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Distribution Solutions Group Inc (DSGR)



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Upturn Advisory Summary
09/12/2025: DSGR (1-star) has a low Upturn Star Rating. Not recommended to BUY.
1 Year Target Price $38.5
1 Year Target Price $38.5
1 | Strong Buy |
1 | Buy |
1 | Hold |
0 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -12.17% | Avg. Invested days 48 | Today’s Advisory WEAK BUY |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.44B USD | Price to earnings Ratio 388.62 | 1Y Target Price 38.5 |
Price to earnings Ratio 388.62 | 1Y Target Price 38.5 | ||
Volume (30-day avg) 3 | Beta 0.5 | 52 Weeks Range 21.87 - 41.47 | Updated Date 09/14/2025 |
52 Weeks Range 21.87 - 41.47 | Updated Date 09/14/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.08 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 0.22% | Operating Margin (TTM) 5.37% |
Management Effectiveness
Return on Assets (TTM) 3.7% | Return on Equity (TTM) 0.65% |
Valuation
Trailing PE 388.62 | Forward PE 17.67 | Enterprise Value 2218469641 | Price to Sales(TTM) 0.75 |
Enterprise Value 2218469641 | Price to Sales(TTM) 0.75 | ||
Enterprise Value to Revenue 1.15 | Enterprise Value to EBITDA 13.65 | Shares Outstanding 46275100 | Shares Floating 42186689 |
Shares Outstanding 46275100 | Shares Floating 42186689 | ||
Percent Insiders 1.18 | Percent Institutions 93.02 |
Upturn AI SWOT
Distribution Solutions Group Inc

