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The Descartes Systems GroupSTU:DC2 -2.12%88 Return-on-Tangible-Asset is 35.45% as of Apr. 2026, which is 27% above its 10-year median of 27.97. GuruFocus rates STU:DC2 with a GF Score™ of 88/100 and a GF Value™ of €102.21 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,886 Software companies, The Descartes Systems Group ranks better than 97.85% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. The Descartes Systems Group's annualizedNet Income for the quarter that ended in Apr. 2026 was €165.8 Mil. The Descartes Systems Group's average total tangible assets for the quarter that ended in Apr. 2026 was €467.7 Mil. Therefore, The Descartes Systems Group's annualized Return-on-Tangible-Asset for the quarter that ended in Apr. 2026 was 35.45%.
The historical rank and industry rank for The Descartes Systems Group's Return-on-Tangible-Asset or its related term are showing as below:
STU:DC2'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 23.65 Med: 27.97 Max: 37.98
Current: 37.98
During the past 13 years, The Descartes Systems Group's highest Return-on-Tangible-Asset was 37.98%. The lowest was 23.65%. And the median was 27.97%.
STU:DC2's Return-on-Tangible-Asset is ranked better than 97.85% of 2886
companies
in the Software industry
Industry Median: 2.055
vs STU:DC2: 37.98
The Descartes Systems Group (STU:DC2) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
The Descartes Systems Group Return-on-Tangible-Asset Related Terms
The Descartes Systems Group Return-on-Tangible-Asset 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 Return-on-Tangible-Asset Chart
STU:DC2 vs UBER, SHOP, CRM: Return-on-Tangible-Asset Comparison
For the Software - Application subindustry, The Descartes Systems Group's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Software Industry
For the Software industry and Technology sector, The Descartes Systems Group's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where The Descartes Systems Group's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Apr. 2026) net income data.
What does a Return-on-Tangible-Asset of 35.45% mean?
The Descartes Systems Group (STU:DC2) has a Return-on-Tangible-Asset of 35.45% as of Apr. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on The Descartes Systems Group and its competitors. This is 27% above median its historical median of 27.97. Over the past decade, The Descartes Systems Group's Return-on-Tangible-Asset has ranged from 23.65 to 37.98. According to the industry distribution chart, The Descartes Systems Group ranks #62 out of 2886 companies in the Software industry, placing it in the top 2.1%.
Is The Descartes Systems Group's Return-on-Tangible-Asset too high?
The Descartes Systems Group's current Return-on-Tangible-Asset of 35.45% is 27% above median its 10-year median of 27.97. Over the past 10 years, this metric has ranged from a low of 23.65 to a high of 37.98. The Software industry median Return-on-Tangible-Asset is 2.06. The Descartes Systems Group's value of 35.45% is 1625.1% above this industry median. Based on the distribution chart, The Descartes Systems Group ranks #62 out of 2886 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 88/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Descartes Systems Group's Return-on-Tangible-Asset compare to UBER and SHOP?
According to the Software industry distribution chart, The Descartes Systems Group ranks #62 out of 2886 companies for Return-on-Tangible-Asset. This places The Descartes Systems Group in the top 2% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.06. The Descartes Systems Group's value of 35.45% is 1625.1% above this benchmark. Historically, The Descartes Systems Group's own Return-on-Tangible-Asset has ranged from 23.65 to 37.98 over the past decade. While the company's 10-year median is 27.97 vs. the industry median of 2.06, 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 Return-on-Tangible-Asset for a Software company?
The median Return-on-Tangible-Asset among Software companies is 2.06, based on 2,886 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Descartes Systems Group's current Return-on-Tangible-Asset of 35.45% is 1625.1% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on The Descartes Systems Group and its competitors. For the Software industry, the median Return-on-Tangible-Asset is 2.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Descartes Systems Group's current Return-on-Tangible-Asset is 35.45%, which is 27% above median its own 10-year median of 27.97. 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 (STU:DC2) is currently considered Significantly Undervalued. The stock's GF Value™ is €102.21, compared to a current price of €64.70 — trading 36.7% below its estimated fair value. The current Return-on-Tangible-Asset is 35.45%, which is 27% above median its 10-year median of 27.97 and 1625.1% above the Software industry median of 2.06. The Descartes Systems Group's overall GF Score™ is 88/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For The Descartes Systems Group (STU:DC2), the current Return-on-Tangible-Asset is 35.45% 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 (STU:DC2) Overvalued in 2026?
Based on GuruFocus' analysis, The Descartes Systems Group stock appears to be undervalued.
The current stock price of €64.70 is trading 36.7% below its estimated GF Value™ of €102.21.
GuruFocus considers The Descartes Systems Group to be Significantly Undervalued.
Key valuation signals for STU:DC2:
Return-on-Tangible-Asset: 35.45% (27% above median its 10-year median of 27.97)
GF Value™: €102.21 vs. price of €64.70 (36.7% below fair value)
Industry Position: 1625.1% above the Software median (#62 of 2886)
No single metric tells the full story. See the STU:DC2 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.
88GF Score
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