The Descartes Systems GroupDSGX +6.20%87 FCF Yield % is 4.54 as of Jun. 28, 2026, which is 64% above its 10-year median of 2.76. GuruFocus rates DSGX with a GF Score™ of 87/100 and a GF Value™ of $114.98 (Significantly Undervalued). Among 2,868 Software companies, The Descartes Systems Group ranks better than 66.91% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
The Descartes Systems Group FCF Yield % Explanation
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
The Descartes Systems Group FCF Yield % Related Terms
The Descartes Systems Group FCF Yield % 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.
For the Software - Application subindustry, The Descartes Systems Group's FCF Yield %, along with its competitors' market caps and FCF Yield % 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 FCF Yield % vs Software Industry
For the Software industry and Technology sector, The Descartes Systems Group's FCF Yield % distribution charts can be found below:
* The bar in red indicates where The Descartes Systems Group's FCF Yield % 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.
The Descartes Systems Group (DSGX) has a FCF Yield % of 4.54 as of Jun. 28, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on The Descartes Systems Group and its competitors. This is 64% above median its historical median of 2.76. Over the past decade, The Descartes Systems Group's FCF Yield % has ranged from 1.85 to 4.77. According to the industry distribution chart, The Descartes Systems Group ranks #949 out of 2868 companies in the Software industry, placing it in the top 33.1%.
Is The Descartes Systems Group's FCF Yield % too high?
The Descartes Systems Group's current FCF Yield % of 4.54 is 64% above median its 10-year median of 2.76. Over the past 10 years, this metric has ranged from a low of 1.85 to a high of 4.77. The Software industry median FCF Yield % is 0.89. The Descartes Systems Group's value of 4.54 is 413% above this industry median. Based on the distribution chart, The Descartes Systems Group ranks #949 out of 2868 companies in the Software industry, which is above the industry midpoint. 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 FCF Yield % compare to CRM and SHOP?
According to the Software industry distribution chart, The Descartes Systems Group ranks #949 out of 2868 companies for FCF Yield %. This puts The Descartes Systems Group in the upper half of its industry. The industry median FCF Yield % is 0.89. The Descartes Systems Group's value of 4.54 is 413% above this benchmark. Historically, The Descartes Systems Group's own FCF Yield % has ranged from 1.85 to 4.77 over the past decade. While the company's 10-year median is 2.76 vs. the industry median of 0.89, The Descartes Systems Group has consistently been above 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 FCF Yield % for a Software company?
The median FCF Yield % among Software companies is 0.89, based on 2,868 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Descartes Systems Group's current FCF Yield % of 4.54 is 413% above 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 FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on The Descartes Systems Group and its competitors. For the Software industry, the median FCF Yield % is 0.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Descartes Systems Group's current FCF Yield % is 4.54, which is 64% above median its own 10-year median of 2.76. 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 $114.98, compared to a current price of $70.53 — trading 38.7% below its estimated fair value. The current FCF Yield % is 4.54, which is 64% above median its 10-year median of 2.76 and 413% above the Software industry median of 0.89. 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 FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For The Descartes Systems Group (DSGX), the current FCF Yield % is 4.54 as of Jun. 28, 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 $70.53 is trading 38.7% below its estimated GF Value™ of $114.98.
GuruFocus considers The Descartes Systems Group to be Significantly Undervalued.
Key valuation signals for DSGX:
FCF Yield %: 4.54 (64% above median its 10-year median of 2.76)
GF Value™: $114.98 vs. price of $70.53 (38.7% below fair value)
Industry Position: 413% above the Software median (#949 of 2868)
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.
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
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