The historical rank and industry rank for The Descartes Systems Group's ROE % or its related term are showing as below:
MEX:DSG N'
s ROE % Range Over the Past 10 Years
Min: 5.43 Med: 7.63 Max: 11.33
Current: 11.33
During the past 13 years, The Descartes Systems Group's highest ROE % was 11.33%. The lowest was 5.43%. And the median was 7.63%.
MEX:DSG N's ROE % is ranked better than 66.39% of 2681
companies
in the Software industry
Industry Median: 4.71
vs MEX:DSG N: 11.33
The Descartes Systems Group (MEX:DSG N) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
* 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Software Industry
For the Software industry and Technology sector, The Descartes Systems Group's ROE % distribution charts can be found below:
* The bar in red indicates where The Descartes Systems Group's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
The Descartes Systems Group (MEX:DSG N) has a ROE % of 11.99% as of Apr. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on The Descartes Systems Group and its competitors. This is 57% above median its historical median of 7.63. Over the past decade, The Descartes Systems Group's ROE % has ranged from 5.43 to 11.33. According to the industry distribution chart, The Descartes Systems Group ranks #901 out of 2681 companies in the Software industry, placing it in the top 33.6%.
Is The Descartes Systems Group's ROE % too high?
The Descartes Systems Group's current ROE % of 11.99% is 57% above median its 10-year median of 7.63. Over the past 10 years, this metric has ranged from a low of 5.43 to a high of 11.33. The Software industry median ROE % is 4.71. The Descartes Systems Group's value of 11.99% is 154.6% above this industry median. Based on the distribution chart, The Descartes Systems Group ranks #901 out of 2681 companies in the Software industry, which is above the industry midpoint. 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 ROE % compare to CRM and SHOP?
According to the Software industry distribution chart, The Descartes Systems Group ranks #901 out of 2681 companies for ROE %. This puts The Descartes Systems Group in the upper half of its industry. The industry median ROE % is 4.71. The Descartes Systems Group's value of 11.99% is 154.6% above this benchmark. Historically, The Descartes Systems Group's own ROE % has ranged from 5.43 to 11.33 over the past decade. While the company's 10-year median is 7.63 vs. the industry median of 4.71, 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 ROE % for a Software company?
The median ROE % among Software companies is 4.71, based on 2,681 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Descartes Systems Group's current ROE % of 11.99% is 154.6% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on The Descartes Systems Group and its competitors. For the Software industry, the median ROE % is 4.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Descartes Systems Group's current ROE % is 11.99%, which is 57% above median its own 10-year median of 7.63. 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 ROE % of 11.99%. 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 ROE % is 11.99%, which is 57% above median its 10-year median of 7.63 and 154.6% above the Software industry median of 4.71. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For The Descartes Systems Group (MEX:DSG N), the current ROE % is 11.99% 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:
ROE %: 11.99% (57% above median its 10-year median of 7.63)
GF Value™: MXN2,129.50 vs. price of MXN1,264.95 (40.6% below fair value)
Industry Position: 154.6% above the Software median (#901 of 2681)
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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