DSGR

Industrials

Distribution Solutions Group, Inc. · Industrial - Distribution · $1B

UQS Score — Balanced Preset
42.3
Below Average

Distribution Solutions Group, Inc. scores 42.3/100 using the Balanced preset.

UQS vs Industrials Sector
DSGR
42.3
Sector avg
42.4
Quality
Weak
Moat
Weak
Growth
Good
Risk
Weak
Valuation
Good

What is Distribution Solutions Group, Inc.?

Distribution Solutions Group is a small-cap industrial distributor serving maintenance, repair, and operations customers across North America. The company operates through multiple distribution brands targeting commercial, institutional, and government end markets.

DSGR distributes specialty industrial and commercial products — fasteners, safety items, and MRO supplies — to businesses that need reliable replenishment without managing complex supply chains themselves. Revenue comes primarily from recurring product sales through a field sales force and digital channels. The company has grown partly through acquisitions, expanding its customer base and product breadth across the United States, Canada, and Mexico.

The company traces its current structure to 1980 and is headquartered in Fort Worth, Texas.

  • MRO specialty product distribution
  • Fasteners and industrial consumables
  • Vendor-managed inventory programs
  • Multi-brand distribution platform

Is DSGR a Good Stock to Buy?

UQS Score rates DSGR as Below Average overall, reflecting meaningful weaknesses across several key pillars.

The Growth and Valuation pillars both carry Good ratings, suggesting the business is expanding at a reasonable pace and is not obviously expensive relative to that trajectory. These are the clearest positives in the current profile.

Quality, Moat, and Risk all register as Weak — pointing to concerns around earnings durability, competitive differentiation, and balance sheet or operational risk factors.

See the exact pillar breakdown and full financial metrics by signing up for a Pro account at uqs-score.com. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does DSGR pay dividends?

No — Distribution Solutions Group, Inc. does not currently pay a dividend.

DSGR does not currently pay a dividend. For a company in an active acquisition-driven growth phase, retaining capital to fund integration, debt service, and organic expansion is a common strategic choice. Income-focused investors should factor this into their assessment.

When does DSGR report earnings?

Distribution Solutions Group reports earnings on a quarterly cadence, consistent with standard US-listed equity practice.

The company's Growth pillar rates Good, indicating the business has been expanding revenue at a pace that stands out relative to its size. However, Quality and Risk ratings suggest that translating top-line growth into consistent, high-quality earnings has been more challenging.

For the most recent quarter's results and guidance, visit Distribution Solutions Group's investor relations page directly.

DSGR Price History

-11.1% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in Distribution Solutions Group, Inc.?

$
Today it would be worth
$10,704
That's a +7.0% total return, or +1.4% annualized.

Based on Distribution Solutions Group, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

DSGR Long-term Outlook

The fundamental outlook for DSGR is shaped by a Good Growth rating alongside Weak Quality and Risk scores. This combination suggests the company may continue expanding its revenue base, but execution risk and margin sustainability remain areas to watch. The Valuation pillar rates Good, which means the market does not appear to be pricing in an overly optimistic scenario at current levels.

Growth drivers

  • Acquisition-led expansion across MRO distribution verticals
  • Cross-selling opportunities across the multi-brand platform
  • Steady demand from industrial and government MRO end markets

Key risks

  • Weak Quality pillar signals potential earnings consistency concerns
  • Weak Risk pillar may reflect leverage from acquisition activity
  • Competitive pressure from larger, better-capitalized distributors

DSGR vs Peers

DSGR competes in a fragmented industrial distribution landscape alongside several publicly traded peers.

GICDSGR scores lower
Global Industrial Company

Global Industrial focuses on direct-to-business distribution of industrial and commercial products, competing heavily on e-commerce and catalog reach.

ADEN.TODSGR scores lower
ADENTRA Inc.

ADENTRA specializes in architectural building products distribution in North America, serving a somewhat different end-market mix than DSGR's MRO focus.

TRNSDSGR scores higher
Transcat, Inc.

Transcat differentiates through calibration services and precision measurement equipment, adding a service-layer dimension that pure-product distributors like DSGR do not emphasize.

Frequently Asked Questions

What does Distribution Solutions Group do?

Distribution Solutions Group distributes specialty MRO products — including fasteners, safety supplies, and industrial consumables — to commercial, institutional, and government customers across North America. The company operates through multiple distribution brands and uses both field sales representatives and digital channels to serve its customers.

Does DSGR pay dividends?

No, DSGR does not currently pay a dividend. The company appears to prioritize retaining capital for acquisitions, debt management, and operational growth rather than returning cash to shareholders through distributions.

When does DSGR report earnings?

Distribution Solutions Group reports on a quarterly cadence, as is standard for US-listed companies. For exact dates and upcoming guidance, check the investor relations section of the company's official website.

