ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. The Descartes Systems Group's annualizedNet Income for the quarter that ended in Apr. 2026 was MXN3,396 Mil.
The Descartes Systems Group's average Total Assets over the quarter that ended in Apr. 2026 was MXN33,265 Mil. Therefore, The Descartes Systems Group's annualized ROA % for the quarter that ended in Apr. 2026 was 10.21%.
The historical rank and industry rank for The Descartes Systems Group's ROA % or its related term are showing as below:
MEX:DSG N'
s ROA % Range Over the Past 10 Years
Min: 4.61 Med: 6.39 Max: 9.64
Current: 9.64
During the past 13 years, The Descartes Systems Group's highest ROA % was 9.64%. The lowest was 4.61%. And the median was 6.39%.
MEX:DSG N's ROA % is ranked better than 81.1% of 2883
companies
in the Software industry
Industry Median: 1.68
vs MEX:DSG N: 9.64
The Descartes Systems Group (MEX:DSG N) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Apr. 2026) net income data. The Revenue data used here is four times the quarterly (Apr. 2026) revenue 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* 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.
For the Software - Application subindustry, The Descartes Systems Group's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Software Industry
For the Software industry and Technology sector, The Descartes Systems Group's ROA % distribution charts can be found below:
* The bar in red indicates where The Descartes Systems Group's ROA % 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 ROA %, the net income of the last fiscal year and the average total 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.
ROA % is displayed in the 30-year financial page.
The Descartes Systems Group (MEX:DSG N) has a ROA % of 10.21% as of Apr. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on The Descartes Systems Group and its competitors. This is 60% above median its historical median of 6.39. Over the past decade, The Descartes Systems Group's ROA % has ranged from 4.61 to 9.64. According to the industry distribution chart, The Descartes Systems Group ranks #545 out of 2883 companies in the Software industry, placing it in the top 18.9%.
Is The Descartes Systems Group's ROA % too high?
The Descartes Systems Group's current ROA % of 10.21% is 60% above median its 10-year median of 6.39. Over the past 10 years, this metric has ranged from a low of 4.61 to a high of 9.64. The Software industry median ROA % is 1.68. The Descartes Systems Group's value of 10.21% is 507.7% above this industry median. Based on the distribution chart, The Descartes Systems Group ranks #545 out of 2883 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 ROA % compare to CRM and SHOP?
According to the Software industry distribution chart, The Descartes Systems Group ranks #545 out of 2883 companies for ROA %. This places The Descartes Systems Group in the top 19% of its industry — outperforming the majority of peers. The industry median ROA % is 1.68. The Descartes Systems Group's value of 10.21% is 507.7% above this benchmark. Historically, The Descartes Systems Group's own ROA % has ranged from 4.61 to 9.64 over the past decade. While the company's 10-year median is 6.39 vs. the industry median of 1.68, 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 ROA % for a Software company?
The median ROA % among Software companies is 1.68, based on 2,883 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Descartes Systems Group's current ROA % of 10.21% is 507.7% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on The Descartes Systems Group and its competitors. For the Software industry, the median ROA % is 1.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Descartes Systems Group's current ROA % is 10.21%, which is 60% above median its own 10-year median of 6.39. 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 ROA % of 10.21%. 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 ROA % is 10.21%, which is 60% above median its 10-year median of 6.39 and 507.7% above the Software industry median of 1.68. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For The Descartes Systems Group (MEX:DSG N), the current ROA % is 10.21% 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:
ROA %: 10.21% (60% above median its 10-year median of 6.39)
GF Value™: MXN2,129.50 vs. price of MXN1,264.95 (40.6% below fair value)
Industry Position: 507.7% above the Software median (#545 of 2883)
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
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