DISTRIBUTION SOLUTIONS GROUP (DSGR) Stock Fundamental Analysis
NASDAQ:DSGR - Nasdaq - US5207761058 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to DSGR. DSGR was compared to 49 industry peers in the Trading Companies & Distributors industry. DSGR may be in some trouble as it scores bad on both profitability and health. DSGR is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
DSGR had positive earnings in the past year.
DSGR had a positive operating cash flow in the past year.
DSGR had positive earnings in 4 of the past 5 years.
Of the past 5 years DSGR 4 years had a positive operating cash flow.
1.2 Ratios
DSGR's Return On Assets of 0.13% is on the low side compared to the rest of the industry. DSGR is outperformed by 79.17% of its industry peers.
DSGR has a worse Return On Equity (0.33%) than 79.17% of its industry peers.
DSGR has a Return On Invested Capital of 1.99%. This is in the lower half of the industry: DSGR underperforms 79.17% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DSGR is significantly below the industry average of 9.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.13% | ||
| ROE | 0.33% | ||
| ROIC | 1.99% |
ROA(3y)1.23%
ROA(5y)2.62%
ROE(3y)2.34%
ROE(5y)5.21%
ROIC(3y)4.19%
ROIC(5y)5.54%
1.3 Margins
With a Profit Margin value of 0.13%, DSGR is not doing good in the industry: 79.17% of the companies in the same industry are doing better.
DSGR has a worse Operating Margin (2.20%) than 79.17% of its industry peers.
DSGR's Operating Margin has improved in the last couple of years.
DSGR's Gross Margin of 34.21% is in line compared to the rest of the industry. DSGR outperforms 58.33% of its industry peers.
DSGR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.2% | ||
| PM (TTM) | 0.13% | ||
| GM | 34.21% |
OM growth 3Y-15.99%
OM growth 5Y5.71%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-12.82%
GM growth 5Y-8.3%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DSGR is destroying value.
DSGR has more shares outstanding than it did 1 year ago.
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
DSGR has an Altman-Z score of 2.09. 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.
DSGR has a Altman-Z score (2.09) which is in line with its industry peers.
The Debt to FCF ratio of DSGR is 40.58, which is on the high side as it means it would take DSGR, 40.58 years of fcf income to pay off all of its debts.
DSGR's Debt to FCF ratio of 40.58 is in line compared to the rest of the industry. DSGR outperforms 43.75% 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 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 40.58 | ||
| Altman-Z | 2.09 |
ROIC/WACC0.18
WACC10.93%
2.3 Liquidity
A Current Ratio of 2.81 indicates that DSGR has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.81, DSGR is doing good in the industry, outperforming 70.83% of the companies in the same industry.
A Quick Ratio of 1.55 indicates that DSGR should not have too much problems paying its short term obligations.
DSGR has a Quick ratio of 1.55. This is in the better half of the industry: DSGR outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.81 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 52.15% over the past year.
Measured over the past years, DSGR shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.17% on average per year.
Looking at the last year, DSGR shows a quite strong growth in Revenue. The Revenue has grown by 15.71% in the last year.
DSGR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 35.05% yearly.
EPS 1Y (TTM)52.15%
EPS 3Y-19.74%
EPS 5Y-7.17%
EPS Q2Q%117.65%
Revenue 1Y (TTM)15.71%
Revenue growth 3Y64.69%
Revenue growth 5Y35.05%
Sales Q2Q%6.63%
3.2 Future
The Earnings Per Share is expected to grow by 28.88% on average over the next years. This is a very strong growth
Based on estimates for the next years, DSGR will show a quite strong growth in Revenue. The Revenue will grow by 9.69% on average per year.
EPS Next Y51.69%
EPS Next 2Y38.45%
EPS Next 3Y28.88%
EPS Next 5YN/A
Revenue Next Year12.81%
Revenue Next 2Y12.41%
Revenue Next 3Y9.69%
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 accelerating.
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 23.25 indicates a rather expensive valuation of DSGR.
DSGR's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 29.63. DSGR is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 16.53, DSGR is valued correctly.
DSGR's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.68. DSGR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.25 | ||
| Fwd PE | 16.53 |
4.2 Price Multiples
DSGR's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. DSGR is more expensive than 68.75% of the companies in the same industry.
DSGR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 73.31 | ||
| EV/EBITDA | 18.76 |
4.3 Compensation for Growth
DSGR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as DSGR's earnings are expected to grow with 28.88% in the coming years.
