Distribution Solutions Group Inc logo

Distribution Solutions Group Inc(DSGR)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL RECENCY
1-STAR RATING
Consider higher Upturn Star rating
BUY for 50 days
PROFIT SINCE LAST BUY
+1.33% ▲
LAST CLOSE
$34.96
09/25/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Upturn Advisory & Investor View for DSGR

09/25/2026: DSGR (1-star) has a low Upturn Star Rating. Not recommended to BUY.

Distribution Solutions Group Inc is an industrial distribution platform formed by the combination of Lawson Products, TestEquity, and Gexpro Services. The company offers a wide range of MRO supplies, electronic testing equipment, and supply chain management services. Its primary strength lies in its integrated service model, which aims to provide value beyond simple product distribution. Key growth opportunities center on realizing cross-selling synergies, while main risks include high integration complexity, industrial cyclicality, and competition from large-scale national distributors. The stock is generally more suited to investors comfortable with the execution risks inherent in integrating a newly formed platform, as the company prioritizes reinvestment over dividend income.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitThe company offers growth via M&A, but execution risks regarding synergy realization remain.
Momentum investorWeak fitThe stock often lacks the high-volume upward price momentum required for this style.
Value investorMixed fitValuation depends heavily on successfully integrating assets and improving future margins.
Dividend investorWeak fitThe company does not prioritize dividend payments, focusing on reinvestment instead.
Low-risk investorWeak fitThe high leverage and integration-heavy business model introduce significant execution risks.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMedium / highThe stock experiences significant swings based on industrial sentiment and integration news.
Valuation riskMediumInvestor confidence relies on the company meeting aggressive synergy targets.
Competition risk (Scale/Distribution)HighLarge competitors have greater resources to out-invest DSGR in technology and inventory.
Business qualityMediumThe business is transforming but historically has been sensitive to cyclical MRO demand.
Dividend incomeLow / noneInvestors seeking current income will find few options here.
Execution riskHighCombining disparate business cultures and systems is inherently difficult and prone to delays.

Price Behavior

Strong Uptrend
PRICE PATH

Strong Uptrend

The stock has maintained a strong upward price trend across the last three quarters.

Extreme Price Shocks
PRICE STABILITY

Extreme Price Shocks

The stock has experienced exceptionally large and disruptive price movements during the period.

Analysis of Past Performance

Type Stock
Historic Profit -34.49%
Avg. Invested days 46
Today’s Advisory Consider higher Upturn Star rating
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 3.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/25/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
DSGR receives a 3-star rating, supported by solid company fundamentals. The rating is constrained by soft unit economics, weak price momentum, and limited analyst upside.

Company Fundamentals

★★★★★
DSGR has solid overall fundamentals (4 stars), with moderate financial health, solid growth momentum, and solid ownership. In FY2025 versus FY2024, strong earnings growth (+213.8%) is partially offset by soft cash generation (FCF margin 2.2%), moderate revenue growth (+9.8%), soft profitability (net margin 0.4%).

Financial Health Rating

★★★★★
DSGR's financial health is supported by solid cash strength, including free-cash-flow generation (2.2% of revenue). Profitability is soft (2 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Earnings growth is DSGR's strongest growth driver at +213.8% FY2025 versus FY2024 (strong, 5 stars). By comparison, free-cash-flow growth (+30.3%, solid) is also solid, while revenue growth (+9.8%, moderate) holds the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 93.1% and approximately 91.3% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 1.19% provides only moderate management-shareholder alignment.

Top 5 Institutional Investors

King Luther Capital Management Corp 78.60%
Dimensional Fund Advisors, Inc. 2.10%
BlackRock Inc 1.35%
Royce & Associates, LP 1.08%
Nantahala Capital Management, LLC 1.07%

Unit Economics (Per $1K Revenue)

★★★★★
DSGR generates approximately $334 of gross profit, $40 of operating income, and $22 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Strong cash conversion and healthy margins support the rating, although capital efficiency remains below the highest tier.

Economic Dimensions

★★★★★
Effective Tax Rate: 57.01%

Quantitative Style Profile

★★★★★
DSGR has a liquid, relatively low-volatility profile. Weak momentum is the primary drawback, while valuation that is moderately attractive rather than deeply discounted.

Style Classification

Quality Focused

Low VolatilitySmall / Mid Cap RiskShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 1.62B USD
Price to earnings Ratio 184
1Y Target Price 35
Price to earnings Ratio 184
1Y Target Price 35
Volume (30-day avg) 210.8K shares
Beta 0.54
52 Weeks Range 19.02 - 35.06
Updated Date 09/25/2026
52 Weeks Range 19.02 - 35.06
Updated Date 09/25/2026
Dividends yield (FY) -
Basic EPS (TTM) 0.19

How Company Makes Money

Business areaWhat it includesRetail investor read
MRO ProductsConsumables, fasteners, and maintenance supplies.Steady, recurring sales from daily industrial operations.
Test & MeasurementElectronic equipment sales and rentals.Higher-margin, specialized revenue from R&D and manufacturing.
Supply Chain ServicesInventory management and logistics.Long-term contractual revenue tied to customer operational efficiency.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Valuation

Trailing PE 184
Forward PE 19.65
Enterprise Value 2.40B
Price to Sales(TTM) 0.79
Enterprise Value 2.40B
Price to Sales(TTM) 0.79
Enterprise Value to Revenue 1.17
Enterprise Value to EBITDA 16.03
Shares Outstanding 46.26M
Shares Floating 42.23M
Shares Outstanding 46.26M
Shares Floating 42.23M
Percent Insiders 1.19
Percent Institutions 93.06

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Distribution Solutions Group Inc

Exchange NASDAQ
Headquarters 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 4300
Full time employees 4300

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, TestEquity, Gexpro Services, and Canada Branch Division. The Lawson segment distributes specialty products and services to the industrial, commercial, institutional, and government MRO marketplace. 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, Techni-Pro, Techni-Tool, and Jensen Tools brands. The Gexpro Services segment provides supply chain management solutions that offer VMI, kitting, global logistics management, manufacturing localization and import expertise, value engineering and quality assurance to renewables, industrial power, consumer and industrial, technology, transportation, and aerospace and defense. 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. The company distributes MRO products to its customers through a network of sales representatives. 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.