Distribution Solutions Group, Inc.

Consumer Discretionary
Industrial Specialties
distributionsolutionsgroup.com

Earnings Score
Moat Score
Safety Score

Market Cap $1.84B
PE 815
Debt $794.37M
Cash $75.77M
EV $2.56B
FCF $25.72M

Earnings

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Sales & Net Margins

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Earnings	$2.26M
EBIT	$35.60M
ROE	0%
ROA	2%
FCF	$25.72M
Equity	$680.76M
Growth Stability	-84%
PE	814.89
PEG	-96.18
PB	2.71
P/FCF	71.7
P/S	1.07
Price/Cash	0.04
Debt/Equity	1.17
Debt/FCF	30.88
Net Margins	1%
Gross Margins	34%
Op. Margins	2%
Earnings CAGR	2%
Sales Growth YoY	7%
Sales Growth QoQ	6%
Sales CAGR	24%
FCF CAGR	14%
Equity CAGR	32%
Earnings Stability	0.01
Earnings Growth YoY	-1K%
Earnings Growth QoQ	1K%

Earnings CAGR 5Y	-8%
Sales CAGR 5Y	54%
FCF CAGR 5Y	23%
Equity CAGR 5Y	66%
Earnings CAGR 3Y	69%
Sales CAGR 3Y	69%
FCF CAGR 3Y	-7%
Equity CAGR 3Y	62%
Market Cap	$1.84B
Revenue	$1.73B
Assets	$1.78B
Total Debt	$794.37M
Cash	$75.77M
Shares Outstanding	46.8M
EV	2.56B
Earnings Score	6%
Moat Score	29%
Safety Score	40%
Final Score	25%
Working Capital	496.61M
Current Ratio	2.81
Gross Profit	$591.47M
Shares Growth 3y	25%
Equity Growth QoQ	4%
Equity Growth YoY	1%

Assets & ROA

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Stockholders Equity & ROE

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Distribution Solutions Group, Inc. is a specialty distribution company. The Company is engaged in providing value-added distribution solutions to the maintenance, repair and operations (MRO), original equipment manufacturer (OEM) and industrial technology markets. The Company operates through three segments: Lawson, Gexpro Services and TestEquity. Lawson is a distributor of products and services to the industrial, commercial, institutional and governmental MRO marketplace. Lawson primarily distributes MRO products to its customers through a network of sales representatives throughout the United States and Canada. TestEquity is a distributor of test and measurement equipment and solutions, electronic production supplies and tool kits from its manufacturing partners. Gexpro Services is a global supply chain solutions provider, specializing in the development of mission critical production line management, aftermarket and field installation programs.

SEC Filings

Direct access to Distribution Solutions Group, Inc. (DSGR) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Distribution Solutions Group, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Distribution Solutions Group, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 2%

Stability 1%

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Distribution Solutions Group, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Distribution Solutions Group, Inc..

Years

Calculation mode

= $668M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$26M	$29M	$33M	$38M	$43M	$49M	$56M	$63M	$72M	$82M	$93M	$929M
DCF		$27M	$27M	$28M	$29M	$30M	$31M	$32M	$34M	$35M	$36M	$358M
Value	$668M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	-2%	0%	-1%	10%	2%	2%	4%	2%	1%	-1%	1%
ROA	-	2%	-1%	6%	5%	5%	8%	5%	3%	3%	2%
ROE	-	0%	-3%	32%	6%	7%	12%	7%	1%	-1%	0%

Bad Net Margins (1.4%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-	-	-	0	0.32	0	-132.45	-22.42	6.98	30.88
Debt over Equity	-	-	-	-	0	0.02	0	2.73	0.77	0.92	1.17
Growth Stability	-	-	-	-	66%	63%	100%	99%	70%	-84%	-84%

Bad Debt/FCF ratio (30.88)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Neutral Debt/Equity ratio (1.17)

The company has a balance between equity and debt that is not too good nor too bad.

Bad Graham’s Stability (-84%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-3%	0%	11%	14%	6%	-5%	19%	176%	36%	54%
Earnings YoY growth	-	-107%	-648%	-2K%	-79%	16%	109%	-38%	-21%	-221%	-8%
Equity YoY growth	-	-1%	-0%	53%	6%	9%	13%	9%	323%	18%	66%
FCF YoY growth	-	-2K%	-23%	9%	206%	-60%	330%	-109%	605%	-550%	23%