The Descartes Systems GroupDSGX -0.96%87 Return-on-Tangible-Equity is 73.33% as of Apr. 2026, which is 9% above its 10-year median of 67.34. GuruFocus rates DSGX with a GF Score™ of 87/100 and a GF Value™ of $115.53 (Significantly Undervalued). Among 2,466 Software companies, The Descartes Systems Group ranks better than 87.71% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. The Descartes Systems Group's annualized net income for the quarter that ended in Apr. 2026 was $193.9 Mil. The Descartes Systems Group's average shareholder tangible equity for the quarter that ended in Apr. 2026 was $264.4 Mil. Therefore, The Descartes Systems Group's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was 73.33%.
The historical rank and industry rank for The Descartes Systems Group's Return-on-Tangible-Equity or its related term are showing as below:
DSGX'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 55.13 Med: 67.34 Max: 372.51
Current: 91.38
During the past 13 years, The Descartes Systems Group's highest Return-on-Tangible-Equity was 372.51%. The lowest was 55.13%. And the median was 67.34%.
DSGX's Return-on-Tangible-Equity is ranked better than 87.71% of 2466
companies
in the Software industry
Industry Median: 8.67
vs DSGX: 91.38
The Descartes Systems Group (NAS:DSGX) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
The Descartes Systems Group Return-on-Tangible-Equity Related Terms
The Descartes Systems Group Return-on-Tangible-Equity 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-Equity Chart
DSGX vs UBER, SHOP, CRM: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, The Descartes Systems Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Software Industry
For the Software industry and Technology sector, The Descartes Systems Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where The Descartes Systems Group's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 73.33% mean?
The Descartes Systems Group (DSGX) has a Return-on-Tangible-Equity of 73.33% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on The Descartes Systems Group and its competitors. This is near median its historical median of 67.34. Over the past decade, The Descartes Systems Group's Return-on-Tangible-Equity has ranged from 55.13 to 372.51. According to the industry distribution chart, The Descartes Systems Group ranks #303 out of 2466 companies in the Software industry, placing it in the top 12.3%.
Is The Descartes Systems Group's Return-on-Tangible-Equity too high?
The Descartes Systems Group's current Return-on-Tangible-Equity of 73.33% is near median its 10-year median of 67.34. Over the past 10 years, this metric has ranged from a low of 55.13 to a high of 372.51. The Software industry median Return-on-Tangible-Equity is 8.67. The Descartes Systems Group's value of 73.33% is 745.8% above this industry median. Based on the distribution chart, The Descartes Systems Group ranks #303 out of 2466 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 87/100 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-Equity compare to UBER and SHOP?
According to the Software industry distribution chart, The Descartes Systems Group ranks #303 out of 2466 companies for Return-on-Tangible-Equity. This places The Descartes Systems Group in the top 12% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.67. The Descartes Systems Group's value of 73.33% is 745.8% above this benchmark. Historically, The Descartes Systems Group's own Return-on-Tangible-Equity has ranged from 55.13 to 372.51 over the past decade. While the company's 10-year median is 67.34 vs. the industry median of 8.67, 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-Equity for a Software company?
The median Return-on-Tangible-Equity among Software companies is 8.67, based on 2,466 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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-Equity of 73.33% is 745.8% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on The Descartes Systems Group and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.67 — 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-Equity is 73.33%, which is near median its own 10-year median of 67.34. 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 $115.53, compared to a current price of $71.40 — trading 38.2% below its estimated fair value. The current Return-on-Tangible-Equity is 73.33%, which is near median its 10-year median of 67.34 and 745.8% above the Software industry median of 8.67. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For The Descartes Systems Group (DSGX), the current Return-on-Tangible-Equity is 73.33% 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 (DSGX) Overvalued in 2026?
Based on GuruFocus' analysis, The Descartes Systems Group stock appears to be undervalued.
The current stock price of $71.40 is trading 38.2% below its estimated GF Value™ of $115.53.
GuruFocus considers The Descartes Systems Group to be Significantly Undervalued.
Key valuation signals for DSGX:
Return-on-Tangible-Equity: 73.33% (near median its 10-year median of 67.34)
GF Value™: $115.53 vs. price of $71.40 (38.2% below fair value)
Industry Position: 745.8% above the Software median (#303 of 2466)
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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