PEG (NY)0.45
PEG (5Y)N/A
EPS Next 2Y38.45%
EPS Next 3Y28.88%
5. Dividend
5.1 Amount
DSGR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
28.83
-1.04 (-3.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners93.14%
Inst Owner ChangeN/A
Ins Owners0.89%
Ins Owner Change0%
Market Cap1.35B
Analysts84.44
Price Target43.86 (52.13%)
Short Float %0.69%
Short Ratio7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.18
Dividend Growth(5Y)-14.85%
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.55%
Min EPS beat(2)-10.06%
Max EPS beat(2)25.16%
EPS beat(4)2
Avg EPS beat(4)14.85%
Min EPS beat(4)-13.49%
Max EPS beat(4)57.82%
EPS beat(8)3
Avg EPS beat(8)0.87%
EPS beat(12)5
Avg EPS beat(12)1.21%
EPS beat(16)5
Avg EPS beat(16)-6.61%
Revenue beat(2)0
Avg Revenue beat(2)-1.66%
Min Revenue beat(2)-1.7%
Max Revenue beat(2)-1.61%
Revenue beat(4)0
Avg Revenue beat(4)-2.72%
Min Revenue beat(4)-5.18%
Max Revenue beat(4)-1.61%
Revenue beat(8)2
Avg Revenue beat(8)-1.52%
Revenue beat(12)5
Avg Revenue beat(12)17.23%
Revenue beat(16)5
Avg Revenue beat(16)12.16%
PT rev (1m)0%
PT rev (3m)1.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.25 | ||
| Fwd PE | 16.53 | ||
| P/S | 0.78 | ||
| P/FCF | 73.31 | ||
| P/OCF | 34.65 | ||
| P/B | 1.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.76 |
EPS(TTM)1.24
EY4.3%
EPS(NY)1.74
Fwd EY6.05%
FCF(TTM)0.39
FCFY1.36%
OCF(TTM)0.83
OCFY2.89%
SpS36.91
BVpS14.53
TBVpS-1.42
PEG (NY)0.45
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.13% | ||
| ROE | 0.33% | ||
| ROCE | 2.52% | ||
| ROIC | 1.99% | ||
| ROICexc | 2.08% | ||
| ROICexgc | 4.28% | ||
| OM | 2.2% | ||
| PM (TTM) | 0.13% | ||
| GM | 34.21% | ||
| FCFM | 1.07% |
ROA(3y)1.23%
ROA(5y)2.62%
ROE(3y)2.34%
ROE(5y)5.21%
ROIC(3y)4.19%
ROIC(5y)5.54%
ROICexc(3y)4.34%
ROICexc(5y)6.12%
ROICexgc(3y)8.2%
ROICexgc(5y)10.51%
ROCE(3y)5.3%
ROCE(5y)7.02%
ROICexcg growth 3Y-29.28%
ROICexcg growth 5Y0.08%
ROICexc growth 3Y-34.5%
ROICexc growth 5Y-8.87%
OM growth 3Y-15.99%
OM growth 5Y5.71%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-12.82%
GM growth 5Y-8.3%
F-Score6
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 40.58 | ||
| Debt/EBITDA | 6.49 | ||
| Cap/Depr | 29.16% | ||
| Cap/Sales | 1.19% | ||
| Interest Coverage | 0.76 | ||
| Cash Conversion | 35.89% | ||
| Profit Quality | 813.96% | ||
| Current Ratio | 2.81 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z | 2.09 |
F-Score6
WACC10.93%
ROIC/WACC0.18
Cap/Depr(3y)60.5%
Cap/Depr(5y)48.24%
Cap/Sales(3y)1.76%
Cap/Sales(5y)1.26%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)52.15%
EPS 3Y-19.74%
EPS 5Y-7.17%
EPS Q2Q%117.65%
EPS Next Y51.69%
EPS Next 2Y38.45%
EPS Next 3Y28.88%
EPS Next 5YN/A
Revenue 1Y (TTM)15.71%
Revenue growth 3Y64.69%
Revenue growth 5Y35.05%
Sales Q2Q%6.63%
Revenue Next Year12.81%
Revenue Next 2Y12.41%
Revenue Next 3Y9.69%
Revenue Next 5YN/A
EBIT growth 1Y-36.93%
EBIT growth 3Y38.35%
EBIT growth 5Y42.76%
EBIT Next Year80.14%
EBIT Next 3Y31.15%
EBIT Next 5YN/A
FCF growth 1Y152.03%
FCF growth 3Y36.02%
FCF growth 5Y34.27%
OCF growth 1Y294.86%
OCF growth 3Y46.5%
OCF growth 5Y38.19%