📊 DSGR Key Takeaways
Is DSGR a Good Investment? Thesis Analysis
Distribution Solutions Group demonstrates solid revenue growth of 9.8% YoY and exceptional earnings improvement (+213.8% YoY), driven by operating leverage. However, extremely thin net margins of 0.4% and weak returns on equity (1.3%) and assets (0.5%) expose vulnerability to market disruptions. The company's financial structure shows moderate leverage with adequate coverage ratios, but limited profitability cushion raises concerns about sustainability.
Why Buy DSGR? Key Strengths
- Strong revenue growth of 9.8% YoY indicating solid market demand
- Exceptional earnings growth (+213.8% YoY) demonstrating improving operational efficiency
- Healthy liquidity position with current ratio of 2.56x and quick ratio of 1.35x
- Positive free cash flow of $62.8M (3.2% FCF margin) supporting operational sustainability
- Manageable debt levels with interest coverage of 6.6x indicating safe debt service capability
DSGR Investment Risks to Consider
- Extremely thin net margin of 0.4% provides minimal earnings buffer for cost volatility or economic downturns
- Critically low ROE (1.3%) and ROA (0.5%) indicate poor capital efficiency and value creation
- High leverage relative to equity (1.02x debt/equity ratio) limits financial flexibility
- Gross margin of 33.4% compressed with only 4.0% operating margin, suggesting cost pressures
- Limited insider activity (2 Form 4 filings in 90 days) provides minimal signal of confidence
Key Metrics to Watch
- Net profit margin trend - critical indicator of pricing power and cost control in wholesale distribution
- Return on equity - measure of shareholder value creation effectiveness
- Operating margin expansion - shows ability to convert revenue growth into profits
- Free cash flow generation - sustainability of cash returns and debt service capacity
- Debt/equity ratio evolution - indicates financial leverage trends and refinancing risk
DSGR Financial Metrics
💡 AI Analyst Insight
The relatively thin 3.2% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.56x current ratio provides a solid financial cushion.
DSGR Profitability Ratios
DSGR vs Industrial Sector
How Distribution Solutions Group, Inc. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is DSGR Overvalued or Undervalued?
Based on fundamental analysis, Distribution Solutions Group, Inc. shows some fundamental concerns relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
DSGR Balance Sheet & Liquidity
DSGR 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Distribution Solutions Group, Inc.'s revenue has grown significantly by 387% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.20 indicates the company is currently unprofitable.
DSGR Growth Metrics (YoY)
DSGR Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2025 | $416.1M | $3.3M | $0.07 |
| Q3 2024 | $438.9M | -$1.6M | $-0.03 |
| Q2 2024 | $378.0M | $1.9M | $0.04 |
| Q1 2024 | $348.3M | -$5.2M | $-0.11 |
| Q3 2023 | $347.2M | -$1.6M | $-0.03 |
| Q2 2023 | $321.3M | -$2.5M | $0.14 |
| Q1 2023 | $154.1M | -$2.5M | $-0.25 |
| Q3 2022 | $132.1M | -$204.0K | $-0.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
DSGR Capital Allocation
DSGR SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Distribution Solutions Group, Inc. (CIK: 0000703604)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DSGR
What is the AI rating for DSGR?
Distribution Solutions Group, Inc. (DSGR) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are DSGR's key strengths?
Claude: Strong revenue growth of 9.8% YoY indicating solid market demand. Exceptional earnings growth (+213.8% YoY) demonstrating improving operational efficiency.
What are the risks of investing in DSGR?
Claude: Extremely thin net margin of 0.4% provides minimal earnings buffer for cost volatility or economic downturns. Critically low ROE (1.3%) and ROA (0.5%) indicate poor capital efficiency and value creation.
What is DSGR's revenue and growth?
Distribution Solutions Group, Inc. reported revenue of $2.0B.
Does DSGR pay dividends?
Distribution Solutions Group, Inc. does not currently pay dividends.
Where can I find DSGR SEC filings?
Official SEC filings for Distribution Solutions Group, Inc. (CIK: 0000703604) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DSGR's EPS?
Distribution Solutions Group, Inc. has a diluted EPS of $0.18.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is DSGR a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, Distribution Solutions Group, Inc. has a HOLD rating with 62% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is DSGR stock overvalued or undervalued?
Valuation metrics for DSGR: ROE of 1.3% (sector avg: 15%), net margin of 0.4% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy DSGR stock in 2026?
Our dual AI analysis gives Distribution Solutions Group, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is DSGR's free cash flow?
Distribution Solutions Group, Inc.'s operating cash flow is $83.8M, with capital expenditures of $21.0M. FCF margin is 3.2%.
How does DSGR compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 0.4% (avg: 10%), ROE 1.3% (avg: 15%), current ratio 2.56 (avg: 1.8).