DISTRIBUTION SOLUTIONS GROUP (DSGR) Stock Fundamental Analysis
USA - NASDAQ:DSGR - US5207761058 - Common Stock
31.25 USD
+0.26 (+0.84%)
DSGR gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 50 industry peers in the Trading Companies & Distributors industry. Both the profitability and financial health of DSGR have multiple concerns. While showing a medium growth rate, DSGR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
DSGR had positive earnings in the past year.
In the past year DSGR had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: DSGR reported negative net income in multiple years.
DSGR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.24%, DSGR is not doing good in the industry: 64.00% of the companies in the same industry are doing better.
With a Return On Equity value of 0.66%, DSGR is not doing good in the industry: 66.00% of the companies in the same industry are doing better.
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 10.24%.
The last Return On Invested Capital (4.63%) for DSGR is above the 3 year average (3.48%), which is a sign of increasing profitability.
| 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
DSGR has a Profit Margin of 0.22%. This is in the lower half of the industry: DSGR underperforms 66.00% of its industry peers.
Looking at the Operating Margin, with a value of 4.46%, DSGR is doing worse than 62.00% of the companies in the same industry.
DSGR's Operating Margin has improved in the last couple of years.
DSGR's Gross Margin of 33.85% is fine compared to the rest of the industry. DSGR outperforms 62.00% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DSGR is destroying value.
Compared to 1 year ago, DSGR has more shares outstanding
Compared to 5 years ago, DSGR has more shares outstanding
The debt/assets ratio for DSGR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.33 indicates that DSGR is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.33, DSGR is in line with its industry, outperforming 46.00% of the companies in the same 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 48.00% 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.
Looking at the Debt to Equity ratio, with a value of 1.04, DSGR is doing worse than 62.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 75.49 | ||
| Altman-Z | 2.33 |
ROIC/WACC0.47
WACC9.91%
2.3 Liquidity
A Current Ratio of 2.59 indicates that DSGR has no problem at all paying its short term obligations.
DSGR has a better Current ratio (2.59) than 66.00% 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 has a Quick ratio (1.36) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.59 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 39.42% over the past year.
The Earnings Per Share has been growing by 13.94% on average over the past years. This is quite good.
The Revenue has grown by 13.48% in the past year. This is quite good.
The Revenue has been growing by 37.22% on average over the past years. This is a very strong growth!
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.
The Revenue is expected to grow by 6.18% on average over the next years.
EPS Next Y-6.15%
EPS Next 2Y4.44%
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.55 indicates a rather expensive valuation of DSGR.
Based on the Price/Earnings ratio, DSGR is valued a bit cheaper than the industry average as 66.00% of the companies are valued more expensively.
DSGR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.20.
DSGR is valuated rather expensively with a Price/Forward Earnings ratio of 19.89.
DSGR's Price/Forward Earnings is on the same level as the industry average.
DSGR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.71, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.55 | ||
| Fwd PE | 19.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DSGR indicates a somewhat cheap valuation: DSGR is cheaper than 62.00% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DSGR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 152.06 | ||
| EV/EBITDA | 12.75 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.55
EPS Next 2Y4.44%
EPS Next 3Y9.63%
5. Dividend
5.1 Amount
No dividends for DSGR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:DSGR (9/17/2025, 11:30:33 AM)
31.25
+0.26 (+0.84%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners93.05%
Inst Owner ChangeN/A
Ins Owners0.99%
Ins Owner Change7.96%
Market Cap1.45B
Analysts84.44
Price Target39.27 (25.66%)
Short Float %0.92%
Short Ratio8
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)2.67%
PT rev (3m)2.67%
EPS NQ rev (1m)2.56%
EPS NQ rev (3m)5.26%
EPS NY rev (1m)-2.81%
EPS NY rev (3m)-8.62%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.55 | ||
| Fwd PE | 19.89 | ||
| P/S | 0.75 | ||
| P/FCF | 152.06 | ||
| P/OCF | 25.38 | ||
| P/B | 2.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.75 |
EPS(TTM)1.45
EY4.64%
EPS(NY)1.57
Fwd EY5.03%
FCF(TTM)0.21
FCFY0.66%
OCF(TTM)1.23
OCFY3.94%
SpS41.68
BVpS14.03
TBVpS-1.49
PEG (NY)N/A
PEG (5Y)1.55
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 | 2.33 |
F-Score7
WACC9.91%
ROIC/WACC0.47
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-6.15%
EPS Next 2Y4.44%
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 Year22.05%
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%