The Descartes Systems GroupSTU:DC2 +0.56%88 ROC (Joel Greenblatt) % is 1,194.64% as of Apr. 2026, which is 202% above its 10-year median of 395.75. GuruFocus rates STU:DC2 with a GF Score™ of 88/100 and a GF Value™ of €102.48 (Significantly Undervalued). Among 2,811 Software companies, The Descartes Systems Group ranks better than 96.98% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. The Descartes Systems Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 1,194.64%.
The historical rank and industry rank for The Descartes Systems Group's ROC (Joel Greenblatt) % or its related term are showing as below:
STU:DC2'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 266.09 Med: 395.75 Max: 1101.52
Current: 1101.52
During the past 13 years, The Descartes Systems Group's highest ROC (Joel Greenblatt) % was 1101.52%. The lowest was 266.09%. And the median was 395.75%.
STU:DC2's ROC (Joel Greenblatt) % is ranked better than 96.98% of 2811
companies
in the Software industry
Industry Median: 19.63
vs STU:DC2: 1101.52
The Descartes Systems Group (STU:DC2) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
* 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 ROC (Joel Greenblatt) % Chart
STU:DC2 vs UBER, SHOP, CRM: ROC (Joel Greenblatt) % Comparison
For the Software - Application subindustry, The Descartes Systems Group's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Software Industry
For the Software industry and Technology sector, The Descartes Systems Group's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where The Descartes Systems Group's ROC (Joel Greenblatt) % falls into.
The Descartes Systems Group ROC (Joel Greenblatt) % Calculation
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Apr. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 1,194.64% mean?
The Descartes Systems Group (STU:DC2) has a ROC (Joel Greenblatt) % of 1,194.64% as of Apr. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on The Descartes Systems Group and its competitors. This is 202% above median its historical median of 395.75. Over the past decade, The Descartes Systems Group's ROC (Joel Greenblatt) % has ranged from 266.09 to 1,101.52. According to the industry distribution chart, The Descartes Systems Group ranks #85 out of 2811 companies in the Software industry, placing it in the top 3%.
Is The Descartes Systems Group's ROC (Joel Greenblatt) % too high?
The Descartes Systems Group's current ROC (Joel Greenblatt) % of 1,194.64% is 202% above median its 10-year median of 395.75. Over the past 10 years, this metric has ranged from a low of 266.09 to a high of 1,101.52. The Software industry median ROC (Joel Greenblatt) % is 19.63. The Descartes Systems Group's value of 1,194.64% is 5985.8% above this industry median. Based on the distribution chart, The Descartes Systems Group ranks #85 out of 2811 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 ROC (Joel Greenblatt) % compare to UBER and SHOP?
According to the Software industry distribution chart, The Descartes Systems Group ranks #85 out of 2811 companies for ROC (Joel Greenblatt) %. This places The Descartes Systems Group in the top 3% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 19.63. The Descartes Systems Group's value of 1,194.64% is 5985.8% above this benchmark. Historically, The Descartes Systems Group's own ROC (Joel Greenblatt) % has ranged from 266.09 to 1,101.52 over the past decade. While the company's 10-year median is 395.75 vs. the industry median of 19.63, 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 ROC (Joel Greenblatt) % for a Software company?
The median ROC (Joel Greenblatt) % among Software companies is 19.63, based on 2,811 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Descartes Systems Group's current ROC (Joel Greenblatt) % of 1,194.64% is 5985.8% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on The Descartes Systems Group and its competitors. For the Software industry, the median ROC (Joel Greenblatt) % is 19.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Descartes Systems Group's current ROC (Joel Greenblatt) % is 1,194.64%, which is 202% above median its own 10-year median of 395.75. 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 €102.48, compared to a current price of €63.05 — trading 38.5% below its estimated fair value. The current ROC (Joel Greenblatt) % is 1,194.64%, which is 202% above median its 10-year median of 395.75 and 5985.8% above the Software industry median of 19.63. The Descartes Systems Group's overall GF Score™ is 88/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For The Descartes Systems Group (STU:DC2), the current ROC (Joel Greenblatt) % is 1,194.64% 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 €63.05 is trading 38.5% below its estimated GF Value™ of €102.48.
GuruFocus considers The Descartes Systems Group to be Significantly Undervalued.
Key valuation signals for STU:DC2:
ROC (Joel Greenblatt) %: 1,194.64% (202% above median its 10-year median of 395.75)
GF Value™: €102.48 vs. price of €63.05 (38.5% below fair value)
Industry Position: 5985.8% above the Software median (#85 of 2811)
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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