DISTRIBUTION SOLUTIONS GROUP (DSGR) Stock Fundamental Analysis
USA - NASDAQ:DSGR - US5207761058 - Common Stock
26.22 USD
-1.26 (-4.59%)
26.22 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to DSGR. DSGR was compared to 50 industry peers in the Trading Companies & Distributors industry. DSGR has a bad profitability rating. Also its financial health evaluation is rather negative. DSGR has a correct valuation and a medium growth rate.
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.
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
With a Return On Assets value of -0.63%, DSGR is not doing good in the industry: 64.71% of the companies in the same industry are doing better.
DSGR's Return On Equity of -1.71% is on the low side compared to the rest of the industry. DSGR is outperformed by 62.75% of its industry peers.
DSGR has a Return On Invested Capital (4.90%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for DSGR is significantly below the industry average of 9.31%.
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 Operating Margin of 4.58%. This is in the lower half of the industry: DSGR underperforms 60.78% 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 62.75% of the companies in the same industry.
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%
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.
DSGR has more shares outstanding than it did 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 2.23. 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.
With a Altman-Z score value of 2.23, DSGR perfoms like the industry average, outperforming 45.10% of the companies in the same 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 58.82% 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.
Looking at the Debt to Equity ratio, with a value of 1.02, DSGR is doing worse than 62.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 11.88 | ||
| Altman-Z | 2.23 |
ROIC/WACC0.5
WACC9.77%
2.3 Liquidity
A Current Ratio of 2.50 indicates that DSGR has no problem at all paying its short term obligations.
DSGR has a Current ratio of 2.50. This is in the better half of the industry: DSGR outperforms 68.63% 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.
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
The Earnings Per Share has grown by an nice 19.35% over the past year.
Measured over the past years, DSGR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.94% 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.
The Revenue has been growing by 37.22% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)19.35%
EPS 3Y-11.54%
EPS 5Y13.94%
EPS Q2Q%8.11%
Revenue 1Y (TTM)14.46%
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.
DSGR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.18% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
The Price/Earnings ratio is 17.72, which indicates a rather expensive current valuation of DSGR.
Based on the Price/Earnings ratio, DSGR is valued a bit cheaper than 66.67% of the companies in the same industry.
DSGR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.89.
With a Price/Forward Earnings ratio of 15.15, DSGR is valued correctly.
Based on the Price/Forward Earnings ratio, DSGR is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, DSGR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.72 | ||
| Fwd PE | 15.15 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DSGR indicates a somewhat cheap valuation: DSGR is cheaper than 60.78% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DSGR indicates a somewhat cheap valuation: DSGR is cheaper than 70.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.32 | ||
| EV/EBITDA | 10.83 |
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
DSGR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
26.22
-1.26 (-4.59%)
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)1.98B
Net Income(TTM)-11.21M
Analysts84.44
Price Target39.27 (49.77%)
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)1
Avg EPS beat(2)0.49%
Min EPS beat(2)-1.96%
Max EPS beat(2)2.94%
EPS beat(4)3
Avg EPS beat(4)7.63%
Min EPS beat(4)-1.96%
Max EPS beat(4)23.53%
EPS beat(8)5
Avg EPS beat(8)11.24%
EPS beat(12)6
Avg EPS beat(12)3.12%
EPS beat(16)8
Avg EPS beat(16)2.82%
Revenue beat(2)2
Avg Revenue beat(2)1.47%
Min Revenue beat(2)1.25%
Max Revenue beat(2)1.68%
Revenue beat(4)3
Avg Revenue beat(4)-0.31%
Min Revenue beat(4)-5.73%
Max Revenue beat(4)1.68%
Revenue beat(8)3
Avg Revenue beat(8)-1.52%
Revenue beat(12)5
Avg Revenue beat(12)-1.12%
Revenue beat(16)8
Avg Revenue beat(16)12.84%
PT rev (1m)0%
PT rev (3m)2.67%
EPS NQ rev (1m)3.26%
EPS NQ rev (3m)15.15%
EPS NY rev (1m)0%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)1.92%
Revenue NQ rev (3m)2.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.72 | ||
| Fwd PE | 15.15 | ||
| P/S | 0.61 | ||
| P/FCF | 20.32 | ||
| P/OCF | 10.77 | ||
| P/B | 1.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.83 |
EPS(TTM)1.48
EY5.64%
EPS(NY)1.73
Fwd EY6.6%
FCF(TTM)1.29
FCFY4.92%
OCF(TTM)2.43
OCFY9.28%
SpS42.76
BVpS14.13
TBVpS-1.09
PEG (NY)N/A
PEG (5Y)1.27
Graham Number21.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.63% | ||
| ROE | -1.71% | ||
| ROCE | 6.2% | ||
| ROIC | 4.9% | ||
| ROICexc | 5.14% | ||
| ROICexgc | 10.42% | ||
| OM | 4.58% | ||
| PM (TTM) | N/A | ||
| GM | 33.57% | ||
| FCFM | 3.02% |
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-Score5
Asset Turnover1.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 11.88 | ||
| Debt/EBITDA | 3.89 | ||
| Cap/Depr | 65.69% | ||
| Cap/Sales | 2.67% | ||
| Interest Coverage | 1.65 | ||
| Cash Conversion | 65.81% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 2.23 |
F-Score5
WACC9.77%
ROIC/WACC0.5
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)14.46%
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 1Y137.84%
EBIT growth 3Y67.07%
EBIT growth 5Y43.8%
EBIT Next Year23.38%
EBIT Next 3Y12.65%
EBIT Next 5YN/A
FCF growth 1Y6.37%
FCF growth 3YN/A
FCF growth 5Y19.41%
OCF growth 1Y36.84%
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%.