Distribution Solutions Group, Inc. (DSGR)
Valuation Overview•Is Distribution Solutions Group, Inc. Overvalued or Undervalued?
Commands a premium valuation multiple over its peers, likely pricing in superior execution.
Fragile underlying quality score of 45/100; weak margins or elevated debt leverage warrant caution.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. However, capital return yields remain modest, driven predominantly by aggressive share repurchases.
Returns capital exclusively via buybacks — no active dividend
DSGR struggles with subpar profitability and pressured margins. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company is driving exceptional top-line expansion (19.8% 3Y CAGR) however, earnings have severely contracted over the same period. However, profitability remains a major concern with severely compressed operating margins (4.0%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $496.0M | +9.8% | +19.8% | +41.3% | +21.8% | |
| EBITDA | $13.6M | — | +24.7% | — | — | |
| Net Income | $382K | +213.8% | +4.1% | — | +39.6% | |
| EPS (Diluted) | $0.01 | +212.5% | -5.0% | -26.0% | +19.7% | |
| Free Cash Flow | -$23.7M | +30.3% | — | +7.0% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 31.4% | 33.5% | 31.9% | 44.1% |
| Operating Margin | 4.0% | 3.4% | 3.2% | 3.0% |
| Net Margin | 0.3% | -0.2% | -0.2% | 1.6% |
| FCF Margin | 1.6% | 3.0% | 1.1% | 2.5% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.26 | $0.24 | -7.7% | ||
| Q1'26 | $0.32 | $0.18 | -43.8% | ||
| Q4'25 | $0.42 | $0.40 | -4.8% | ||
| Q3'25 | $0.36 | $0.35 | -2.8% | ||
| Q2'25 | $0.36 | $0.31 | -13.9% | ||
| Q1'25 | $0.33 | $0.42 | +27.3% | ||
| Q4'24 | $0.40 | $0.37 | -7.5% | ||
| Q3'24 | $0.32 | $0.40 | +25.0% |
Total return is +7.0% (1Y), lagging the benchmark by -18.0%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +2.0% | -7.3% | — |
| 1Y | +7.0% | -18.0% | — |
| 3YCAGR | +3.8% | -17.2% | — |
| 5YCAGR | +0.8% | -13.1% | — |
| 10YCAGR | +10.5% | -3.4% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Distribution Solutions Group, Inc. (DSGR) valuation, health, and returns.
Distribution Solutions Group, Inc. is estimated to be fair under our discounted cash flow framework. relative multiples indicate the stock is Slightly expensive versus peers compared to industry peers. trading near fair value (DCF: $26.45)
Distribution Solutions Group, Inc. has multiple valuation anchors: DCF Intrinsic Value: $26.45 | Peer Relative Fair Value: $23.82 | Wall Street Analyst Target: $33.00 (implying +15.3% upside). A convergence of these signals offers higher conviction.
Distribution Solutions Group, Inc. displays fair financial health with a composite quality score of 45/100, supported by a Altman Z-Score of 1.8 (distress zone), Piotroski F-Score of 7/9, Return on Invested Capital (ROIC) of 4.7%.
Distribution Solutions Group, Inc. returns capital via buybacks instead of dividends, carrying a 1.8% buyback yield and reducing outstanding shares by -0.1% in the last 12 months.
Distribution Solutions Group, Inc.'s current growth trajectory is Decelerating. The company achieved +9.8% 1Y revenue growth and +212.5% 1Y EPS growth, compared to its 3Y revenue CAGR of +19.8%.
Wall Street consensus is Buy based on 3 analysts, beating EPS expectations in 25% of recent quarters with a -5-quarter streak. The consensus price target represents a +15.3% change from current levels.
Investment risks for Distribution Solutions Group, Inc. include: -41.9% 1-year max drawdown, elevated distress risk. Volatility risk is characterized by a beta of 1.29x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.