Distribution Solutions Group (DSGR) AI Stock Analysis

• Market Cap: $1.33B
• Dividend Yield: N/A
• Average Volume (3M): 70.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: 14.46%
• EPS Growth: -588.82%
• Country: US
• Employees: 4,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 0.14
• Shares Outstanding: 46,227,783
• 10 Day Avg. Volume: 67,691
• 30 Day Avg. Volume: 70,690
• PEG Ratio: 10.99
• Price to Book (P/B): 2.52
• Price to Sales (P/S): 0.89
• P/FCF Ratio: 37.67
• Enterprise Value/Market Cap: 1.61
• Enterprise Value/Revenue: 1.09
• Enterprise Value/Gross Profit: 3.30
• Enterprise Value/Ebitda: 14.50
• 1Y Price Target: $41.00
• Price Target Upside: 42.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.58
• Revenue Forecast (FY): $1.98B

• Rating: 59 Neutral
• Price Target: $29.00 ▲(0.49% Upside)

Distribution Solutions Group's overall stock score reflects moderate financial performance with strong cash flow but ongoing profitability challenges. Technical indicators suggest bearish momentum, and valuation metrics are unattractive due to negative earnings. The earnings call and corporate events provide positive strategic insights, but challenges in certain segments remain.

Positive Factors

Revenue Growth

The 10.7% revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and market positioning.

Cash Flow Performance

Strong free cash flow growth enhances financial flexibility, allowing for reinvestment in growth initiatives and debt reduction, supporting long-term stability.

Share Repurchase Program

Expanding the share repurchase program reflects management's confidence in future prospects and aims to enhance shareholder value, supporting long-term investor confidence.

Negative Factors

Profitability Challenges

Negative profit margins indicate challenges in cost management and pricing power, potentially hindering long-term profitability and financial health.

TestEquity Margin Pressure

Margin pressure in TestEquity suggests challenges in maintaining cost efficiency and profitability, which could affect overall financial performance.

Lawson's Sales Challenges

Declining sales in Lawson indicate difficulties in sales execution and market competitiveness, potentially impacting revenue growth and market share.

Distribution Solutions Group Business Overview & Revenue Model

Company Description

Distribution Solutions Group (DSGR) is a leading provider of distribution and supply chain solutions, primarily serving the foodservice, retail, and industrial sectors. The company specializes in delivering a range of products and services, including logistics management, inventory control, and product sourcing. DSGR leverages advanced technology and a robust distribution network to enhance operational efficiency and meet the diverse needs of its clients, ensuring timely and reliable delivery of goods.

How the Company Makes Money

DSGR generates revenue through multiple streams, primarily from its logistics and distribution services. The company charges fees for its warehousing, transportation, and inventory management services, which are tailored to the specific needs of its clients. Additionally, DSGR earns revenue from product sourcing and sales, acting as an intermediary between manufacturers and end-users. Strategic partnerships with suppliers and manufacturers strengthen its offerings and expand its market reach. The company may also benefit from long-term contracts with clients, providing stable revenue over time.

Distribution Solutions Group Financial Statement Overview

Summary

Distribution Solutions Group exhibits a mixed financial performance. While revenue growth is consistent, profitability remains a challenge with negative net income. The balance sheet shows improved leverage, but profitability metrics like ROE are concerning. Cash flow generation is strong, with significant free cash flow growth, indicating potential for future stability if profitability issues are addressed.

Income Statement

The income statement shows a mixed performance. Revenue has grown steadily over the years, with a TTM growth rate of 2.59%. However, profitability is a concern as the company has reported negative net income in recent periods, resulting in a negative net profit margin of -0.57% in TTM. Gross profit margin remains healthy at 32.98%, but the declining trend in profitability metrics like EBIT and EBITDA margins indicates operational challenges.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio has improved significantly in TTM to 0.24 from 1.30 in the previous year, indicating better leverage management. However, the return on equity remains negative at -1.74%, highlighting profitability issues. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis reveals positive trends with a significant improvement in free cash flow growth at 131.22% in TTM. The operating cash flow to net income ratio is 0.37, indicating adequate cash generation relative to net income. However, the free cash flow to net income ratio of 0.79 suggests room for improvement in cash efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.98B	1.80B	1.57B	1.15B	520.29M	351.59M
Gross Profit	652.73M	613.77M	555.46M	390.90M	130.28M	186.54M
EBITDA	148.58M	128.99M	143.75M	82.42M	30.68M	28.14M
Net Income	-11.21M	-7.33M	-8.97M	7.41M	-5.05M	15.11M
Balance Sheet
Total Assets	1.77B	1.73B	1.55B	1.22B	491.36M	256.30M
Cash, Cash Equivalents and Short-Term Investments	69.21M	66.48M	83.93M	24.55M	14.67M	28.39M
Total Debt	821.24M	831.09M	649.05M	471.93M	248.31M	10.31M
Total Liabilities	1.11B	1.09B	888.73M	652.62M	325.59M	133.88M
Stockholders Equity	653.87M	640.54M	661.60M	563.00M	165.77M	122.42M
Cash Flow
Free Cash Flow	75.58M	33.26M	77.61M	-31.13M	-3.46M	30.84M
Operating Cash Flow	112.62M	56.45M	102.29M	-11.03M	10.32M	32.53M
Investing Cash Flow	-44.76M	-229.68M	-278.52M	-126.69M	-41.38M	-3.99M
Financing Cash Flow	-61.09M	159.30M	250.41M	148.46M	34.67M	-5.77M

Distribution Solutions Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.86
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DSGR, the sentiment is Positive. The current price of 28.86 is above the 20-day moving average (MA) of 28.05, above the 50-day MA of 27.97, and above the 200-day MA of 28.57, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 58.30 is Neutral, neither overbought nor oversold. The STOCH value of 69.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DSGR.

Distribution Solutions Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GIC	77 Outperform	$1.14B	16.90	22.61%	3.50%	0.16%	2.99%
WCC	75 Outperform	$12.23B	19.72	13.06%	0.72%	5.28%	1.97%
AIT	74 Outperform	$9.90B	25.24	22.10%	0.70%	4.03%	5.93%
DXPE	71 Outperform	$1.75B	21.14	19.58%	―	12.76%	36.11%
MSM	68 Neutral	$4.82B	24.22	14.34%	3.96%	-1.35%	-22.24%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DSGR	59 Neutral	$1.33B	-120.25	-1.68%	―	14.46%	-588.82%

Distribution Solutions Group Corporate Events

Distribution Solutions Group Expands Share Repurchase Program

On November 17, 2025, Distribution Solutions Group announced an increase of $30 million to its existing share repurchase program, raising the total authorization to $67.5 million. This decision reflects the company’s confidence in its business prospects and its strategy to enhance long-term shareholder value by repurchasing shares when undervalued, supported by a strong balance sheet and cash flow.