Value
4.9/10data confidence 100%| Component | Sub-score |
|---|---|
| P/E | 3.3 |
| P/S | 4.4 |
| EV/EBITDA | 0.5 |
| Fwd P/E | 5.6 |
| PEG | 5.7 |
| Analyst target | 7.5 |
- ▸Forward P/E: 22.9x
- ▸PEG: 1.32
DSGX · Why this verdict
Why The Descartes Systems Group (DSGX) is rated BUY WAIT
Updated
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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VerdictBUY WAIT
Overall score6.0/10
ConfidenceMEDIUM
MacroRISK_OFF
Per-dimension breakdown
Quality
8.2/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 3.8 |
| ROA | 5.4 |
| Gross margin | 10.0 |
| Op margin | 10.0 |
| Net margin | 10.0 |
| Current ratio | 7.1 |
| FCF quality | 10.0 |
| Moat | 7.1 |
| Rule of 40 | 8.3 |
| Piotroski F | 10.0 |
- ▸Strong margins: 23%
- ▸Excellent cash conversion: 152% FCF/NI
- ▸Rule of 40: 50 (pass)
- ▸Strong Piotroski F-Score: 9/9
Growth
7.5/10data confidence 67%| Component | Sub-score |
|---|---|
| Rev growth | 6.2 |
| EPS growth | 8.8 |
Momentum
5.2/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 3.8 |
| MACD | 10.0 |
| OBV | 1.0 |
| MA position | 6.0 |
| Volume | 5.2 |
- ▸Volume distribution (falling OBV)
- ▸Below 200-MA, MA slope -5.4%/30d — confirmed downtrend
Sentiment
7.0/10data confidence 100%| Component | Sub-score |
|---|---|
| LLM sentiment | 5.2 |
| Analyst rating | 7.2 |
| Price target | 8.8 |
- ▸Analyst upside: 33%
Insider
5.0/10data confidence 50%| Component | Sub-score |
|---|---|
| materiality | 5.0 |
| holder change | 5.1 |
- ▸No net insider activity — $0 (0.000% of mkt cap)
Peer rank
5.8/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 2.4 |
| quality rank | 6.9 |
| growth rank | 5.1 |
- ▸Best-in-class margins
- ▸Conservative debt levels
Technical
3.0/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 2.6 |
| support resistance | 3.6 |
| 52w position | 2.9 |
Risk (lower is worse)
4.8/10data confidence 100%| Component | Sub-score |
|---|---|
| days to cover | 7.7 |
| volatility | 1.0 |
| put call | 0.0 |
| implied vol | 1.8 |
| beta | 10.0 |
| debt equity | 8.0 |
- ▸Elevated put/call: 3.30
- ▸High IV: 69%
Catalyst
3.6/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 5.0 |
| earnings history | 0.0 |
| earnings timing | 5.0 |
| surprise avg | 0.0 |
| news activity | 8.0 |
- ▸Earnings concerns: 0B/4M
How the verdict was assembled
Engine trigger
Growth is outpacing valuation and the technical setup has confirmed a breakout above resistance (PEG 1.32, quality 8.2/10, growth 7.5/10). | News modifier -1 (STRONG_BUY_NOW → STRONG_BUY_WAIT).
Engine technical detail
verdict_path:
L4:PATH_C2_GARP|L3:NEWS_MOD=-1Passed (7)
- MOMENTUM:5.2>=4.5
- INSIDER:OK
- DEATH_CROSS:QUALITY_MOMENTUM_EXEMPT
- 8K:CLEAN
- EARNINGS_PROXIMITY:87d clear
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (1)
- ASYMMETRY:1.2<1.5@spot
Warning (2)
- MOMENTUM:5.2<5.5 (soft — BUY_NOW allowed but watch)
- DEATH_CROSS:quality=8.2>=7.5+momentum=5.2>=5.0 exempted
Reward-to-Risk
1.20
Upside
+16.0%
Downside
13.3%
Sizing output
STARTER
SetupRECOVERY — Death cross but MACD improving, RSI 62
EdgeNO_EDGE — No clear edge identified
SuitabilityMODERATE — Balanced profile
Investment implication
The C-path quality+growth combination triggered the STRONG_BUY_WAIT verdict: quality 8.2 and growth 7.5 both clear their thresholds, with asymmetric R:R of 1.20 supporting the read.
The strongest dimensions are Quality at 8.2, Growth at 7.5, and Sentiment at 7.0; the weakest are Technical at 3.0, Catalyst at 3.6, and Risk (lower is worse) at 4.8. The V9 engine flagged 1 failed gate with 2 warnings, producing an asymmetric reward-to-risk of 1.20 and an engine sizing output of STARTER.