Distribution Solutions Group, Inc.
Distribution Solutions Group, Inc. Fundamental Analysis
Distribution Solutions Group, Inc. (DSGR) shows weak financial fundamentals with a PE ratio of 144.90, profit margin of 0.42%, and ROE of 1.29%. The company generates $2.0B in annual revenue with strong year-over-year growth of 14.88%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 35.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DSGR's fundamental strength across five key dimensions:
Efficiency Score
WeakDSGR struggles to generate sufficient returns from assets.
Valuation Score
ModerateDSGR shows balanced valuation metrics.
Growth Score
ExcellentDSGR delivers strong and consistent growth momentum.
Financial Health Score
ModerateDSGR shows balanced financial health with some risks.
Profitability Score
ModerateDSGR maintains healthy but balanced margins.
Key Financial Metrics
Is DSGR Expensive or Cheap?
P/E Ratio
DSGR trades at 144.90 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, DSGR's PEG of 0.81 indicates potential undervaluation.
Price to Book
The market values Distribution Solutions Group, Inc. at 1.86 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.15 times EBITDA. This is generally considered low.
How Well Does DSGR Make Money?
Net Profit Margin
For every $100 in sales, Distribution Solutions Group, Inc. keeps $0.42 as profit after all expenses.
Operating Margin
Core operations generate 4.22 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.29 in profit for every $100 of shareholder equity.
ROA
Distribution Solutions Group, Inc. generates $0.48 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Distribution Solutions Group, Inc. generates limited operating cash flow of $83.60M, signaling weaker underlying cash strength.
Free Cash Flow
Distribution Solutions Group, Inc. generates weak or negative free cash flow of $43.23M, restricting financial flexibility.
FCF Per Share
Each share generates $0.94 in free cash annually.
FCF Yield
DSGR converts 3.60% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
144.90
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.81
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.61
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.26
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.56
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.01
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How DSGR Stacks Against Its Sector Peers
| Metric | DSGR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 144.90 | 24.98 | Worse (Expensive) |
| ROE | 1.29% | 1284.00% | Weak |
| Net Margin | 0.42% | -45683.00% (disorted) | Weak |
| Debt/Equity | 1.26 | 0.79 | Weak (High Leverage) |
| Current Ratio | 2.56 | 10.67 | Strong Liquidity |
| ROA | 0.48% | -1542352.00% (disorted) | Weak |
DSGR outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Distribution Solutions Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-6.99%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
-119.41%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
17.35%
Industry Style: Cyclical, Value, Infrastructure
High Growth