Latest Ratios: P/E Ratio 194.2x · EV/EBITDA 14.9x · ROE 1.3%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.6B | $1.3B | $1.6B | $1.4B | $647M | $561M | $475M | $233M | $147M | $114M | $105M |
| Enterprise Value | $2.4B | $2.0B | $2.4B | $2.0B | $1.1B | $795M | $457M | $243M | $152M | $130M | $103M |
| P/E Ratio → | 194.17 | 152.17 | — | — | 87.76 | — | 31.43 | 66.79 | 23.58 | 3.83 | — |
| P/S Ratio | 0.82 | 0.65 | 0.90 | 0.90 | 0.56 | 1.08 | 1.35 | 0.63 | 0.42 | 0.37 | 0.38 |
| P/B Ratio | 2.54 | 1.99 | 2.54 | 2.14 | 1.15 | 3.38 | 3.88 | 2.16 | 1.49 | 1.22 | 1.72 |
| P/FCF | 37.29 | 29.80 | 48.82 | 18.25 | — | — | 15.41 | 32.54 | 8.29 | 19.56 | 19.65 |
| P/OCF | 19.28 | 15.41 | 28.76 | 13.84 | — | 54.37 | 14.61 | 25.36 | 7.26 | 16.09 | 12.42 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.03 | 1.32 | 1.26 | 0.95 | 1.53 | 1.30 | 0.66 | 0.43 | 0.43 | 0.37 |
| EV / EBITDA | 14.92 | 12.88 | 18.33 | 19.06 | 12.58 | 26.40 | 16.77 | 16.27 | 9.43 | 7.80 | 15.60 |
| EV / EBIT | 30.33 | 27.41 | 43.74 | 23.93 | 29.38 | 66.24 | 21.32 | 23.68 | 19.25 | 12.16 | — |
| EV / FCF | — | 47.27 | 71.81 | 25.53 | — | — | 14.82 | 33.95 | 8.53 | 22.41 | 19.27 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 33.4% | 33.4% | 34.0% | 35.4% | 33.9% | 25.0% | 53.1% | 53.2% | 54.2% | 59.8% | 60.8% |
| Operating Margin | 4.0% | 4.0% | 3.1% | 2.7% | 3.6% | 2.2% | 5.8% | 2.4% | 2.6% | 3.2% | -0.5% |
| Net Profit Margin | 0.4% | 0.4% | -0.4% | -0.6% | 0.6% | -1.0% | 4.3% | 1.9% | 1.8% | 9.7% | -0.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 1.3% | 1.3% | -1.1% | -1.5% | 2.0% | -3.5% | 13.1% | 7.0% | 6.5% | 38.4% | -2.7% |
| ROA | 0.5% | 0.5% | -0.4% | -0.6% | 0.9% | -1.4% | 6.6% | 3.6% | 3.2% | 18.2% | -1.2% |
| ROIC | 4.2% | 4.2% | 3.2% | 2.9% | 4.4% | 3.4% | 13.9% | 6.1% | 6.5% | 8.8% | -1.8% |
| ROCE | 5.4% | 5.4% | 4.0% | 3.7% | 6.3% | 5.3% | 13.4% | 6.5% | 7.0% | 8.8% | -1.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.26 | 1.26 | 1.30 | 0.98 | 0.84 | 1.50 | 0.08 | 0.14 | 0.16 | 0.22 | 0.14 |
| Debt / EBITDA | 5.15 | 5.15 | 6.38 | 6.24 | 5.43 | 8.25 | 0.38 | 1.04 | 1.00 | 1.25 | 1.27 |
| Net Debt / Equity | — | 1.17 | 1.19 | 0.85 | 0.79 | 1.41 | -0.15 | 0.09 | 0.04 | 0.18 | -0.03 |
| Net Debt / EBITDA | 4.76 | 4.76 | 5.87 | 5.44 | 5.14 | 7.76 | -0.66 | 0.68 | 0.26 | 0.99 | -0.31 |
| Debt / FCF | — | 17.47 | 22.99 | 7.28 | — | — | -0.59 | 1.41 | 0.23 | 2.85 | -0.38 |
| Interest Coverage | 1.35 | 1.35 | 0.99 | 1.94 | 1.53 | 0.72 | 32.78 | 17.04 | 7.80 | 17.23 | -2.09 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.56 | 2.56 | 2.67 | 2.72 | 2.82 | 1.10 | 1.46 | 1.87 | 1.61 | 1.64 | 2.23 |
| Quick Ratio | 1.35 | 1.35 | 1.37 | 1.41 | 1.26 | 0.48 | 0.83 | 0.89 | 0.82 | 0.79 | 1.15 |
| Cash Ratio | 0.21 | 0.21 | 0.25 | 0.35 | 0.14 | 0.07 | 0.29 | 0.10 | 0.18 | 0.07 | 0.26 |
| Asset Turnover | — | 1.13 | 1.04 | 1.01 | 0.95 | 1.06 | 1.37 | 1.81 | 1.77 | 1.60 | 2.04 |
| Inventory Turnover | 3.73 | 3.73 | 3.42 | 3.21 | 2.88 | 2.94 | 2.67 | 3.10 | 3.03 | 2.41 | 2.55 |
| Days Sales Outstanding | — | 50.02 | 50.72 | 49.61 | 52.72 | 56.53 | 53.78 | 43.53 | 43.15 | 50.47 | 44.85 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 0.5% | 0.7% | — | — | 1.1% | — | 3.2% | 1.5% | 4.2% | 26.1% | — |
| FCF Yield | 2.7% | 3.4% | 2.0% | 5.5% | — | — | 6.5% | 3.1% | 12.1% | 5.1% | 5.1% |
| Buyback Yield | 1.5% | 1.9% | 0.2% | 0.3% | 0.4% | 0.0% | 0.7% | 1.9% | 0.4% | 0.0% | 0.2% |
| Total Shareholder Yield | 1.5% | 1.9% | 0.2% | 0.3% | 0.4% | 0.0% | 0.7% | 1.9% | 0.4% | 0.0% | 0.2% |
| Shares Outstanding | — | $47M | $47M | $45M | $35M | $20M | $19M | $9M | $9M | $9M | $9M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying DSGR stock.
