The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Good Sign:
Altman Z-score of 13.77 is strong.
The Descartes Systems Group has a Altman Z-Score of 13.42, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for The Descartes Systems Group's Altman Z-Score or its related term are showing as below:
MEX:DSG N'
s Altman Z-Score Range Over the Past 10 Years
Min: 5.43 Med: 17.47 Max: 24.19
Current: 13.77
During the past 13 years, The Descartes Systems Group's highest Altman Z-Score was 24.19. The lowest was 5.43. And the median was 17.47.
The Descartes Systems Group (MEX:DSG N) Altman Z-Score Explanation
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
* 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.
MEX:DSG N vs CRM, SHOP, UBER: Altman Z-Score Comparison
For the Software - Application subindustry, The Descartes Systems Group's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score vs Software Industry
For the Software industry and Technology sector, The Descartes Systems Group's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where The Descartes Systems Group's Altman Z-Score falls into.
The Descartes Systems Group Altman Z-Score Calculation
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
The Descartes Systems Group (MEX:DSG N) has a Altman Z-Score of 13.42 as of Jun. 25, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on The Descartes Systems Group and its competitors. This is 23% below median its historical median of 17.47. Over the past decade, The Descartes Systems Group's Altman Z-Score has ranged from 5.43 to 24.19. According to the industry distribution chart, The Descartes Systems Group ranks #224 out of 2764 companies in the Software industry, placing it in the top 8.1%.
Is The Descartes Systems Group's Altman Z-Score too high?
The Descartes Systems Group's current Altman Z-Score of 13.42 is 23% below median its 10-year median of 17.47. Over the past 10 years, this metric has ranged from a low of 5.43 to a high of 24.19. The Software industry median Altman Z-Score is 3.14. The Descartes Systems Group's value of 13.42 is 328.1% above this industry median. Based on the distribution chart, The Descartes Systems Group ranks #224 out of 2764 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 Altman Z-Score compare to CRM and SHOP?
According to the Software industry distribution chart, The Descartes Systems Group ranks #224 out of 2764 companies for Altman Z-Score. This places The Descartes Systems Group in the top 8% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 3.14. The Descartes Systems Group's value of 13.42 is 328.1% above this benchmark. Historically, The Descartes Systems Group's own Altman Z-Score has ranged from 5.43 to 24.19 over the past decade. While the company's 10-year median is 17.47 vs. the industry median of 3.14, 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 Altman Z-Score for a Software company?
The median Altman Z-Score among Software companies is 3.14, based on 2,764 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Descartes Systems Group's current Altman Z-Score of 13.42 is 328.1% 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 Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on The Descartes Systems Group and its competitors. For the Software industry, the median Altman Z-Score is 3.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Descartes Systems Group's current Altman Z-Score is 13.42, which is 23% below median its own 10-year median of 17.47. 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 Altman Z-Score of 13.42. 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 Altman Z-Score is 13.42, which is 23% below median its 10-year median of 17.47 and 328.1% above the Software industry median of 3.14. 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 Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For The Descartes Systems Group (MEX:DSG N), the current Altman Z-Score is 13.42 as of Jun. 25, 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:
Altman Z-Score: 13.42 (23% below median its 10-year median of 17.47)
GF Value™: MXN2,129.50 vs. price of MXN1,264.95 (40.6% below fair value)
Industry Position: 328.1% above the Software median (#224 of 2764)
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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