AMG

Affiliated Managers Group

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Financial Services

industry

Asset Management

Exchange

NYSE

County of HQ

Canada

Next Earnings Date

05/14/26

Business Summary

Descartes Systems Group provides software applications that optimize logistics, supply chain coordination, and operational workflows for enterprises. The company generates cash primarily through software licensing and recurring application-based revenue, leveraging mission-critical integration within customer operations. Its moat comes from embedded network effects within supply chain ecosystems—once integrated into transportation and compliance workflows, switching costs rise materially. The durability of cash flow stems from recurring usage tied to ongoing logistics activity rather than discretionary IT spending cycles.

VALUATION

P/E

12.6

Market Cap ($M USD)

$7,614

Forward P/E

7.6

PEG

0.7

PRICE TO SALES

4.5

PRICE TO BOOK

2.4

EV / EBITDA

6.5

5-Year Average P/E

DIVIDEND

Yield

0.00%

Annual Payout

$0.04

Payout Ratio

0.20%

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

0.00%

Financial Health & Profitability

Earnings Per Share

$25.18

Next Year EPS Growth Estimate

$37.58

Next Year Revenue Growth Estimate

9.30%

Return on Equity (ROE)

22.10%

Operating Margin

22.90%

Debt-to-Equity

0.8

Piotroski F-Score

6

Altman Z-Score

2.6

Return on Invested Capital (ROIC)

13.80%%

Current Ratio

1.5

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 33.8x earnings with a Forward P/E of 19.6, DSGX is priced as a growth stock that is expected to decelerate into a more reasonable earnings multiple, yet the PEG Forward of 2.1 suggests investors are still paying a premium relative to its growth outlook. The valuation is not distressed, but the dramatic compression from trailing to forward earnings implies material forward earnings expansion, which the market is already discounting. What stands out is the Altman Z-Score of 13 and a Current Ratio of 2.2—this is an exceptionally safe balance sheet profile with negligible bankruptcy risk. This is not a deep value mispricing; it is a financially stable, moderately expensive software name that the market views as dependable but not hyper-growth.

AI Exposure / Tech Reliance

Operating in Software – Application within the Technology sector, DSGX sits in a segment that is structurally aligned with AI-driven workflow automation and data-centric optimization. Software platforms are inherently adaptable to AI layering, and companies with recurring software economics can integrate machine learning without capital-heavy reinvention. Its resilience will depend on whether it leverages its application layer to embed automation and analytics rather than compete purely on commoditized features.

The Bull Case

A GARP investor buys this because the fundamentals are clean and efficient. ROIC at 10.90% and ROE at 11.00% show the company is generating returns above basic capital costs without excessive leverage, reinforced by a manageable Debt/Equity ratio of 30.20%. The Piotroski F-Score of 7 signals strong operational and balance sheet quality, while a 10.10% operating margin in application software indicates disciplined cost control. Add the Altman Z-Score of 13 and zero dividend drain, and you have a financially durable compounder trading at a forward multiple of 19.6—reasonable for a company with positive forward expectations and institutional ownership listed at 102.58, signaling strong professional sponsorship.

The Bear Case

The bear case centers on valuation versus growth efficiency. A PEG Forward of 2.1 is not cheap; it implies growth does not justify the multiple expansion investors are assigning. Price/Sales at 7.6 and Price/Book at 3.4 are elevated for a company generating a 10.10% operating margin and 11.00% ROE—these are solid but not elite metrics. With Debt/Equity at 30.20%, leverage is not alarming but limits flexibility if growth disappoints, and the absence of dividend yield removes downside support. If forward earnings fail to materialize as implied by the drop to a 19.6 Forward P/E, multiple compression could be swift.

Market Sentiment & Smart Money

Short Interest %

2.50%

Analyst Consensus

1.75

Average Analyst Price Target

$376.00

Institutional Ownership %

100.60%

1-Year Beta

1.12

Insider Buying % (6 Mo)

3.90%%

Distance to 52-Week High

85.20%%

Distance to 52-Week Low

189.10%%