>
Switch to:

The Descartes Systems Group Piotroski F-Score

: 8 (As of Today)
View and export this data going back to 1999. Start your Free Trial

Good Sign:

Piotroski F-Score is 8, indicating very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

The Descartes Systems Group has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for The Descartes Systems Group's Piotroski F-Score or its related term are showing as below:

NAS:DSGX' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 5   Max: 8
Current: 8

1
8

During the past 13 years, the highest Piotroski F-Score of The Descartes Systems Group was 8. The lowest was 1. And the median was 5.


The Descartes Systems Group Piotroski F-Score Historical Data

The historical data trend for The Descartes Systems Group's Piotroski F-Score 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.

* Premium members only.

The Descartes Systems Group Annual Data
Trend Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 6.00 6.00 8.00 7.00

The Descartes Systems Group Quarterly Data
Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21
Piotroski F-Score 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 Premium Member Only Premium Member Only Premium Member Only 6.00 7.00 7.00 8.00 8.00

Competitive Comparison

For the Software - Application subindustry, The Descartes Systems Group's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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 Piotroski F-Score Distribution

For the Software industry and Technology sector, The Descartes Systems Group's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where The Descartes Systems Group's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* 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.

This Year (Oct21) TTM:Last Year (Oct20) TTM:
Net Income was 17.203 + 18.421 + 23.176 + 25.491 = $84.3 Mil.
Cash Flow from Operations was 36.462 + 40.906 + 46.374 + 43.338 = $167.1 Mil.
Revenue was 93.408 + 98.838 + 104.57 + 108.911 = $405.7 Mil.
Gross Profit was 70.308 + 74.989 + 79.1 + 83.304 = $307.7 Mil.
Average Total Assets from the begining of this year (Oct20)
to the end of this year (Oct21) was
(1003.752 + 1063.254 + 1095.368 + 1132.037 + 1167.466) / 5 = $1092.3754 Mil.
Total Assets at the begining of this year (Oct20) was $1,003.8 Mil.
Long-Term Debt & Capital Lease Obligation was $7.3 Mil.
Total Current Assets was $246.9 Mil.
Total Current Liabilities was $125.6 Mil.
Net Income was 11.438 + 11.047 + 10.542 + 13.308 = $46.3 Mil.

Revenue was 84.221 + 83.703 + 84.045 + 87.508 = $339.5 Mil.
Gross Profit was 61.626 + 61.836 + 61.648 + 64.962 = $250.1 Mil.
Average Total Assets from the begining of last year (Oct19)
to the end of last year (Oct20) was
(942.542 + 942.586 + 946.957 + 988.397 + 1003.752) / 5 = $964.8468 Mil.
Total Assets at the begining of last year (Oct19) was $942.5 Mil.
Long-Term Debt & Capital Lease Obligation was $9.1 Mil.
Total Current Assets was $174.1 Mil.
Total Current Liabilities was $92.6 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

The Descartes Systems Group's current Net Income (TTM) was 84.3. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

The Descartes Systems Group's current Cash Flow from Operations (TTM) was 167.1. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Oct20)
=84.291/1003.752
=0.08397592

ROA (Last Year)=Net Income/Total Assets (Oct19)
=46.335/942.542
=0.04915961

The Descartes Systems Group's return on assets of this year was 0.08397592. The Descartes Systems Group's return on assets of last year was 0.04915961. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

The Descartes Systems Group's current Net Income (TTM) was 84.3. The Descartes Systems Group's current Cash Flow from Operations (TTM) was 167.1. ==> 167.1 > 84.3 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Oct21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Oct20 to Oct21
=7.336/1092.3754
=0.00671564

Gearing (Last Year: Oct20)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Oct19 to Oct20
=9.125/964.8468
=0.00945746

The Descartes Systems Group's gearing of this year was 0.00671564. The Descartes Systems Group's gearing of last year was 0.00945746. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Oct21)=Total Current Assets/Total Current Liabilities
=246.932/125.564
=1.96658278

Current Ratio (Last Year: Oct20)=Total Current Assets/Total Current Liabilities
=174.14/92.636
=1.87983074

The Descartes Systems Group's current ratio of this year was 1.96658278. The Descartes Systems Group's current ratio of last year was 1.87983074. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

The Descartes Systems Group's number of shares in issue this year was 86.328. The Descartes Systems Group's number of shares in issue last year was 85.917. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=307.701/405.727
=0.75839419

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=250.072/339.477
=0.73663901

The Descartes Systems Group's gross margin of this year was 0.75839419. The Descartes Systems Group's gross margin of last year was 0.73663901. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Oct20)
=405.727/1003.752
=0.4042104

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Oct19)
=339.477/942.542
=0.36017175

The Descartes Systems Group's asset turnover of this year was 0.4042104. The Descartes Systems Group's asset turnover of last year was 0.36017175. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+1+0+1+1
=8

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

The Descartes Systems Group has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

The Descartes Systems Group  (NAS:DSGX) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


The Descartes Systems Group Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of The Descartes Systems Group's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


The Descartes Systems Group Business Description

The Descartes Systems Group logo
Industry
Technology » Software NAICS : 541511 SIC : 7721
Traded in Other Exchanges
Address
120 Randall Drive, Waterloo, ON, CAN, N2V 1C6
The Descartes Systems Group provides a software solution that allows users in the shipping industry to communicate with one another. The 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 (the transactions). Customers typically contract for a monthly minimum over a multiyear period. The GLN platform allows for Descartes to upsell additional software modules as well, typically provided via a software-as-a-service model.

The Descartes Systems Group Headlines

Other Sources

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)