Is DSGR a good stock to buy?

The UQS Score rates DSGR as Below Average overall. While Growth and Valuation pillars are rated Good, the Quality, Moat, and Risk pillars are all Weak. That combination warrants careful consideration. Pro members can view the complete pillar breakdown on uqs-score.com.

Is DSGR overvalued?

The Valuation pillar for DSGR rates Good, suggesting the stock is not obviously expensive relative to its growth profile. However, valuation alone does not determine investment merit — the Weak Quality and Risk ratings are important context for any valuation assessment.

How does DSGR compare to its competitors?

DSGR operates in a fragmented MRO distribution market alongside peers like Global Industrial Company, ADENTRA, and Transcat. Each competitor has a distinct focus — from e-commerce distribution to calibration services — while DSGR differentiates through its multi-brand platform strategy.

What is DSGR's market cap bracket?

DSGR is classified as a small-cap stock. This places it in a segment of the market that can offer growth potential but also tends to carry higher volatility and liquidity risk compared to large- or mega-cap peers.

Who founded Distribution Solutions Group?

The company's heritage includes Lawson Products, which was founded in 1952. Distribution Solutions Group as a combined entity reflects a more recent consolidation of multiple distribution businesses. Founding details are publicly available through the company's official filings and investor relations materials.

Is DSGR a long-term quality indicator?

From a long-term quality standpoint, DSGR's current UQS profile raises questions. The Weak Moat rating suggests limited durable competitive advantages, and the Weak Quality and Risk scores point to challenges in sustaining consistent returns. The Good Growth rating is a positive, but long-term quality typically requires stronger moat and earnings stability.

What sector does DSGR belong to?

DSGR operates in the Industrials sector, specifically within the specialty distribution sub-segment. Industrial distributors serve as critical supply-chain intermediaries for businesses that need reliable access to MRO products without managing large inventories themselves.

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Pro Analysis

DSGR — Score History

3035404550Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 17 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 22, 202642.327.427.070.930.266.3+3.3
May 10, 202639.012.827.070.730.269.2+0.5
May 8, 202638.55.927.070.737.969.9-4.1
May 3, 202642.630.127.070.430.364.9-0.1
May 1, 202642.730.127.070.430.365.1+0.1
Apr 25, 202642.630.127.070.430.364.9-0.1
Apr 24, 202642.730.227.070.430.364.90.0
Apr 22, 202642.730.127.070.430.365.00.0
Apr 21, 202642.730.127.070.430.365.3+0.1
Apr 19, 202642.630.127.070.430.364.90.0

DSGR — Pillar Breakdown

Quality

27.4/100 (25%)

Distribution Solutions Group, Inc. currently shows below-average quality metrics, suggesting challenges with profitability.

Capital Efficiency (ROIC)Weak

How effectively capital is deployed to generate returns.

Return on EquityWeak

Profitability relative to shareholders' equity.

Operating ProfitabilityWeak

Ability to convert revenue into operating profit.

Net ProfitabilityWeak

Bottom-line profit as a share of revenue.

Gross Profit / AssetsStrong

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationWeak

Free cash flow relative to market value.

Growth

70.9/100 (20%)

Distribution Solutions Group, Inc. demonstrates healthy growth trends across revenue and earnings.

Recent Revenue TrendModerate

Revenue trajectory over the last twelve months.

3Y Revenue CAGRStrong

Compound annual revenue growth rate over 3 years.

EPS GrowthStrong

Year-over-year earnings per share growth.

Forward Revenue OutlookWeak

Analyst consensus for future revenue growth.

Forward EPS GrowthStrong

Analyst consensus for future earnings growth.

Risk

30.2/100 (15%)

Distribution Solutions Group, Inc. presents elevated risk with concerns around leverage or financial stability.

Financial LeverageWeak

Debt levels relative to earnings capacity.

Debt/EquityModerate

Total debt relative to shareholder equity.

Current RatioStrong

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageWeak

Earnings capacity relative to interest payments.

Valuation

66.3/100 (15%)

Distribution Solutions Group, Inc. trades at a reasonable valuation with decent earnings yield and FCF multiples.

Earnings YieldModerate

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowModerate

How many years of FCF the market cap represents.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

EV/EBITDA vs SectorModerate

Enterprise value multiple relative to sector median.

Moat

27/100 (25%)

Distribution Solutions Group, Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for DSGR.

Score Composition

Quality
27.4×25%6.8
Growth
70.9×20%14.2
Risk
30.2×15%4.5
Valuation
66.3×15%9.9
Moat
27.0×25%6.8
Total
42.3Below Average

Financial Data

More Stock Analysis

How is the DSGR UQS Score Calculated?

The UQS (Unified Quality Score) for Distribution Solutions Group, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Distribution Solutions Group, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Distribution Solutions Group, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.