DISTRIBUTION SOLUTIONS GROUP (DSGR) Stock Fundamental Analysis
NASDAQ:DSGR - Nasdaq - US5207761058 - Common Stock - Currency: USD
DSGR gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 48 industry peers in the Trading Companies & Distributors industry. Both the profitability and financial health of DSGR have multiple concerns. DSGR is quite expensive at the moment. It does show a decent growth rate.
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.
DSGR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
DSGR's Return On Assets of 0.07% is on the low side compared to the rest of the industry. DSGR is outperformed by 68.75% of its industry peers.
The Return On Equity of DSGR (0.18%) is worse than 68.75% of its industry peers.
With a Return On Invested Capital value of 3.88%, DSGR is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
DSGR had an Average Return On Invested Capital over the past 3 years of 3.48%. This is significantly below the industry average of 9.62%.
The 3 year average ROIC (3.48%) for DSGR is below the current ROIC(3.88%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.07% | ||
| ROE | 0.18% | ||
| ROIC | 3.88% |
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 Profit Margin of 0.06%. This is in the lower half of the industry: DSGR underperforms 68.75% of its industry peers.
DSGR has a worse Operating Margin (3.93%) than 66.67% of its industry peers.
DSGR's Operating Margin has improved in the last couple of years.
DSGR has a Gross Margin of 33.99%. This is comparable to the rest of the industry: DSGR outperforms 58.33% of its industry peers.
DSGR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.93% | ||
| PM (TTM) | 0.06% | ||
| GM | 33.99% |
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
An Altman-Z score of 2.19 indicates that DSGR is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.19, DSGR is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
The Debt to FCF ratio of DSGR is 629.82, which is on the high side as it means it would take DSGR, 629.82 years of fcf income to pay off all of its debts.
DSGR has a Debt to FCF ratio of 629.82. This is comparable to the rest of the industry: DSGR outperforms 41.67% of its industry peers.
A Debt/Equity ratio of 1.12 is on the high side and indicates that DSGR has dependencies on debt financing.
The Debt to Equity ratio of DSGR (1.12) is worse than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 629.82 | ||
| Altman-Z | 2.19 |
ROIC/WACC0.37
WACC10.44%
2.3 Liquidity
DSGR has a Current Ratio of 2.74. This indicates that DSGR is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of DSGR (2.74) is better than 70.83% of its industry peers.
A Quick Ratio of 1.45 indicates that DSGR should not have too much problems paying its short term obligations.
The Quick ratio of DSGR (1.45) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.74 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 66.67% 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.
DSGR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.91%.
The Revenue has been growing by 37.22% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)66.67%
EPS 3Y-11.54%
EPS 5Y13.94%
EPS Q2Q%24%
Revenue 1Y (TTM)13.91%
Revenue growth 3Y62.85%
Revenue growth 5Y37.22%
Sales Q2Q%14.89%
3.2 Future
Based on estimates for the next years, DSGR will show a small growth in Earnings Per Share. The EPS will grow by 5.68% on average per year.
The Revenue is expected to grow by 6.84% on average over the next years.
EPS Next Y-3.43%
EPS Next 2Y5.68%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.65%
Revenue Next 2Y6.84%
Revenue Next 3YN/A
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 19.05, which indicates a rather expensive current valuation of DSGR.
Compared to the rest of the industry, the Price/Earnings ratio of DSGR indicates a somewhat cheap valuation: DSGR is cheaper than 64.58% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. DSGR is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 17.77, which indicates a rather expensive current valuation of DSGR.
The rest of the industry has a similar Price/Forward Earnings ratio as DSGR.
DSGR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.05 | ||
| Fwd PE | 17.77 |
4.2 Price Multiples
DSGR's Enterprise Value to EBITDA ratio is in line with the industry average.
DSGR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1107.89 | ||
| EV/EBITDA | 13.39 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.37
EPS Next 2Y5.68%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DSGR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
28.58
-0.63 (-2.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners92.69%
Inst Owner ChangeN/A
Ins Owners0.99%
Ins Owner Change7.96%
Market Cap1.33B
Analysts84.44
Price Target38.25 (33.83%)
Short Float %0.95%
Short Ratio6.5
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)14.77%
Min EPS beat(2)6.02%
Max EPS beat(2)23.53%
EPS beat(4)3
Avg EPS beat(4)11.16%
Min EPS beat(4)-10.06%
Max EPS beat(4)25.16%
EPS beat(8)4
Avg EPS beat(8)6.82%
EPS beat(12)6
Avg EPS beat(12)3.84%
EPS beat(16)7
Avg EPS beat(16)0.57%
Revenue beat(2)1
Avg Revenue beat(2)-2.09%
Min Revenue beat(2)-5.73%
Max Revenue beat(2)1.56%
Revenue beat(4)1
Avg Revenue beat(4)-1.87%
Min Revenue beat(4)-5.73%
Max Revenue beat(4)1.56%
Revenue beat(8)2
Avg Revenue beat(8)-2.21%
Revenue beat(12)5
Avg Revenue beat(12)13.97%
Revenue beat(16)6
Avg Revenue beat(16)12.25%
PT rev (1m)0%
PT rev (3m)-12.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.41%
EPS NY rev (1m)-5.98%
EPS NY rev (3m)-0.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.05 | ||
| Fwd PE | 17.77 | ||
| P/S | 0.71 | ||
| P/FCF | 1107.89 | ||
| P/OCF | 29.44 | ||
| P/B | 2.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.39 |
EPS(TTM)1.5
EY5.25%
EPS(NY)1.61
Fwd EY5.63%
FCF(TTM)0.03
FCFY0.09%
OCF(TTM)0.97
OCFY3.4%
SpS40.18
BVpS13.71
TBVpS-1.85
PEG (NY)N/A
PEG (5Y)1.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.07% | ||
| ROE | 0.18% | ||
| ROCE | 4.92% | ||
| ROIC | 3.88% | ||
| ROICexc | 4.06% | ||
| ROICexgc | 8.24% | ||
| OM | 3.93% | ||
| PM (TTM) | 0.06% | ||
| GM | 33.99% | ||
| FCFM | 0.06% |
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%
ROICexcg growth 3Y-3.32%
ROICexcg 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-Score6
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 629.82 | ||
| Debt/EBITDA | 4.74 | ||
| Cap/Depr | 56.76% | ||
| Cap/Sales | 2.35% | ||
| Interest Coverage | 1.29 | ||
| Cash Conversion | 29.94% | ||
| Profit Quality | 103.9% | ||
| Current Ratio | 2.74 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 2.19 |
F-Score6
WACC10.44%
ROIC/WACC0.37
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)66.67%
EPS 3Y-11.54%
EPS 5Y13.94%
EPS Q2Q%24%
EPS Next Y-3.43%
EPS Next 2Y5.68%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)13.91%
Revenue growth 3Y62.85%
Revenue growth 5Y37.22%
Sales Q2Q%14.89%
Revenue Next Year9.65%
Revenue Next 2Y6.84%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y131.19%
EBIT growth 3Y67.07%
EBIT growth 5Y43.8%
EBIT Next Year20.94%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y105.47%
FCF growth 3YN/A
FCF growth 5Y19.41%
OCF growth 1Y1382.76%
OCF growth 3Y117.99%
OCF growth 5Y43.74%