The Descartes Systems Group's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 4.43%.


The Descartes Systems Group  (NAS:DSGX) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

The Descartes Systems Group's annualized ROC % for the quarter that ended in Apr. 2026 is calculated as:

ROC % (Q: Apr. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jan. 2026 ) + Invested Capital (Q: Apr. 2026 ))/ count )
=254.424 * ( 1 - 25.74% )/( (1577.458 + 1586.041)/ 2 )
=188.9352624/1581.7495
=11.94 %

where

Invested Capital(Q: Jan. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1895.665 - 59.364 - ( 356.526 - max(0, 223.224 - 482.067+356.526))
=1577.458

Invested Capital(Q: Apr. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1920.604 - 77.264 - ( 376.978 - max(0, 245.156 - 502.455+376.978))
=1586.041

Note: The Operating Income data used here is four times the quarterly (Apr. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

The Descartes Systems Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Apr. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jan. 2026  Q: Apr. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=262.072/( ( (21.68 + max(-120.665, 0)) + (22.296 + max(-138.025, 0)) )/ 2 )
=262.072/( ( 21.68 + 22.296 )/ 2 )
=262.072/21.988
=1,191.89 %

where Working Capital is:

Working Capital(Q: Jan. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(64.771 + 0.101 + 34.216) - (59.364 + 117.887 + 42.502)
=-120.665

Working Capital(Q: Apr. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(69.24 + 0.251 + 34.199) - (77.264 + 125.907 + 38.544)
=-138.025

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Apr. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

The Descartes Systems Group's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Apr. 2026 )
=235.415/5318.423
=4.43 %

* 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.


The Descartes Systems Group EBIT Related Terms


The Descartes Systems Group EBIT Historical Data

* Premium members only.

The historical data trend for The Descartes Systems Group's EBIT can be seen below:

* 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.

The Descartes Systems Group EBIT Chart

The Descartes Systems Group Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25 Jan26
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 103.73 134.90 152.52 192.64 218.06

The Descartes Systems Group Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 48.16 49.73 58.58 61.58 65.52

DSGX vs CRM, SHOP, UBER: EBIT Comparison

For the Software - Application subindustry, The Descartes Systems Group's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Software Industry

For the Software industry and Technology sector, The Descartes Systems Group's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where The Descartes Systems Group's EV-to-EBIT falls into.


DSGX
87GF Score
The Descartes Systems Group Inc DSGX
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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The Descartes Systems Group EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Apr. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $235.4 Mil.

* 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of $235.4 Mil mean?
The Descartes Systems Group (DSGX) has a EBIT of $235.4 Mil as of Apr. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on The Descartes Systems Group.
Is The Descartes Systems Group's EBIT too high?
The Descartes Systems Group's current EBIT is $235.4 Mil. Overall, The Descartes Systems Group has a GF Score™ of 87/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Descartes Systems Group's EBIT compare to CRM and SHOP?
The Descartes Systems Group's EBIT of $235.4 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Software company?
A good EBIT depends on the Software industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on The Descartes Systems Group. The Descartes Systems Group's current EBIT is $235.4 Mil. 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 (DSGX) is currently considered Significantly Undervalued. The stock's GF Value™ is $114.14, compared to a current price of $66.17 — trading 42% below its estimated fair value. The current EBIT is $235.4 Mil. The Descartes Systems Group's overall GF Score™ is 87/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For The Descartes Systems Group (DSGX), the current EBIT is $235.4 Mil 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 (DSGX) Overvalued in 2026?

Based on GuruFocus' analysis, The Descartes Systems Group stock appears to be undervalued. The current stock price of $66.17 is trading 42% below its estimated GF Value™ of $114.14. GuruFocus considers The Descartes Systems Group to be Significantly Undervalued.

Key valuation signals for DSGX:

  • EBIT: $235.4 Mil
  • GF Value™: $114.14 vs. price of $66.17 (42% below fair value)
  • GF Score™: 87/100

No single metric tells the full story. See the DSGX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


The Descartes Systems Group Business Description

Other Exchanges DC2:GermanyDSG:Canada
Address 120 Randall Drive, Waterloo, ON, CAN, N2V 1C6
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.
87GF Score

Get the complete analysis for DSGX

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$66.17
Price
$114.14
GF Value