Is DESCARTES SYSTEMS GROUP INC (DSGX) Halal?
Shariah Screening — 5 Standards
Based on financial data from January 2026
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 0.1% / 30% | 3.8% / 30% | 1.1% / 30% | 0.62% / 5% | ✓ HALAL |
| DJIM | 0.1% / 33% | 3.8% / 33% | 1.1% / 33% | 0.62% / 5% | ✓ HALAL |
| MSCI | 0.5% / 33% | 14.3% / 33% | 4.3% / 33% | 0.62% / 5% | ✓ HALAL |
| S&P | 0.1% / 33% | 3.8% / 33% | 1.1% / 33% | 0.62% / 5% | ✓ HALAL |
| FTSE | 0.5% / 33% | 14.3% / 33% | 4.3% / 50% | 0.62% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 77.1% | |
| Operating Margin | 31.2% | |
| Net Margin | 22.5% | |
| Return on Equity (ROE) | 10.9% | |
| Return on Assets (ROA) | 7.8% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $266M |
| Free Cash Flow | $261M |
| Total Debt | $8M |
| Debt-to-Equity | 0.5 |
| Current Ratio | 2.2 |
| Total Assets | $1.9B |
Price & Trading
| Last Close | $71.64 |
| 50-Day MA | $71.67 |
| 200-Day MA | $89.63 |
| Avg Volume | 703K |
| Beta | 0.3 |
|
52-Week Range
$62.56
| |
About DESCARTES SYSTEMS GROUP INC (DSGX)
The Descartes Systems Group Inc. provides global logistics technology solutions in the United States, Europe, the Middle East, Africa, Canada, and the Asia Pacific. Its Logistics Technology platform offers a range of modular, interoperable web and wireless logistics management solutions. The company offers a suite of solutions that include routing, mobile, and telematics; transportation management; ecommerce, shipping, and fulfillment; customs and regulatory compliance; global trade intelligence; broker and forwarder enterprise systems; and B2B messaging and connectivity services. It also provides its customers to use its modular and technology solutions to route, track, and measure delivery resources; plan, allocate, and execute shipments; rate, audit, and pay transportation invoices; access and analyze global trade data; research and perform trade tariff and duty calculations; file customs and security documents for imports and exports; and various other logistics processes. In addition, the company offers consulting, implementation, and training services, as well as maintenance and support services. It serves transportation providers, such as air, ocean, and truck modes; logistics service providers, including third-party logistics providers, freight forwarders, and customs brokers; and distribution-intensive companies, such as retailers, manufacturers, distributors, and mobile business service providers through subscription, transactional or perpetual license basis. The Descartes Systems Group Inc. was incorporated in 1981 and is headquartered in Waterloo, Canada.
Purification Calculator
As a halal stock with 0.62% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is DESCARTES SYSTEMS GROUP INC (DSGX) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), DESCARTES SYSTEMS GROUP INC is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is DESCARTES SYSTEMS GROUP INC's debt ratio?
DESCARTES SYSTEMS GROUP INC's debt ratio is 0.1% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 0.5%.
Does DESCARTES SYSTEMS GROUP INC require dividend purification?
Yes, DESCARTES SYSTEMS GROUP INC has an impermissible income ratio of 0.62%, which means 0.62% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are DESCARTES SYSTEMS GROUP INC's key financial metrics?
DESCARTES SYSTEMS GROUP INC has a market capitalization of $6.0B, trailing P/E ratio of 37.2, and revenue of $729M. The company maintains a gross margin of 77.1% and a net margin of 22.5%. Return on equity stands at 10.9%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.