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Opinions Peter Hodson
DescartesDSG.TOTOP PICKNov 19, 2015
Peter HodsonStock price when the opinion was issued
As of Jun 19, 2026. Market Open.
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Supply chain logistics and tracking solutions. Global, large. Owns a lot of IP, able to leverage it globally. Good story. Really consistent operators. No dividend.
Andrew PinkReally likes this whole segment of e-commerce and logistics. A very clear winner in the space. Lots of acquisitions. Buys intellectual property, brings it in-house, rebrands and sells it. Cross-selling opportunities are pretty phenomenal.
Andrew PinkLots of room to grow. Pressure from higher interest rates will push companies to automate. As global trade unwinds, in a good position to help clients with complex logistics.
Michael DecterRevenues would have been $3.9 million higher used last year's FX rates or $1.7 million higher if we'd used last quarter's FX rates.
At the end of the quarter, had $189 million in cash, and we're debt-free with an undrawn $350 million line of credit.
Remains well capitalized, cash-generating, debt-free and ready to continue to invest in business.
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Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Benefiting from supply-chain complexities. Continues to execute on acquisitions. Strong free cash flow and cash balance. Valuation more attractive than peers. Unlock Premium - Try 5i Free
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Relatively well priced than its peers. It is currently acting very well. Business is good although it has been caught up with some tech sell offs. DSG focuses on logistics. Unlock Premium - Try 5i Free
Stockchase InsightsBilly Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company has no debt, excess cash and good growth. They just reported a solid quarter with an EPS 21% better than estimates. Valuation is still below some software stocks. Unlock Premium - Try 5i Free
Stockchase InsightsBilly Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company has solid earnings growth with further growth expected. Prefers to let winners run and sees no reason to change weighting unless it is to rebalance portfolio weightings. Unlock Premium - Try 5i Free
Stockchase InsightsDSG-T vs. OTEX-T which to sell to raise cash? DSG-T, if you own it, you would have done very well, but the fair market value is 78% lower than where it is at now. There is a lot of momentum behind it but not a lot of value. OTEX-T is trading right at its fair market value and has not been above that in ten years. He would sell either one if you want a source of cash.
Great company. Overvalued. Pandemic and e-commerce have been a boon. Growth both organic and by its acquisition spree. Trades at 71x earnings. His preference is for Open Text, which has a larger market and has grown more quickly. OTEX trades at 14x earnings.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The stock under $70 would be attractive as an entry point. It is expected to grow earnings by 50% next year. The stock continues to grow despite covid. Unlock Premium - Try 5i Free
Stockchase Insights
Logistic software company and they want to do everything with anything to do with logistics. The company has been kind of quiet and sitting on $100 million in cash. In July of this year they did 2 fairly significant acquisitions. One has a kind of Homeland Safety kind of angle. There are certain people and companies that you cannot deliver to for logistic reasons, so they bought a company that controls that process to make sure you don’t deliver to the wrong people. That has been a very, very good kick starter to their business, and investors are starting to appreciate what they have done with their cash. It now has very, very good momentum. The stock is quite expensive on an earnings valuation basis, but if you look at consensus forecasts, earnings are almost expected to triple over the next 18 months. 43% of their revenue comes from the US.