DISTRIBUTION SOLUTIONS GROUP (DSGR) Stock Fundamental Analysis
USA - NASDAQ:DSGR - US5207761058 - Common Stock
28.24 USD
-0.31 (-1.09%)
28.24 USD
0 (0%)
Overall DSGR gets a fundamental rating of 3 out of 10. We evaluated DSGR against 49 industry peers in the Trading Companies & Distributors industry. DSGR has a bad profitability rating. Also its financial health evaluation is rather negative. DSGR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DSGR was profitable.
DSGR had a positive operating cash flow in the past year.
In multiple years DSGR reported negative net income over the last 5 years.
DSGR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.24%, DSGR is doing worse than 63.27% of the companies in the same industry.
DSGR has a Return On Equity of 0.66%. This is in the lower half of the industry: DSGR underperforms 65.31% of its industry peers.
DSGR has a Return On Invested Capital (4.63%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for DSGR is significantly below the industry average of 10.04%.
The 3 year average ROIC (3.48%) for DSGR is below the current ROIC(4.63%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.24% | ||
| ROE | 0.66% | ||
| ROIC | 4.63% |
ROA(3y)-0.13%
ROA(5y)1.83%
ROE(3y)-0.4%
ROE(5y)3.64%
ROIC(3y)3.48%
ROIC(5y)5.17%
1.3 Margins
Looking at the Profit Margin, with a value of 0.22%, DSGR is doing worse than 65.31% of the companies in the same industry.
With a Operating Margin value of 4.46%, DSGR is not doing good in the industry: 61.22% of the companies in the same industry are doing better.
DSGR's Operating Margin has improved in the last couple of years.
The Gross Margin of DSGR (33.85%) is better than 61.22% of its industry peers.
DSGR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.46% | ||
| PM (TTM) | 0.22% | ||
| GM | 33.85% |
OM growth 3Y2.59%
OM growth 5Y4.79%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-13.45%
GM growth 5Y-8.57%
2. Health
2.1 Basic Checks
DSGR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for DSGR has been increased compared to 1 year ago.
DSGR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, DSGR has a worse debt to assets ratio.
2.2 Solvency
DSGR has an Altman-Z score of 2.26. This is not the best score and indicates that DSGR is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of DSGR (2.26) is comparable to the rest of the industry.
DSGR has a debt to FCF ratio of 75.49. This is a negative value and a sign of low solvency as DSGR would need 75.49 years to pay back of all of its debts.
DSGR has a Debt to FCF ratio of 75.49. This is comparable to the rest of the industry: DSGR outperforms 51.02% of its industry peers.
DSGR has a Debt/Equity ratio of 1.04. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of DSGR (1.04) is worse than 61.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 75.49 | ||
| Altman-Z | 2.26 |
ROIC/WACC0.48
WACC9.71%
2.3 Liquidity
A Current Ratio of 2.59 indicates that DSGR has no problem at all paying its short term obligations.
DSGR's Current ratio of 2.59 is fine compared to the rest of the industry. DSGR outperforms 67.35% of its industry peers.
DSGR has a Quick Ratio of 1.36. This is a normal value and indicates that DSGR is financially healthy and should not expect problems in meeting its short term obligations.
DSGR's Quick ratio of 1.36 is in line compared to the rest of the industry. DSGR outperforms 59.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.59 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
DSGR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 39.42%, which is quite impressive.
Measured over the past years, DSGR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.94% on average per year.
Looking at the last year, DSGR shows a quite strong growth in Revenue. The Revenue has grown by 13.48% in the last year.
Measured over the past years, DSGR shows a very strong growth in Revenue. The Revenue has been growing by 37.22% on average per year.
EPS 1Y (TTM)39.42%
EPS 3Y-11.54%
EPS 5Y13.94%
EPS Q2Q%-12.5%
Revenue 1Y (TTM)13.48%
Revenue growth 3Y62.85%
Revenue growth 5Y37.22%
Sales Q2Q%14.31%
3.2 Future
Based on estimates for the next years, DSGR will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.63% on average per year.
DSGR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.18% yearly.
EPS Next Y-3.19%
EPS Next 2Y9.63%
EPS Next 3Y9.63%
EPS Next 5YN/A
Revenue Next Year10.15%
Revenue Next 2Y7.1%
Revenue Next 3Y6.18%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.48, DSGR is valued on the expensive side.
Based on the Price/Earnings ratio, DSGR is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.42. DSGR is valued slightly cheaper when compared to this.
DSGR is valuated correctly with a Price/Forward Earnings ratio of 16.32.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DSGR indicates a somewhat cheap valuation: DSGR is cheaper than 67.35% of the companies listed in the same industry.
DSGR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.48 | ||
| Fwd PE | 16.32 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DSGR.
