DISTRIBUTION SOLUTIONS GROUP (DSGR) Stock Fundamental Analysis
USA - NASDAQ:DSGR - US5207761058 - Common Stock
27.015 USD
+0.07 (+0.28%)
DSGR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 51 industry peers in the Trading Companies & Distributors industry. Both the profitability and financial health of DSGR have multiple concerns. DSGR is not valued too expensively and it also shows 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
Looking at the Return On Assets, with a value of 0.24%, DSGR is doing worse than 62.75% of the companies in the same industry.
DSGR has a Return On Equity of 0.66%. This is in the lower half of the industry: DSGR underperforms 62.75% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.63%, DSGR is in line with its industry, outperforming 45.10% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DSGR is significantly below the industry average of 10.20%.
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
DSGR has a worse Profit Margin (0.22%) than 62.75% of its industry peers.
The Operating Margin of DSGR (4.46%) is worse than 62.75% of its industry peers.
DSGR's Operating Margin has improved in the last couple of years.
The Gross Margin of DSGR (33.85%) is better than 62.75% 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.
DSGR has more shares outstanding than it did 5 years ago.
DSGR has a worse debt/assets ratio than last year.
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.
The Altman-Z score of DSGR (2.23) is comparable to the rest of the industry.
DSGR has a debt to FCF ratio of 75.49. This is a negative value and a sign of low solvency as DSGR would need 75.49 years to pay back of all of its debts.
DSGR's Debt to FCF ratio of 75.49 is in line compared to the rest of the industry. DSGR outperforms 50.98% of its industry peers.
DSGR has a Debt/Equity ratio of 1.04. This is a high value indicating a heavy dependency on external 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 | 2.23 |
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.
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 58.82% 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 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.
DSGR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.88%.
Measured over the past years, DSGR shows a very strong growth in Revenue. The Revenue has been growing by 37.22% on average per year.
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.
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
Based on the Price/Earnings ratio of 18.25, the valuation of DSGR can be described as rather expensive.
DSGR's Price/Earnings ratio is a bit cheaper when compared to the industry. DSGR is cheaper than 68.63% of the companies in the same industry.
DSGR is valuated rather cheaply when we compare the Price/Earnings ratio to 26.13, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.61, which indicates a correct valuation of DSGR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DSGR indicates a somewhat cheap valuation: DSGR is cheaper than 66.67% of the companies listed in the same industry.
DSGR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.25 | ||
| Fwd PE | 15.61 |
4.2 Price Multiples
62.75% of the companies in the same industry are more expensive than DSGR, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DSGR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 131.45 | ||
| EV/EBITDA | 11.62 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.31
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 |
NASDAQ:DSGR (11/6/2025, 1:53:38 PM)
27.015
+0.07 (+0.28%)
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 Cap1.25B
Revenue(TTM)1.80B
Net Income(TTM)4.26M
Analysts84.44
Price Target39.27 (45.36%)
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 | 18.25 | ||
| Fwd PE | 15.61 | ||
| P/S | 0.65 | ||
| P/FCF | 131.45 | ||
| P/OCF | 21.94 | ||
| P/B | 1.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.62 |
EPS(TTM)1.48
EY5.48%
EPS(NY)1.73
Fwd EY6.41%
FCF(TTM)0.21
FCFY0.76%
OCF(TTM)1.23
OCFY4.56%
SpS41.68
BVpS14.03
TBVpS-1.49
PEG (NY)N/A
PEG (5Y)1.31
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 | 2.23 |
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%.