Taking everything into account, DSGR scores 4 out of 10 in our fundamental rating. DSGR was compared to 50 industry peers in the Trading Companies & Distributors industry. Both the profitability and financial health of DSGR have multiple concerns. DSGR is not valued too expensively and it also shows a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year DSGR was profitable.
In the past year DSGR had a positive cash flow from operations.
In multiple years DSGR reported negative net income over the last 5 years.
Of the past 5 years DSGR 4 years had a positive operating cash flow.

1.2 Ratios

The Return On Assets of DSGR (-0.63%) is worse than 68.00% of its industry peers.
DSGR has a Return On Equity of -1.71%. This is in the lower half of the industry: DSGR underperforms 66.00% of its industry peers.
DSGR has a Return On Invested Capital of 4.90%. This is comparable to the rest of the industry: DSGR outperforms 46.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DSGR is significantly below the industry average of 9.64%.
The 3 year average ROIC (3.48%) for DSGR is below the current ROIC(4.90%), indicating increased profibility in the last year.

		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

Looking at the Operating Margin, with a value of 4.58%, DSGR is doing worse than 62.00% of the companies in the same industry.
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.
DSGR's Gross Margin has declined in the last couple of years.

		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

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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.
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 2.31. 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 (2.31) is comparable to the rest of the industry.
DSGR has a debt to FCF ratio of 11.88. This is a negative value and a sign of low solvency as DSGR would need 11.88 years to pay back of 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.
With a Debt to Equity ratio value of 1.02, DSGR is not doing good in the industry: 60.00% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	1.02
Debt/FCF	11.88
Altman-Z	2.31

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.
With a decent Current ratio value of 2.50, DSGR is doing good in the industry, outperforming 68.00% of the companies in the same industry.
A Quick Ratio of 1.38 indicates that DSGR should not have too much problems paying its short term obligations.
DSGR has a Quick ratio of 1.38. This is comparable to the rest of the industry: DSGR outperforms 56.00% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.5
Quick Ratio	1.38

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Debt/Equity

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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.
Measured over the past years, DSGR shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.88% on average per year.
Looking at the last year, DSGR shows a quite strong growth in Revenue. The Revenue has grown by 14.46% in the last year.
DSGR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 37.22% yearly.

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

DSGR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.02% yearly.
DSGR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.64% yearly.

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

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 19.26, DSGR is valued on the expensive side.
68.00% of the companies in the same industry are more expensive than DSGR, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.25. DSGR is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.40 indicates a correct valuation of DSGR.
Based on the Price/Forward Earnings ratio, DSGR is valued a bit cheaper than 78.00% of the companies in the same industry.
DSGR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	19.26
Fwd PE	16.4

4.2 Price Multiples

DSGR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DSGR is cheaper than 62.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DSGR is valued a bit cheaper than 80.00% of the companies in the same industry.