Topic: How To Invest

Q: Pat, what do think of Descartes Systems? Thanks.

Article Excerpt

A: Descartes Systems Group Inc., $102.18, symbol DSG on Toronto (Shares outstanding: 85.1 million; Market cap: $8.5 billion;, is a software provider to businesses needing logistics (shipping) solutions. Customers use its software to schedule and track deliveries, audit and pay transportation invoices, access global trade data, and other logistics-related processes. All of that occurs in the cloud, meaning customers store their data files and programs on remote servers and access them online. Descartes has more than 24,000 customers worldwide. The U.S. accounts for about 63% of overall revenue, with Europe, the Middle East and Africa contributing 26%, Canada, 7%, and Asia/Pacific, 4%. Descartes continues to grow by acquisition. For instance, in February 2023, the company acquired GroundCloud, a Minneapolis-based provider of a logistics automation software platform for final-mile delivery. Its software enables final-mile carriers to receive customer delivery orders, plan and execute routes, and train and monitor drivers on safety and performance. Descartes paid $138 million for GroundCloud. In addition, there are…