DISTRIBUTION SOLUTIONS GROUP (DSGR) Stock Fundamental Analysis
USA - NASDAQ:DSGR - US5207761058 - Common Stock
30.65 USD
-0.34 (-1.08%)
30.65 USD
0 (0%)
DSGR gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 50 industry peers in the Trading Companies & Distributors industry. DSGR has a bad profitability rating. Also its financial health evaluation is rather negative. DSGR is valied quite expensively at the moment, while 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.
In multiple years DSGR reported negative net income over the last 5 years.
DSGR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
DSGR has a Return On Assets of 0.24%. This is in the lower half of the industry: DSGR underperforms 64.00% of its industry peers.
DSGR's Return On Equity of 0.66% is on the low side compared to the rest of the industry. DSGR is outperformed by 66.00% 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 46.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DSGR is significantly below the industry average of 10.24%.
The last Return On Invested Capital (4.63%) for DSGR is above the 3 year average (3.48%), which is a sign of increasing profitability.
| 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
The Profit Margin of DSGR (0.22%) is worse than 66.00% of its industry peers.
DSGR has a worse Operating Margin (4.46%) than 62.00% of its industry peers.
DSGR's Operating Margin has improved in the last couple of years.
DSGR has a better Gross Margin (33.85%) than 62.00% of its industry peers.
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.
The number of shares outstanding for DSGR has been increased compared to 1 year ago.
The number of shares outstanding for DSGR has been increased compared to 5 years ago.
DSGR has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.32 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 2.32, DSGR is in line with its industry, outperforming 46.00% 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.
DSGR has a Debt to FCF ratio (75.49) which is comparable to the rest of the industry.
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 62.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 75.49 | ||
| Altman-Z | 2.32 |
ROIC/WACC0.47
WACC9.94%
2.3 Liquidity
A Current Ratio of 2.59 indicates that DSGR has no problem at all paying its short term obligations.
The Current ratio of DSGR (2.59) is better than 66.00% of its industry peers.
A Quick Ratio of 1.36 indicates that DSGR should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.36, DSGR is in line with its industry, outperforming 60.00% of the companies in the same 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 impressive 39.42% over the past year.
DSGR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.94% yearly.
DSGR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.48%.
The Revenue has been growing by 37.22% on average over the past years. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 9.63% 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 6.18% on average per year.
EPS Next Y-6.15%
EPS Next 2Y4.44%
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.
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 21.14, 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 66.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. DSGR is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 19.51, which indicates a rather expensive current valuation of DSGR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DSGR is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, DSGR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.14 | ||
| Fwd PE | 19.51 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as DSGR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 149.14 | ||
| EV/EBITDA | 12.66 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.52
EPS Next 2Y4.44%
EPS Next 3Y9.63%
5. Dividend
5.1 Amount
No dividends for DSGR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
30.65
-0.34 (-1.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners93.05%
Inst Owner ChangeN/A
Ins Owners0.99%
Ins Owner Change7.96%
Market Cap1.42B
Analysts84.44
Price Target39.27 (28.12%)
Short Float %0.92%
Short Ratio8
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)2.67%
PT rev (3m)2.67%
EPS NQ rev (1m)2.56%
EPS NQ rev (3m)5.26%
EPS NY rev (1m)-2.81%
EPS NY rev (3m)-8.62%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.14 | ||
| Fwd PE | 19.51 | ||
| P/S | 0.74 | ||
| P/FCF | 149.14 | ||
| P/OCF | 24.89 | ||
| P/B | 2.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.66 |
EPS(TTM)1.45
EY4.73%
EPS(NY)1.57
Fwd EY5.12%
FCF(TTM)0.21
FCFY0.67%
OCF(TTM)1.23
OCFY4.02%
SpS41.68
BVpS14.03
TBVpS-1.49
PEG (NY)N/A
PEG (5Y)1.52
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%
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-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 | 2.32 |
F-Score7
WACC9.94%
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)39.42%
EPS 3Y-11.54%
EPS 5Y13.94%
EPS Q2Q%-12.5%
EPS Next Y-6.15%
EPS Next 2Y4.44%
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 Year22.05%
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%