29.11 USD
-0.03 (-0.1%)
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. DSGR may be in some trouble as it scores bad on both profitability and health. DSGR has a decent growth rate and is not valued too expensively.
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
- DSGR's Return On Assets of -0.63% is on the low side compared to the rest of the industry. DSGR is outperformed by 68.00% of its industry peers.
- The Return On Equity of DSGR (-1.71%) is worse than 66.00% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 4.90%, DSGR is in line with its industry, outperforming 46.00% of the companies in the same industry.
- DSGR had an Average Return On Invested Capital over the past 3 years of 3.48%. This 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.
- With a decent Gross Margin value of 33.57%, DSGR is doing good in the industry, outperforming 62.00% of the companies in the same industry.
- 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%
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
- Compared to 1 year ago, DSGR has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.31 indicates that DSGR is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of DSGR (2.31) 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.
- The Debt to FCF ratio of DSGR (11.88) is comparable to the rest of the industry.
- 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.
- DSGR has a Current ratio of 2.50. This is in the better half of the industry: DSGR outperforms 68.00% of its industry peers.
- 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 (1.38) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.38 |
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.
- The Earnings Per Share has been growing by 30.88% on average over the past years. This is a very strong growth
- 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
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 19.67, 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.
- DSGR is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 16.75, the valuation of DSGR can be described as correct.
- 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 | 19.67 | ||
| Fwd PE | 16.75 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DSGR is valued a bit cheaper than the industry average as 62.00% of the companies are valued more expensively.
- DSGR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DSGR is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.53 | ||
| EV/EBITDA | 11.61 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.64
EPS Next 2Y9.84%
EPS Next 3Y10.02%
5. Dividend
5.1 Amount
- DSGR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
DISTRIBUTION SOLUTIONS GROUP / DSGR FAQ
What is the fundamental rating for DSGR stock?
ChartMill assigns a fundamental rating of 4 / 10 to DSGR.
Can you provide the valuation status for DISTRIBUTION SOLUTIONS GROUP?
ChartMill assigns a valuation rating of 4 / 10 to DISTRIBUTION SOLUTIONS GROUP (DSGR). This can be considered as Fairly Valued.
Can you provide the profitability details for DISTRIBUTION SOLUTIONS GROUP?
DISTRIBUTION SOLUTIONS GROUP (DSGR) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for DSGR stock?
The Price/Earnings (PE) ratio for DISTRIBUTION SOLUTIONS GROUP (DSGR) is 19.67 and the Price/Book (PB) ratio is 2.06.
Can you provide the expected EPS growth for DSGR stock?
The Earnings per Share (EPS) of DISTRIBUTION SOLUTIONS GROUP (DSGR) is expected to decline by -2.25% in the next year.