The Descartes Systems Group (MEX:DSG N) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
The Descartes Systems Group had a gross margin of 77.56% for the quarter that ended in Apr. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
The Descartes Systems Group Gross Margin % Related Terms
The Descartes Systems Group Gross Margin % 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.
MEX:DSG N vs CRM, SHOP, UBER: Gross Margin % Comparison
For the Software - Application subindustry, The Descartes Systems Group's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Software Industry
For the Software industry and Technology sector, The Descartes Systems Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where The Descartes Systems Group's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
The Descartes Systems Group (MEX:DSG N) has a Gross Margin % of 77.56% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on The Descartes Systems Group and its competitors. This is near median its historical median of 74.93. Over the past decade, The Descartes Systems Group's Gross Margin % has ranged from 72.49 to 77.35. According to the industry distribution chart, The Descartes Systems Group ranks #365 out of 2683 companies in the Software industry, placing it in the top 13.6%.
Is The Descartes Systems Group's Gross Margin % too high?
The Descartes Systems Group's current Gross Margin % of 77.56% is near median its 10-year median of 74.93. Over the past 10 years, this metric has ranged from a low of 72.49 to a high of 77.35. The Software industry median Gross Margin % is 40.45. The Descartes Systems Group's value of 77.56% is 91.7% above this industry median. Based on the distribution chart, The Descartes Systems Group ranks #365 out of 2683 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 85/100, reflecting its overall financial health beyond just this single metric.
How does The Descartes Systems Group's Gross Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, The Descartes Systems Group ranks #365 out of 2683 companies for Gross Margin %. This places The Descartes Systems Group in the top 14% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.45. The Descartes Systems Group's value of 77.56% is 91.7% above this benchmark. Historically, The Descartes Systems Group's own Gross Margin % has ranged from 72.49 to 77.35 over the past decade. While the company's 10-year median is 74.93 vs. the industry median of 40.45, 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 Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,683 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Descartes Systems Group's current Gross Margin % of 77.56% is 91.7% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on The Descartes Systems Group and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Descartes Systems Group's current Gross Margin % is 77.56%, which is near median its own 10-year median of 74.93. 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?
The Descartes Systems Group (MEX:DSG N) has a current Gross Margin % of 77.56%. The stock's GF Value™ is MXN2,129.50, compared to a current price of MXN1,264.95 — trading 40.6% below its estimated fair value. The current Gross Margin % is 77.56%, which is near median its 10-year median of 74.93 and 91.7% above the Software industry median of 40.45. The Descartes Systems Group's overall GF Score™ is 85/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For The Descartes Systems Group (MEX:DSG N), the current Gross Margin % is 77.56% 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 (MEX:DSG N) Overvalued in 2026?
Based on GuruFocus' analysis, The Descartes Systems Group stock appears to be undervalued.
The current stock price of MXN1,264.95 is trading 40.6% below its estimated GF Value™ of MXN2,129.50.
Key valuation signals for MEX:DSG N:
Gross Margin %: 77.56% (near median its 10-year median of 74.93)
GF Value™: MXN2,129.50 vs. price of MXN1,264.95 (40.6% below fair value)
Industry Position: 91.7% above the Software median (#365 of 2683)
No single metric tells the full story. See the MEX:DSG N 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.
85GF Score
Get the complete analysis for MEX:DSG N
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MEX:DSG N has been successfully added to your 
