Overall DSGR gets a fundamental rating of 4 out of 10. We evaluated DSGR against 50 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 not valued too expensively and it also shows a decent growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
Of the past 5 years DSGR 4 years had a positive operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of -0.63%, DSGR is doing worse than 68.00% of the companies in the same industry.
DSGR has a worse Return On Equity (-1.71%) than 66.00% of its industry peers.
With a Return On Invested Capital value of 4.90%, DSGR perfoms like the industry average, outperforming 46.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DSGR is significantly below the industry average of 9.64%.
The last Return On Invested Capital (4.90%) for DSGR is above the 3 year average (3.48%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	-0.63%
ROE	-1.71%
ROIC	4.9%

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 worse Operating Margin (4.58%) than 62.00% of its industry peers.
In the last couple of years the Operating Margin of DSGR has grown nicely.
The Gross Margin of DSGR (33.57%) is better than 62.00% of its industry peers.
In the last couple of years the Gross Margin of DSGR has declined.

		Industry Rank	Sector Rank
OM	4.58%
PM (TTM)	N/A
GM	33.57%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DSGR is destroying value.
The number of shares outstanding for DSGR has been increased compared to 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 2.28. 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 (2.28) is comparable to the rest of the industry.
The Debt to FCF ratio of DSGR is 11.88, which is on the high side as it means it would take DSGR, 11.88 years of fcf income to pay off all of its debts.
DSGR's Debt to FCF ratio of 11.88 is in line compared to the rest of the industry. DSGR outperforms 56.00% of its industry peers.
A Debt/Equity ratio of 1.02 is on the high side and indicates that DSGR has dependencies on debt financing.
DSGR's Debt to Equity ratio of 1.02 is on the low side compared to the rest of the industry. DSGR is outperformed by 60.00% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.02
Debt/FCF	11.88
Altman-Z	2.28

ROIC/WACC0.48

WACC10.12%

2.3 Liquidity

DSGR has a Current Ratio of 2.50. This indicates that DSGR is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of DSGR (2.50) is better than 68.00% of its industry peers.
DSGR has a Quick Ratio of 1.38. This is a normal value and indicates that DSGR is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of DSGR (1.38) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	2.5
Quick Ratio	1.38

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

DSGR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.35%, which is quite good.
DSGR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.88% yearly.
Looking at the last year, DSGR shows a quite strong growth in Revenue. The Revenue has grown by 14.46% 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)19.35%

EPS 3Y11.46%

EPS 5Y30.88%

EPS Q2Q%8.11%

Revenue 1Y (TTM)14.46%

Revenue growth 3Y62.85%

Revenue growth 5Y37.22%

Sales Q2Q%10.67%

3.2 Future

The Earnings Per Share is expected to grow by 10.02% on average over the next years. This is quite good.
Based on estimates for the next years, DSGR will show a small growth in Revenue. The Revenue will grow by 6.64% on average per year.

EPS Next Y-2.25%

EPS Next 2Y9.84%

EPS Next 3Y10.02%

EPS Next 5YN/A

Revenue Next Year11.63%

Revenue Next 2Y7.86%

Revenue Next 3Y6.64%

Revenue Next 5YN/A

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 18.93, DSGR is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of DSGR indicates a somewhat cheap valuation: DSGR is cheaper than 70.00% of the companies listed in the same industry.
DSGR is valuated rather cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.13 indicates a correct valuation of DSGR.
78.00% of the companies in the same industry are more expensive than DSGR, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of DSGR to the average of the S&P500 Index (25.83), we can say DSGR is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	18.93
Fwd PE	16.13

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, DSGR is valued a bit cheaper than 64.00% of the companies in the same industry.
78.00% of the companies in the same industry are more expensive than DSGR, based on the Price/Free Cash Flow ratio.