DISTRIBUTION SOLUTIONS GROUP (DSGR) Stock Fundamental Analysis
USA - NASDAQ:DSGR - US5207761058 - Common Stock
26.15 USD
-0.04 (-0.15%)
26.15 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to DSGR. DSGR was compared to 51 industry peers in the Trading Companies & Distributors industry. Both the profitability and financial health of DSGR have multiple concerns. 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.
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
DSGR has a Return On Assets of 0.24%. This is in the lower half of the industry: DSGR underperforms 62.75% of its industry peers.
The Return On Equity of DSGR (0.66%) is worse than 62.75% of its industry peers.
DSGR's Return On Invested Capital of 4.63% is in line compared to the rest of the industry. DSGR outperforms 45.10% of its industry peers.
DSGR had an Average Return On Invested Capital over the past 3 years of 3.48%. This is significantly below the industry average of 10.20%.
The 3 year average ROIC (3.48%) for DSGR is below the current ROIC(4.63%), indicating increased profibility in the last year.
| 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
With a Profit Margin value of 0.22%, DSGR is not doing good in the industry: 62.75% of the companies in the same industry are doing better.
Looking at the Operating Margin, with a value of 4.46%, DSGR is doing worse than 62.75% of the companies in the same industry.
DSGR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 33.85%, DSGR is in the better half of the industry, outperforming 62.75% of the companies in the same industry.
DSGR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.46% | ||
| 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
DSGR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, DSGR has more shares outstanding
The number of shares outstanding for DSGR has been increased compared to 5 years ago.
Compared to 1 year ago, DSGR has a worse debt to assets ratio.
2.2 Solvency
DSGR has an Altman-Z score of 2.21. 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 (2.21) which is in line with its industry peers.
The Debt to FCF ratio of DSGR is 75.49, which is on the high side as it means it would take DSGR, 75.49 years of fcf income to pay off 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 50.98% of its industry peers.
A Debt/Equity ratio of 1.04 is on the high side and indicates that DSGR has dependencies on debt financing.
DSGR has a worse Debt to Equity ratio (1.04) than 60.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 75.49 | ||
| Altman-Z | 2.21 |
ROIC/WACC0.47
WACC9.78%
2.3 Liquidity
DSGR has a Current Ratio of 2.59. This indicates that DSGR is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.59, DSGR is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
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.
The Quick ratio of DSGR (1.36) 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 nice 19.35% over the past year.
The Earnings Per Share has been growing by 13.94% on average over the past years. This is quite good.
Looking at the last year, DSGR shows a quite strong growth in Revenue. The Revenue has grown by 14.88% 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 3Y-11.54%
EPS 5Y13.94%
EPS Q2Q%8.11%
Revenue 1Y (TTM)14.88%
Revenue growth 3Y62.85%
Revenue growth 5Y37.22%
Sales Q2Q%10.67%
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-3.19%
EPS Next 2Y9.63%
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
The Price/Earnings ratio is 17.67, which indicates a rather expensive current valuation of DSGR.
Based on the Price/Earnings ratio, DSGR is valued a bit cheaper than the industry average as 70.59% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of DSGR to the average of the S&P500 Index (25.83), we can say DSGR is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.11, DSGR is valued correctly.
70.59% of the companies in the same industry are more expensive than DSGR, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, DSGR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.67 | ||
| Fwd PE | 15.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DSGR is valued a bit cheaper than the industry average as 60.78% of the companies are valued more expensively.
DSGR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 127.24 | ||
| EV/EBITDA | 11.41 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.27
EPS Next 2Y9.63%
EPS Next 3Y9.63%
5. Dividend
5.1 Amount
No dividends for DSGR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
26.15
-0.04 (-0.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners93.03%
Inst Owner ChangeN/A
Ins Owners1%
Ins Owner Change7.53%
Market Cap1.21B
Revenue(TTM)1.80B
Net Income(TTM)4.26M
Analysts84.44
Price Target39.27 (50.17%)
Short Float %0.84%
Short Ratio6.62
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)0%
PT rev (3m)2.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.26%
EPS NY rev (1m)0%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.67 | ||
| Fwd PE | 15.11 | ||
| P/S | 0.63 | ||
| P/FCF | 127.24 | ||
| P/OCF | 21.24 | ||
| P/B | 1.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.41 |
EPS(TTM)1.48
EY5.66%
EPS(NY)1.73
Fwd EY6.62%
FCF(TTM)0.21
FCFY0.79%
OCF(TTM)1.23
OCFY4.71%
SpS41.68
BVpS14.03
TBVpS-1.49
PEG (NY)N/A
PEG (5Y)1.27
Graham Number21.62
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%
ROICexgc growth 3Y-3.32%
ROICexgc 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 | 2.21 |
F-Score7
WACC9.78%
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)19.35%
EPS 3Y-11.54%
EPS 5Y13.94%
EPS Q2Q%8.11%
EPS Next Y-3.19%
EPS Next 2Y9.63%
EPS Next 3Y9.63%
EPS Next 5YN/A
Revenue 1Y (TTM)14.88%
Revenue growth 3Y62.85%
Revenue growth 5Y37.22%
Sales Q2Q%10.67%
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 Year23.38%
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%
DISTRIBUTION SOLUTIONS GROUP / DSGR FAQ
What is the fundamental rating for DSGR stock?
ChartMill assigns a fundamental rating of 4 / 10 to DSGR.
What is the valuation status for DSGR stock?
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.
What is the expected EPS growth for DISTRIBUTION SOLUTIONS GROUP (DSGR) stock?
The Earnings per Share (EPS) of DISTRIBUTION SOLUTIONS GROUP (DSGR) is expected to decline by -3.19% in the next year.
Is the dividend of DISTRIBUTION SOLUTIONS GROUP sustainable?
The dividend rating of DISTRIBUTION SOLUTIONS GROUP (DSGR) is 0 / 10 and the dividend payout ratio is 0%.