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Distribution Solutions Group Inc (DSGR)



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Upturn Advisory Summary
10/14/2025: DSGR (1-star) is currently NOT-A-BUY. Pass it for now.
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 -11.8% | Avg. Invested days 49 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.34B USD | Price to earnings Ratio 362.75 | 1Y Target Price 38.5 |
Price to earnings Ratio 362.75 | 1Y Target Price 38.5 | ||
Volume (30-day avg) 3 | Beta 0.47 | 52 Weeks Range 21.87 - 41.47 | Updated Date 10/14/2025 |
52 Weeks Range 21.87 - 41.47 | Updated Date 10/14/2025 | ||
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 362.75 | Forward PE 16.92 | Enterprise Value 2157849269 | Price to Sales(TTM) 0.7 |
Enterprise Value 2157849269 | Price to Sales(TTM) 0.7 | ||
Enterprise Value to Revenue 1.12 | Enterprise Value to EBITDA 13.28 | Shares Outstanding 46275093 | Shares Floating 42186689 |
Shares Outstanding 46275093 | Shares Floating 42186689 | ||
Percent Insiders 1.18 | Percent Institutions 93.05 |
Upturn AI SWOT
Distribution Solutions Group Inc

Company Overview
History and Background
Distribution Solutions Group Inc. (DSGR) was formed in 2022 through the combination of Lawson Products, Gexpro Services and TestEquity. These three entities, each with its own rich history, came together to create a single, stronger platform. Lawson Products was founded in 1952. Gexpro Services has decades of experience in supply chain and service solutions. TestEquity, founded in 1961, is a distributor of electronic test and measurement equipment and supplies.
Core Business Areas
- Lawson Products: Distribution of MRO (maintenance, repair, and operating) supplies primarily in North America.
- Gexpro Services: Supply chain solutions and services to original equipment manufacturers (OEMs).
- TestEquity: Distributor of electronic test and measurement equipment and production supplies.
Leadership and Structure
Bryan King is the CEO of Distribution Solutions Group. The organizational structure involves distinct operating segments (Lawson Products, Gexpro Services, TestEquity) under a unified corporate umbrella.
Top Products and Market Share
Key Offerings
- MRO Supplies (Lawson Products): Includes fasteners, chemicals, cutting tools, and other maintenance and repair items. Lawson Products holds a fragmentated market. Competitors are: Fastenal (FAST), W.W. Grainger (GWW).
- Supply Chain Solutions (Gexpro Services): Manages complex supply chains, offering sourcing, kitting, and other value-added services. Competitors are: Supply chain management firms; Arrow Electronics (ARW) and Avnet (AVT).
- Electronic Test and Measurement Equipment (TestEquity): Sells and rents equipment, including oscilloscopes, power supplies, and signal generators. Competitors include: Keysight Technologies (KEYS), and Tektronix.
Market Dynamics
Industry Overview
The industrial distribution market is large and fragmented, with opportunities for consolidation and value-added services. Demand is driven by industrial production, capital spending, and MRO activity.
Positioning
DSGR aims to be a leading specialty distribution company, leveraging its diverse offerings and geographic reach to serve a wide range of customers.
Total Addressable Market (TAM)
The combined TAM for MRO, supply chain solutions, and electronic test equipment is estimated to be in the billions of dollars. DSGR is positioned to capture a larger share through organic growth and acquisitions.
Upturn SWOT Analysis
Strengths
- Diversified product portfolio
- Broad geographic reach
- Strong customer relationships
- Value-added service capabilities
- Experienced management team
Weaknesses
- Integration risk from recent acquisitions
- Dependence on economic cycles
- Exposure to commodity price fluctuations
- Working Capital intensive
- High debt load relative to EBITDA
Opportunities
- Further consolidation of the distribution market
- Expansion into new geographies
- Growth in e-commerce and digital channels
- Increased demand for supply chain optimization
- Cross-selling opportunities across business units
Threats
- Economic downturn
- Increased competition
- Disruptions in supply chain
- Changes in customer preferences
- Rising interest rates
Competitors and Market Share
Key Competitors
- FAST
- GWW
- MSC
Competitive Landscape
DSGR competes with large, well-established distributors. Its competitive advantages include its diversified product portfolio, value-added service capabilities, and focus on specialty markets. Weaknesses include integration risk and dependence on economic cycles.
Major Acquisitions
Hisco
- Year: 2024
- Acquisition Price (USD millions): 297.5
- Strategic Rationale: Expands DSGR's specialty distribution capabilities and market reach, particularly in the electronics and industrial sectors.
Growth Trajectory and Initiatives
Historical Growth: Historical growth reflects the combined performance of Lawson Products, Gexpro Services, and TestEquity prior to the formation of DSGR, and the combined company's performance since 2022.
Future Projections: Future growth projections would rely on analyst estimates. These generally depend on macroeconomic conditions and industry-specific trends.
Recent Initiatives: Recent initiatives include integrating the three business units, expanding digital capabilities, and pursuing strategic acquisitions.
Summary
Distribution Solutions Group is a diversified industrial distributor formed through strategic acquisitions. The company benefits from a broad product portfolio and value-added services, but faces integration challenges and economic sensitivities. Recent acquisitions will need to be integrated successfully to generate synergies. Growth opportunities exist through further consolidation and digital expansion. DSGR must navigate competitive pressures and supply chain risks effectively.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings, press releases, industry reports, analyst estimates.
Disclaimers:
This analysis is based on available information and is not financial advice. Market conditions and company performance can change. All financial figures are estimates based on publicly available data and may not be precise.
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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