The rest of the industry has a similar Price/Free Cash Flow ratio as DSGR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 137.41 | ||
| EV/EBITDA | 11.98 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.4
EPS Next 2Y9.63%
EPS Next 3Y9.63%
5. Dividend
5.1 Amount
No dividends for DSGR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
28.24
-0.31 (-1.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners93.03%
Inst Owner ChangeN/A
Ins Owners1%
Ins Owner Change7.53%
Market Cap1.31B
Analysts84.44
Price Target39.27 (39.06%)
Short Float %0.88%
Short Ratio6.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.48%
Min EPS beat(2)2.94%
Max EPS beat(2)6.02%
EPS beat(4)3
Avg EPS beat(4)5.61%
Min EPS beat(4)-10.06%
Max EPS beat(4)23.53%
EPS beat(8)5
Avg EPS beat(8)7.67%
EPS beat(12)7
Avg EPS beat(12)8.03%
EPS beat(16)8
Avg EPS beat(16)2.77%
Revenue beat(2)1
Avg Revenue beat(2)-2.03%
Min Revenue beat(2)-5.73%
Max Revenue beat(2)1.68%
Revenue beat(4)2
Avg Revenue beat(4)-1.03%
Min Revenue beat(4)-5.73%
Max Revenue beat(4)1.68%
Revenue beat(8)2
Avg Revenue beat(8)-2.26%
Revenue beat(12)5
Avg Revenue beat(12)-0.77%
Revenue beat(16)7
Avg Revenue beat(16)12.55%
PT rev (1m)0%
PT rev (3m)2.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.26%
EPS NY rev (1m)3.14%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.48 | ||
| Fwd PE | 16.32 | ||
| P/S | 0.68 | ||
| P/FCF | 137.41 | ||
| P/OCF | 22.94 | ||
| P/B | 2.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.98 |
EPS(TTM)1.45
EY5.13%
EPS(NY)1.73
Fwd EY6.13%
FCF(TTM)0.21
FCFY0.73%
OCF(TTM)1.23
OCFY4.36%
SpS41.68
BVpS14.03
TBVpS-1.49
PEG (NY)N/A
PEG (5Y)1.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.24% | ||
| ROE | 0.66% | ||
| ROCE | 5.86% | ||
| ROIC | 4.63% | ||
| ROICexc | 4.79% | ||
| ROICexgc | 9.7% | ||
| OM | 4.46% | ||
| PM (TTM) | 0.22% | ||
| GM | 33.85% | ||
| FCFM | 0.49% |
ROA(3y)-0.13%
ROA(5y)1.83%
ROE(3y)-0.4%
ROE(5y)3.64%
ROIC(3y)3.48%
ROIC(5y)5.17%
ROICexc(3y)3.63%
ROICexc(5y)5.74%
ROICexgc(3y)7.96%
ROICexgc(5y)10.53%
ROCE(3y)4.4%
ROCE(5y)6.55%
ROICexcg growth 3Y-3.32%
ROICexcg growth 5Y0.21%
ROICexc growth 3Y-15.6%
ROICexc growth 5Y-8.94%
OM growth 3Y2.59%
OM growth 5Y4.79%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-13.45%
GM growth 5Y-8.57%
F-Score7
Asset Turnover1.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 75.49 | ||
| Debt/EBITDA | 4.1 | ||
| Cap/Depr | 60.01% | ||
| Cap/Sales | 2.46% | ||
| Interest Coverage | 1.39 | ||
| Cash Conversion | 34.52% | ||
| Profit Quality | 223.26% | ||
| Current Ratio | 2.59 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 2.26 |
F-Score7
WACC9.71%
ROIC/WACC0.48
Cap/Depr(3y)45.26%
Cap/Depr(5y)51.84%
Cap/Sales(3y)1.83%
Cap/Sales(5y)1.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)39.42%
EPS 3Y-11.54%
EPS 5Y13.94%
EPS Q2Q%-12.5%
EPS Next Y-3.19%
EPS Next 2Y9.63%
EPS Next 3Y9.63%
EPS Next 5YN/A
Revenue 1Y (TTM)13.48%
Revenue growth 3Y62.85%
Revenue growth 5Y37.22%
Sales Q2Q%14.31%
Revenue Next Year10.15%
Revenue Next 2Y7.1%
Revenue Next 3Y6.18%
Revenue Next 5YN/A
EBIT growth 1Y169.82%
EBIT growth 3Y67.07%
EBIT growth 5Y43.8%
EBIT Next Year23.38%
EBIT Next 3Y12.65%
EBIT Next 5YN/A
FCF growth 1Y-68.68%
FCF growth 3YN/A
FCF growth 5Y19.41%
OCF growth 1Y1.8%
OCF growth 3Y117.99%
OCF growth 5Y43.74%