The Descartes Systems Group (MEX:DSG N) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
The Descartes Systems Group Operating Margin % Related Terms
The Descartes Systems Group Operating 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.
The Descartes Systems Group Operating Margin % Chart
MEX:DSG N vs CRM, SHOP, UBER: Operating Margin % Comparison
For the Software - Application subindustry, The Descartes Systems Group's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Software Industry
For the Software industry and Technology sector, The Descartes Systems Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where The Descartes Systems Group's Operating Margin % falls into.
The Descartes Systems Group Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
The Descartes Systems Group's Operating Margin % for the fiscal year that ended in Jan. 2026 is calculated as
* 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 (MEX:DSG N) has a Operating Margin % of 32.85% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on The Descartes Systems Group and its competitors. This is 40% above median its historical median of 23.51. Over the past decade, The Descartes Systems Group's Operating Margin % has ranged from 16.44 to 31.09. According to the industry distribution chart, The Descartes Systems Group ranks #134 out of 2818 companies in the Software industry, placing it in the top 4.8%.
Is The Descartes Systems Group's Operating Margin % too high?
The Descartes Systems Group's current Operating Margin % of 32.85% is 40% above median its 10-year median of 23.51. Over the past 10 years, this metric has ranged from a low of 16.44 to a high of 31.09. The Software industry median Operating Margin % is 3.87. The Descartes Systems Group's value of 32.85% is 749.9% above this industry median. Based on the distribution chart, The Descartes Systems Group ranks #134 out of 2818 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 Operating Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, The Descartes Systems Group ranks #134 out of 2818 companies for Operating Margin %. This places The Descartes Systems Group in the top 5% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.87. The Descartes Systems Group's value of 32.85% is 749.9% above this benchmark. Historically, The Descartes Systems Group's own Operating Margin % has ranged from 16.44 to 31.09 over the past decade. While the company's 10-year median is 23.51 vs. the industry median of 3.87, 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 Operating Margin % for a Software company?
The median Operating Margin % among Software companies is 3.87, based on 2,818 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Descartes Systems Group's current Operating Margin % of 32.85% is 749.9% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on The Descartes Systems Group and its competitors. For the Software industry, the median Operating Margin % is 3.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Descartes Systems Group's current Operating Margin % is 32.85%, which is 40% above median its own 10-year median of 23.51. 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 Operating Margin % of 32.85%. 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 Operating Margin % is 32.85%, which is 40% above median its 10-year median of 23.51 and 749.9% above the Software industry median of 3.87. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For The Descartes Systems Group (MEX:DSG N), the current Operating Margin % is 32.85% 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:
Operating Margin %: 32.85% (40% above median its 10-year median of 23.51)
GF Value™: MXN2,129.50 vs. price of MXN1,264.95 (40.6% below fair value)
Industry Position: 749.9% above the Software median (#134 of 2818)
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
Operating 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 