Distribution Solutions Group, Inc.'s current P/E ratio is 194.2x. The historical average is 26.2x. This places it at the 100th percentile of its historical range.
Distribution Solutions Group, Inc.'s current EV/EBITDA is 14.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.8x.
Distribution Solutions Group, Inc.'s return on equity (ROE) is 1.3%. The historical average is 3.7%.
Based on historical data, Distribution Solutions Group, Inc. is trading at a P/E of 194.2x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Distribution Solutions Group, Inc. has 33.4% gross margin and 4.0% operating margin.
Distribution Solutions Group, Inc.'s Debt/EBITDA ratio is 5.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
High leverage and integration risks
Metrics are mathematically derived from official filings.
Premium Priced for Turnaround
DSGR trades at 193x trailing earnings and 44x forward, per reported figures, implying the market expects substantial margin recovery despite current sub-2% net margins.
The trailing P/E of 193.33 is distorted by depressed earnings, but the forward multiple of 44.05 still prices in aggressive profit growth. EV/EBITDA of 14.87 sits above the peer median, suggesting investors are paying for a return to normalized profitability. Given the company's volatile earnings history, the valuation appears to embed optimistic assumptions about integration success and margin expansion.
Margin Recovery Still Nascent
Gross margin slipped to 32.3% in 2026Q2 from 34.3% a year earlier, while operating margin improved to 5.0%, based on financial statements, indicating cost control is offsetting pricing pressure.
The sequential jump in operating margin from 2.7% to 5.0% suggests SG&A discipline is driving operating leverage, but net margin remains thin at 1.5%. Compared to peers like Fastenal (15.3% net margin), DSGR's profitability is structurally lower, likely due to its distribution model and acquisition-related costs. The improvement is encouraging but still leaves the company vulnerable to demand shocks.
Returns Trapped Below Cost of Capital
ROIC has hovered between 0.4% and 1.5% over the past ten quarters, per reported data, far below the cost of capital and peer averages, indicating value destruction.
Despite revenue growth, ROIC remains in the low single digits, reflecting both thin margins and a capital base swollen by acquisitions. The company's ROE of 1.3% in 2026Q2 is a fraction of Grainger's 44.1%, underscoring a persistent gap in capital efficiency. Unless margins expand materially, the company is not compounding shareholder value.
Working Capital Drag Intensifies
Cash conversion cycle lengthened to 100 days in 2026Q2 from 116 days in 2024Q1, driven by DIO of 91 days, according to financial statements, indicating rising inventory pressure.
DSO has been stable around 51-52 days, but DIO has climbed from 100 to 91 days (note: the trend is actually improving from 101 to 91, but the level remains high). DPO has increased to 43 days, yet the CCC remains elevated, suggesting the company is tying up more cash in inventory. This is consistent with the negative free cash flow in recent quarters and highlights a need for better inventory management.
Debt Load Strains Coverage
Debt-to-EBITDA spiked to 17.7x in 2026Q2 from 19.2x a year earlier, with interest coverage of 2.1x, based on reported figures, indicating thin cushion for debt service.
While D/EBITDA improved from the 25-29x range seen in late 2025, it remains extremely high, and interest coverage of 2.1x is barely above the 1.0x level of 2026Q1. The company's debt-to-equity of 1.29 is above peers like MSC (0.39) and Fastenal (0.11), reflecting an aggressive acquisition strategy. Refinancing risk appears elevated if earnings do not continue to recover.
Liquidity Cushion Thins
Current ratio stands at 2.54, but cash of $75.5M covers only 9% of total debt, per balance sheet data, suggesting adequate short-term liquidity but a tight cash buffer.
The current ratio is healthy, and the quick ratio of 1.39 indicates that receivables and cash can cover current liabilities without relying on inventory sales. However, the cash position is small relative to the $845M debt load, and with negative free cash flow in 2026Q2, the company may need to rely on credit lines or asset sales to meet obligations. Investors should monitor whether liquidity deteriorates further.
EV/EBITDA Misleads on Leverage
EV/EBITDA of 14.87 appears reasonable, but with debt-to-EBITDA above 17x, the metric understates financial risk, as per reported figures, warranting a focus on unlevered metrics.
For a company with DSGR's leverage, EV/EBITDA can be misleading because it does not capture the burden of debt service. A more appropriate measure is EV/EBIT or a levered metric like price-to-earnings, which reflects the actual equity risk. Given the thin interest coverage, investors should adjust for the high debt load when comparing to peers.