Company Overview
History and Background
Distribution Solutions Group Inc. (DSG) was formed in 2022 through the combination of Lawson Products, Gexpro Services, and TestEquity. Lawson Products was founded in 1952. The combination aimed to create a leading specialty distributor with a focus on MRO, electronics, and testing products.
Core Business Areas
- Lawson Products: Specialty distributor of MRO (maintenance, repair, and operations) products.
- Gexpro Services: Supply chain outsourcing and vendor managed inventory (VMI) solutions for OEM customers.
- TestEquity: Distributor of electronic test and measurement equipment and production supplies.
Leadership and Structure
The company is led by a CEO and executive team. The organizational structure is designed to support the distinct business units while leveraging shared services and cross-selling opportunities.
Top Products and Market Share
Key Offerings
- MRO Products (Lawson Products): Fasteners, chemicals, cutting tools, and other maintenance and repair essentials. Market share data is fragmented across numerous competitors, making precise estimates difficult. Competitors include Fastenal, Grainger, and MSC Industrial Direct.
- VMI Solutions (Gexpro Services): Inventory management, kitting, and custom packaging services for OEMs. Market share data is not readily available as solutions are tailored to specific clients. Competitors include other supply chain outsourcing firms like UPS Supply Chain Solutions and FedEx Supply Chain.
- Electronic Test Equipment (TestEquity): Oscilloscopes, power supplies, signal generators, and other test and measurement instruments. TestEquity has a significant position in its niche. Competitors include Keysight Technologies, Tektronix and Rohde & Schwarz (distribution).
Market Dynamics
Industry Overview
The industrial distribution market is large and fragmented, driven by the need for maintenance, repair, and operations supplies, as well as specialized electronic test equipment. The industry is influenced by economic cycles, technological advancements, and supply chain dynamics.
Positioning
DSG aims to differentiate itself through its specialty distribution model, focusing on value-added services like vendor managed inventory and technical expertise. They are positioned to serve both MRO and OEM customers.
Total Addressable Market (TAM)
The TAM for MRO, OEM supply chain solutions, and electronic test equipment is estimated to be in the hundreds of billions of dollars. DSG is positioned to capture a portion of this market through its specialized offerings.
Upturn SWOT Analysis
Strengths
- Diversified revenue streams across MRO, OEM, and electronics segments
- Strong vendor relationships with leading manufacturers
- Value-added services like VMI and technical support
- Experienced management team
Weaknesses
- Integration risks associated with recent acquisitions
- Exposure to cyclical economic conditions
- Competition from larger, more established distributors
- Dependence on key suppliers
Opportunities
- Cross-selling opportunities across the three business units
- Expansion into new geographic markets
- Growth in demand for outsourced supply chain solutions
- Acquisition of complementary businesses
Threats
- Economic downturns negatively impacting industrial spending
- Increased competition from online retailers and direct manufacturers
- Disruptions in global supply chains
- Fluctuations in raw material prices
Competitors and Market Share
Key Competitors
- FAST
- GWW
- MSC
Competitive Landscape
DSG aims to compete through its specialized offerings and value-added services. Larger competitors like Fastenal and Grainger have broader product lines and greater scale, while MSC focuses primarily on metalworking.
Major Acquisitions
TestEquity
- Year: 2021
- Acquisition Price (USD millions): 827
- Strategic Rationale: Expanded DSG's presence in the electronics test and measurement market and added a complementary product line.
Growth Trajectory and Initiatives
Historical Growth: Historical growth is best analyzed in recent reporting for combined DSG. Individual entities may have had different performance.
Future Projections: Analyst estimates vary but generally expect revenue growth driven by cross-selling and market expansion. See published analyst reports for details.
Recent Initiatives: Integration of acquired businesses, cross-selling programs, expansion of VMI services, and investment in digital platforms.
Summary
Distribution Solutions Group Inc. is a relatively new entity formed through strategic acquisitions, positioning itself as a specialty distributor. Its diversified business model offers stability, but integration risks and economic cyclicality pose challenges. The company's success hinges on effective cross-selling and leveraging value-added services to compete with larger players in a fragmented market.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company press releases
- Investor presentations
- Analyst reports
- Industry publications
Disclaimers:
This analysis is based on publicly available information and should not be construed as investment advice. Market share data is approximate and may vary by segment. Financial data may be outdated, see most recent report for accurate numbers.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Distribution Solutions Group Inc
Exchange NASDAQ | Headquaters Fort Worth, TX, United States | ||
IPO Launch date 1990-03-26 | President, CEO & Chairman Mr. John Bryan King C.F.A. | ||
Sector Industrials | Industry Industrial Distribution | Full time employees 4400 | |
Full time employees 4400 |
Distribution Solutions Group, Inc., a specialty distribution company, provides value-added distribution solutions to the maintenance, repair and operations (MRO), original equipment manufacturer, and industrial technology markets. It operates through four segments: Lawson, Gexpro Services, TestEquity, and Canada Branch Division. The Lawson segment distributes specialty products and services to the industrial, commercial, institutional, and government MRO marketplace. The Gexpro Services segment provides supply chain management solutions that offer VMI, kitting, global logistics management, manufacturing localization and import, value engineering, and quality assurance to renewables, industrial power, consumer and industrial, technology, transportation, and aerospace and defense customers. The TestEquity segment distributes test and measurement equipment and solutions, industrial and electronic production supplies, and vendor managed inventory programs, as well as converting, fabrication, and adhesive solutions to the aerospace and defense, wireless and communication, semiconductors, industrial electronics and automotive, and electronics manufacturing industries under the TestEquity, Hisco, TEquipment, Techni-Tool, and Jensen Tools brands. The Canada Branch Division distributes industrial MRO supplies, safety products, fasteners, power tools, and related value-add services to the industrial, government, commercial, and residential contractor markets for the Canadian MRO market. It has operations in the United States, Canada, Europe, Pacific Rim, Latin America, and internationally. The company was formerly known as Lawson Products, Inc. and has changed to Distribution Solutions Group, Inc. 2022. Distribution Solutions Group, Inc. was incorporated in 1952 and is headquartered in Fort Worth, Texas.

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