Revenue Breakdown
Composition ()
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Revenue Streams
Descartes Systems Group Inc (DSGX) generates its revenue through a diversified portfolio of business segments. Currently, the largest contributor to its top-line growth is Services, accounting for 92.6% of total sales, equivalent to $173.74M. Other significant revenue streams include Professional services and other and License. Understanding this composition is critical for investors evaluating how DSGX navigates market cycles within the Software industry.
Profitability & Margins
Evaluating the bottom line, Descartes Systems Group Inc maintains a gross margin of 66.34%. This metric reflects the company's pricing power and manufacturing efficiency. Further down the income statement, the operating margin stands at 33.07%, while the net margin is 23.39%. These profitability ratios, combined with a Return on Equity (ROE) of 10.70%, provide a clear picture of how effectively DSGX converts its operational activities into shareholder value.
Comparative Benchmarking
In the context of the broader market, DSGX competes directly with industry leaders such as OTEX and SAIL. With a market capitalization of $6.95B, it holds a significant position in the sector. When comparing efficiency, DSGX's gross margin of 66.34% stands against OTEX's 63.82% and SAIL's 66.34%. Such benchmarking helps identify whether Descartes Systems Group Inc is trading at a premium or discount relative to its financial performance.
