📊 DSGR Key Takeaways
Is Distribution Solutions Group, Inc. (DSGR) a Good Investment?
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.
Distribution Solutions Group shows solid top-line growth, healthy gross margins, and positive free cash flow generation, with net income improving sharply year over year. However, overall profitability remains thin, returns on capital are weak, and leverage is still meaningful, which limits the strength of the fundamental case until margin expansion becomes more durable.
Why Buy Distribution Solutions Group, Inc. Stock? 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
- Revenue growth of 9.8% with positive earnings inflection suggests improving operating momentum
- Strong liquidity profile with a 2.56x current ratio and 1.35x quick ratio supports financial flexibility
- Positive operating cash flow and $62.83M of free cash flow indicate the business is converting earnings into cash
DSGR Stock Risks: Distribution Solutions Group, Inc. Investment Risks
- 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
- Net margin of 0.4% and operating margin of 4.0% leave little room for execution missteps or demand weakness
- Debt remains elevated with debt-to-equity at 1.02x and $664.20M of long-term debt
- ROE of 1.3% and ROA of 0.5% indicate weak underlying capital efficiency despite recent earnings improvement
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
- Operating margin and net margin trend
- Free cash flow generation relative to debt reduction
Distribution Solutions Group, Inc. (DSGR) Financial Metrics & Key Ratios
💡 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 Profit Margin, ROE & Profitability Analysis
DSGR vs Industrial Sector: How Distribution Solutions Group, Inc. Compares
How Distribution Solutions Group, Inc. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Distribution Solutions Group, Inc. Stock Overvalued? DSGR Valuation Analysis 2026
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.
Distribution Solutions Group, Inc. Balance Sheet: DSGR Debt, Cash & Liquidity
DSGR Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
DSGR Quarterly Earnings & 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.
Distribution Solutions Group, Inc. Dividends, Buybacks & Capital Allocation
DSGR SEC Filings: Latest 10-K & 10-Q 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 a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 68% combined 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. ChatGPT: Revenue growth of 9.8% with positive earnings inflection suggests improving operating momentum. Strong liquidity profile with a 2.56x current ratio and 1.35x quick ratio supports financial flexibility.
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. ChatGPT: Net margin of 0.4% and operating margin of 4.0% leave little room for execution missteps or demand weakness. Debt remains elevated with debt-to-equity at 1.02x and $664.20M of long-term debt.
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 April 2026, Distribution Solutions Group, Inc. has a HOLD rating with 68% 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).