DISTRIBUTION SOLUTIONS GROUP (DSGR) Stock Fundamental Analysis
USA - NASDAQ:DSGR - US5207761058 - Common Stock
30.31 USD
+0.03 (+0.1%)
30.31 USD
0 (0%)
Overall DSGR gets a fundamental rating of 3 out of 10. We evaluated DSGR against 49 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.
DSGR had a positive operating cash flow in the past year.
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
The Return On Assets of DSGR (0.24%) is worse than 63.27% of its industry peers.
With a Return On Equity value of 0.66%, DSGR is not doing good in the industry: 65.31% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 4.63%, DSGR is in line with its industry, outperforming 46.94% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DSGR is significantly below the industry average of 10.04%.
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
DSGR has a Profit Margin of 0.22%. This is in the lower half of the industry: DSGR underperforms 65.31% of its industry peers.
DSGR has a worse Operating Margin (4.46%) than 61.22% of its industry peers.
In the last couple of years the Operating Margin of DSGR has grown nicely.
Looking at the Gross Margin, with a value of 33.85%, DSGR is in the better half of the industry, outperforming 61.22% 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 | 4.46% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DSGR 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
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.
Looking at the Altman-Z score, with a value of 2.31, DSGR is in line with its industry, outperforming 44.90% of the companies in the same industry.
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.
The Debt to FCF ratio of DSGR (75.49) is comparable to the rest of the industry.
DSGR has a Debt/Equity ratio of 1.04. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of DSGR (1.04) is worse than 61.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 75.49 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.48
WACC9.71%
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 67.35% 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.
With a Quick ratio value of 1.36, DSGR perfoms like the industry average, outperforming 59.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.59 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
DSGR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 39.42%, which is quite impressive.
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 13.48% 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)39.42%
EPS 3Y-11.54%
EPS 5Y13.94%
EPS Q2Q%-12.5%
Revenue 1Y (TTM)13.48%
Revenue growth 3Y62.85%
Revenue growth 5Y37.22%
Sales Q2Q%14.31%
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 9.63% yearly.
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 20.90, 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 63.27% of the companies listed in the same industry.
DSGR is valuated rather cheaply when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.51 indicates a rather expensive valuation of DSGR.
Based on the Price/Forward Earnings ratio, DSGR is valued a bit cheaper than 61.22% of the companies in the same industry.
DSGR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.9 | ||
| Fwd PE | 17.51 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DSGR is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as DSGR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 147.49 | ||
| EV/EBITDA | 12.55 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.5
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 |
30.31
+0.03 (+0.1%)
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 Cap1.40B
Revenue(TTM)1.93B
Net Income(TTM)4.26M
Analysts84.44
Price Target39.27 (29.56%)
Short Float %0.88%
Short Ratio6.91
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)3.14%
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 | 20.9 | ||
| Fwd PE | 17.51 | ||
| P/S | 0.73 | ||
| P/FCF | 147.49 | ||
| P/OCF | 24.62 | ||
| P/B | 2.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.55 |
EPS(TTM)1.45
EY4.78%
EPS(NY)1.73
Fwd EY5.71%
FCF(TTM)0.21
FCFY0.68%
OCF(TTM)1.23
OCFY4.06%
SpS41.68
BVpS14.03
TBVpS-1.49
PEG (NY)N/A
PEG (5Y)1.5
Graham Number21.4
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 | 2.31 |
F-Score7
WACC9.71%
ROIC/WACC0.48
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)39.42%
EPS 3Y-11.54%
EPS 5Y13.94%
EPS Q2Q%-12.5%
EPS Next Y-3.19%
EPS Next 2Y9.63%
EPS Next 3Y9.63%
EPS Next 5YN/A
Revenue 1Y (TTM)13.48%
Revenue growth 3Y62.85%
Revenue growth 5Y37.22%
Sales Q2Q%14.31%
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 3 / 10 to DSGR.
What is the valuation status for DSGR stock?
ChartMill assigns a valuation rating of 3 / 10 to DISTRIBUTION SOLUTIONS GROUP (DSGR). This can be considered as Overvalued.
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%.