📊 DSGR Key Takeaways
Is Distribution Solutions Group, Inc. (DSGR) a Good Investment?
Distribution Solutions Group exhibits severely distressed fundamentals with negative operating cash flow of -20.4M, minimal net profitability (0.1% margin), and precarious debt service coverage of only 1.2x on 696.7M long-term debt. The company is burning cash operationally despite modest 9.8% revenue growth, indicating structural profitability issues in the low-margin wholesale distribution business that cannot sustain the current capital structure.
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.
Distribution Solutions Group, Inc. Key Strengths (DSGR)
- Revenue growth of 9.8% YoY demonstrates market demand retention
- Strong current ratio of 2.63x provides short-term liquidity cushion
- Gross margin of 32.9% indicates reasonable pricing power on core products
- 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
- Negative operating cash flow of -20.4M with negative FCF margin of -4.8% indicates core business is not self-sustaining
- Interest coverage ratio of 1.2x with 1.07x debt-to-equity leaves minimal buffer for operational deterioration
- Net margin of 0.1% and ROE/ROA near 0% reveal business generates virtually no returns on assets or equity despite 1.8B in total assets
- 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
- Operating cash flow trend - must return to positive to validate business viability
- Interest coverage ratio - critical safety metric; deterioration below 1.0x indicates covenant risk
- Operating margin improvement - requires either gross margin expansion or significant cost reduction
- 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
Strong liquidity with a 2.63x 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
| Date | Form | Document | Action |
|---|---|---|---|
| Jun 5, 2026 | 4 | xslF345X06/wk-form4_1780685221.xml | View → |
| May 15, 2026 | 4 | xslF345X06/wk-form4_1778858765.xml | View → |
| May 15, 2026 | 4 | xslF345X06/wk-form4_1778857997.xml | View → |
| May 15, 2026 | 4 | xslF345X06/wk-form4_1778857476.xml | View → |
| May 15, 2026 | 4 | xslF345X06/wk-form4_1778857362.xml | View → |
❓ Frequently Asked Questions about DSGR
What is the AI rating for DSGR?
Distribution Solutions Group, Inc. (DSGR) has a Combined AI Grade of C from Claude (D) and ChatGPT (B) with 81% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DSGR's key strengths?
Claude: Revenue growth of 9.8% YoY demonstrates market demand retention. Strong current ratio of 2.63x provides short-term liquidity cushion. 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: Negative operating cash flow of -20.4M with negative FCF margin of -4.8% indicates core business is not self-sustaining. Interest coverage ratio of 1.2x with 1.07x debt-to-equity leaves minimal buffer for operational deterioration. 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 $496.0M.
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 $0.01.
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 grade reflects both perspectives for balanced insights.
What is DSGR's fundamental grade?
Based on our AI fundamental analysis in June 2026, Distribution Solutions Group, Inc. has a C grade with 81% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is DSGR stock overvalued or undervalued?
Valuation metrics for DSGR: ROE of 0.1% (sector avg: 15%), net margin of 0.1% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is DSGR's AI grade for 2026?
Our dual AI analysis gives Distribution Solutions Group, Inc. a combined C grade 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 $-20.4M, with capital expenditures of $3.4M. FCF margin is -4.8%.
How does DSGR compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 0.1% (avg: 10%), ROE 0.1% (avg: 15%), current ratio 2.63 (avg: 1.8).