This software company is forecast to grow 25.25% annually, over the next five years.
Descartes Systems Group Inc. (DSGX)
From Internet Wealth Builder
Descartes Systems Group Inc. (DSGX) specializes in business software designed to facilitate logistics, financial controls, inventory, customs clearance, and freight tracking. Customers include transportation firms, manufacturers, distributors, retailers, customs brokers, and government agencies. The company is based in Waterloo, Ontario.
The shares have moved steadily higher this year and recently touched an all-time high of $55.01 in Toronto.
Descartes announced fourth-quarter and year-end results for the 2019 fiscal year, ending Jan. 31. For the full year, the company posted record revenue of $275.2 million, up 16% from $237.4 million in fiscal 2018. (Descartes reports in U.S. dollars and all figures are based on GAAP principles.) Net income was $31.3 million ($0.40 per share, fully diluted), up 16% from $26.9 million ($0.35 per share) in fiscal 2018. Adjusted EBITDA was $93.9 million, up 16% from $80.8 million last year.
On February 12, Descartes acquired substantially all of the assets of the businesses run by the Management Systems Resources Inc. group of companies. The company is a provider of software solutions and services to automate customs, trade, and fiscal compliance processes including denied and restricted party screening processes and export licensing.
The purchase price for the acquisition was approximately C$330 million, which was funded from a combination of drawing on the company’s existing credit facility and issuing to the sellers 300,000 Descartes common shares from treasury.
Buy.
Gordon Pape, Internet Wealth Builder, www.buildingwealth.ca, 1-888-287-8229, May 19, 2019